Australian Broker Call

Macquarie rates AGI as Neutral (3) -

FY18 results were in line with recent guidance. Macquarie believes a recovery in earnings will require an improvement in new game performance, which is not guaranteed.

The broker acknowledges the corporate appeal, given Novomatic holds 52% of the stock, but considers Ainsworth Game fairly priced. Neutral rating and $1.10 target maintained.

Target price is $1.10 Current Price is $1.16 Difference: minus $0.06 (current price is over target).
If AGI meets the Macquarie target it will return approximately minus 5% (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: -0.5

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

UBS rates AGI as Sell (5) -

FY18 pre-tax profit was in line with UBS estimates. The broker found few surprises in the results and suggests that the cyclical nature of the product cycle for manufacturers will probably mean that the company's performance recovers at some point.

Sell rating maintained. Target is reduced to $1.02 from $1.09.

Target price is $1.02 Current Price is $1.16 Difference: minus $0.14 (current price is over target).
If AGI meets the UBS 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 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

Citi rates BAL as Buy (1) -

Citi analysts cutting forecasts post the release of FY18 financials indicates they have been disappointed by lower than expected FY19 margin guidance. The analysts retain the Buy rating on a longer-term positive view regarding growth potential in China.

Shorter term, however, Citi sees plenty of reasons as to why the share price is likely to swing around quite a bit. The target price has fallen to $14.50 from $19.70 and the double digit percentage reduction in forecast profits is primarily to blame.

There is a chance Bellamy's sales continue to be adversely impacted from excess supply of competitor products, admit the analysts, plus uncertainty surrounding SAMR registration timing required to sell offline in China remains at this stage.

Target price is $14.50 Current Price is $12.30 Difference: $2.2
If BAL meets the Citi target it will return approximately 18% (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

Morgans rates BAL as Add (1) -

FY18 results were slightly ahead of expectations. The company has guided to FY19 revenue growth for its Australian label products of up to 10% and an operating earnings margin of 22-25%.

Morgans believes the company is doing a commendable job and, with the foundations now in place, is leveraging its premium brand. Add rating maintained. Target rises to $14.02 from $13.00.

Target price is $14.02 Current Price is $12.30 Difference: $1.72
If BAL meets the Morgans target it will return approximately 14% (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

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

FY18 results were in line with guidance. Morgans believes the results could have been stronger had the company elected to increase its farmgate milk prices to secure greater future supply. The broker found the outlook comments vague.

The company has increased its milk supply to help fill its new Koroit facility. To fund the acquisition Morgans believes Bega Cheese will require an equity raising as gearing ratios would otherwise increase to uncomfortable levels.

Rating is downgraded to Reduce from Hold. Target is raised to $7.00 from $6.50.

Target price is $7.00 Current Price is $7.86 Difference: minus $0.86 (current price is over target).
If BGA meets the Morgans 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: 0.0

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

Citi rates BLD as Neutral (3) -

Yesterday's share price rally has pulled the share price back into fair value territory, comment analysts at Citi. The trigger for the rally, the analysts believe, proved a better than anticipated outlook for the fly ash business.

From here onwards it'll come down to execution, suggest the analysts. The FY18 report itself seems to have been perceived as mixed. Earnings estimates have received a lift in the order of 1-2%.

Price target increases to $7.50 from $7.23. Neutral rating retained (with execution seen as key).

Target price is $7.50 Current Price is $7.36 Difference: $0.14
If BLD meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $7.49, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Credit Suisse rates BLD as Underperform (5) -

Boral's FY18 result exceeded forecasts but the broker takes issue with FY19 earnings guidance for North America. Credit Suisse suggests earnings growth guidance of "20% or more" would need to be 25% to match prior group consensus.

The broker's numbers do not suggest a weak FY18 for North America was just about weather, hence the better weather and increased synergies that management assumes in its guidance is not convincing for the analysts. But the market bought it. The broker also believes fly ash volume guidance looks "unattainable".

Underperform and $6.40 target retained.

Target price is $6.40 Current Price is $7.36 Difference: minus $0.96 (current price is over target).
If BLD meets the Credit Suisse target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.49, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Macquarie rates BLD as Outperform (1) -

FY18 results were ahead of expectations. The company has now commenced negotiations in relation to its JV with USG, to either buy out the USG stake or evaluate an expanded option involving other plasterboard operators.

