Australian Broker Call

Ord Minnett rates A2M as Initiation of coverage with Accumulate (2) -

Ord Minnett initiates coverage with an Accumulate rating and $17.23 target, confident in further market share gains. The dramatic rise in demand from China has transformed the business in Australasia, with the premiumisation trend the key driver.

The company has a nimble route to market, in the broker's view, that is able to adjust to changing points of purchase. Despite the outperformance in the share price, Ord Minnett considers the valuation is supported.

Target price is $17.23 Current Price is $15.25 Difference: $1.98
If A2M meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $15.38, suggesting upside of 0.8% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.2

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

Citi rates AGL as Sell (5) -

On initial analysis, Citi analysts find AGL Energy's FY19 performance beat expectations by some 3%. Stronger electricity gross margins in both wholesale and retail seem to have been responsible for the beat.

Final dividend proved 1c better-than-expected. But then focus shifts to guidance... -8% below Citi's forecasts and some -10% below market consensus.

Citi analysts keep the Sell rating in place. They had expected earnings contraction was not being fully appreciated by the market, and it appears today's market update has vindicated that view. Target $17.82.

Target price is $17.82 Current Price is $19.02 Difference: minus $1.2 (current price is over target).
If AGL meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.88, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.7

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

Morgans rates AMP as Hold (3) -

On initial assessment. Morgans finds the reported financial performance appears broadly in-line with market expectations, but big impairments make for an eye-watering loss for the half. The analysts observe pressures exist within Wealth Management and the bank, but suggest it was a good result for AMP Capital.

AMP has managed to renegotiate the sale of the Life Insurance operations (welcomed by Morgans) and the stockbroker also notes the $650m capital raising. Morgans also suspects investors should not bank on any capital return from the life business sale.

The dividend payout ratio has been reduced to 40%-60% from 60-80% previously, plus there is a costly transformation program, with a large cost out plan. Hold. Target $2.25.

Target price is $2.25 Current Price is $1.73 Difference: $0.52
If AMP meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $1.91, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in December.

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 AQZ as Neutral (3) -

It was a "decent" result from Alliance Aviation, the broker suggests, reflecting the benefits of an expanded asset base, a better operating environment and typically solid execution. The broker sees tailwinds ahead in further contract rollovers and asset expansion and the development of FIFO and Wet Lease opportunities.

However with the ACCC hinting a full takeover by Qantas ((QAN)) would not be approved, the question now is what will Qantas do with its minority stake?

This overhang keeps the broker on Neutral. Target falls to $2.60 from $2.75.

Target price is $2.60 Current Price is $2.66 Difference: minus $0.06 (current price is over target).
If AQZ meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Ord Minnett rates AQZ as Buy (1) -

Ord Minnett finds the reported financials were "broadly in-line" except for the free cash flow, which was below expectation. Underlying profit was actually slightly better than what the broker had penciled in (by some 3%).

The final dividend of 8.8c proved above expectation too. The analysts believe the outlook remains positive.

Ord Minnett remains attracted to the business, believing the stock is cheap with an enterprise value/operating earnings (EBITDA) ratio of 5.0x for FY20. Buy, target $2.90.

Target price is $2.90 Current Price is $2.66 Difference: $0.24
If AQZ meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

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

Macquarie observes cyclical headwinds are weighing on the business and likely to persist amid a soft retail environment, with weakness in utility vehicle sales and construction sector activity. The broker downwardly revises FY19-20 estimates by -1-3%.

While the business is considered quality, Macquarie downgrades to Neutral from Outperform, envisaging earnings risks are skewed to the downside. Target is reduced to $18 from $20.

Target price is $18.00 Current Price is $17.32 Difference: $0.68
If ARB meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $17.32, suggesting upside of 0.0% (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

Ord Minnett rates BAL as Reinstate Coverage with Hold Rating (3) -

Ord Minnett reinstates coverage with a Hold rating and $9.50 target. The main drivers are the provenance of the company's brand and product.

The business enhancement program is likely to underpin the company's $500m revenue target, in the broker's view. Ord Minnett finds modest valuation support and the prospect of PE multiple expansion if earnings growth can be achieved.

