Australian Broker Call

Morgans rates ADH as Upgrade to Add from Hold (1) -

The company issued a very soft trading update,  with flat like-for-like sales growth in the first four months of FY17. The company has guided for EBIT and earnings per share declines of around 15% for FY17.

Morgans finds the company's key competitive advantage of developing its own brands and quick response to changes in demand mean a miss on a product trend is of concern.

Still, while it will take time for investor confidence to be restored, Morgans believes the stock is attractive and upgrades to Add from Hold. Target falls to $1.85 from $2.88.

Target price is $1.85 Current Price is $1.52 Difference: $0.33
If ADH meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Morgan Stanley rates AWE as Downgrade to Underweight from Overweight (5) -

While only envisaging modest downside, Morgan Stanley downgrades to Underweight from Overweight, a relative call to its sector coverage.

The company's value is becoming increasingly concentrated in undeveloped assets. This increases the risk profile as these have uncertain timeframes and ramp-up profiles, the broker asserts. Morgan Stanley believes long-term value continues to exist in the portfolio.

In-Line sector view retained. Target is reduced to 50c from 89c.

Target price is $0.50 Current Price is $0.52 Difference: minus $0.02 (current price is over target).
If AWE 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 $0.71, suggesting upside of 42.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Morgans rates CAT as Add (1) -

FY17 started strongly, with most metrics ahead of Morgans expectations. The broker is most impressed by the first quarter growth of 87%, annualised, in the subscription revenues.

Morgans retains an Add rating. Target is steady at $4.23. In the near term the broker expects the share price to be driven mostly by new flow rather than by conventional investment metrics.

Target price is $4.23 Current Price is $2.96 Difference: $1.27
If CAT meets the Morgans target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Macquarie rates CQR as Underperform (5) -

Shopping Centres Australasia has taken a 4.9% stake in Charter Hall Retail. The broker had been anticipating M&A in the sector. The holding is just shy of the level required to trigger an EGM to vote out Charter Hall Group ((CHC)), 16% holder of Charter Hall Retail, out as manager.

The broker suspects Shopping Centres may push for consolidation, but can still be voted in as manager on a 5-10% stake. There are considerable cost synergies on offer in a merger but it would likely be a long and drawn out process, the broker suggests. 

Hence the broker retains its Underperform ratings on both, and a $4.18 target on Charter Hall Retail.

Target price is $4.18 Current Price is $4.22 Difference: minus $0.04 (current price is over target).
If CQR meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.18, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.8

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

Credit Suisse rates CWN as Outperform (1) -

Credit Suisse upgrades earnings per share by 1.5-3% on the Melco JV results for the third quarter.

Studio City is now ramping up its VIP tables sourced from City of Dreams and Altira casinos. A potential buy-out of the 40% stake of the Studio City partner by MPEL is a transaction the broker advises that Crown investors should consider now the venue is improving

The price target rises to $13.00 from $12.85. Outperform retained, predicated on the view that Crown's share price post the China incident was an over-reaction.

Target price is $13.00 Current Price is $10.53 Difference: $2.47
If CWN meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $13.54, suggesting upside of 27.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Credit Suisse rates FLT as Neutral (3) -

Guidance is below forecasts at a pre-tax profit of $105-120m for the first half and $320-355m for FY17. To Credit Suisse this implies a significantly positive skew in profit towards the second half.

Flight Centre has cited weakness in the UK following the Brexit vote and in the US associated with the upcoming election.

The broker notes there appears to be a realistic potential for further deterioration in airfare pricing in the short-term and, consequently, a negative impact on second-half performance.

Neutral retained. Target is reduced to $36.49 from $37.82.

Target price is $36.49 Current Price is $30.30 Difference: $6.19
If FLT meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $33.94, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in June.

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

Deutsche Bank rates FLT as Hold (3) -

The company has suggested that FY17 pre-tax profit is likely to be $320-355m, implying a 9% decline at the bottom end of the range. Estimates are reduced by 9-11% over the broker's forecasts.

While agreeing that some of the headwinds are temporary, Deutsche Bank is not convinced the moderation in airfare deflation will not result in a corresponding slowing of volume. Hence, the broker envisages risks to the second-half recovery that is implied by guidance.

Hold rating retained. Target is lowered to $33 from $38.

Target price is $33.00 Current Price is $30.30 Difference: $2.7
If FLT meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $33.94, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates FLT as Hold (3) -

The company has guided to pre-tax profit of $320-355m, lower than Morgans expected.

With a particularly weak first half expected, the broker suspects the market will be sceptical about the company's belief that the second half should return to solid growth.

The broker downgrades its FY17 forecasts by 9.3%. Hold rating retained. Target is lowered to $32.60 from $36.75.

