Australian Broker Call

Citi rates ALG as Buy (1) -

Google reviews suggest both Main Event and Dreamworld are seeing improved customer momentum, leading the broker to reiterate its Buy rating on Ardent Leisure.

Underpinning the view is recent corporate interest in the entertainment sector globally, reflected, amongst other activity, by the recent takeover offer for Village Roadshow ((VRL)).

Headwinds nevertheless persist in the US casual dining sector, leading to a target price cut to $1.73 from $1.75.

Target price is $1.73 Current Price is $1.41 Difference: $0.32
If ALG meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.39, suggesting downside of -1.7% (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

Macquarie rates ASG as Outperform (1) -

Autosports Group expects revenue and pre-tax profit in the first half to be in line with the prior corresponding half. Weaker vehicle sales overall have been offset by the company's exposure to luxury vehicles.

New vehicle revenues declined -2.9% while the luxury segment grew 5.9%. Macquarie assesses the re-based original equipment manufacturer (OEM) bonus income has dampened FY20 expectations.

Still, the broker remains positive and retains an Outperform rating. Target is reduced to $1.75 from $1.90.

Target price is $175.00 Current Price is $1.67 Difference: $173.33
If ASG meets the Macquarie target it will return approximately 10379% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates ATL as Hold (3) -

The company has downgraded revenue and margin assumptions to account for the ongoing impact of the bushfire crisis and the coronavirus outbreak as well as softness in the US recreational vehicle sales market.

Hence, Ord Minnett downgrades estimates for earnings per share by -16% for FY20 and -5% for FY21. Hold rating maintained. Target is reduced to $0.29 from $0.32.

Target price is $0.29 Current Price is $0.34 Difference: minus $0.05 (current price is over target).
If ATL meets the Ord Minnett target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for 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

Citi rates BUB as Buy (1) -

Momentum slowed for Bubs Australia in the December quarter, the broker notes, with revenues growing 21% compared to 58% the prior quarter. This was primarily driven by a decline in adult milk powder sales while infant powder showed increasing momentum.

The broker cuts forecast earning to reflect the slowdown and increased competition. Target falls to $1.05 from $1.20, Buy (High Risk) retained.

Target price is $1.05 Current Price is $0.73 Difference: $0.32
If BUB meets the Citi target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates GOR as Outperform (1) -

The first quarter of commercial production at Gruyere was strong and better than Macquarie expected.

The company expects to have the plant operating at nameplate capacity by the end of the first quarter of 2020. A big repayment has also been made on the working capital facility.

Macquarie maintains an Outperform rating and raises the target to $1.70 from $1.60.

Target price is $1.70 Current Price is $1.46 Difference: $0.24
If GOR meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Citi rates GUD as Neutral (3) -

GUD Holdings' result suggested risks around house brands and cautious resellers are having less of an impact than feared, the broker notes.

However new car sales have declined for the last 21 months, there is a risk of supply chain disruption due to the coronavirus and an 18x FY20 PE appears to the broker to be fair.

Neutral thus retained. Accretive acquisitions represent upside risk. Target rises to $12.10 from $11.30.

Target price is $12.10 Current Price is $12.26 Difference: minus $0.16 (current price is over target).
If GUD meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.94, suggesting downside of -2.6% (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 GUD as Neutral (3) -

Credit Suisse found volume growth in the first half "decent" while the outlook for the company's main profit driver, Ryco, has improved. Guidance for modest earnings growth (EBIT) has been maintained.

Despite having reservations around relative multiples, the broker highlights the stock trades at a discount to the average of the small industrials and near-term earnings headwinds appear to have moderated.

Neutral rating maintained. Target is raised to $11.80 from $11.10.

Target price is $11.80 Current Price is $12.26 Difference: minus $0.46 (current price is over target).
If GUD 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 $11.94, suggesting downside of -2.6% (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 GUD as Neutral (3) -

First half underlying earnings (EBIT) were below Macquarie's estimates. The company has reaffirmed guidance for modest earnings growth in the second half.

Macquarie notes the automotive segment is holding up well and the defensive characteristics of this business are attractive.

However, the valuation appears fair given the current outlook and a Neutral rating is maintained. Target is raised 10% to $11.80.

