Australian Broker Call

Morgans rates APT as Add (1) -

Morgans lifts forecast for FY19 and FY20 by 5% and 1% respectively, to reflect higher current year sales forecasts. The broker envisages future upside from offshore expansion.

While the share price has been affected recently by the jittery market, and concerns around regulation, the broker believes the underlying growth story is firmly intact.

Add rating maintained. Target is reduced to $18.88 from $19.15.

Target price is $18.88 Current Price is $15.20 Difference: $3.68
If APT meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Macquarie rates AWC as Outperform (1) -

December quarter production was stronger, quarter on quarter, albeit marginally below Macquarie's expectations. Realised prices were strong in the quarter, at US$469/t.

Macquarie observes valuation upside is still evident at spot prices. Strong free cash flow should support sustainable and significant returns in coming years, the broker suggests.

Outperform rating and $2.70 target maintained.

Target price is $2.70 Current Price is $2.38 Difference: $0.32
If AWC meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.6

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

Ord Minnett rates BWP as Downgrade to Lighten from Hold (4) -

In Ord Minnett's view, the outlook for property earnings is robust while balance sheets are well positioned. Nevertheless, various asset classes are at, or approaching, peak cycle conditions.

Capitalisation rates are expected to bottom in the first half of FY19 and real estate assets to soften around -25-75 basis points, because of an excess supply of assets for sale and softening rental growth.

Office remains the stronger segment but the key market, Sydney, is at risk of reaching an inflection point in 2020.

Ord Minnett downgrades BWP Trust to Lighten from Hold. Target is steady at $3.30.

Target price is $3.30 Current Price is $3.70 Difference: minus $0.4 (current price is over target).
If BWP meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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 stock has outperformed major bank peers since its FY18 result, which Morgan Stanley attributes to progress on its strategy, RBNZ capital proposals, back book repricing and above-peer housing loan growth.

Nevertheless, given pressure on retail bank profitability and a deteriorating outlook for housing, as well as the ongoing compliance burden, the broker maintains a cautious view. Morgan Stanley believes a PE premium to peers of over 20% is unsustainable.

Underweight. Target is $64.50. Industry view: In-Line.

Target price is $64.50 Current Price is $73.05 Difference: minus $8.55 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.08, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

Ord Minnett rates CDP as Upgrade to Hold from Lighten (3) -

In Ord Minnett's view, the outlook for property earnings is robust while balance sheets are well positioned. Nevertheless, various asset classes are at, or approaching, peak cycle conditions.

Capitalisation rates are expected to bottom in the first half of FY19 and real estate assets to soften around -25-75 basis points, because of an excess supply of assets for sale and softening rental growth.

Office remains the stronger segment but the key market, Sydney, is at risk of reaching an inflection point in 2020.

Ord Minnett upgrades to Hold from Lighten based on valuation. Target is reduced to $7.50 from $7.80.

Target price is $7.50 Current Price is $7.26 Difference: $0.24
If CDP meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

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

Ord Minnett expects the company to end FY19 with assets under management of $29bn, up 25%. The broker also forecasts 12% growth in earnings per share.

FY20 is forecast to be a strong year for earnings, expected to be up 85%. Estimates are raised and the target is lifted to $8.25 from $7.50. Rating is upgraded to Accumulate from Hold.

Target price is $8.25 Current Price is $7.59 Difference: $0.66
If CHC meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $7.48, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Ord Minnett rates CLW as Downgrade to Lighten from Hold (4) -

In Ord Minnett's view, the outlook for property earnings is robust while balance sheets are well positioned. Nevertheless, various asset classes are at, or approaching, peak cycle conditions.

Capitalisation rates are expected to bottom in the first half of FY19 and real estate assets to soften around -25-75 basis points, because of an excess supply of assets for sale and softening rental growth.

Office remains the stronger segment but the key market, Sydney, is at risk of reaching an inflection point in 2020.

Ord Minnett downgrades to Lighten from Hold, because of a reduced growth outlook. Target is steady at $4.15.

Target price is $4.15 Current Price is $4.37 Difference: minus $0.22 (current price is over target).
If CLW meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.08, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.7

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

Ord Minnett rates CMW as Upgrade to Accumulate from Lighten (2) -

In Ord Minnett's view, the outlook for property earnings is robust while balance sheets are well positioned. Nevertheless, various asset classes are at, or approaching, peak cycle conditions.

Capitalisation rates are expected to bottom in the first half of FY19 and real estate assets to soften around -25-75 basis points, because of an excess supply of assets for sale and softening rental growth.

Office remains the stronger segment but the key market, Sydney, is at risk of reaching an inflection point in 2020.

