Australian Broker Call

Ord Minnett rates AAD as Hold (3) -

The request for board representation from two substantial shareholders has prompted the company to notify the market of a review of its Main Event business and a theme park property review.

Ord Minnett will focus on the allocation of capital in the Main Event review and would prefer to witness a greater focus on maintenance spending to support like-for-like sales growth.

Within the theme parks division, upside to the recently written-down book value is expected, given demand growth in the region. Hold rating and $1.70 target retained.

Target price is $1.70 Current Price is $2.08 Difference: minus $0.38 (current price is over target).
If AAD meets the Ord Minnett target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.87, suggesting downside of -10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Morgan Stanley rates AHG as Underweight (5) -

Morgan Stanley believes the outlook for new car sales remains poor and margins have peaked. The broker lowers the margin outlook, driven by lower rebates and lower flex commissions. The broker also envisages a risk to the turnaround in logistics.

The broker now forecasts a -6% decline in net profit against guidance of higher profit in FY17. Underweight retained. Sector view is In-Line. Target is reduced to $3.00 from $3.20.

Target price is $3.00 Current Price is $3.38 Difference: minus $0.38 (current price is over target).
If AHG meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.13, suggesting upside of 33.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Morgans rates AHG as Hold (3) -

Morgans observes the company will be feeling some heat from the weakness in Queensland, although the Western Australian market  - to which the company has significant exposure - remains worse than Queensland from a volume perspective. Nevertheless, manufacturer hurdles are likely to be more realistic for the latter after several years of consecutive declines.

Morgans is becoming attracted to the stock at current valuations but would prefer to view new vehicle statistics for May and June before turning to a positive recommendation and retains a Hold rating.  Target is reduced to $3.89 from $4.10.

Target price is $3.89 Current Price is $3.38 Difference: $0.51
If AHG meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.13, suggesting upside of 33.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Deutsche Bank rates ALQ as Buy (1) -

ALS reported earnings in line with guidance. A recovery in demand in minerals testing meant the Commodities division posted a stronger than forecast result, but this was offset by softness in Life Sciences, Deutsche Bank points out.

The broker ackowledges Life Sciences softness in the Americas but still believes this to be a stable business. Meanwhile management suggested a consensus forecast of 25% earnings growth in FY18 is reasonable. On strong growth, a potential for high total shareholder return and undemanding valuation compared to global peers, the broker retains Buy.

Target rises to $7.41 from $7.34.

Target price is $7.41 Current Price is $6.60 Difference: $0.81
If ALQ meets the Deutsche Bank target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.27, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Morgans rates ALQ as Hold (3) -

Morgans believes the company badly needed a strong commodities result in FY17 and delivered, surprisingly. The issues with life sciences disappointed the broker but forecasts reflect a cautious recovery.

Revisions in commodities and life sciences have largely netted each other out and lead to a small increase in the target to $6.96 from $6.95.

Morgans believes the stock is a relatively scarce, high-quality play on the cyclical minerals recovery that is underway. Hold rating retained.

Target price is $6.96 Current Price is $6.60 Difference: $0.36
If ALQ meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.27, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Ord Minnett rates ALQ as Hold (3) -

The speed and magnitude of earnings upgrades in the minerals division surprised Ord Minnett and the broker increases its FY18 estimates for earnings per share by 8%.

When taking into account another disappointing performance in the life sciences division, the valuation increases by less than the earnings upgrades.

Hold rating retained. Target is raised to $6.81 from $6.12.

Target price is $6.81 Current Price is $6.60 Difference: $0.21
If ALQ meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.27, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Morgan Stanley rates APE as Downgrade to Underweight from Equal-weight (5) -

Morgan Stanley believes headwinds in the short term pose a risk for AP Eagers, which is trading at a price/earnings ratio of 15.5 times FY17 estimates, particularly given the negative momentum in Queensland.

The broker still prefers AP Eagers over Automotive Holdings ((AHG)) because of a focus on automotive dealerships and no logistics, with an opportunity to continue industry consolidation as markets stabilise.