Target price is $11.80 Current Price is $12.26 Difference: minus $0.46 (current price is over target).
If GUD meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.94, suggesting downside of -2.6% (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 GUD as Accumulate (2) -

First half results were below expectations but Ord Minnett notes the market reacted positively because guidance was retained.

The share price has recovered over the past six months from depressed levels and operating cash flow was up significantly, at $43.5m versus the $23.4m reported in the prior corresponding half.

Ord Minnett maintains an Accumulate rating and raises the target to $12.50 from $12.70.

Target price is $12.50 Current Price is $12.26 Difference: $0.24
If GUD meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $11.94, suggesting downside of -2.6% (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 GUD as Upgrade to Neutral from Sell (3) -

Underlying net profit of $29m in the first half was slightly ahead of UBS estimates. Automotive sales beat estimates, offset by a decline in earnings (EBIT) margins.

UBS expects the second round of price increases, coupled with ongoing efficiencies, should deliver an expansion in margins in the second half.

The broker upgrades to Neutral from Sell and raises the target to $11.50 from $9.50.

Target price is $11.50 Current Price is $12.26 Difference: minus $0.76 (current price is over target).
If GUD meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.94, suggesting downside of -2.6% (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 IFN as Add (1) -

First half revenue was 6% ahead of expectations. However, recent volatility in the spot electricity market puts the second half performance at risk, although the company will have the uncontracted output from Smithfield.

Morgans assesses the higher asset value implied by Snowtown suggests the share price could rise more than previously anticipated. The target is raised to $0.83 from $0.76 and an Add rating is maintained.

Target price is $0.83 Current Price is $0.78 Difference: $0.05
If IFN meets the Morgans target it will return approximately 6% (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

Credit Suisse rates LNK as Neutral (3) -

The company has acquired Pepper European Servicing. The business compliments the existing banking & credit management operations. Credit Suisse estimates the acquisition is around 10% accretive in FY22 before synergies.

Pepper European Servicing operates at a substantially higher operating earnings (EBITDA) margin versus the company's existing business because of lucrative exit fees.

The company has also, historically, crystallised most exit fees. Hence, Credit Suisse assesses the earnings risk could be skewed to the downside in future. Neutral rating and $5.75 target maintained.

Target price is $5.75 Current Price is $6.46 Difference: minus $0.71 (current price is over target).
If LNK 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 $7.14, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Macquarie rates LNK as Outperform (1) -

Macquarie expects Link Administration will benefit from an improved market in the UK. The company will also acquire Pepper European Servicing for EUR165m.

The deal is considered 10% accretive to earnings but comes in lieu of a 5% accretive share buyback.

Macquarie believes Link Administration will need to ensure the acquired business generates enough organic growth to offset the natural run-off in non-performing loans.

Outperform rating maintained. Target is raised to $7.70 from $7.10.

Target price is $7.70 Current Price is $6.46 Difference: $1.24
If LNK meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $7.14, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Morgan Stanley rates LNK as Overweight (1) -

Link Administration will acquire Pepper European Services for $266m up front and up to $56m in contingent payments. The acquisition is considered highly accretive but comes with some risk, in Morgan Stanley's view.

Contingent payments offer protection against the potential for a fall in assets under management but do not protect against any fall in revenue.

Overweight rating, $7.50 target and In-Line industry view maintained.

Target price is $7.50 Current Price is $6.46 Difference: $1.04
If LNK meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $7.14, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Morgans rates LNK as Add (1) -

The company has acquired Pepper European Servicing for EUR165m. Morgans considers the acquisition a sound strategic fit, complementing and diversifying from the existing BCM business. The acquisition price is also undemanding.

The broker suspects FY20 may mark a bottoming of earnings and growth will now recover strongly. Add rating maintained. Target is raised to $7.50 from $6.68.

Target price is $7.50 Current Price is $6.46 Difference: $1.04
If LNK meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $7.14, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Ord Minnett rates LNK as Accumulate (2) -

The company will acquire Pepper European Servicing. While the deal appears highly accretive, Ord Minnett is unsure whether the high margins are sustainable or if the growth in new markets will offset the run-off from non-performing loans.