Ord Minnett upgrades Cromwell to Accumulate from Lighten because of reduced risk and M&A potential. Target is raised to $1.10 from $1.05.

Target price is $1.10 Current Price is $1.02 Difference: $0.08
If CMW meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.06, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.2

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

Deutsche Bank rates CPU as Hold (3) -

Deutsche Bank notes the value of global corporate activity declined -12% in the December half year.

While there has been, historically, a correlation between corporate activity and the company's earnings, the broker does point out this has reduced in recent years as the business has diversified into mortgage servicing and employee share plans.

Hold rating and $17 target maintained.

Target price is $17.00 Current Price is $17.87 Difference: minus $0.87 (current price is over target).
If CPU meets the Deutsche Bank target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.83, suggesting downside of -0.2% (ex-dividends)

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: -0.3

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

Ord Minnett rates CQR as Downgrade to Lighten from Hold (4) -

In Ord Minnett's view, the outlook for property earnings is robust while balance sheets are well positioned. Nevertheless, various asset classes are at, or approaching, peak cycle conditions.

Capitalisation rates are expected to bottom in the first half of FY19 and real estate assets to soften around -25-75 basis points, because of an excess supply of assets for sale and softening rental growth.

Office remains the stronger segment but the key market, Sydney, is at risk of reaching an inflection point in 2020.

Ord Minnett downgrades to Lighten from Hold. Target is steady at $4.30.

Target price is $4.30 Current Price is $4.51 Difference: minus $0.21 (current price is over target).
If CQR meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.09, suggesting downside of -9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.6

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

Ord Minnett rates DXS as Downgrade to Lighten from Hold (4) -

In Ord Minnett's view, the outlook for property earnings is robust while balance sheets are well positioned. Nevertheless, various asset classes are at, or approaching, peak cycle conditions.

Capitalisation rates are expected to bottom in the first half of FY19 and real estate assets to soften around -25-75 basis points, because of an excess supply of assets for sale and softening rental growth.

Office remains the stronger segment but the key market, Sydney, is at risk of reaching an inflection point in 2020.

The broker downgrades Dexus to Lighten from Hold based on elevated multiples. Target is reduced to $10.60 from $11.00.

Target price is $10.60 Current Price is $11.12 Difference: minus $0.52 (current price is over target).
If DXS meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.52, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Ord Minnett rates GMG as Downgrade to Sell from Lighten (5) -

In Ord Minnett's view, the outlook for property earnings is robust while balance sheets are well positioned. Nevertheless, various asset classes are at, or approaching, peak cycle conditions.

Capitalisation rates are expected to bottom in the first half of FY19 and real estate assets to soften around -25-75 basis points, because of an excess supply of assets for sale and softening rental growth.

Office remains the stronger segment but the key market, Sydney, is at risk of reaching an inflection point in 2020.

Ord Minnett downgrades to Sell from Lighten. Target is steady at $9.10.

Target price is $9.10 Current Price is $11.66 Difference: minus $2.56 (current price is over target).
If GMG meets the Ord Minnett target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.40, suggesting downside of -10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

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

In Ord Minnett's view, the outlook for property earnings is robust while balance sheets are well positioned. Nevertheless, various asset classes are at, or approaching, peak cycle conditions.

Capitalisation rates are expected to bottom in the first half of FY19 and real estate assets to soften around -25-75 basis points, because of an excess supply of assets for sale and softening rental growth.

Office remains the stronger segment but the key market, Sydney, is at risk of reaching an inflection point in 2020.

Ord Minnett upgrades to Accumulate from Hold. Target is steady at $3.25.

Target price is $3.25 Current Price is $3.12 Difference: $0.13
If HPI meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Credit Suisse rates KMD as Upgrade to Outperform from Neutral (1) -

The stock sold off by -26% since its August highs, Credit Suisse observes. Disappointing Christmas trading drove a high percentage of this drop, but the broker believes the current share price overstates the impact from weak trading in a period that typically contributes only 25-30% of full year earnings.

The broker believes the stock offers attractive value for a company that is guiding towards earnings growth and has a strong balance sheet. Rating is upgraded to Outperform from Neutral and the target is reduced to NZ$2.90 from NZ$3.25.

Current Price is $2.30. Target price not assessed.

Current consensus price target is $2.64, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.5

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

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

In Ord Minnett's view, the outlook for property earnings is robust while balance sheets are well positioned. Nevertheless, various asset classes are at, or approaching, peak cycle conditions.

Capitalisation rates are expected to bottom in the first half of FY19 and real estate assets to soften around -25-75 basis points, because of an excess supply of assets for sale and softening rental growth.