Macquarie was not that impressed with North American guidance and lowers FY19 estimates as a result. The broker believes the upgrade to synergies will help calm concerns that have been raised following challenges in the roofing and fly ash businesses. Outperform maintained. Target is reduced to $8.05 from $8.45.

Target price is $8.05 Current Price is $7.36 Difference: $0.69
If BLD meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $7.49, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Morgan Stanley rates BLD as Overweight (1) -

Morgan Stanley believes Boral is well-positioned to leverage the strong US and Australian construction markets. FY18 results were welcomed, amid a synergy upgrade, favourable Australian pricing and confidence regarding US fly ash volumes.

The broker suspects the fly ash business will be an attractive structural growth story and expects an update during the site tour in September.

Overweight rating reiterated. Target is $8.00 and Industry view is Cautious.

Target price is $8.00 Current Price is $7.36 Difference: $0.64
If BLD meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $7.49, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Ord Minnett rates BLD as Accumulate (2) -

Boral's FY18 results were slightly better than Ord Minnett had forecast although corporate costs were higher than expected. The broker believes the result and the outlook commentary should provide the market with some comfort around the issues in the Australian business and the North American fly ash business.

The company's outlook statement suggests all divisions will experience strong earnings growth in FY19, excluding property. Ord Minnett increases earnings per share forecasts by an average of 1.5% over FY19-21. These are partially offset by lower growth expectations in North America.

Accumulate rating maintained. Target is raised to $7.80 from $7.60.

Target price is $7.80 Current Price is $7.36 Difference: $0.44
If BLD meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.49, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

UBS rates BLD as Neutral (3) -

FY18 results were in line with UBS estimates. The broker suggests FY19 guidance, which implies operating earnings growth of 9%, is solid and erring on the conservative side.

The broker notes the robust outlook for fly ash, with strong price and margin growth expected. The challenges weighing on the division earlier in the year appear to be diminishing. Neutral rating maintained. Target is reduced to $7.00 from $7.19.

Target price is $7.00 Current Price is $7.36 Difference: minus $0.36 (current price is over target).
If BLD meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.49, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Macquarie rates CAB as Neutral (3) -

FY18 results were below expectations. Revenue returned to growth in FY18 following the Yellow Cabs acquisition but the contribution was lower than Macquarie expected.

The broker downgrades estimates for FY19 earnings per share by -40.4% and FY20 by -37.0%. Target is reduced to $1.84 from $2.00. Neutral rating maintained.

Target price is $1.84 Current Price is $2.17 Difference: minus $0.33 (current price is over target).
If CAB meets the Macquarie target it will return approximately minus 15% (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: 0.0

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

UBS rates CAB as Upgrade to Neutral from Sell (3) -

In the wake of the FY18 results UBS upgrades to Neutral from Sell. Target is raised to $2.20 from $2.15. The result itself is labeled "good" and "in line", albeit with the admission that it missed consensus by -6%.

UBS analysts have lifted estimates and are anticipating a return to growth, forecasting a three-year EPS CAGR of 11%.

Target price is $2.20 Current Price is $2.17 Difference: $0.03
If CAB meets the UBS target it will return approximately 1% (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

Morgan Stanley rates ELO as Overweight (1) -

FY18 operating earnings were 11% ahead of Morgan Stanley's estimates. The company has guided to around 50% underlying sales growth in FY19. Morgan Stanley was most surprised by the significant reinvestment in personnel across the support, product and integration network, and supports the investment.

The broker notes the company is acquisitive and has flagged more than $30m to acquire functionality and customers. Overweight rating, In-Line industry view and target raised to $8.00 from $6.30.

Target price is $8.00 Current Price is $6.84 Difference: $1.16
If ELO meets the Morgan Stanley target it will return approximately 17% (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

Ord Minnett rates EXP as Buy (1) -

The company's FY18 results were in line with Ord Minnett's estimates. The highlight for the broker was the -11% decline in EBITDA from Australian Skydiving, due mainly to unfavourable weather conditions in the period.

The recent acquisitions appeared to deliver results at or above expectations, pointing to successful integration into the company. The company has guided to Australian jump numbers being down a further -5% in FY19.

Ord Minnett has cut FY19 EPS estimates by -21% and FY20 estimates by -18%. Buy rating maintained and target reduced to $0.62 from $0.81.