Target price is $9.50 Current Price is $9.06 Difference: $0.44
If BAL meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $9.25, suggesting upside of 2.1% (ex-dividends)

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 BRG as Upgrade to Neutral from Underperform (3) -

Credit Suisse believes Breville is unlikely to disappoint at its upcoming result release, given persistent guidance of 11% earnings growth despite overall weakness in retail. Yet nor is the stock likely to re-rate given it is already expensive as far as the broker is concerned.

The broker has lifted its target to $16.44 from $12.59 (February) and on balance moves back to a Neutral stance from Underperform.

Target price is $16.44 Current Price is $18.49 Difference: minus $2.05 (current price is over target).
If BRG meets the Credit Suisse target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.51, suggesting downside of -16.1% (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 CBA as Sell (5) -

FY19 earnings were -2% below Citi's estimates. The broker expects FY20 will be a very different year as lending momentum has returned. The broker expects a $5bn buyback to be announced in FY20 as divestments are completed.

Valuation remains the broker's biggest concern, as the premium to peers is unjustified, in Citi's view. Sell rating and $73.25 target maintained.

Target price is $73.25 Current Price is $78.85 Difference: minus $5.6 (current price is over target).
If CBA meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.72, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.6

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

Credit Suisse rates CBA as Neutral (3) -

An expense-driven miss from CBA along with a larger than expected margin impact from the RBA cut leads the broker to reduce forecast earnings by -4% in FY20 and -3% in FY21.

Capital management has been delayed and will thus likely be lower than expected, the broker suggests. Target falls to $77.60 from $79.00, Neutral retained.

Target price is $77.60 Current Price is $78.85 Difference: minus $1.25 (current price is over target).
If CBA meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.72, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.6

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

Macquarie rates CBA as Underperform (5) -

Second half pre-tax profit was slightly below Macquarie's expectations. The soft trends were driven by deteriorating fee income and elevated compliance expenditure.

The broker notes Commonwealth Bank has maintained the dividend despite the pay-out ratio rising to around 88%, as this is supported by a sound pro forma capital position.

Given the challenging underlying outlook, Macquarie considers the 26% valuation premium relative to peers excessive. Underperform rating maintained. Target rises to $72 from $71.

Target price is $72.00 Current Price is $78.85 Difference: minus $6.85 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.72, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.6

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

Morgan Stanley rates CBA as Underweight (5) -

Morgan Stanley expects revenue will be flat in FY20, although this requires Commonwealth Bank to limit the margin decline to around -5 basis points and prevent a further fall in other banking income and wealth revenue.

The broker believes the bank's conservative approach to capital management in 2019 is warranted. Morgan Stanley envisages an off-market buyback as the most efficient form of capital management and expects $2.0bn to be announced in the next six months after the completion of the Australian life insurance sale.

Underweight maintained. Target is reduced to $66.00 from $66.50. Industry view: In-Line.

Target price is $66.00 Current Price is $78.85 Difference: minus $12.85 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.72, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.6

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

Morgans rates CBA as Hold (3) -

FY19 net profit was -2% below Morgans' forecasts. The broker considers the result bodes well for the outlook for major bank earnings in terms of home lending and residential mortgage asset quality.

The broker continues to believe the current multiples are stretched and Commonwealth Bank remains the least preferred major bank.

Morgans assumes the sale of CommInsure Life will be completed by the end of the first half of FY20. Hold rating maintained. Target is steady at $74.

Target price is $74.00 Current Price is $78.85 Difference: minus $4.85 (current price is over target).
If CBA meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.72, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.6

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

Ord Minnett rates CBA as Hold (3) -

FY19 results were weaker than Ord Minnett expected. Stripping out one-off items puts a disappointing performance in a worse light, in the broker's view.

The broker envisages a challenging revenue environment will require greater urgency for cost savings and capital management.

Ord Minnett considers the stock very expensive and maintains a Hold rating. Target is reduced to $74.20 from $76.00.