Moreover, some of the accretion will take the place of the buyback that was previously flagged. The broker also suspects management attention may be stretched in order to integrate more businesses. Accumulate rating and $7 target maintained.

Target price is $7.00 Current Price is $6.46 Difference: $0.54
If LNK meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $7.14, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

UBS rates LNK as Buy (1) -

The company has acquired Pepper European Servicing for EUR165m and deferred consideration of up to EUR35m.

UBS assesses the acquisition complements the company's banking and credit management business and remains consistent with its expansion strategy.

Link Administration expects the acquisition will be more than 10% accretive from year one. UBS assumes a relatively modest growth profile.

Buy rating maintained. Target is raised to $7.45 from $6.45.

Target price is $7.45 Current Price is $6.46 Difference: $0.99
If LNK meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $7.14, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Citi rates NCM as Neutral (3) -

As expected, a portfolio review has led to Newcrest Mining divesting its non-core Gosowong mine in Indonesia. The sale reflects a loss on book value but more than the broker had valued the mine.

It's a positive move, the broker suggests, improving the portfolio and simplifying geographies. Neutral and $31.30 target retained.

Target price is $31.30 Current Price is $29.48 Difference: $1.82
If NCM meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $28.22, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

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: -0.6

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

Citi rates NEA as Buy (1) -

Nearmap's initial guidance was optimistic, the broker concludes. The strategy of accelerating North American expansion at the same time as accelerating product development has impacted on growth momentum, particularly in A&NZ. Yet for the broker, the Buy thesis is unchanged.

A scalable business model, low penetration to date of a large addressable US market and the potential for further geographical expansion keep the broker on Buy, believing downgraded guidance is now conservative. Target falls to $2.70 from $4.05.

Target price is $2.70 Current Price is $1.74 Difference: $0.96
If NEA meets the Citi target it will return approximately 55% (excluding dividends, fees and charges).

Current consensus price target is $2.82, suggesting upside of 61.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates OGC as Neutral (3) -

December quarter production was strong, with gold 6% ahead of forecasts. Didipio remains suspended. Haile will continue to be the driver of production and earnings while the Martha underground is established at Waihi.

Macquarie raises the target to $3.10 from $2.80 and maintains a Neutral rating. Longer-term, the broker believes the establishment of the Martha underground will unlock significant extensions to mine life.

Target price is $3.10 Current Price is $3.08 Difference: $0.02
If OGC meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.18, suggesting upside of 35.7% (ex-dividends)

The company's fiscal year ends in December.

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: 0.8

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

UBS rates OGC as Buy (1) -

Group production of 108,000 ounces at an all-in sustainable cost of US$980/oz were in line with forecasts. Didipio remains in limbo, pending the outcome of the mining licence renewal process.

Waihi is also in transition, with mining to temporarily cease in the March quarter before a resumption at the Martha underground in 2021.

UBS believes the share price reflects the situation, failing to lift with the gold price over 2019. Buy rating maintained. Target is steady at $4.

Target price is $4.00 Current Price is $3.08 Difference: $0.92
If OGC meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $4.18, suggesting upside of 35.7% (ex-dividends)

The company's fiscal year ends in December.

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: 0.8

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

Credit Suisse rates ORG as Neutral (3) -

The company's share of first half APLNG revenue, at $49m, was ahead of forecasts. This was largely because a seasonal dip in total production that was modelled did not occur.

The broker maintains FY20 forecasts at 704 PJ. Origin Energy's first half results are scheduled for February 20 and the broker expects net profit will be down -11%.

Neutral rating maintained. Target is reduced to $8.70 from $8.90.

Target price is $8.70 Current Price is $7.92 Difference: $0.78
If ORG meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.81, suggesting upside of 11.3% (ex-dividends)

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 ORG as Outperform (1) -

APLNG delivered ahead of expectations in the December quarter. APLNG accounts for two thirds of Macquarie's valuation of Origin Energy.

The outlook for the company, however, is for a softer second half as oil prices are lower.

Macquarie lowers FY20 estimates by -5.7% and FY21 by -3.9%. Outperform rating maintained. Target is reduced to $8.90 from $9.12.

