Australian Broker Call

UBS rates AAD as Neutral (3) -

The broker has assessed some 50,000 online reviews in order to update its analysis of Ardent's US entertainment centre brand Main Event. The reviews were relatively supportive and ahead of competitors, having improved since bottoming out in January 2017.

If well-executed, Ardent should be able to roll out at least a further 80 new centres, from 41 in FY18, the broker suggests. Neutral and $2.00 target retained.

Target price is $2.00 Current Price is $1.72 Difference: $0.28
If AAD meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 14.0% (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

Citi rates AMC as Neutral (3) -

Citi observes, since announcing the merger proposal with Bemis, the shares have fallen around -12%, underperforming the broader market. Rising US bond yields and high oil prices are also considered factors behind the stock's poor performance.

The broker expects FY19 guidance to be reiterated at the AGM and notes hurdles for the Bemis transaction are still to be cleared. Neutral rating and $14.50 target maintained.

Target price is $14.50 Current Price is $13.31 Difference: $1.19
If AMC meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $15.18, suggesting upside of 14.0% (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: 0.5

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

Citi rates ANZ as Buy (1) -

ANZ will reduce FY18 net profit expectations by around -$697m, largely as a result of customer compensation and costs relating to the Royal Commission. Citi believes similar remediation charges are likely at other major banks.

With an FY18 CET1 ratio of around 11.3%, the broker suggests ANZ is well above unquestionably strong benchmarks. Citi reduces FY18 estimates for earnings by -8%. Buy rating and $30.50 target maintained.

Target price is $30.50 Current Price is $27.04 Difference: $3.46
If ANZ meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $29.34, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Deutsche Bank rates ANZ as Hold (3) -

ANZ expects to report charges totalling $584m in the second half FY18, post-tax, from customer remediation costs, software write off, restructuring and legal costs emanating from the Royal Commission.

While Deutsche Bank had expected customer remediation costs would be an issue in the short term ANZ has gone further with the additional charges. Nevertheless, the impact on the capital position is considered manageable, reducing the CET1 ratio by about -10 basis points.

Hold rating maintained. Target is $29.

Target price is $29.00 Current Price is $27.04 Difference: $1.96
If ANZ meets the Deutsche Bank target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $29.34, suggesting upside of 8.5% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Macquarie rates ANZ as Outperform (1) -

ANZ has announced FY18 cash earnings will be affected by additional customer charges, software amortisation and restructuring costs. The bank has downgraded estimates for FY18 earnings by -7%. Macquarie lowers forecasts as a result and reduces its buyback estimate for FY19 by an equivalent amount.

Macquarie believes ANZ will need to deliver on its expense guidance and achieve a cost base of under $8.5bn by FY20 for its investment thesis to hold. Moreover, less scope to generate franking credits is likely to reduce the bank's ability to increase its dividends in FY19.

Outperform rating maintained. Target is reduced to $30.00 from $30.50.

Target price is $30.00 Current Price is $27.04 Difference: $2.96
If ANZ meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $29.34, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

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

ANZ has announced additional charges for customer compensation, legal costs, software amortisation and restructuring. Morgan Stanley notes compensation costs of $374m, post-tax, have been identified from the reviews to date but these are ongoing.

The broker estimates an impact on the CET1 ratio of around -10 basis points but expects buybacks could end up being lower than forecasts, if there are higher fines or costs.

Rating is Equal-weight. Target is $28. Sector view: In-Line.

Target price is $28.00 Current Price is $27.04 Difference: $0.96
If ANZ meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $29.34, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

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

Morgans does not expect the additional provisions stemming from the Royal Commission to hamper the ability of the major banks to achieve APRA's unquestionably strong CET1 benchmark by January 2020.

From this perspective, the broker is comfortable with ANZ's announcement of $374m in charges for customer remediation brought to the accounts in FY18. The broker reduces estimates for cash earnings per share by -7.0% as a result of the announced charges.

FY19 and FY20 estimates are reduced by -0.3% and -0.8% respectively, because of share buyback estimates reducing by -$800m. Morgans upgrades to Add from Hold, viewing the recent share price weakness as overdone. Target is reduced to $28.50 from $30.00.