Target price is $0.62 Current Price is $0.40 Difference: $0.22
If EXP meets the Ord Minnett target it will return approximately 55% (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 GXY as Outperform (1) -

In initial response to released FY18 financials, Macquarie has been negatively surprised by profits that proved weaker than expected, albeit with the comment this miss is largely due to non-cash items.

Macquarie expects cash flow to improve at Mt Cattlin while Sal de Vida’s progress remains a key catalyst with the analysts noting the company is actively seeking development partners. Outperform. Target $3.90.

Target price is $3.90 Current Price is $2.90 Difference: $1
If GXY meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $3.61, suggesting upside of 24.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Citi rates IGO as Neutral (3) -

On Citi's assessment, the record year was better than expected, but it missed market consensus, and by quite a margin too (-24%). Estimates have been reduced on higher D&A.

The analysts believe management has some interesting strategic options, while strong growth is anticipated for FY19/FY20. Target price has dropped to $4.50 from $5. Neutral rating retained.

Target price is $4.50 Current Price is $4.41 Difference: $0.09
If IGO meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 4.6% (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

Credit Suisse rates IGO as Underperform (5) -

Credit Suisse rattles off the numbers but makes no suggestion of how they compared to forecasts. We can only assume "no material guidance to alter operating outlook or forecasts" and an unchanged Underperform rating and $3.95 target for Independence means "in line".

The broker increases earnings forecasts on the Nova grade profile revision.

Target price is $3.95 Current Price is $4.41 Difference: minus $0.46 (current price is over target).
If IGO 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 $4.61, suggesting upside of 4.6% (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

Macquarie rates IGO as Neutral (3) -

FY18 results were in line with estimates. Macquarie expects cash generation from Nova to improve in FY19 now that the mine has reached its 1.5mtpa target rate. The Boston Shaker underground presents upside risk to the broker's base case.

Macquarie believes the stock is fairly priced and in the absence of exploration success maintains a Neutral rating. Target is $4.70.

Target price is $4.70 Current Price is $4.41 Difference: $0.29
If IGO meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 4.6% (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

Morgan Stanley rates IGO as Underweight (5) -

In the wake of the FY18 result Morgan Stanley notes exploration is still in focus. The company is considering M&A but remains sceptical regarding any good opportunities.

Underweight. Target is $3.85. Industry view is: In-Line.

Target price is $3.85 Current Price is $4.41 Difference: minus $0.56 (current price is over target).
If IGO 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 $4.61, suggesting upside of 4.6% (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 IGO as Accumulate (2) -

Independence Group's FY18 results were largely pre-released with the June quarter update and were within 1% of Ord Minnett's estimates.

The company is close to a net cash position with net debt sitting at $4m at the end of June. Apart from pricing, the broker believes the second half catalyst will be the release of the Nova downstream studies. due by year end.

The shares have been sold off recently because of mine life concerns. The broker maintains an Accumulate rating and $5.20 target.

Target price is $5.20 Current Price is $4.41 Difference: $0.79
If IGO meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 4.6% (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

UBS rates IGO as Neutral (3) -

FY18 results were in line with pre-announced numbers. UBS awaits the next quarterly production report in October to assess the consistency of Nova's performance.

The Boston Shaker underground pre-feasibility study is due in the December quarter which may extend Tropicana's mine life and provide a higher grade ore source. UBS maintains a Neutral rating and reduces the target to $4.70 from $5.20.

Target price is $4.70 Current Price is $4.41 Difference: $0.29
If IGO meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 4.6% (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

Macquarie rates MMM as Outperform (1) -

The maiden first half result was strong across key operating metrics, Macquarie observes. The broker believes the focus will remain on the delivery of KPI and the progression towards cash flow break-even.

The broker suggests evidence the company is executing on its strategy will provide greater confidence in the outlook and catalyse a re-rating. Outperform rating maintained. Target is reduced to $1.70 from $1.74.

Target price is $1.70 Current Price is $0.98 Difference: $0.72
If MMM meets the Macquarie target it will return approximately 73% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 MTS as Underperform (5) -

While Metcash's AGM brought no real forecast surprises it seems the market was sufficiently relieved to know supermarket wholesale sales declines continued to decelerate through the half, despite Coles ((WES)) sales accelerating. The broker still expects margin pressure from competition, while a deceleration for hardware is consistent with market conditions.