Office remains the stronger segment but the key market, Sydney, is at risk of reaching an inflection point in 2020.

Ord Minnett downgrades Mirvac to Hold from Accumulate and reduces the target to $2.50 from $2.55.

Target price is $2.50 Current Price is $2.25 Difference: $0.25
If MGR meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.46, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Morgans rates ORE as Add (1) -

Lithium carbonate production was in line with guidance and up 65% from the September quarter. Morgans notes the December quarter is typically a period of high evaporation, delivering a good grade of concentrated lithium brine to the processing plant.

The broker models production of 13,617t in FY19, and a basket price of US$12,600/t for three years before it weakens in response to stronger supply.

Add rating maintained. Target is reduced to $5.59 from $5.62.

Target price is $5.59 Current Price is $3.42 Difference: $2.17
If ORE meets the Morgans target it will return approximately 63% (excluding dividends, fees and charges).

Current consensus price target is $5.30, suggesting upside of 54.9% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates RIO as Buy (1) -

December quarter production was in line with guidance and Citi's estimates, except for copper which exceeded expectations. 2019 guidance for Pilbara shipments is 338-350mt.

Citi maintains a Buy rating and $89 target, driven by upside risk to estimates from spot commodities and potential additional capital management from asset sale proceeds.

Target price is $89.00 Current Price is $80.61 Difference: $8.39
If RIO meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $86.08, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in December.

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: 0.5

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

Credit Suisse rates RIO as Neutral (3) -

Credit Suisse defends a decision to downgrade to Neutral in December, although understands there may be plenty of reasons for existing holders to stay put.

The downgrade was a call on the external macro environment amid considerable concerns around Chinese steel markets. The broker suspects the next move in iron ore will be down.

Credit Suisse observes no game changing numbers in the December quarter report and expects a strong dividend when the company reports its 2018 results in February. Neutral rating and $79 target maintained.

Target price is $79.00 Current Price is $80.61 Difference: minus $1.61 (current price is over target).
If RIO meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $86.08, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in December.

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: 0.5

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

Deutsche Bank rates RIO as Hold (3) -

Iron ore shipments slightly missed Deutsche Bank's forecasts in the December quarter and 2019 guidance is for flat to 4% growth in shipments.

While copper production significantly beat expectations, the broker notes this was mainly because of the surprise contribution from Grasberg, which has now been sold.

The broker maintains a Hold rating and $80 target.

Target price is $80.00 Current Price is $80.61 Difference: minus $0.61 (current price is over target).
If RIO meets the Deutsche Bank target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $86.08, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in December.

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: 0.5

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

Macquarie rates RIO as Outperform (1) -

December quarter production of copper beat Macquarie's estimates. Iron ore shipment guidance is in line with estimates.

The broker observes pricing remains buoyant for the company's core commodities, which is driving significant earnings momentum. Continued strength of pricing should mean an earnings upgrade cycle supports the share price.

A potential boost to capital management is considered a near-term catalyst. Macquarie maintains an Outperform rating and $94 target.

Target price is $94.00 Current Price is $80.61 Difference: $13.39
If RIO meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $86.08, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in December.

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: 0.5

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

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

Mined copper production in the December quarter surprised Morgans on the upside, driven by the ramping up of volumes from Escondida and solid output from Kennecott.

Healthy volumes were also delivered from the flagship Pilbara iron ore operations. The broker notes the company has built an incredibly strong position after multi-year process of refining the business.

With the stock supported by strong fundamentals and a positive share price performance, Morgans downgrades to Hold from Add. Target is raised to $82.55 from $82.28.

Target price is $82.55 Current Price is $80.61 Difference: $1.94
If RIO meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $86.08, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in December.

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: 0.5

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

Ord Minnett rates RIO as Accumulate (2) -

December quarter production was in line with Ord Minnett forecasts. The broker believes the company is set up well to deliver US$4-5bn in capital management at the February results.

The broker reduces forecasts for Pilbara iron ore production based on the company's guidance for 338-350mt in 2019. The broker suspects Rio Tinto is managing tonnage for value-over-volume reasons.

Accumulate rating maintained. Target is reduced to $90 from $91.

Target price is $90.00 Current Price is $80.61 Difference: $9.39
If RIO meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $86.08, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in December.

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: 0.5

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

UBS rates RIO as Buy (1) -

December quarter production was broadly in line with UBS estimates. A strong performance at Escondida and increased production at Kennecott were highlights.

The company continues to envisage raw material price inflation, particular in aluminium.

