Australian Broker Call

Deutsche Bank rates AAD as Hold (3) -

Ardent had pre-released so there was nothing new in yesterday's numbers, nor was there any update on the "strategic initiatives" the company plans to adopt to turn the ship around. Harvey hasn't helped, closing six Main Event centres in Texas, although insurance should cover damage costs.

The broker awaits next week's AGM, at which certain shareholders are seeking the appointment of new directors to "fix" the company. Hold and $2.05 target retained.

Target price is $2.05 Current Price is $1.93 Difference: $0.12
If AAD meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.86, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Ord Minnett rates AAD as Hold (3) -

FY17 net profit  was below Ord Minnett forecasts. The broker considers the strategic direction improved, with a focus on the performance of Main Event versus absolute growth.

Still, the broker is concerned about some of the newer centres and increasing competition as well as the reliance on a number of operational improvements under new management.

Hold rating retained. Target is $1.65.

Target price is $1.65 Current Price is $1.93 Difference: minus $0.28 (current price is over target).
If AAD meets the Ord Minnett target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.86, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

UBS rates AAD as Sell (5) -

The company has at least five damaged Main Event sites from Hurricane Harvey in the US. Three centres will be closed for a total of ten days, one for approx two months and one closed for an indefinite period.

Insurance coverage is expected to cover property damage and loss of earnings. UBS has made negligible changes to EBITDA forecasts, but a longer than expected depreciation profile has led to EPS upgrades. 

The broker maintains a Sell rating and $1.60 target.

Target price is $1.60 Current Price is $1.93 Difference: minus $0.33 (current price is over target).
If AAD meets the UBS target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.86, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Morgans rates AHZ as Reduce (5) -

FY17 results were behind Morgans forecasts. The main achievements were the US regulatory clearance for three regenerative medicine products.

The broker increases its net loss forecast -$7.1m in FY18 to reflect a lower contribution from the R&D tax incentive. Management has guided to break even in the fourth quarter of 2018, a delay versus previous announcements.

Reduce retained. Target lowered to $0.22 from $0.23.

Target price is $0.22 Current Price is $0.25 Difference: minus $0.03 (current price is over target).
If AHZ meets the Morgans target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -1.0

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

Morgan Stanley rates CBA as Underweight (5) -

The bank's life insurance operations are under review and Morgan Stanley observes a sale is one option. Depending on the price, the broker suspects a sale could be a small positive, as it would free up some capital and remove a low-returning business, while reducing earnings volatility.

The broker also believes a review of the priorities in wealth management is warranted, given low growth and returns since FY18.

Underweight. Target is $72. Industry view is In-Line.

Target price is $72.00 Current Price is $75.80 Difference: minus $3.8 (current price is over target).
If CBA 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 $79.48, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Citi rates CGF as Neutral (3) -

Citi has slightly lowered estimates to incorporate the dilution stemming from the share placement with partner Mitsui. The analysts acknowledge FY17 seems to have disappointed investors, but growth might be easier from here onwards, they suggest.

Nevertheless, given guidance is for relatively subdued growth in FY18, Citi analysts find the shares relatively fully valued. Neutral rating retained. Target price increases to $12.65.

Target price is $12.65 Current Price is $12.54 Difference: $0.11
If CGF meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $11.98, suggesting downside of -3.8% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Macquarie rates CLQ as Outperform (1) -

The company has entered into a binding five-year offtake agreement which covers 20% of the nickel sulphate and cobalt sulphate at Syerston. Macquarie considers this a significant milestone.

Importantly pricing is clear and there is potential to sell down over -25% of Syerston at the asset level which could cover a significant portion of the equity funding requirement for the company.

Target is $1.10. Outperform retained.

Target price is $1.10 Current Price is $0.96 Difference: $0.145
If CLQ meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Macquarie rates GTN as Outperform (1) -

FY17 results were in line with Macquarie. The broker observes relative to prospectus, and excluding the US, the results were a solid beat despite currency headwinds.

Macquarie believes the US represents a material opportunity but the magnitude of the investment alters the near-term earnings profile.

The broker maintains an Outperform rating on a 12-month view. At that point, the company should be through the peak of its US investment and sales momentum should build. Target is raised to $3.76 with $3.65.