If Metcash can achieve even "flat" earnings through cost reductions this would be a good result, but the broker retains Underperform and a $2.51 target.

Target price is $2.51 Current Price is $2.94 Difference: minus $0.43 (current price is over target).
If MTS meets the Credit Suisse target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.98, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in April.

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

Deutsche Bank rates MTS as Sell (5) -

Deutsche Bank observes the trading update at the AGM was mixed, but there were more positives than negatives. The food division is performing better than expected, while liquor is strong as usual and hardware sales trends have slowed.

The broker maintains a Sell rating and $2.50 target.

Target price is $2.50 Current Price is $2.94 Difference: minus $0.44 (current price is over target).
If MTS meets the Deutsche Bank target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.98, suggesting upside of 1.5% (ex-dividends)

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

Morgan Stanley rates MTS as Overweight (1) -

The AGM trading update was stronger than Morgan Stanley expected. Food sales growth improved in the first seven weeks of FY19 and the broker believes this highlights the resilience of the business. Hardware sales growth, while positive, was lower than that reported in the first half.

The broker retains an Overweight rating and a $3.90 target. Industry view: Cautious.

Target price is $3.90 Current Price is $2.94 Difference: $0.96
If MTS meets the Morgan Stanley target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $2.98, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in April.

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 MTS as Accumulate (2) -

At the AGM update Metcash indicated the food sales improvements flagged at the FY18 result had continued through FY19 to date. The rate of sales decline, excluding tobacco, has eased below the -3.6% seen in FY18.

Hardware sales have continued to grow, although not at the level of the strong first half, and management has reiterated its five-year aspirations announced at the FY18 result. These include growth initiatives, accelerating existing transformation initiatives and improving infrastructure.

Ord Minnett maintains an Accumulate rating and $3.25 target.

Target price is $3.25 Current Price is $2.94 Difference: $0.31
If MTS meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.98, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in April.

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

UBS rates MTS as Buy (1) -

The trading update at the AGM was positive, UBS observes, with the highlights being improving momentum in food and liquor. The broker notes the hardware market is robust although sales growth is expected to be slower in the second half.

Buy and $3.00 target retained.

Target price is $3.00 Current Price is $2.94 Difference: $0.06
If MTS meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.98, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in April.

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

Morgans rates NBL as Add (1) -

FY18 results were in line with recent guidance. Morgans observes the Specialty acquisition appears to be going to plan and the business is on track to break even in FY19, delivering annual cost savings of $30m by the end of FY19.

The broker is also more confident after the successful turnaround of Pretty Girl. Morgans maintains an Add rating and raises the target to $3.94 from $3.83.

Target price is $3.94 Current Price is $3.18 Difference: $0.76
If NBL 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

UBS rates NWS as Upgrade to Neutral from Sell (3) -

News Corp has confirmed the potential IPO of Foxtel at its FY18 result. While Foxtel has experienced significant pressure, UBS forecasts FY19 to be an earnings trough. Further out, the broker envisages cost reduction opportunities arising from the Foxtel/Fox Sports merger that are not yet factored in.

The broker remains cautious for the long term, nevertheless, as competition may limit Foxtel's returns.

UBS upgrades News Corp to Neutral from Sell following the recent underperformance in the share price. Target is reduced to $20.10 from $20.75.

Target price is $20.10 Current Price is $18.99 Difference: $1.11
If NWS meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $22.88, suggesting upside of 20.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.2

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

Macquarie rates ONE as Outperform (1) -

Macquarie observes the investment case is intact as revenue grew 66% in the first half. There was strong growth in the "live" base, with 32 hospitals and 5200 beds as of June 2018.

Improved contract momentum is expected to provide greater confidence in the path to breaking even and drive a re-rating. Outperform maintained. Target is reduced to $3.20 from $3.50.

Target price is $3.20 Current Price is $0.94 Difference: $2.26
If ONE meets the Macquarie target it will return approximately 240% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

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) -

FY18 results were slightly weaker than Deutsche Bank estimated amid lower revenue from the Borax operation. Guidance for production to be "higher than FY18" is a little weak, in the broker's opinion.

Given the lack of certainty, the broker downgrades forecasts. Buy rating is maintained on valuation. Target is $7.00.