Nevertheless, the negative outlook and risks to the downside mean the broker downgrades to Underweight from Equal-weight. Target is reduced to $6.85 from $9.40. Sector view is In-Line.

Target price is $6.85 Current Price is $7.50 Difference: minus $0.65 (current price is over target).
If APE 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 $8.32, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Morgans rates APE as Hold (3) -

The company has issued first half guidance for net profit to be -7-9% below the previous corresponding half and this reflects particularly subdued trading conditions in Queensland. Morgans, however, is becoming increasingly positive after severe de-rating of the share price.

The broker would prefer to see a stabilising of new vehicle sales before taking a more positive stance and maintains a Hold rating. Target is reduced to $8.91 from $9.83.

Target price is $8.91 Current Price is $7.50 Difference: $1.41
If APE meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $8.32, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Ord Minnett rates APE as Hold (3) -

The company's earnings guidance for the first half was weaker than Ord Minnett expected and earnings estimates and the price target are downgraded accordingly.

The broker observes financing headwinds are reducing and there are cost saving opportunities but these are more than offset by weak automobile sales data. The broker believes automotive retailing is challenged and increasingly high acquisition multiples reduce the opportunity for accretive transactions.

Hold retained. Target falls to $7.60 from $10.10.

Target price is $7.60 Current Price is $7.50 Difference: $0.1
If APE meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $8.32, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Credit Suisse rates BLD as Outperform (1) -

Credit Suisse downgrades net profit forecasts to reflect guidance around a number of non-operating items but upgrades EBITDA forecasts by 3.2%, assisted by increased confidence regarding the Headwaters synergy and optimism around heavy construction prices.

The broker believes Boral is one of the best stocks to play the US cyclical upswing in conjunction with the emerging Australian infrastructure story. Target is raised to $7.05 from $6.95. Outperform rating retained.

Target price is $7.05 Current Price is $6.79 Difference: $0.26
If BLD meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.93, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Deutsche Bank rates BLD as Buy (1) -

Following Boral's investor day, the broker notes management is very comfortable about construction materials demand and prices heading into FY18. The broker expects margin expansion and a doubling of projects in the period, which means housing construction demand could fall by -40% before volumes actually decline.

This broker's view is more positive than consensus, both domestically and for the US. Good value is seen on a below-sector PE multiple. Buy retained. Target falls to $7.87 from $8.07.

Target price is $7.87 Current Price is $6.79 Difference: $1.08
If BLD meets the Deutsche Bank target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.93, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Macquarie rates BLD as Outperform (1) -

The company has confirmed the opportunities from the Headwaters integration and is confident it can realise synergies of US$100m. The joint-venture with USG has realised the US$50m in synergies outlined at the time of its formation.

Macquarie reduces FY18 and FY19 forecasts for earnings per share by -6.7% and -6.6% respectively, resulting from further guidance on tax following the closure of the Headwaters deal. The broker maintains an Outperform rating and $7.65 target.

Target price is $7.65 Current Price is $6.79 Difference: $0.86
If BLD meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $6.93, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Ord Minnett rates BLD as Accumulate (2) -

Ord Minnett is encouraged by the latest investor briefing from the company on the performance and outlook for USG Boral, observing the joint venture is positioned for further growth. The broker is also more confident in the earnings growth profile for Boral Australia.

Boreal Australia's market position has allowed it to capture a greater volume share of major project work compared with its other end markets, the broker observes.

Accumulate retained. Target is $6.50.

Target price is $6.50 Current Price is $6.79 Difference: minus $0.29 (current price is over target).
If BLD meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.93, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Morgans rates BOQ as Hold (3) -

Morgans believes the adverse impact on the net interest margin from the bank's credit rating downgrade can be easily managed through asset and liability re-pricing. Still, the broker believes the bank now has a higher risk profile.

The bank has not re-priced its home loan book to the same extent that many of its peers did in March and this supports the broker's opinion that the bank is trying to avoid a third successive half-year of a contracting home loan book.