Target price is $3.76 Current Price is $2.32 Difference: $1.44
If GTN meets the Macquarie target it will return approximately 62% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Morgan Stanley rates HSO as Upgrade to Equal-weight from Underweight (3) -

Morgan Stanley concedes long-term structural challenges but the low growth prospects in the near-term have been captured by the stock's performance.

While some balance sheet risk is conceived in FY19, this is two years away and the broker envisages remedial options and favourable covenant adjustments mitigate some of the risks.

Rating is upgraded to Equal-weight from Underweight. Price target is $1.80. In-Line industry view.

Target price is $1.80 Current Price is $1.74 Difference: $0.06
If HSO meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting upside of 20.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Citi rates HVN as Sell (5) -

FY17 results were in-line but Citi observes there was a marked slowdown in sales momentum over recent months and poor underlying cash flow.

The dividend is reduced and there was no share buy-back. Accompanying the result was a change in the way receivables from franchisees are reported, and the broker believes this is likely to be meaningful for the buying terms received from suppliers.

No guidance was provided for FY18. Citi observes competitive pressure is affecting like-for-like growth and maintains a Sell rating, reducing the target to $3.10 from $3.40.

Target price is $3.10 Current Price is $4.08 Difference: minus $0.98 (current price is over target).
If HVN meets the Citi target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.12, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Credit Suisse rates HVN as Neutral (3) -

FY17 results were pleasing to the broker, although the weak cash flow was a disappointment. Credit Suisse expects sales growth to slow through FY18 and forecasts a slower rate of profit growth for the period.

The broker believes household goods spending is likely to slow through FY18 due to a slowing residential tailwind and low wages growth. With net debt increasing in FY17 and the company entertaining a similar level of investment in property, plant and equipment in FY18 as it did in FY17, Credit Suisse sees little room for capital management. 

Neutral retained and target reduced to $3.91 from $4.08.

Target price is $3.91 Current Price is $4.08 Difference: minus $0.17 (current price is over target).
If HVN meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.12, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Deutsche Bank rates HVN as Buy (1) -

Harvey Norman's result was robust and broadly in line with the broker, marking the fourth consecutive year of 20% plus profit growth. Opportunities offshore should offset modest Aust growth in FY18.

The broker found the dividend cut frustrating given the strong result, but it still leaves the door open for capital management and a franking release down the track. An accounting change will reduce earnings visibility but does not much impact on the numbers.

Buy retained. Target falls to $5.50 from $5.75.

Target price is $5.50 Current Price is $4.08 Difference: $1.42
If HVN meets the Deutsche Bank target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $4.12, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Macquarie rates HVN as Neutral (3) -

FY17 net profit was in line with Macquarie. The broker observes comparable sales are slowing and earnings margins are peaking. Singapore growth is ongoing despite the intensity of online trading.

The broker needs to see compelling value before becoming more positive. Neutral.Target is reduced to $4.35 from $4.50.

Target price is $4.35 Current Price is $4.08 Difference: $0.27
If HVN meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.12, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Morgan Stanley rates HVN as Underweight (5) -

Morgan Stanley observes Australian trading is losing momentum as the company cycles a more difficult period and housing growth slows. With consumers facing more pressure from higher interest rates and energy costs, the broker expects demand for big-ticket items to pull back.

Morgan Stanley considers the stock expensive and finds more value in Super Retail ((SUL)) and JB Hi-Fi ((JBH)). The broker retains an Underweight rating. Target is $3.50. Industry view is Cautious.

Target price is $3.50 Current Price is $4.08 Difference: minus $0.58 (current price is over target).
If HVN meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.12, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Ord Minnett rates HVN as Lighten (4) -

FY17 net profit was ahead of Ord Minnett forecasts, although cash flow was much weaker than expected as a reiteration of franchisee independence weighed on working capital and drove the final dividend lower.  Franchisee sales slowed at the start of FY18.

The broker observes support from factors such as rising house prices, store closures and cost reductions is fading. Lighten rating retained. Target is $3.50.

Target price is $3.50 Current Price is $4.08 Difference: minus $0.58 (current price is over target).
If HVN 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 $4.12, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

UBS rates HVN as Buy (1) -

FY17 results were slightly below the broker's expectations. The big cut in the second half dividend, to 12cps, surprised UBS.

While no explicit guidance was given, FY18 Australia sales are up 4% year on year. UBS has downgraded FY18 to FY20 earnings forecasts by -3%, reflecting weaker sales and higher D&A charges.