Target price is $32.60 Current Price is $30.30 Difference: $2.3
If FLT meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $33.94, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in June.

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 FLT as Buy (1) -

Flight Centre has downgraded FY17 guidance to pre-tax profit of $320-355m, versus prior guidance for over $352m, with a heavy skew to the second half. Driving the downgrade was ticket deflation, FX headwinds in the first half, cost pressures and a weaker UK and US market.

UBS reduces estimates to reflect the downgrade. The broker highlights ongoing uncertainty, particularly as guidance assumes ticket prices will stabilise In the second half and this could prove optimistic.

While the downgrade is disappointing, the broker continues to believe the company is a strong business which is winning market share and well-positioned to outperform in the medium term.

Buy rating retained. Target is reduced to $37.30 from $41.50.

Target price is $37.30 Current Price is $30.30 Difference: $7
If FLT meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $33.94, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates GMA as Outperform (1) -

The broker has lowered its earnings forecasts for Genworth but calculates the insurer is holding some 35cps in capital in excess of the top of the target range, or 12.5% of the share price.

Given Genworth is trading at more than a 20% discount to its FY16 book value, any capital release at that level represents a 25% return, the broker calculates.Target falls to $3.67 from $3.98, Outperform retained.

Target price is $3.67 Current Price is $2.79 Difference: $0.88
If GMA meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.5

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

UBS rates GMA as Neutral (3) -

UBS re-visits assumptions after the September quarter update. The broker has supported the company's proactive approach to returning capital but its Neutral rating continues to reflect the view that the stock is unlikely to outperform in a period of deteriorating delinquency trends.

UBS remains comfortable with loss ratio estimates that are at higher levels than the company's 37.4%, provided in its revised guidance. $2.70 target retained.

Target price is $2.70 Current Price is $2.79 Difference: minus $0.09 (current price is over target).
If GMA meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.5

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

Macquarie rates MFG as Outperform (1) -

Magellan's funds under management ticked down slightly in October but net flows were positive. Annualised net flows are running at 15.6% growth, well ahead of the broker's 5% plus benchmark.

This supports the broker's Outperform rating. Target drops to $24.19 from $25.94.

Target price is $24.19 Current Price is $20.82 Difference: $3.37
If MFG meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $25.06, suggesting upside of 19.1% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates MYX as Buy (1) -

The company has been named in speculation that an investigation in the US may result in charges of price collusion against generic drug makers.

The company has disclosed that it was among a group of generic pharmaceutical companies which received a subpoena in connection with the investigation. UBS expects that, until there is clarity on any potential charges, the probe will overshadow the stock.

Buy retained. Target of $2.30 unchanged.

Target price is $2.30 Current Price is $1.44 Difference: $0.86
If MYX meets the UBS target it will return approximately 60% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Citi rates NCM as Buy (1) -

Citi analysts highlight their preferred gold exposures in the Australian share market as US election uncertainty dominates. Buy-rated stocks Newcrest and Northern Star ((NST)) are most preferred. In the analysts own words, "for operational and financial quality as well as mid-range FCF/EPS sensitivity to gold price".

The analysts add Regis Resources ((RRL)) also screens well, as does OceanaGold ((OGC)), while smaller producers Medusa Mining ((MML)) and Beadell Resources ((BDR)) are highly leveraged to USD gold, they note, this due to higher all-in production costs.

Target price is $26.20 Current Price is $23.70 Difference: $2.5
If NCM meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $20.96, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.4

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

Deutsche Bank rates NWS as Buy (1) -

Ahead of the first quarter results, Deutsche Bank reduces its target to $23.50 from $24.50.

The broker expects earnings to be under pressure in the quarter, driven by negative advertising trends in publishing and low volumes at REA Group ((REA)). Buy rating retained.

Target price is $23.50 Current Price is $15.84 Difference: $7.66
If NWS meets the Deutsche Bank target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $19.30, suggesting upside of 20.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

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

Citi analysts have been riding the theme of a cyclical and self-help transformation at Orica for a while. Post the FY16 report, their view is one of: you aint seen nothing yet. They have, however, made small (negative) changes to forecasts.

As the target price only rises to $17.50 from $17.00 (for now, we presume), the rating is being pulled back to Neutral from Buy. But don't be fooled by these moves: Citi is expecting many positives from this company's future.

Target price is $17.50 Current Price is $16.90 Difference: $0.6
If ORI meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $16.15, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Credit Suisse rates ORI as Neutral (3) -

Credit Suisse observes volumes were stronger in the second half and the market appears to be supporting further strengthening into FY17.

A further $50-$70m of cost increases associated with legacy supply contracts are being guided for FY17. Improving export coal markets are expected to support Australia, while the North American market is being driven by a less adverse outlook for domestic thermal coal. Europe, Africa and Asia appear to be improving.