Morgans retains a Hold rating and $11.20 target.

Target price is $11.20 Current Price is $11.46 Difference: minus $0.26 (current price is over target).
If BOQ meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.70, suggesting upside of 2.8% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Credit Suisse rates BTT as Neutral (3) -

Westpac ((WBC)) intends to sell down -19% of its stake in the company. Credit Suisse recommends participating in the offer, believing the current share price is fair value and the book build price range at an attractive entry point with a discount of -12-16%.

The broker notes the company is cycling very weak performance fees in FY17 which should normalise in FY18-19. Neutral retained. Target is $11.40.

Target price is $11.40 Current Price is $12.18 Difference: minus $0.78 (current price is over target).
If BTT 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 $11.94, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Morgan Stanley rates CBA as Underweight (5) -

Morgan Stanley notes APRA will release an information paper on capital requirements in the near future and believes the probability of a bear case is materially higher than the bull case and, in this regard, Commonwealth Bank will be more affected than peers by the changes.

The broker suspects this could drive a change in its capital management strategy. Commonwealth Bank has the lowest CET1 ratio and the lowest mortgage risk weightings of the major banks.

Underweight. Target is $70. Industry view is In-Line.

Target price is $70.00 Current Price is $81.00 Difference: minus $11 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $80.73, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Ord Minnett rates GEM as Buy (1) -

Ord Minnett observes the company is now fully funded and in a position to execute on operation improvements and its development strategy.

There are a number of positive catalysts, in the broker's view, and shareholders are expected to be well rewarded, as consensus forecasts are around -20% below management's targets and the share price has not yet rallied in anticipation of a turnaround.

Buy rating retained. Target rises to $4.30 from  $4.11.

Target price is $4.30 Current Price is $3.40 Difference: $0.9
If GEM meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $4.01, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

UBS rates HGG as Buy (1) -

After six consecutive months of retail net outflows, UBS observes combined Janus Henderson flows appear to have turned positive in April.

The broker is reluctant to read too much into a single month but is encouraged by a consistent gradual improvement since last November. Target is 275p. Buy retained.

Current Price is $41.30. Target price not assessed.

Current consensus price target is $4.12, suggesting downside of -90.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

This company reports in GBP. 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

Ord Minnett rates HVN as Lighten (4) -

Ord Minnett believes the outlook for the Australian consumer discretionary business is deteriorating and the pending entry of Amazon into the local market is a negative for multiples and forecasts for earnings per share.

The risks include a heavily indebted consumer, rising energy prices and low wages growth. The broker remains downbeat on the retail sector and very downbeat on retail inflation.

Lighten rating retained. Target is reduced to $3.50 from $4.60.

Target price is $3.50 Current Price is $3.74 Difference: minus $0.24 (current price is over target).
If HVN 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 $4.54, suggesting upside of 23.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Citi rates ILU as Neutral (3) -

Iluka has announced a price increase for zircon and Citi analysts had not expected this increase to arrive this soon. Otherwise, higher zircon prices had already been accounted for.

The frontloading exercise leads to higher short term estimates. Citi is anticipating a further US$50/t hike by mid next year while maintaining a long term zircon price of US$1,250/t.

Target price lifts to $9.10 from $8.50 on higher estimates. Rating remains Neutral. The analysts remain sanguine about ongoing growth prospects for Chinese property construction markets.

Target price is $9.10 Current Price is $9.17 Difference: minus $0.07 (current price is over target).
If ILU 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 $8.06, suggesting downside of -11.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Ord Minnett rates ILU as Accumulate (2) -

The company has increased its zircon reference price to $1100/t. Ord Minnett observes the solid price and volumes achieved over the past two months indicate that zircon could be heading towards a bull market.

The broker believes rutile price gains of the second half of 2017 are likely to be the next material catalyst.  Accumulate retained. Target is raised to $9.60 from $8.80.