The company also flagged a share buy-back, with the broker estimating a $150m to $300m buy-back being 2% to 5% EPS accretive in FY19. Buy rating and $5.00 target retained.

Target price is $5.00 Current Price is $4.08 Difference: $0.92
If HVN meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.12, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Citi rates MML as Neutral (3) -

FY17 financials were in line and Citi expects FY18 to be more profitable on the back of increased production and operational improvements.

The company has reiterated production guidance of 80-90,000 ounces of gold. Target is raised to $0.32 from $0.31. Neutral/High Risk rating retained.

Target price is $0.32 Current Price is $0.30 Difference: $0.02
If MML meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.0

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

Credit Suisse rates MQA as Neutral (3) -

First half results were below the broker's estimates. Management has guided towards 2018 DPS of 22.5cps.

Loudoun County is widening two alternative free routes in the area over the next 18 to 24 months. The company's Dulles Greenway captures around 20% of demand in the corridor.

When complete, capacity could increase by 15% to 20%, slowing traffic growth for Dulles Greenway. Despite the weaker traffic in first half 2017, DG is on track to pass all the debt coverage ratio tests at the end of 2018, with a cash release in 2019.

Neutral and $5.90 target maintained.

Target price is $5.90 Current Price is $5.68 Difference: $0.22
If MQA meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.77, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Macquarie rates MQA as Outperform (1) -

First half results were in line with Macquarie's estimates. The outlook for traffic at APRR is for a continuation of first half growth rates.

The Dulles Greenway result was solid, the broker observes, although traffic is below budget, reflecting alternative route improvements.

Outperform. Target is raised to $6.30 from $6.17.

Target price is $6.30 Current Price is $5.68 Difference: $0.62
If MQA meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.77, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

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

The company's assets are performing in line with Morgan Stanley's expectations although the range of scenarios for the next 6 to 12 months is wide.

The broker notes the issue facing the company at present is the upcoming sale of the 16.3% interest in APRR. The broker expects the Dulles Greenway can come out of debt lock-up in FY18 and lead to a step up in distributions in FY19.

Equal-weight retained. Target is reduced to $5.74 from $5.83. Industry view: Cautious.

Target price is $5.74 Current Price is $5.68 Difference: $0.06
If MQA meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.77, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Morgans rates MQA as Hold (3) -

The improvement in first half operating earnings margins beat forecasts. Morgans expects the company will buy an additional amount of the APRR from the co-investor requiring a capital raising.

The timing is uncertain and the company has not disclosed if the pre-emptive rights period has begun. Given the potential size ,the transaction may cause material changes to valuation and, as the situation is up in the air, Morgans retains a Hold rating. Target is raised to $5.96 from $5.75.

Target price is $5.96 Current Price is $5.68 Difference: $0.28
If MQA meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.77, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Morgans rates MWY as Add (1) -

The company will acquire Plantation Management Partners, which has over 70,000 ha under management in northern Australia and Southeast Asia.

Morgans observes the acquisition is in line with the company's growth strategy and reason for listing, which is to grow and diversify the underlying business. Add rating retained. Target is raised to $2.95 from $2.75.

Target price is $2.95 Current Price is $2.35 Difference: $0.6
If MWY meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Citi rates NXT as Buy (1) -

Citi observes FY18 will be a year of investment and FY19 provide the fruits of that investment. The broker believes the material increases in capacity that are being planned are based on genuine observations regarding client demand.

Capacity additions are a leading indicator of revenue and ultimately profit and the broker recommends investors buy the stock in advance of the expected client announcements. Buy retained. Target rises to $6.03 from $5.18.

Target price is $6.03 Current Price is $4.58 Difference: $1.45
If NXT meets the Citi target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $5.24, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Credit Suisse rates NXT as Outperform (1) -

FY17 results were slightly better than Credit Suisse had expected. The company announced that B2's planned capacity has been upgraded from 6Mw to 12Mw and M2 has been increased from 25Mw to 40Mw.

Targeted opening for both is now Sep/Oct this year, while the opening of S2 has now been put back to first quarter 2019. The broker has lowered FY18 and FY19 EBITDA by -4% and -13% respectively, mainly due to later completion dates for B2, M2 and S2.

Outperform maintained and target raised to $5.00 from $4.70.