UBS notes the company still has US$4.4bn in divestment proceeds that are unallocated, and believes this could be returned to shareholders with the US$2.5bn top up of the US$1.1bn 2019 buyback program.

Buy rating maintained. Target is reduced to $88 from $90.

Target price is $88.00 Current Price is $80.61 Difference: $7.39
If RIO meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $86.08, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in December.

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: 0.5

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

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

Macquarie includes Saracen Mineral as one of its preferred producers, as the business displays organic growth prospects.

An improved earnings outlook across gold producers drives modest increase in the broker's target, to $3.20 from $2.90. Rating is upgraded to Outperform from Neutral.

Target price is $3.20 Current Price is $2.95 Difference: $0.25
If SAR meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

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

In Ord Minnett's view, the outlook for property earnings is robust while balance sheets are well positioned. Nevertheless, various asset classes are at, or approaching, peak cycle conditions.

Capitalisation rates are expected to bottom in the first half of FY19 and real estate assets to soften around -25-75 basis points, because of an excess supply of assets for sale and softening rental growth.

Office remains the stronger segment but the key market, Sydney, is at risk of reaching an inflection point in 2020.

Ord Minnett downgrades Scentre Group to Hold from Accumulate. Target is steady at $4.50.

Target price is $4.50 Current Price is $4.05 Difference: $0.45
If SCG meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.31, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in December.

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

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

In Ord Minnett's view, the outlook for property earnings is robust while balance sheets are well positioned. Nevertheless, various asset classes are at, or approaching, peak cycle conditions.

Capitalisation rates are expected to bottom in the first half of FY19 and real estate assets to soften around -25-75 basis points, because of an excess supply of assets for sale and softening rental growth.

Office remains the stronger segment but the key market, Sydney, is at risk of reaching an inflection point in 2020.

Ord Minnett upgrades to Accumulate from Hold. Target is steady at $2.75.

Target price is $2.75 Current Price is $2.54 Difference: $0.21
If SCP meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.39, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.5

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

Macquarie rates SYD as Underperform (5) -

December traffic data revealed international growth of 3.7% while domestic was down -2.6%. Macquarie notes the earnings outlook continues to be clouded by a softening of international capacity growth.

The outlook continues to look tough, with the broker suspecting 2019-20 growth in cash flow will slow to around 4-5%.

The broker maintains an Underperform rating and lowers the target to $6.64 from $6.67.

Target price is $6.64 Current Price is $6.43 Difference: $0.21
If SYD meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.19, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in December.

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 SYD as Add (1) -

December 2018 passenger data confirmed slowing volume growth in the second half but Morgans believes the stock is high-quality, and well managed with defensive attributes.

Growth is still appealing in a low-growth environment and the broker forecasts 2.5% passenger growth out to FY20, contributing to around 7% per annum growth in net operating receipts.

Morgans maintains an Add rating and reduces the target to $7.13 from $7.34.

Target price is $7.13 Current Price is $6.43 Difference: $0.7
If SYD meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $7.19, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in December.

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 TAH as Outperform (1) -

Credit Suisse upgrades earnings estimates by 6.7% to incorporate around 24% growth in first half lottery revenue and 16% growth for lotteries over the full year.

Examining the Powerball, the broker suspects ticket sales are up more than 120% even though the Division 1 prize pool was up 160%. Powerball is around 20% of Tabcorp's lottery revenue.

The broker maintains an Outperform rating and $5.05 target.

Target price is $5.05 Current Price is $4.71 Difference: $0.34
If TAH meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.11, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates TAH as Overweight (1) -

Morgan Stanley takes a fresh view on the stock. Overall, with all fundamentals in place a positive view is reiterated. The broker expects the stock to re-rate on defensive qualities and delivery on acquisitions.

First half results are reported on February 13. While the result may be affected by heightened wagering competition, the broker believes any weakness is an opportunity to build a position.

Overweight retained. Target is reduced to $5.10 from $5.20. Industry view: Cautious.

Target price is $5.10 Current Price is $4.71 Difference: $0.39
If TAH meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.11, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in June.

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

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

Morgan Stanley reduces B2B forecasts for FY20 by -18%. After a softer performance from JacTravel and earnings downgrades at Thomas Cook, which resulted in a decline in the share price of over -70%, the broker envisages downside risk to previous numbers.

The broker's believes FY19 guidance is light versus expectations and, therefore, most likely achievable. Meanwhile B2C is considered solid but not immune to pressures.

Equal-weight. Target is reduced to $12.70 from $14.20. Industry View is In-Line.

Target price is $12.70 Current Price is $12.05 Difference: $0.65
If WEB meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $16.19, suggesting upside of 34.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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