Target price is $9.60 Current Price is $9.17 Difference: $0.43
If ILU meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $8.06, suggesting downside of -11.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

UBS rates ILU as Buy (1) -

The company has raised its zircon reference price by US$130/t or 13% to US$1100/t. UBS estimates the company realised a weighted average zircon price of US$800-810/t in the first quarter against a reference price of US$945/t.

As this latest settlement is ahead of expectations and the company has suggested there is increased interest from customers in premium zircon, the broker lifts realised price expectations for 2017 and 2018 by 5% and 13% respectively.

This results in a 56% lift in 2017 earnings estimates and a 50% lift for 2018. Buy rating retained. Target is raised to $9.62 from $9.50.

Target price is $9.62 Current Price is $9.17 Difference: $0.45
If ILU meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $8.06, suggesting downside of -11.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Ord Minnett rates JBH as Downgrade to Lighten from Accumulate (4) -

Ord Minnett believes the outlook for the Australian consumer discretionary business is deteriorating and the pending entry of Amazon into the local market is a negative for multiples and forecasts for earnings per share.

The risks include a heavily indebted consumer, rising energy prices and low wages growth. The broker remains downbeat on the retail sector and very downbeat on retail inflation.

JB Hi-Fi's rating is downgraded to Lighten from Accumulate. Target is reduced to $20.50 from $32.00.

Target price is $20.50 Current Price is $22.76 Difference: minus $2.26 (current price is over target).
If JBH meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.59, suggesting upside of 24.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

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

Ord Minnett believes the outlook for the Australian consumer discretionary business is deteriorating and the pending entry of Amazon into the local market is a negative for multiples and forecasts for earnings per share.

The risks include a heavily indebted consumer, rising energy prices and low wages growth. The broker remains downbeat on the retail sector and very downbeat on retail inflation.

Myer's rating is downgraded to Lighten from Hold and the target cut to $0.80 from $1.15.

Target price is $0.80 Current Price is $0.92 Difference: minus $0.115 (current price is over target).
If MYR meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.00, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Credit Suisse rates PRG as Neutral (3) -

FY17 results were mixed, Credit Suisse observes. While the valuation on the stock is not demanding, ongoing margin pressures in staffing and a further round of cost reductions underline the risks in the outlook, the broker believes.

The broker notes a good second half in maintenance was offset by significant margin decline in the key staffing business. The broker believes a sustained re-rating is predicated on an improved outlook in staffing and retains a Neutral rating. Target is raised to $1.90 from $1.80.

Target price is $1.90 Current Price is $1.82 Difference: $0.08
If PRG meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.98, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in March.

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

Deutsche Bank rates PRG as Buy (1) -

Programmed's result showed Maintenance continues to perform well but Work Force remains under pressure due to soft labour demand across a range of sectors. It was the first result, the broker notes, including a full year of the Skilled acquisition.

The Marine JV is providing cash flow for debt reduction, the broker notes, and a pick-up in activity is expected. Further cost reductions should help offset Work Force weakness. The broker sees reasonable value on a 10x FY18 PE and 4% yield. Buy retained. Target falls to $2.00 from $2.10.

Target price is $2.00 Current Price is $1.82 Difference: $0.18
If PRG meets the Deutsche Bank target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.98, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in March.

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

Macquarie rates PRG as Outperform (1) -

The company has reported an FY17 underlying result that was slightly weaker than Macquarie expected. No formal guidance for FY18 was issued.

Macquarie observes the workforce business is now on a single system which should boost efficiency. Staffing demand remains weak across the board in the second half, the broker notes, with customers in most sectors still looking to reduce costs.

The broker does not believe the valuation of the stock is demanding while debt is observed to be falling. Outperform retained. Target is reduced to $1.91 from $2.00.

Target price is $1.91 Current Price is $1.82 Difference: $0.09
If PRG meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.98, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in March.

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

Ord Minnett rates PRG as Accumulate (2) -

Ord Minnett found the FY17 results uninspiring and weaker margins in the staffing business lead to a reduction in FY18 and FY19 estimates for earnings per share by -6% and -8% respectively.