Target price is $74.20 Current Price is $78.85 Difference: minus $4.65 (current price is over target).
If CBA meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.72, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.6

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

Macquarie rates CHC as Outperform (1) -

Two of the company's funds have acquired a 50% stake in Chifley Tower, Sydney, for $900m. Charter Hall will manage the asset. Funds under management have increased by 8% to $32.8bn with recent acquisitions, Macquarie notes.

Macquarie maintains an Outperform rating, with the next catalyst likely to be FY20 guidance at the results on August 20. Target is raised 4.3% to $13.35.

Target price is $13.35 Current Price is $11.66 Difference: $1.69
If CHC meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $11.88, suggesting upside of 1.8% (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

Morgans rates CIP as Hold (3) -

FY19 results were in line with guidance. The company has reiterated FY20 guidance for growth of 2-3%. Distribution guidance is 18.7c, equating to an implied distribution yield of around 6%.

Morgans assesses Centuria Industrial as one of the few listed A-REITs that offer pure exposure to Australian industrial property that is leveraged to the growing e-commerce/logistics thematic.

The company will move to reporting on a funds from operations (FFO) basis from FY20, in line with most peers. Morgans maintains a Hold rating and raises the target to $2.98 from $2.97.

Target price is $2.98 Current Price is $3.17 Difference: minus $0.19 (current price is over target).
If CIP meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates CMA as Hold (3) -

FY19 results were in line with guidance and debt was refinanced in the second half. Morgans notes an attractive FY20 distribution yield of 6.4% is on offer, underpinned by contracted rental income.

Revaluation gains in FY19 of over $45.2m were driven by NSW and Victorian assets. Hold rating maintained. Target rises to $2.83 from $2.64.

Target price is $2.83 Current Price is $2.79 Difference: $0.04
If CMA meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Ord Minnett rates CQE as Hold (3) -

Charter Hall Education Trust's FY19 earnings were in line with Ord Minnett's forecasts. The company has announced a broadening of its investment mandate to include social infrastructure assets outside of child care.

Ord Minnett assesses the balance sheet is in good shape, which means acquisition opportunities could be funded via debt over the next 2-3 years, driving 5-6% earnings growth per annum. Hold rating maintained. Target reduced to $3.65 from $3.70.

Target price is $3.65 Current Price is $3.83 Difference: minus $0.18 (current price is over target).
If CQE meets the Ord Minnett 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 FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates DHG as Reduce (5) -

Morgans suggests the rebound in residential property listings is proving elusive. The broker lowers forecasts in response to continuing low levels of new property listings in Sydney and Melbourne.

Morgans has pushed out expectations for a 2020 rebound in new listings following CoreLogic listing data as it appears vendors are increasingly hesitant to sell.

Reduce retained. Target is raised to $2.25 from $2.19 after rolling forward the base year for valuation.

Target price is $2.25 Current Price is $2.77 Difference: minus $0.52 (current price is over target).
If DHG meets the Morgans target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.74, suggesting downside of -1.2% (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

Morgan Stanley rates JHX as Overweight (1) -

US housing data has been soft although the outlook remains favourable, Morgan Stanley observes. The broker considers this a positive for James Hardie in the second half.

More than 50% of home builders reported double-digit order growth in May and June. Meanwhile, pulp prices were flat for August, down -13% from the highs experienced in December 2018.

The company will report its first quarter results on August 9. Morgan Stanley retains an Overweight rating, $21 target and Cautious industry view.

Target price is $21.00 Current Price is $18.96 Difference: $2.04
If JHX meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $21.78, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.8

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

Macquarie rates LEP as Neutral (3) -

Distributable earnings in FY19 were below Macquarie's expectations. No FY20 guidance was provided. The broker notes the company is waiting on an arbitration outcome for the remaining leases under review.

Around 36 assets have now received the full 10% increase in rents. Macquarie maintains a Neutral rating. Target is raised to $5.06 from $5.03.

Target price is $5.06 Current Price is $5.17 Difference: minus $0.11 (current price is over target).
If LEP meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.5

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

Ord Minnett rates LEP as Lighten (4) -

FY19 results were in line with Ord Minnett's forecasts. The trust has received a full 10% rental uplift for 36 properties as part of the November 2018 rent review. A further 43 remain subject to independent determination.