Target price is $8.90 Current Price is $7.92 Difference: $0.98
If ORG meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $8.81, suggesting upside of 11.3% (ex-dividends)

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 ORG as Accumulate (2) -

The company reported a record quarter in December for LNG production and LNG sales were also higher. Still, Ord Minnett finds the trends in energy markets a concern, as electricity volumes are being affected by market share losses.

The broker notes east-coast gas prices have fallen around -30% since June 2019 because of increasing supply.

Still, Ord Minnett remains positive on Origin Energy on the basis of cash flow and an estimated yield of 8-9%. Accumulate rating maintained along with a $9.50 target.

Target price is $9.50 Current Price is $7.92 Difference: $1.58
If ORG meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $8.81, suggesting upside of 11.3% (ex-dividends)

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

UBS rates ORG as Buy (1) -

APLNG posted record production in the December quarter. UBS believes the results demonstrate how LNG contracts are mitigating weak spot oil prices. Higher APLNG revenue offset weak energy market volumes.

With lower sales volumes for gas and electricity, UBS now forecasts Origin Energy's energy markets operating earnings (EBITDA) will be marginally lower over the next three years, as $120m in cost savings appears to be partially eroded by lower volumes.

Buy rating maintained. Target is reduced to $9.25 from $9.35.

Target price is $9.25 Current Price is $7.92 Difference: $1.33
If ORG meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $8.81, suggesting upside of 11.3% (ex-dividends)

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 OSH as Overweight (1) -

Morgan Stanley notes discussions between the P'nyang joint venture and the PNG government have stalled.

The broker expects the shares will come under pressure and, from here on, the performance will depend on whether Papua LNG progresses.

The P'nyang gas field is located in a frontier with limited access and requires a pipeline over mountain ranges, which increases its capital cost.

Hence, the broker suspects it unlikely that the JV would accept meaningful adjustments to fiscal terms as per those agreed in the Papua LNG gas agreement.

Overweight rating, In-Line industry view and $8 target.

Target price is $8.00 Current Price is $6.73 Difference: $1.27
If OSH meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $7.30, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in December.

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: 0.0

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

Morgans rates OSH as Hold (3) -

The negotiations between the P'nyang joint venture and the PNG government have stalled. This confirms the elevated risk profile Morgans envisaged for Oil Search.

ExxonMobil has stated it is in no rush to return to the negotiating table, having other projects in focus. What is unclear is what will happen to the linked Papua LNG train expansion, operated by Total.

While there is still potential for the Papua project to proceed on its own, Morgans is cautious and removes the value for both P'nyang and Papua. This reduces the target to $6.86 from $7.83. Hold rating maintained.

Target price is $6.86 Current Price is $6.73 Difference: $0.13
If OSH meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $7.30, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in December.

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: 0.0

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

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

Discussions between ExxonMobil and the PNG government regarding the P'nyang gas expansion have broken down. ExxonMobil is the majority shareholder and operator.

Ord Minnett notes there is still a possibility the Papua LNG project will proceed with just the two-train expansion, although the likelihood is low.

As there is now substantially more risk in the stock, the rating is downgraded to Lighten from Hold. Target is reduced to $6.85 from $7.60.

Target price is $6.85 Current Price is $6.73 Difference: $0.12
If OSH meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $7.30, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in December.

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: 0.0

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

Citi rates PLS as Neutral (3) -

Pilbara Minerals' Pilgangoora mine continued to operate in campaign mode in the December quarter, resulting in -31% lower production. The company is working on a potential phased expansion of Pilgangoora, with updated results expected in March.

A proposed downstream conversion plant run by POSCO is still awaiting JV partner approval, and another six months will be required. The broker has reduced forecast earnings on lower production and higher costs. Target unchanged at 35c, Neutral retained.

Target price is $0.35 Current Price is $0.28 Difference: $0.07
If PLS meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $0.34, suggesting upside of 21.4% (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

Credit Suisse rates PLS as Outperform (1) -

Activity levels have been materially reduced over the December quarter to conserve cash in the current market, with mining down -78%. March quarter sales are guided at 35-50,000t and operating expenditure at $19.8m.