Target price is $5.00 Current Price is $4.58 Difference: $0.42
If NXT meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.24, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Deutsche Bank rates NXT as Buy (1) -

NextDC's result and FY18 guidance were in line with the broker. The revenue pipeline is as strong as it's ever been, the broker notes, with a number of Hyperscale cloud deals in advanced negotiation.

The broker retains Buy on the structural data centre growth story, growth drivers in the form of M2, B2 and S2, strong execution and declining operational risk. Target rises to $4.90 from $4.60.

Target price is $4.90 Current Price is $4.58 Difference: $0.32
If NXT meets the Deutsche Bank target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.24, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Macquarie rates NXT as Outperform (1) -

FY17 operating earnings were in line with Macquarie's estimates. The company has announced significant increases to previously planned capacity at B2 and M2 which suggests increased confidence in the opportunities.

The broker observes significant operating leverage once individual data centres reach appropriate scale. Outperform retained. Target rises to $4.94 from $4.30.

Target price is $4.94 Current Price is $4.58 Difference: $0.36
If NXT meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.24, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Morgans rates NXT as Add (1) -

FY17 results were slightly ahead of Morgans. Guidance is for 14-25% growth in operating earnings.

The company has indicated its second Sydney data centre will open the first half of FY19 versus the first half of FY18 and has also upgraded targeted capacity for M2 and B2, now expecting 40MW and 12MW over two stages, respectively.

As a result of adding additional plant capacity and the rolling forward of valuation,, Morgans increases the price target to $5.38 from $5.01. The broker continues to believe the long-term growth profile is attractive and retains an Add rating.

Target price is $5.38 Current Price is $4.58 Difference: $0.8
If NXT meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $5.24, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Deutsche Bank rates ORE as Buy (1) -

Orocobre's earnings result beat the broker on strong realised lithium prices. FY18 production guidance is in line, with a second half skew.

The company has upgraded brine pond inventory, which the broker sees as incrementally positive. Olaroz is expected to reach nameplate production next year, after which Orocobre will consider a phase II expansion. The broker retains Buy and  $4.30 target.

Target price is $4.30 Current Price is $3.86 Difference: $0.44
If ORE meets the Deutsche Bank target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.07, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Morgan Stanley rates ORE as Underweight (5) -

FY18 production guidance is -10% below Morgan Stanley's estimates. Olaroz stage I is expected to produce 14,000 tonnes of lithium carbonate.

No cost guidance has been provided at present. The company has flagged a -US$8.1m write-down of the borax business attributable to poor pricing for the boron products.

Morgan Stanley retains an Underweight rating, an Attractive industry view and $2.85 target.

Target price is $2.85 Current Price is $3.86 Difference: minus $1.01 (current price is over target).
If ORE meets the Morgan Stanley target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.07, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

UBS rates ORE as Buy (1) -

Orocobre's FY17 results were in line with UBS forecasts, although costs were slightly above expectations.

FY18 guidance for 14kt of lithium carbonate from Olarox at an average price of US$10,000/t appears conservative to the broker. As a result UBS has downgraded FY18 earnings forecast by -17% to US$27m.

Consistent operating performance and ramp-up to full production of 17.5ktpa for phase one at Olaroz will be the main driver of the share price, suggests the broker. Buy rating and $5.00 target retained.

Target price is $5.00 Current Price is $3.86 Difference: $1.14
If ORE meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $4.07, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Credit Suisse rates OZL as Underperform (5) -

The company has received a notice of termination of existing power supply to Prominent Hill from BHP Olympic Dam ((BHP)) with 3 years notice of disconnection on 30th August 2020.

Oz Minerals did foresee this risk and has identified alternative, although unspecified, supply arrangements. These are expected to impact all in costs by between 2% and 5% at Prominent Hill. Carrapateena is not affected.

Underperform rating maintained and target is $7.30.

Target price is $7.30 Current Price is $8.11 Difference: minus $0.81 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.59, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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 has advised that BHP Olympic Dam Corp ((BHP)) is terminating the power line connection and access agreement with Prominent Hill, effective from 30th August 2020.

The issue only affects Prominent Hill beyond 2020 and does not impact Carrapateena. UBS expects the company will be working on solutions to ensure adequate access to power to underpin expected mine life at Prominent Hill to 2028.

The company has indicated that all in costs could rise by 2% to 5% beyond 2020. Buy and $10.00 target retained.