Target price is $7.00 Current Price is $4.26 Difference: $2.74
If ORE meets the Deutsche Bank target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $6.17, suggesting upside of 44.9% (ex-dividends)

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

Macquarie rates ORE as Downgrade to Neutral from Outperform (3) -

With an uncertain outlook on all key metrics as well as downside risk for prices, Macquarie believes the job will become harder for Orocobre before it gets better. The company was upbeat about lithium markets but peers are reporting a more pessimistic outlook and 2019 is not yet contracted.

As no guidance was provided the broker downgrades to Neutral from Outperform. Target is reduced to $5.00 from $6.20.

Target price is $5.00 Current Price is $4.26 Difference: $0.74
If ORE meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $6.17, suggesting upside of 44.9% (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

Macquarie rates PLS as Outperform (1) -

Commissioning at Pilgangoora is progressing and the first spodumene shipment is expected mid September. The company has secured two modest loan facilities and Macquarie also incorporates the FY18 results into its figuring.

The broker expects the new finance facilities will provide extra flexibility during the ramp up phase. Outperform and $1.20 target retained.

Target price is $1.20 Current Price is $0.83 Difference: $0.37
If PLS meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 36.5% (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 PRT as Underweight (5) -

FY18 results met Morgan Stanley's expectations. The second half was helped by a stronger TV advertising market.

While the business is well-run, Morgan Stanley has concerns regarding negative structural change, such as falling regional TV audiences, and the company's weak negotiating position versus its program supplier, Seven West Media ((SWM)).

Underweight and 25c target retained. Industry view: Attractive.

Target price is $0.25 Current Price is $0.24 Difference: $0.01
If PRT meets the Morgan Stanley 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: -1.0

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

Citi rates PRU as Buy (1) -

On Citi's assessment, it appears reported FY18 loss was much larger than expected and a massive hike in D&A (+213%) is to blame. Underlying EBITDA seems to have beaten expectations.

Citi analysts seem confident the year ahead will see profits and strong growth. Paradoxically, suggest the analysts, a slower mining rate at Edikan and a cut in resources are positives that could de-risk future earnings.

Buy/High Risk rating retained, as well as the 65c price target.

Target price is $0.65 Current Price is $0.34 Difference: $0.31
If PRU meets the Citi target it will return approximately 91% (excluding dividends, fees and charges).

Current consensus price target is $0.57, suggesting upside of 68.4% (ex-dividends)

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

Credit Suisse rates PRU as Outperform (1) -

Credit Suisse mining analysts would never win a Booker prize with their result responses. It appears Perseus' FY18 result fell short and the broker acknowledges FY19 guidance disappointed on lower production for Edikan and higher costs.

The broker also notes no dividend was paid given the need to retain funding for Yaoure. Otherwise the report reads like a spreadsheet. Outperform retained, target falls to 57c from 69c.

Target price is $0.57 Current Price is $0.34 Difference: $0.23
If PRU meets the Credit Suisse target it will return approximately 68% (excluding dividends, fees and charges).

Current consensus price target is $0.57, suggesting upside of 68.4% (ex-dividends)

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

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

Now that the bad news is out, Citi analysts acknowledge the $100m equity raise strengthens the company's balance sheet, but the analysts continue to see risks to short term earnings.

Downgrade to Neutral from Buy, while the price target has been reset at $1.30 compared with $3.50 last month. For FY19, the analysts have positioned themselves near the bottom of management's guided range.

Target price is $1.30 Current Price is $1.22 Difference: $0.08
If RCR meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Market Sentiment: -0.5

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

Macquarie rates RHC as Outperform (1) -

In initial assessment, Macquarie finds FY18 performance in line with expectations. While the FY19 guidance for only 2% EPS growth seems like a miss, this seems not the case for EBITDA guidance, point out the analysts.

The EPS guidance miss seems to be caused by higher interest burden plus higher tax. The analysts also find operations in the UK remain weak. Outperform. Target $71.

Target price is $71.00 Current Price is $54.86 Difference: $16.14
If RHC meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $59.56, suggesting upside of 8.6% (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

Ord Minnett rates RIO as Accumulate (2) -

Ord Minnett has adjusted its model for Rio Tinto following the first half result. Capital expenditure forecasts have been increased and revised 2018 iron ore price forecasts incorporated.