Target price is $28.50 Current Price is $27.04 Difference: $1.46
If ANZ meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $29.34, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Ord Minnett rates ANZ as Accumulate (2) -

ANZ Bank will take customer compensation costs totalling $374m for the second half of FY18, as well as accelerated software amortisation and restructuring charges. Ord Minnett was not surprised these costs were flagged, although the quantum was larger than expected.

The broker forecasts a CET1 ratio of 10.4% for the second half of FY18 and does not envisage a risk to dividends. Ord Minnett maintains an Accumulate rating and $32.20 target.

Target price is $32.20 Current Price is $27.04 Difference: $5.16
If ANZ meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $29.34, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

UBS rates ANZ as Neutral (3) -

The charges ANZ yesterday announced it would take based on RC fallout represent around 10% of profit, the broker notes. The charges complicate what will already be a messy result given the bank's restructuring.

While such a clean-out is welcome the broker does not believe this will be the last of it. Customer compensation is difficult to estimate and history shows costs tend to escalate over time, notwithstanding what is yet to stem from the RC, and the impact of a weakening housing market.

Neutral and $28 target retained.

Target price is $28.00 Current Price is $27.04 Difference: $0.96
If ANZ meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $29.34, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Macquarie rates BPT as Underperform (5) -

The company will sell 40% of its Otway gas project to Ofer for $344m. This is below Macquarie's estimates of the valuation.

While an acquirer should not be expected to pay for exploration success, the broker believes the price highlights the relative immaturity of both prospects and the risk to achieving production targets.

Underperform rating maintained. Target is reduced to $1.65 from $1.75.

Target price is $1.65 Current Price is $1.99 Difference: minus $0.34 (current price is over target).
If BPT meets the Macquarie target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.72, suggesting downside of -13.7% (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

Citi rates DCG as Buy (1) -

Citi calculates the Sunraysia solar farm contract will increase FY19 secured revenue to $535m and FY20 secured revenue to $277m. Nevertheless, the contract increases earnings risk given its size and  Decmil's lack of experience in renewables.

The broker reiterates a Buy rating, believing the company is well-placed to capitalise on infrastructure expenditure on the east coast and a recovery in mining expenditure in Western Australia. The focus for FY19 is now on the delivery of projects. Target is raised to $1.18 from $1.12.

Target price is $1.18 Current Price is $0.82 Difference: $0.36
If DCG meets the Citi target it will return approximately 44% (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 IGO as Accumulate (2) -

Ord Minnett incorporates a September quarter commodity price review into its forecasts. The broker has neutralised a previously positive outlook for metals as trade tensions increase, although believes most metal prices have bottomed at near cost support. Copper forecasts decline -15%.

The broker maintains an Accumulate rating and $5.20 target and prefers Independence Group among base metal stocks.

Target price is $5.20 Current Price is $4.57 Difference: $0.63
If IGO meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.66, suggesting upside of 1.9% (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

Citi rates IVC as Neutral (3) -

Market softness will have a negative impact on the company's results, Citi suggests. The number of deaths in Australia continues to be below trends, blamed on mild weather and a benign flu season.

Despite the disruption caused by its refurbishment program the company maintains it has gained market share. Citi expects a 2018 decline in earnings per share of around -6.5%, net of the contribution from the 11 acquisitions made so far in 2018. Neutral rating and $12.40 target maintained.

Target price is $12.40 Current Price is $11.41 Difference: $0.99
If IVC meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $11.82, suggesting upside of 3.6% (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

Deutsche Bank rates IVC as Sell (5) -

The business is experiencing sharp declines in case volumes, partly explained by closures for refurbishment. However, this highlights a concern for Deutsche Bank regarding the fall in volumes in Australasia as a result of a weaker market and share losses.

The company's costs are also increasing as part of the 'Grow and Protect' strategy, exacerbating the impact. Deutsche Bank notes the balance sheet is stretched, which limits the options. Sell rating retained. Target is reduced to $10.40 from $10.80.

Target price is $10.40 Current Price is $11.41 Difference: minus $1.01 (current price is over target).
If IVC meets the Deutsche Bank target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.82, suggesting upside of 3.6% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Macquarie rates IVC as Neutral (3) -

Soft market conditions and disruption from the company's 'Protect and Grow' strategy has combined to pressure near-term earnings, Macquarie observes. Deaths in the Australian market are down -5.9% in the period June to August 2018.