The valuation appears undemanding to the broker and an Accumulate rating is retained. Target is reduced to $2.07 from $2.21.

Target price is $2.07 Current Price is $1.82 Difference: $0.25
If PRG meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.98, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in March.

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

Citi rates SIG as Neutral (3) -

Special acknowledgment goes out to Citi analysts who this morning distributed a research report with the correct name and ASX code for the rebranded Sigma Healthcare. It's a sad indictment on the stockbroking industry that Citi is a rare exception.

A conflict has arisen between Sigma and My Chemist/Chemist Warehouse Group, the latter representing some 30% of annual sales for Sigma. The disagreement is about whether the current agreement allows for the purchase of product from an alternate CSO Wholesaler.

Sigma thinks the answer is negative. My Chemist/Chemist Warehouse Group has a different view. The matter is going to be decided by judicial court. Apart from the expected impact on sales and profits, Citi analysts remark launching legal action against one's largest customer is a significant event and will be poorly received by investors. Neutral. Target $1.20.

Target price is $1.20 Current Price is $0.82 Difference: $0.385
If SIG meets the Citi target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $1.00, suggesting upside of 30.4% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.5

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

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

The company has commenced legal proceedings against a key customer, My Chemist/Chemist Warehouse Group following a contract dispute. Sigma asserts that under the existing agreement the customer is not entitled to acquire products from other wholesalers.

Credit Suisse observes, should legal proceedings fail and assuming the customer acts in accordance with its stated intention, the impact on the company's EBIT is expected to be -$5-10m per annum.

Credit Suisse downgrades earnings estimates by -10% over the forecast period. Target is reduced to $1.20 from $1.30. Rating is downgraded to Neutral from Outperform.

Target price is $1.20 Current Price is $0.82 Difference: $0.385
If SIG meets the Credit Suisse target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $1.00, suggesting upside of 30.4% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.5

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

Morgan Stanley rates SIG as Underweight (5) -

The company has begun legal proceedings against its largest customer, which intends to buy products from an alternative wholesaler. The impact could mean FY18 EBIT is -5% below FY17.

Morgan Stanley also expects worsening trading conditions, owing to greater competition among wholesalers. The broker believes material uncertainty will weigh on the stock and the rebound in earnings could remain discounted by the market because of key customer risk.

Underweight rating. Target is reduced to $0.84 from $1.15. Industry view is In-Line.

Target price is $0.84 Current Price is $0.82 Difference: $0.025
If SIG meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.00, suggesting upside of 30.4% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.5

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

UBS rates SIG as Downgrade to Sell from Buy (5) -

The company has commenced legal action against a key customer, Chemist Warehouse, relating to the customer's intention to use an alternate wholesaler. Sigma expects a negative impact of -$5-10m per annum in terms of EBIT.

A sluggish industry and additional sector disruption from new entrants means UBS reduces forecasts for earnings per share by -10% and cuts the target to $0.76 from $1.40 as a caution on further earnings risk. Rating is downgraded to Sell from Buy.

Target price is $0.76 Current Price is $0.82 Difference: minus $0.055 (current price is over target).
If SIG meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.00, suggesting upside of 30.4% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.5

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

Morgans rates SIV as Add (1) -

The company recently completed an entitlement offer, raising $21m, to be used to support short-term volume growth while maintaining gearing ratios. The company has expressed confidence in securing additional wholesale funding, which is expected to be available in early FY18.

Morgans believes the valuation provides solid risk/reward although earnings delivery is required to regain confidence in GoGetta. The main risks include further deterioration in bad debts and a lack of additional debt funding.

Target is reduced to $8.70 from $10.10. Add maintained.

Target price is $8.70 Current Price is $7.29 Difference: $1.41
If SIV meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Ord Minnett rates SUL as Downgrade to Lighten from Accumulate (4) -

Ord Minnett believes the outlook for the Australian consumer discretionary business is deteriorating and the pending entry of Amazon into the local market is a negative for multiples and forecasts for earnings per share.