While the business owns a high-quality portfolio with stable growth, Ord Minnett believes these desirable metrics are captured in the current share price. Lighten maintained. Target rises to $4.60 from $4.20.

Target price is $4.60 Current Price is $5.17 Difference: minus $0.57 (current price is over target).
If LEP meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.5

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

Morgan Stanley rates PTM as Underweight (5) -

Morgan Stanley confirms suspicions that outflows continued in July despite the support from reinvestments. The broker does not believe the stock price is justified, given -8% annualised outflows over the past six months.

Outflows are projected to accelerate to -12% in the first half of FY20. Underweight rating maintained. In-Line industry view. Target is $3.50.

Target price is $3.50 Current Price is $4.41 Difference: minus $0.91 (current price is over target).
If PTM meets the Morgan Stanley target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.35, suggesting downside of -1.3% (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 SCP as Neutral (3) -

SCA Property's result came in slightly ahead of the broker. FY20 funds from operations growth guidance of 2.3% is at the low end of the 2-4% target range and below the broker's prior estimate.

The broker notes guidance did not assume further acquisitions, and with a desire to keep gearing below 35% any large acquisition would likely require a raising, the broker suggests. Target rises to $2.41 from $2.25. Neutral retained.

Target price is $2.41 Current Price is $2.56 Difference: minus $0.15 (current price is over target).
If SCP 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 $2.37, suggesting downside of -7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Citi rates SUN as Buy (1) -

Citi lowers forecasts for FY20 by -4% and FY21 by -3%. While growth rates for the next three years appear to be only in the low single digits, the broker welcomes the renewed focus on the core, believing the strong balance sheet has the potential to offer flexibility over and above the pending -$506m capital reduction.

The near-term outlook for the bank division appears difficult to Citi, with price competition for mortgages and margin pressure from lower cash rates. Buy rating and a $14.40 target maintained.

Target price is $14.40 Current Price is $13.25 Difference: $1.15
If SUN meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $13.52, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Credit Suisse rates SUN as Neutral (3) -

Suncorp delivered a result largely in line with consensus with a dividend slightly below. Insurance trends remain weak as do bank trends, with profit lower over the period. The outlook for FY20 is tough given the impact of low bond yields, the broker notes.

While it's a fairly downbeat summary, the broker puts the positive share price response on the day down to the fact Suncorp had underperformed the market and peers by around -15% in 2019 to date.

Target rises to $13.90 from $13.70, Neutral retained.

Target price is $13.90 Current Price is $13.25 Difference: $0.65
If SUN meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $13.52, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Macquarie rates SUN as Underperform (5) -

While the stock may perform well ahead of a material capital return, on a 12-month view Macquarie considers the risks are to the downside, particular for investment returns, margins in the bank division and a potential re-basing a future expectations after the appointment of a permanent CEO.

The broker found the FY19 result broadly in line with expectations. A $506m capital return has also been announced, to be approved at the FY19 AGM in September. This will be accompanied by a share consolidation on a 0.971 ratio. Macquarie suspects this could drive additional interest in the stock.

Underperform rating maintained. Target is $12.80.

Target price is $12.80 Current Price is $13.25 Difference: minus $0.45 (current price is over target).
If SUN meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.52, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Morgan Stanley rates SUN as Underweight (5) -

FY19 net profit was below expectations. Morgan Stanley is pleased the company did not pull back from its aspiration to re-build underlying general insurance margins to over 12%.

However, FY20 estimates of underlying margins drop -150 basis points to 10.8%, with headwinds from the higher catastrophe budget.

As no top-line guidance was provided, the broker suspects the focus is on margins over growth. Target is raised to $12.10 from $11.90. Underweight maintained. In-Line sector view.

Target price is $12.10 Current Price is $13.25 Difference: minus $1.15 (current price is over target).
If SUN meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.52, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Morgans rates SUN as Add (1) -

FY19 net profit was broadly in line with expectations. Morgans found the result lacked any huge negative surprises and strong reinsurance protections meant a large improvement in the second half insurance margin.

FY20 is shaping up as a tough year, in the broker's view, but steps to de-risk the business are expected to drive a re-rating over time. Add maintained. Target is reduced to $13.87 from $14.59.