Credit Suisse retains a Neutral rating. The target is raised to $16.89 from $15.51.

Target price is $16.89 Current Price is $16.90 Difference: minus $0.01 (current price is over target).
If ORI meets the Credit Suisse target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.15, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Deutsche Bank rates ORI as Buy (1) -

FY16 profit was slightly weaker than expected. Deutsche Bank considers the recent rally in commodity prices is positive for the company as it reduces the risk of further reductions in production as well as mine closures.

While the company is guiding to flat volumes for ammonium nitrate in FY17, the broker believes there is upside risk to assumptions given the improving outlook for explosives and the fact that spot prices appear to have bottomed.

Target price of $19.20 and Buy rating retained.

Target price is $19.20 Current Price is $16.90 Difference: $2.3
If ORI meets the Deutsche Bank target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $16.15, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Macquarie rates ORI as Neutral (3) -

Orica's result was in line with the broker's forecast and net debt reduction was impressive, the broker suggests. This eases balance sheet concerns despite the first half dividend cut. The broker sees a positive cyclical outlook, alongside the ongoing structural issue of ammonium nitrate oversupply.

The broker believes Orica is an FY18 story, not an FY17 story. Coal price movements will nevertheless drive sentiment, but the broker considers Orica fully valued and prefers Incitec Pivot ((IPL)) in the space. Target rises to $17.12 from $15.00, Neutral retained.

Target price is $17.12 Current Price is $16.90 Difference: $0.22
If ORI meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $16.15, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Morgan Stanley rates ORI as Underweight (5) -

Morgan Stanley believes the outlook is continuing to deteriorate as pricing dynamics weaken and competitive pressures build. The broker reduces FY17-18 forecasts a further 2-4% and notes the risk of unexpected costs is also higher than normal.

The company now expects Burrup to enter beneficial production in February, around one year behind schedule. Unless Orica can secure material new volumes, Morgan Stanley believes the risk is growing that Burrup may need to be impaired.

Underweight retained. Target falls to $11.03 from $11.20. Industry view: Cautious.

Target price is $11.03 Current Price is $16.90 Difference: minus $5.87 (current price is over target).
If ORI meets the Morgan Stanley target it will return approximately minus 35% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.15, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Morgans rates ORI as Hold (3) -

FY16 results highlighted the company's resilience despite the tough operating conditions, Morgans observes. The broker expects flat EBIT in FY17.

While the company has not provided actual guidance the broker notes there is some optimism regarding market conditions. Morgans does not expect profit growth to resume until FY18 but believes initiatives the company is undertaking should largely offset industry and legacy issues.

Hold rating retained. Target is raised to $16.65 from $16.00.

Target price is $16.65 Current Price is $16.90 Difference: minus $0.25 (current price is over target).
If ORI meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.15, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Ord Minnett rates ORI as Hold (3) -

FY16 results were in line with Ord Minnett. The highlight was the strong cash performance, which the broker believes reflects a prudent approach to capital deployment.

FY17 is envisaged shaping up to be another year in which business improvement benefits will be relied on to counter price re-setting and increases in input costs.

The broker expects earnings per share to stand still in FY17. Ord Minnett retains a Hold rating. Target Is raised to $15.80 from $15.00.

Target price is $15.80 Current Price is $16.90 Difference: minus $1.1 (current price is over target).
If ORI meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.15, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

UBS rates ORI as Sell (5) -

FY 16 results were broadly in line with UBS. The main positive surprise was the free cash flow, driven by lower net working capital and capex.

UBS raises EBIT forecast by 2% for FY17. UBS believes the stock is now fully valued. Moreover, given Orica only produces 50% of what it sells, the broker is concerned that higher input costs and deteriorating explosives prices mean earnings may not be as leveraged to the volume recovery as what the current market multiples are implying.

The broker retains a Sell rating. Target is raised to $15 from $12.

Target price is $15.00 Current Price is $16.90 Difference: minus $1.9 (current price is over target).
If ORI meets the UBS target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.15, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Morgans rates RMD as Add (1) -

First quarter result was softer than expected, as weak mask sales and higher operating expenditure offset device platform growth. The Brightree acquisition is performing to expectations.

Morgans notes mask category weakness stand for customers with quality purchases ahead of a new product launch. The broker retains an Add rating. Target is reduced to $9.71 from $10.06.

Target price is $9.71 Current Price is $7.43 Difference: $2.28
If RMD meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $9.08, suggesting upside of 20.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.7

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

UBS rates S32 as Neutral (3) -

The company will acquire Peabody's metropolitan coal mine, which is contiguous with South32's Illawarra operations. South32 will also acquire Peabody's 16.67% stake in the Port Kembla coal terminal, which should facilitate blending opportunities.