The broker's net profit forecast is up 2% in FY18 and unchanged for FY19. The NPV has fallen 1% due to the higher capex which means a reduction in the target price to $93 from $94. Accumulate rating maintained.

Target price is $93.00 Current Price is $73.25 Difference: $19.75
If RIO meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $87.90, suggesting upside of 20.0% (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: 0.7

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

Deutsche Bank rates RRL as Upgrade to Hold from Sell (3) -

FY18 results were ahead of estimates because of higher revenue and lower depreciation. Deutsche Bank upgrades to Hold from Sell on valuation.

Target is $4.00. The broker notes for the next two years the cash balance will go backward because of capital expenditure and dividends.

Target price is $4.00 Current Price is $4.20 Difference: minus $0.2 (current price is over target).
If RRL 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 $4.18, suggesting downside of -0.4% (ex-dividends)

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

Credit Suisse rates SDA as Outperform (1) -

Speedcast's first half result fell well short of the broker and full year guidance also disappointed. Revenue growth was strong in other divisions but it all comes down to the recovery for Energy taking a lot longer than anyone had expected.

The broker remains confident longer term and notes the Globecomm acquisition will double the company's exposure to government. Target falls to $5.50 from $7.50, Outperform retained.

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

Current consensus price target is $4.77, suggesting upside of 17.0% (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: 0.3

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

Morgans rates SHJ as Add (1) -

FY18 results were in line with guidance. Morgans notes there was no update on the timing of class action cases and the company expects continued modest improvement in FY19 operating earnings.

Shine did call out the Pelvic Mesh class action as a key driver of FY18 revenue. Add rating maintained. Target rises to $1.27 from $1.09.

Target price is $1.27 Current Price is $0.92 Difference: $0.35
If SHJ meets the Morgans target it will return approximately 38% (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

UBS rates SRX as Neutral (3) -

The company delivered 20% growth in operating earnings and a -7% revenue decline in FY18, slightly missing guidance. UBS suggests this is unlikely to matter with the CDH deal pending and a shareholder vote scheduled for September 10.

Neutral rating and $28 target maintained.

Target price is $28.00 Current Price is $31.91 Difference: minus $3.91 (current price is over target).
If SRX meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.87, suggesting downside of -6.4% (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

Credit Suisse rates STO as Downgrade to Neutral from Outperform (3) -

Since Santos rejected the bid from Harbour Energy it has been beholden upon management to prove their strategy could provide a better outcome, says Credit Suisse, which is not yet convinced. The stock may have run up 22% since May but the broker believes it's all about the oil price and not about strategy.

If not for the oil price, Credit Suisse believes the stock would be trading "materially" below the Harbour bid price. The broker retains a $6.35 target with oil price strength offsetting the loss of takeover premium, but downgrades to Neutral from Outperform on a number of risks.

Target price is $6.35 Current Price is $6.78 Difference: minus $0.43 (current price is over target).
If STO meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.27, suggesting downside of -7.5% (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: -0.1

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

Citi rates TLS as Sell (5) -

Following the release of the TPM/Vodafone scheme booklet, Citi analysts reiterate their negative outlook for Telstra. The analysts believe this 49.9%/50.1% merger may see a three player telco market become even more competitive.

As far as Telstra itself is concerned, it remains Citi's view that core earnings remain in structural decline. Telstra is expected to announce a dividend reduction at the February interim result. Sell. Target $2.30.

Target price is $2.30 Current Price is $3.22 Difference: minus $0.92 (current price is over target).
If TLS 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 $3.19, suggesting downside of -0.8% (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

Citi rates TWE as Sell (5) -

Upon further analysis the company's information on the FY18 grape crush, inventory and impact from more emphasis on premium produce which yields higher margins, Citi analysts remain of the view market consensus is too optimistic.

Citi sticks with a price target of $14.50 and a Sell rating. The analysts note their FY20 EBITS forecasts remains -8% below current market consensus.

Target price is $14.50 Current Price is $19.20 Difference: minus $4.7 (current price is over target).
If TWE 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 $18.32, suggesting downside of -4.6% (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 VAH as Lighten (4) -

FY18 results were below Ord Minnett's estimates. The airline's second half underlying profit before tax was just $3.6m, with the improvement in domestic being offset by greater than expected losses at Virgin International and Tigerair.