The company estimates that every -1% decline in the number of deaths reduces annual funeral revenue by -$3m. Macquarie expects Invocare to revise FY18 guidance once the full impact of softer conditions has been assessed. Neutral rating maintained. Target is reduced -9% to $11.80.

Target price is $11.80 Current Price is $11.41 Difference: $0.39
If IVC meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $11.82, suggesting upside of 3.6% (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

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

The company has downgraded expectations following a material slowdown in trading because of a mild winter and benign flu season.

Morgan Stanley believes the softer guidance for 2018 represents a further downside risk to expectations, and notes the average pricing per case is also down on the back of the decline in the market.

Target is $12.60. Rating is Equal-weight. In-Line industry view.

Target price is $12.60 Current Price is $11.41 Difference: $1.19
If IVC meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $11.82, suggesting upside of 3.6% (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 IVC as Hold (3) -

The company has advised that a mild winter and benign flu season has negatively affected third quarter earnings. Industry data suggests the number of deaths in Australia dropped -5.9% in June to August and the company estimates that deaths in September fell at an even greater rate.

Morgans suggests the main positive from the update was that weakness was market-related. The broker is confident that management is executing well on items within its control and believes market conditions will improve eventually. Hold rating maintained. Target is reduced to $11.54 from $12.85.

Target price is $11.54 Current Price is $11.41 Difference: $0.13
If IVC meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $11.82, suggesting upside of 3.6% (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

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

The company has downgraded expectations for 2018 on the basis of weaker volumes. Historically, Ord Minnett observes seasonal variations in volumes have provided good trading opportunities in the stock.

However, given the substantial capital expenditure in train and structural issues facing its UK-listed counterpart, the broker concedes the market is cautious about whether the near-term headwinds are structural.

The de-rating of the share price leads the broker to consider the risk/reward equation as more balanced. Rating is upgraded to Hold from Lighten. Target is reduced to $12.00 from $12.30.

Target price is $12.00 Current Price is $11.41 Difference: $0.59
If IVC meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.82, suggesting upside of 3.6% (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

UBS rates IVC as Neutral (3) -

The broker is not concerned about swings and roundabouts in the death rate -- in the context of this year's benign flu season -- given year to year variability, it is only concerned if InvoCare loses market share or has to start discounting to maintain it.

The death rate will swing back again at some point and InvoCare has declared it has increased market share, but what is yet unknown is the extent of discounting required to achieve that result, the broker notes. Neutral retained, target falls to $12.00 from $12.70.

Target price is $12.00 Current Price is $11.41 Difference: $0.59
If IVC meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.82, suggesting upside of 3.6% (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

Morgan Stanley rates MNF as Overweight (1) -

The company has announced the acquisition of Inabox Group ((IAB)). Morgan Stanley estimates the acquisition will be 5-10% accretive to earnings if funded through debt.

The acquisition complements the iBoss business within the domestic wholesale segment. This will allow the company to increase its scale and rationalise carriage volumes and systems.

Overweight rating maintained. Target is $7.30. Industry view: In-Line.

Target price is $7.30 Current Price is $5.00 Difference: $2.3
If MNF meets the Morgan Stanley target it will return approximately 46% (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

Credit Suisse rates MYO as Neutral (3) -

The company has received an unsolicited proposal from KKR at $3.70 a share. Prior to making the offer KKR acquired an interest of 19.9%. Credit Suisse observes the offer implies an FY19 estimated PE ratio of 22x, not particularly demanding for a tech stock.

However, MYOB is entering a period of heavy investment and the broker finds it difficult to envisage the stock trading anywhere near the offer levels if the bid falls away. Neutral rating maintained. Target is raised to $3.70 from $3.00.

Target price is $3.70 Current Price is $3.62 Difference: $0.08
If MYO meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.28, suggesting downside of -9.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Morgan Stanley rates MYO as Underweight (5) -

MYOB has received an unsolicited bid from private equity firm KKR at $3.70 cash per share. KKR has already obtained a 19.9% interest.