Target price is $10.00 Current Price is $8.11 Difference: $1.89
If OZL meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $8.59, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Ord Minnett rates QAN as Sell (5) -

The company will apply to extend its partnership with Emirates for another five years although it will re-route several Australia-UK services via Perth and Singapore rather than Dubai.

Ord Minnett believes this renewal of the Emirates alliance is critical to profitability. To justify the current share price the broker believes further domestic airfare increases in the order of 10% are required. Sell rating and $4.55 target retained.

Target price is $4.55 Current Price is $5.72 Difference: minus $1.17 (current price is over target).
If QAN meets the Ord Minnett target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.83, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Citi rates REH as Buy (1) -

FY17 sales were in line with Citi while operating earnings and net profit beat estimates, largely because of better-than-expected margins.

The broker observes the core plumbing business was able to capitalise on record building and construction activity. Buy retained. Target rises to $53.79 from for $49.79.

Target price is $53.79 Current Price is $42.25 Difference: $11.54
If REH meets the Citi target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Morgans rates RRL as Downgrade to Reduce from Hold (5) -

FY17 gold production was strong with earnings ahead of estimates. The company continues to increase its expenditure on resource development and exploration to replace ore feeds.

Morgans believes the stock appeals as a well-run, consistent and low-cost Australian gold producer.

Nevertheless, given the discrepancy between the broker's valuation and the current share price the rating is downgraded to Reduce from Hold. Target is raised to $3.28 from $3.00.

Target price is $3.28 Current Price is $4.15 Difference: minus $0.87 (current price is over target).
If RRL meets the Morgans target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.47, suggesting downside of -17.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Credit Suisse rates WEB as Outperform (1) -

FY17 results were in line with the broker's expectations, having been previously flagged. Webjet has deferred to its auditor's view of the treatment of Thomas Cook's $11m payment that it is not revenue.

While Credit Suisse believed business to consumer revenue looked strong, the company has since disclosed that this included an approx $16m of grossed-up TTV and revenue devoted to the Exclusives business. The removal of Thomas Cook and reclassification of Exclusives leads to a decline in revenue for FY18 of -$11m to -$12m.

Outperform and $13.15 target maintained.

Target price is $13.15 Current Price is $11.91 Difference: $1.24
If WEB meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $12.88, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Morgan Stanley rates WEB as Underweight (5) -

FY17 results were in line with prior guidance. Booking growth was strong in July but decelerated materially in August so the broker urges caution in extrapolating any of these growth rates. Morgan Stanley observes the stock tends to polarise investors.

While the company appears on track for solid growth in FY18, the acquisition strategy and the lack of visibility is too aggressive for the broker. Underweight. Industry view: In line. Target is $11.35.

Target price is $11.35 Current Price is $11.91 Difference: minus $0.56 (current price is over target).
If WEB 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 $12.88, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Morgans rates WEB as Add (1) -

FY17 results were in line with guidance. Significant growth was achieved across all businesses.

Morgans believes the decision to accept the auditor's treatment of the Thomas Cook agreement will allow management to focus on integrating the JacTravel acquisition.

Morgans is encouraged by FY18's solid start and retains an Add rating. Target is reduced to $13.40 from $13.50.

Target price is $13.40 Current Price is $11.91 Difference: $1.49
If WEB meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $12.88, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Ord Minnett rates WEB as Buy (1) -

FY17 results were broadly in line with Ord Minnett. The broker downgrades forecasts for earnings per share by -5% for FY18 and FY19 to reflect the seasonality of JacTravel and the delayed start of the Thomas Cook deal.

Successful integration of these transactions will have a bearing on future share prices, the broker believes, given both have the potential to provide a step change in earnings.

Buy rating retained. Target is reduced to $15.00 from $15.13.

Target price is $15.00 Current Price is $11.91 Difference: $3.09
If WEB meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $12.88, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Deutsche Bank rates WLD as Hold (3) -

Wellard's result was in line with guidance but negative in the broker's view, with operating expenses up 18%. A cost-out program, vessel sale and capital raising are all positives but the broker suggests more effort is required to preserve FY18 profitability in a challenging market.

With a recovery now delayed until FY19, the broker cuts earnings by -50% and retains Hold. Target falls to 13c from 14c.

Target price is $0.13 Current Price is $0.12 Difference: $0.01
If WLD meets the Deutsche Bank target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $0.14, suggesting upside of 27.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.5

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