Recovery improved to 60%, which pleased Credit Suisse, and further gains to more than 70% appear realistic. The broker maintains an Outperform rating and reduces the target to $0.55 from $0.60.

Target price is $0.55 Current Price is $0.28 Difference: $0.27
If PLS meets the Credit Suisse target it will return approximately 96% (excluding dividends, fees and charges).

Current consensus price target is $0.34, suggesting upside of 21.4% (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 PPT as Neutral (3) -

The full financial details have not yet been provided but on face value the broker believes Perpetual's acquisition of US-based ESG investment firm Trillium makes sense. Initially the numbers appear earnings accretive, and the broker expects more acquisitions to follow.

Neutral retained, target rises to $42.30 from $40.90.

Target price is $42.30 Current Price is $41.32 Difference: $0.98
If PPT meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $40.20, suggesting downside of -2.7% (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 PPT as Neutral (3) -

The company has announced the acquisition of Trillium, a specialist asset management company based in the US. The main opportunity, Credit Suisse assesses, is if Perpetual can grow funds under management.

Perpetual will establish a US distribution footprint which could assist Trillium to grow in the US, and will begin distributing the product in Australia. The company expects the deal to be accretive in year one.

Credit Suisse upgrades FY21-22 estimates for earnings per share by 2% to allow for the acquisition and an additional -$1.5m of investment in distribution/marketing. The broker retains a Neutral rating and $41 target.

Target price is $41.00 Current Price is $41.32 Difference: minus $0.32 (current price is over target).
If PPT meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.20, suggesting downside of -2.7% (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 PPT as Equal-weight (3) -

Perpetual is buying Trillium, and unlisted ESG specialist fund manager. Morgan Stanley believes this is a sensible first step to building a global platform and should open up extra growth opportunities in the US and Australia.

The broker notes the price being paid, US$36m cash upfront for US$3.8bn in FUM, is at the lower end of US listed managers.

Equal-weight rating. Target is $36.00. Industry view: In-line.

Target price is $36.00 Current Price is $41.32 Difference: minus $5.32 (current price is over target).
If PPT meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.20, suggesting downside of -2.7% (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 PPT as Hold (3) -

Perpetual will acquire Trillium, a specialist ESG investment manager with around $5.5bn in funds under management. The acquisition will provide a US base to expand Perpetual's distribution footprint.

Morgans upgrades FY20 and FY21 estimates for earnings per share by 2% and 9% respectively. Target is raised $43.28 from $40.30.

While the broker considers there is a valuation argument for the stock, further evidence is required from execution before turning more positive. Hold rating maintained.

Target price is $43.28 Current Price is $41.32 Difference: $1.96
If PPT meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $40.20, suggesting downside of -2.7% (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 PPT as Neutral (3) -

Perpetual will acquire Trillium, a US asset manager. The purchase price of $54m will be funded from available cash. UBS considers the transaction is a US beachhead and other deals are likely to follow.

Trillium increases the company's exposure to the high-growth ESG sector, where assets have grown 75% over the past six years in the US. The broker maintains a Neutral rating and raises the target to $42.85 from $40.60.

Target price is $42.85 Current Price is $41.32 Difference: $1.53
If PPT meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $40.20, suggesting downside of -2.7% (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 RMD as Neutral (3) -

ResMed's December quarter result beat the broker and consensus. The broker lifts forecasts to reflect better than expected revenues and has lifted its mid-term growth rate assumption to better reflect industry growth prospects.

With market penetration of around 20%, growth rates can continue for a decade, the broker believes. ResMed's is seen as an "excellent" business that can continue to take market share.

It's also well valued, hence Neutral retained. Target rises to $27.50 from $25.00.

Target price is $27.50 Current Price is $23.91 Difference: $3.59
If RMD meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $24.26, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Credit Suisse rates RMD as Outperform (1) -

The second quarter result was strong and the company continues to gain market share. Mask growth was 19% in the US and 11% in the rest of the world. US device growth was 9.1%.

Credit Suisse believes the company continues to benefit from having the broadest product portfolio. Outperform rating maintained. Target rises to $27.00 from $22.40.