UBS notes the Metropolitan mine is lower cost compared with South32s existing operations but costs are expected to be higher in FY17/18 because of reduced production. UBS estimates all-in costs of US$75/t post FY18.

Neutral rating and $2.50 target retained.

Target price is $2.50 Current Price is $2.53 Difference: minus $0.03 (current price is over target).
If S32 meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.62, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.1

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

Credit Suisse rates SCP as Underperform (5) -

The company has acquired a 4.9% stake in Charter Hall Retail ((CQR)). Credit Suisse questions whether the investment is about parking capital in its rival, as direct market activity slows into the year end, or whether CQR represents an attractive acquisition opportunity, given its recent underperformance.

The company has also received the second tranche of its NZ asset sale proceeds. Two thirds of this capital has been reinvested into six neighbourhood centres.

Credit Suisse retains an Underperform rating and $2.04 target, continuing to view the stock as one of the more expensive of the "bond proxy" A- REITs.

Target price is $2.04 Current Price is $2.12 Difference: minus $0.08 (current price is over target).
If SCP 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 $2.12, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.6

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

Macquarie rates SCP as Underperform (5) -

Shopping Centres Australasia has taken a 4.9% stake in Charter Hall Retail. The broker had been anticipating M&A in the sector. The holding is just shy of the level required to trigger an EGM to vote out Charter Hall Group ((CHC)), 16% holder of Charter Hall Retail, out as manager.

The broker suspects Shopping Centres may push for consolidation, but can still be voted in as manager on a 5-10% stake. There are considerable cost synergies on offer in a merger but it would likely be a long and drawn out process, the broker suggests. 

Hence the broker retains its Underperform ratings on both, and a $1.89 target on Shopping Centres.

Target price is $1.89 Current Price is $2.12 Difference: minus $0.23 (current price is over target).
If SCP meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.12, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.6

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

Morgan Stanley rates SCP as Underweight (5) -

The purchase of a 4.9% stake in Charter Hall Retail ((CQR)), in conjunction with the acquisition of the Lillybrook shopping centre, is expected to add $2.8m to FY17 cash flow and Morgan Stanley believes this is the main contributor to the 2.9% uplift to the company's guidance.

The broker suspects that SCP, rather than undertaking further corporate activity in CQR, is intending to get a seat at the table for some of the portfolio rationalisation being undertaken.

Whilst accretive to earnings, the broker believes this stake may overhang the company's share price in the near term. Underweight rating retained. Target remains at $2.15. Sector view: Attractive.

Target price is $2.15 Current Price is $2.12 Difference: $0.03
If SCP meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.12, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.6

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

Citi rates SHL as Sell (5) -

The company has announced the purchase of German Staber Laboratory Group for EUR120m cash, funded by debt and cash on hand and Citi analysts believe investors are likely to respond in a positive manner.

The analysts also note Sonic's statement to the ASX did not mention anything about this year's guidance. The company's AGM is on November 17th. Citi is currently positioned below 5% constant currency FY17 EBITDA growth guidance. Sell rating retained. Target $18.25.

Target price is $18.25 Current Price is $20.28 Difference: minus $2.03 (current price is over target).
If SHL meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.61, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates SHL as Upgrade to Neutral from Underperform (3) -

The company will acquire the Staber Laboratory group in Germany for EUR120m. The purchase will be funded from existing cash/debt facilities. Credit Suisse believes the acquisition is strategically sound, expanding the company's presence in certain regions where it had limited exposure.

Broker upgrades FY18 earnings estimates by around 3.5%. The rating is upgraded to Neutral from Underperform. Target rises to $21.75 from $20.90.

Target price is $21.75 Current Price is $20.28 Difference: $1.47
If SHL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $22.61, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

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 SHL as Upgrade to Overweight from Equal-weight (1) -

The company will acquire Germany's Staber Laboratory for EUR120m. Morgan Stanley expects the acquisition to be 3-4% accretive to earnings per share in year one, with further synergies over a three-year period.

The pull back in the share price and the accretive nature of the acquisition provide an opportunity, in the broker's view.The rating is upgraded to Overweight from Underweight. Target is steady at $24.05. In-Line industry view retained.

Target price is $24.05 Current Price is $20.28 Difference: $3.77
If SHL meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $22.61, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates SHL as Neutral (3) -

The company will acquire Staber Laboratories for EUR120m. The acquisition is expected to be 3-4% accretive. While UBS upgrades FY18 earnings per share estimates by more than 3%, this is offset by caution about the US outlook.

A Neutral rating is maintained. Target is $23.75.

Target price is $23.75 Current Price is $20.28 Difference: $3.47
If SHL meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $22.61, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

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