The risks include a heavily indebted consumer, rising energy prices and low wages growth. The broker remains downbeat on the retail sector and very downbeat on retail inflation.

Super Retail's recommendation is downgraded to Lighten from Accumulate and the target to $7.25 from $11.50.

Target price is $7.25 Current Price is $7.73 Difference: minus $0.48 (current price is over target).
If SUL 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 $10.58, suggesting upside of 41.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Citi rates WOR as Buy (1) -

Lots of slides and rather few attendees. This is how Citi analysts describe this year's Investor Day. Apart from recovering more of outstanding receivables, management suggested customers want to do more with less.

Luckily, WorleyParsons' strength lies with smaller contracts, comment the analysts. Plus industry consolidation has reduced competition to six from eight previously.

Minor upgrades have pushed up the price target to $13.75 from $13.45. Buy rating retained.

Target price is $13.75 Current Price is $11.67 Difference: $2.08
If WOR meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $12.30, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Credit Suisse rates WOR as Neutral (3) -

Credit Suisse found little tangible financial indicators from the investor briefing, despite the company outlining its three tiered plan for the future. The broker remains concerned about the balance sheet.

The broker agrees with the need for the capital expenditure cycle to turn but suspects much of the new supply will come either from onshore US or OPEC nations and neither of these necessarily bring plentiful dollars to WorleyParsons.

Neutral rating and $8.50 target retained.

Target price is $8.50 Current Price is $11.67 Difference: minus $3.17 (current price is over target).
If WOR meets the Credit Suisse target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.30, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Deutsche Bank rates WOR as Upgrade to Buy from Hold (1) -

WorleyParsons' investor day highlighted an energy & resources industry at an inflection point, Deutsche Bank suggests. This has prompted an upgrade to Buy.

The industry is returning to growth, the backlog is increasing, overheads are reducing, legacy contracts are being paid and new contracts are being won. The broker is forecasting 21% compound earnings growth over the next two years.

Valuation is undemanding and a full DAR takeover is always a possibility. Target rises to $13.73 from $10.20.

Target price is $13.73 Current Price is $11.67 Difference: $2.06
If WOR meets the Deutsche Bank target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $12.30, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Macquarie rates WOR as Upgrade to Outperform from Neutral (1) -

The company's investor briefing signalled positive operating trends in terms of the backlog, head count and working capital reductions. Macquarie upgrades to Outperform from Neutral and raises the target to $13.00 from $10.50.

The broker observes Dar Group has effectively put a floor under the share price with options to the upside, assuming the company can deliver improved earnings cash flow and debt reduction.

If the company does not deliver, it remains vulnerable to a potentially higher bid later this year. Hence, Macquarie believes the risk/reward balance is favourable.

Target price is $13.00 Current Price is $11.67 Difference: $1.33
If WOR meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $12.30, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Morgan Stanley rates WOR as Overweight (1) -

Morgan Stanley was disappointed that the investor briefing failed to quantify the key metrics in the outlook.

Still, the broker believes commentary is supporting a positive stance on the stock, as market conditions are improving and cash recoveries are repairing the balance sheet. Commentary also suggests materially higher margins to come, the broker believes.

Overweight rating and Cautious industry view are retained. Target is $12.52.

Target price is $12.52 Current Price is $11.67 Difference: $0.85
If WOR meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $12.30, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Macquarie rates WPL as Neutral (3) -

Macquarie believes the proposal for Browse tolling through the North West Shelf and Pluto expansion projects could potentially lift production in the 2020s but more work needs to be done to underpin this.

The broker believes the Pluto expansion is likely, given the upside, but remains cautious about third-party tolling because of the need for unanimous consent among the joint-venture partners. Neutral maintained. Target rises to $31.50 from $30.00.

Target price is $31.50 Current Price is $33.27 Difference: minus $1.77 (current price is over target).
If WPL meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.88, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.2

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