Target price is $27.00 Current Price is $23.91 Difference: $3.09
If RMD meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $24.26, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Macquarie rates RMD as Underperform (5) -

On balance, the December quarter was slightly better than Macquarie expected. Normalised net profit was up 7% and ahead of estimates.

More broadly, the broker believes the share price has medium-longer term risk in relation to reimbursement and regulatory changes as well as the impact from competing products.

Macquarie retains an Underperform rating and $17 target.

Target price is $17.00 Current Price is $23.91 Difference: minus $6.91 (current price is over target).
If RMD meets the Macquarie target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.26, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Morgan Stanley rates RMD as Overweight (1) -

Earnings were ahead of Morgan Stanley's estimates in the December quarter. At 19% growth, the masks business continues to exceed the trend which the broker believes can be sustained across FY20. Global mask sales grew 16%.

Healthcare stocks have been rallying and on average the broker notes those under its coverage now offer -5% downside, although ResMed is better positioned than most.

Morgan Stanley considers the upside limited yet maintains an Overweight rating. Target is US$165. Industry view: In-Line.

Current Price is $23.91. Target price not assessed.

Current consensus price target is $24.26, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Morgans rates RMD as Add (1) -

The December quarter was strong with masks growth above expectations. Revenue also surprised Morgans to the upside.

Net profit estimates are increased by 3.6% for FY20-22 and the broker continues to envisage good momentum across the core business.

Add rating maintained. Target is raised to $27.79 from $22.82.

Target price is $27.79 Current Price is $23.91 Difference: $3.88
If RMD meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $24.26, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Ord Minnett rates RMD as Hold (3) -

December quarter revenue was ahead of forecasts. Despite competitors signalling their intention to "fight back" in 2020, Ord Minnett envisages little risk the company's market dominance will be challenged.

Growth will inevitably slow, however, as ResMed cycles acquisitions and comparables become harder.

Ord Minnett is also cautious about competitive bidding, which could be a catalyst for increased price pressure as competitors seek to regain share.

Hold rating maintained. Target is raised to $22 from $19.

Target price is $22.00 Current Price is $23.91 Difference: minus $1.91 (current price is over target).
If RMD meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.26, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

UBS rates RMD as Downgrade to Neutral from Buy (3) -

Following the second quarter results UBS updates assumptions, which results in upgrades of 5% to earnings per share. However, based on the recent share price performance the rating is downgraded to Neutral from Buy.

US re-supply is showing no signs of a slowdown. Furthermore, with the success of Brightree, UBS does not believe saturation will occur in the short to medium term. Target is raised to US$174 from US$150.

Current Price is $23.91. Target price not assessed.

Current consensus price target is $24.26, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Morgans rates STO as Hold (3) -

The negotiations in the P'nyang gas agreement have collapsed and Morgans notes ExxonMobil has already said it is in no hurry to find a solution.

While an agreement may still eventuate, Morgans removes the asset from its Santos valuation. The target is reduced to $8.66 from $8.86. Hold maintained.

Target price is $8.66 Current Price is $8.26 Difference: $0.4
If STO meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $8.76, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.3

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

Citi rates VUK as Neutral (3) -

As it turns out, Citi analysts found the Q1 operational update simply a neutral exercise. They do not anticipate much in terms of changes to market consensus forecasts, while acknowledging it seems the business is rather resilient.

Irrespectively, the result is seen as "solid" and Virgin Money UK is no longer among the broker's top picks in the UK sector because risk-reward is seen as relatively balanced now the share price has appreciated noticeably.

The stock carries a Neutral rating alongside GBP2.30 price target, both unchanged.

Current Price is $3.29. Target price not assessed.

Current consensus price target is $4.12, suggesting upside of 25.1% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

This company reports in GBP. 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

Macquarie rates WAF as Outperform (1) -

The company spent -$62.5m on the development of Sanbrado in the December quarter with a further -$58m expected to be spent in the March quarter of 2020.

The project remains on budget while the accelerated development has meant first gold is expected in the June quarter. Macquarie maintains an Outperform rating and $0.65 target.

Target price is $0.65 Current Price is $0.48 Difference: $0.17
If WAF meets the Macquarie target it will return approximately 35% (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