Target price is $13.87 Current Price is $13.25 Difference: $0.62
If SUN meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $13.52, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Ord Minnett rates SUN as Hold (3) -

FY19 net profit was in line with Ord Minnett's forecasts. General insurance volumes were weak, however there is potential upside for the banking division because of low bad debts.

The broker notes, in FY20, Suncorp will seek to counter very tough volume trends through reinvestment, although this is likely to have some consequences for profit. Hold rating maintained. Target is reduced to $13.49 from $14.40.

Target price is $13.49 Current Price is $13.25 Difference: $0.24
If SUN meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $13.52, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

UBS rates SUN as Buy (1) -

FY19 results signal to UBS the company has solid leverage to commercial rate increases. However volume losses across personal lines remain an issue. Results were in line with expectations.

All three divisions delivered stronger net profit with NZ insurance leading the way. However, the broker observes operating costs for FY20/21 remain stuck at $2.7bn.

Buy rating maintained. Target is reduced to $14.10 from $14.25.

Target price is $14.10 Current Price is $13.25 Difference: $0.85
If SUN meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $13.52, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Citi rates TCL as Sell (5) -

FY19 earnings were in line with expectations as was distribution guidance for FY20. The company has acquired the remaining 35% of the M5 for $515m, funded by a $500m institutional placement and $200m share purchase plan.

If a 100% payout-out ratio is assumed and capital releases are similar in FY20, Citi estimates distribution guidance implies 3-4% underlying growth in free cash flow.

The broker retains a Sell rating, believing challenges such as poor distribution coverage, increased capital releases and weakening credit metrics will continue. Target is raised to $12.09 from $11.94.

Target price is $12.09 Current Price is $15.17 Difference: minus $3.08 (current price is over target).
If TCL meets the Citi target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.52, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Credit Suisse rates TCL as Underperform (5) -

Transurban's result was slightly below expectation. The dividend met estimates, implying 5% annual growth which management intends to maintain or exceed ahead. The capital raising announced to take out remaining M5 minorities is fully priced, the broker suggests.

Target rises to $13.00 from $12.20 as the broker cuts its risk free rate forecast to 2.5% from 3.5%, but warns that for the share price to remain supported low rates must also be maintained. The broker is cautious on this point and hence retains Underperform.

Target price is $13.00 Current Price is $15.17 Difference: minus $2.17 (current price is over target).
If TCL 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 $14.52, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Macquarie rates TCL as Neutral (3) -

FY19 earnings were slightly below expectations. Australian traffic was weaker across the second half, Macquarie observes. The acquisition of the residual M5 is attractive, the broker suggests, with immediate benefits.

The opportunity to invest recycled cash flow remains significant, Macquarie suggests, and the obvious area is in NSW, although there are potential incremental projects in Brisbane and Montreal.

Neutral rating maintained. Target reduced to $15.26 from $15.77.

Target price is $15.26 Current Price is $15.17 Difference: $0.09
If TCL meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $14.52, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Ord Minnett rates TCL as Buy (1) -

The main focal point of the FY19 result was the acquisition of stakes in the M5 West, with Transurban now owning 100%.

Ord Minnett is positive about the transaction, assessing it will generate a return on capital of 5.5-6.5%, at or above the weighted average cost of capital and despite the short-dated concession.

The transaction also materially improves debt serviceability for the next two years. Buy rating and $16.75 target maintained.

Target price is $16.75 Current Price is $15.17 Difference: $1.58
If TCL meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $14.52, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

UBS rates TCL as Neutral (3) -

The FY19 result was weaker than UBS expected. Headline coverage of the $0.59 distribution was 97% versus the broker's forecast of 98%. Removing the benefit of the $250m capital release reduces the coverage to 83%.

UBS suggests this reflects a slowing in June quarter traffic growth. Some of the issues are expected to continue into FY20 however, including the M5 West transaction, the broker's estimates for earnings in FY20 edge up by 1%.

Neutral rating and $15.10 target maintained.

Target price is $15.10 Current Price is $15.17 Difference: minus $0.07 (current price is over target).
If TCL meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.52, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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