Morgan Stanley has previously highlighted the risk of M&A to its Underweight thesis, given prior interest from private equity and international peers. The bid remains subject to due diligence and financing and there is no certainty the proposal will be successful.

Underweight rating. Price target is $2.80. Industry View is Attractive.

Target price is $2.80 Current Price is $3.62 Difference: minus $0.82 (current price is over target).
If MYO meets the Morgan Stanley target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.28, suggesting downside of -9.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

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

The company has made an unconditional proposal for Asia Pacific Data Centres ((AJD)) at $2 a share. Asia Pacific Data Centres' major shareholder, 360 Capital ((TGP)), has announced its intention to accept the offer.

Deutsche Bank observes this transaction would finally resolve a year-long dispute between tenant and landlord. The transaction is to be funded by existing funds and, from a capital allocation perspective, the broker considers this a minor negative.

However, Deutsche Bank does believe there is merit in the strategy of owning the data centres. Rating is upgraded to Hold from Sell. Target is steady at $6.30.

Target price is $6.30 Current Price is $6.32 Difference: minus $0.02 (current price is over target).
If NXT meets the Deutsche Bank target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.92, suggesting upside of 25.4% (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

Morgan Stanley rates NXT as Overweight (1) -

The company will acquire Asia Pacific Data Centre ((AJD)) for $2 a share and 360 Capital ((TGP)), the major shareholder, intends to accept the offer.

Asia Pacific Data Centre owns three properties, all currently occupied by NextDC. NextDC anticipates recurring annual cash flow savings of $14m. Morgan Stanley considers the deal neutral to the outlook.

Overweight rating. In-Line industry view. Target is $9.20.

Target price is $9.20 Current Price is $6.32 Difference: $2.88
If NXT meets the Morgan Stanley target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $7.92, suggesting upside of 25.4% (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

UBS rates NXT as Buy (1) -

NextDC has agreed to acquire the remaining 70.8% of Asia Pacific Data Centre ((AJD)) it doesn't own for $2.00 cash plus a 2c special dividend. 360 capital ((TGP)), holder of 67.3%, will accept the offer in the absence of a superior proposal.

If successful, NextDC would then own its first three data centres (Syd-Melb-Perth) and no longer pay rent. The broker calculates the deal would be net beneficial on a profit basis in FY19 but less so medium term on the $200m cash payment applied against bank debt.

Buy and $9.30 target retained.

Target price is $9.30 Current Price is $6.32 Difference: $2.98
If NXT meets the UBS target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $7.92, suggesting upside of 25.4% (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 OZL as Hold (3) -

Ord Minnett incorporates a September quarter commodity price review into its forecasts. The broker has neutralised a previously positive outlook for metals as trade tensions increase, although believes most metal prices have bottomed at near cost support. Copper forecasts decline -15%.

The broker prefers Independence Group ((IGO)) over Oz Minerals in base metals. Hold rating maintained. Target is reduced to $9.50 from $10.10.

Target price is $9.50 Current Price is $8.99 Difference: $0.51
If OZL meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $10.65, suggesting upside of 18.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

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

Morgan Stanley estimates around $35m of inflows in September, sharply lower than preceding months but still positive.

The seasonal tailwind of retail distribution reinvestment that supported flows in July and August has largely played out and the retail business has also slowed down, the broker observes.

Equal-weight retained. Industry view: In-Line. Target is $6.

Target price is $6.00 Current Price is $5.28 Difference: $0.72
If PTM meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.33, suggesting upside of 0.9% (ex-dividends)

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

Citi rates RHC as Buy (1) -

Subsidiary RGdS has increased its unsolicited bid for Sweden's Capio to SEK 58 per share. Citi calculates that in the first full year of ownership, FY20, the transaction could be 4% accretive to Ramsay Health Care.

The magnitude of this accretion is significant because the transaction is to be fully funded by debt. Citi maintains a Buy rating and $62 target.

Target price is $62.00 Current Price is $54.65 Difference: $7.35
If RHC meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $57.53, suggesting upside of 5.3% (ex-dividends)

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 RHC as Underperform (5) -

Subsidiary RGdS has increased its bid for Capio to SEK58 a share. Credit Suisse believes the deal represents fair value but there are risks around the proposed sale of Capio's French operations. The bid is contingent on Capio's sale of the French business to Vivalto Sante not proceeding.