Commentary around first quarter FY19 forward bookings was encouraging but the broker believes the company still has a lot of work to do to offset the strong headwinds expected from significantly higher fuel costs this year.

Ord Minnett has downgraded FY19 underlying profit forecasts by -30.1%. The broker notes the stock is likely to remain under pressure in the current environment and retains a Lighten rating. Target raised to 20c from 18c.

Target price is $0.20 Current Price is $0.24 Difference: minus $0.04 (current price is over target).
If VAH meets the Ord Minnett target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.21, suggesting downside of -11.1% (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

UBS rates VAH as Sell (5) -

The June half results broadly broke even, UBS notes. Domestic revenue growth of 5% is considered positive but offset by weaker results form Velocity and Virgin International.

The growth in cash flow in the June half is a positive trend the broker expects will continue in FY19. The broker maintains a Sell rating and 19c target.

Target price is $0.19 Current Price is $0.24 Difference: minus $0.05 (current price is over target).
If VAH meets the UBS target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.21, suggesting downside of -11.1% (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

Deutsche Bank rates WBC as Buy (1) -

Westpac is the first major bank to announce mortgage re-pricing. Deutsche Bank observes the disappointing third quarter update had set the scene for this move.

All else being equal the broker expects Westpac to obtain a margin benefit of around five basis points and net profit benefit of 3-4% on an annualised basis, which should be sufficient to fully offset the impact of the elevated BBSW spreads. Buy rating and $31 target maintained.

Target price is $31.00 Current Price is $28.69 Difference: $2.31
If WBC meets the Deutsche Bank target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $30.50, suggesting upside of 6.3% (ex-dividends)

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

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

After a weak margin outcome in the third quarter, Westpac has decided to lift its standard variable rate on all housing loans by 14 basis points.

Morgan Stanley had been of the view that pricing power had peaked, rather than come to an end, and the major banks would find it difficult to contemplate re-pricing in the near term because of increased scrutiny.

However, the move by Westpac was not completely unexpected, just that the increase was greater for owner-occupier loans than had been anticipated.

Equal-weight. Target is raised to $27.50 from $27.00. Industry view: In Line.

Target price is $27.50 Current Price is $28.69 Difference: minus $1.19 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.50, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates WBC as Sell (5) -

UBS considers the re-pricing of the mortgage book a courageous decision. This follows the announcement of a decline in net interest margins in the third quarter because of higher funding costs.

The broker would not be surprised if other banks hold off for a few weeks/months as they are not facing the same pressure and are aware of the focus from the ACCC, allowing them to regain some share. Sell rating and $26 target maintained.

Target price is $26.00 Current Price is $28.69 Difference: minus $2.69 (current price is over target).
If WBC meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.50, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates WTC as Downgrade to Underperform from Neutral (5) -

Macquarie reviews its investment case following the 40% rally in the stock post the FY18 result. M&A assumptions have also increased.

The broker believes the longer-term market penetration and opportunity with CargoWise One is substantial. Yet the current valuation implies a premium of more than 100% to domestic and international peers and, in order to justify current multiples, the market appears to be factoring in rapid expansion.

The broker downgrades to Underperform from Neutral. Target is raised to $17.50 from $11.39.

Target price is $17.50 Current Price is $21.31 Difference: minus $3.81 (current price is over target).
If WTC meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.97, suggesting downside of -25.1% (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 WTP as Add (1) -

Watpac reported an underlying loss of -$5m in FY18. The contracting division improved but, Morgans observes, remains materially below a reasonable return on capital.

The broker believes corporate activity is a possible outcome in the near term, as Besix has indicated the current structure does not suit its strategy. Outside of this, the company is reliant on a turnaround in operating performance and/or capital management.

Add rating retained, primarily based on the prospect of corporate activity. Target is reduced to $0.86 from $0.91.

Target price is $0.86 Current Price is $0.71 Difference: $0.15
If WTP meets the Morgans target it will return approximately 21% (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

Morgans rates XIP as Hold (3) -

FY18 results were in line with expectations. Morgans believes the business is set up well for FY19. Domestic patent filings rose by 0.38% versus a market that fell -0.24%.

Given the significant changes being undertaken in the business and a competitive domestic market Morgans retains a Hold rating. Target is raised to $1.44 from $1.12.

Target price is $1.44 Current Price is $1.40 Difference: $0.04
If XIP meets the Morgans 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