Credit Suisse estimates low single-digit accretion for Ramsay Health Care if the deal proceeds. Underperform rating and $47.20 target maintained.

Target price is $47.20 Current Price is $54.65 Difference: minus $7.45 (current price is over target).
If RHC meets the Credit Suisse target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $57.53, suggesting upside of 5.3% (ex-dividends)

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

Deutsche Bank rates RHC as Buy (1) -

Ramsay's 50.9%-owned subsidiary, RGdS, has increased its takeover bid for Capio by 20% to SEK58/share. This is at a 39% premium to Capio's last closing price before the initial offer was made.

Ramsay will fund its share of the equity raising by RGdS using debt facilities. Deutsche Bank retains a Buy rating and $61.50 target.

Target price is $61.50 Current Price is $54.65 Difference: $6.85
If RHC meets the Deutsche Bank target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $57.53, suggesting upside of 5.3% (ex-dividends)

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

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

Ramsay Generale de Sante (RGdS) has raised its offer for Capio to EUR783m. Ramsay Health Care, which owns 50.9% of RGdS, intends to subscribe to its share of the raising and fund this using euro-denominated debt.

Morgan Stanley estimates the transaction at this price would be around 1.7% accretive to FY20 earnings, ex synergies. Equal-weight rating. Target is $56. Industry view is In-Line.

Target price is $56.00 Current Price is $54.65 Difference: $1.35
If RHC meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $57.53, suggesting upside of 5.3% (ex-dividends)

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

Ord Minnett rates RHC as Hold (3) -

Subsidiary RGdS has increased its bid for Swedish healthcare company Capio by 20%. Ord Minnett remains cautious, as past investments in Europe have struggled because of funding pressures, although takes comfort from the solid improvements in both the UK and France.

Capio also represents a significant new challenge at a time when domestic conditions face a real risk of further deterioration, if the ALP wins the federal election and goes ahead with its plan to cap insurance premiums. Ord Minnett maintains a Hold rating and $55.50 target.

Target price is $55.50 Current Price is $54.65 Difference: $0.85
If RHC meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $57.53, suggesting upside of 5.3% (ex-dividends)

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

UBS rates RHC as Neutral (3) -

Ramsay's French subsidiary has increased its takeover bid for Capio AB -- a health service provider operating across northern Europe -- by 20%. The takeover will be funded by debt and a rights issue by the subsidiary, of which Ramsay Healthcare will take up its stake funded by debt.

The broker calculates the acquisition would be only mildly accretive but it does extend the company's footprint into the Nordic region, providing new opportunities. Neutral and $54 target retained.

Target price is $54.00 Current Price is $54.65 Difference: minus $0.65 (current price is over target).
If RHC 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 $57.53, suggesting upside of 5.3% (ex-dividends)

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 SGM as Outperform (1) -

Credit Suisse observes the company's exports from US ports in August were consistent with the preceding month and have remained flat for four months now. Concerns continue regarding Turkey, although the Turkish market has lifted a little in recent days on relatively limited available US scrap and some large steel sales.

Credit Suisse notes the spread between rebar and scrap in Turkey is at its lowest since July 2017, as global competition has weighed on rebar prices and the limited availability has buoyed scrap prices.

Outperform and $14.45 target retained.

Target price is $14.45 Current Price is $12.04 Difference: $2.41
If SGM meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $14.48, suggesting upside of 20.2% (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

UBS rates WES as Neutral (3) -

Following yesterday's update from Wesfarmers, the broker declares itself incrementally negative on Coles post-demerger due to reduced cash flow, impacted by "catch-up" capex with no change to price strategy. The broker expects Coles' enterprise value ratio to de-rate to -10% relative to Woolworths ((WOW)) from the current +3%.

Wesfarmers' remaining businesses are also facing headwinds, specifically Bunnings in the face of falling house prices, the broker notes. Neutral and $48.50 target retained.

Target price is $48.50 Current Price is $49.04 Difference: minus $0.54 (current price is over target).
If WES 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 $48.25, suggesting downside of -1.6% (ex-dividends)

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