Australian Broker Call

Ord Minnett rates AAD as Hold (3) -

Ord Minnett considers the trading update mixed. The strategic review outlined in August addressed some of the concerns but the recent unexpected resignation of the CEO adds uncertainty.

Hold rating retained. Target is $1.65.

Target price is $1.65 Current Price is $1.80 Difference: minus $0.15 (current price is over target).
If AAD 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 $1.76, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

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

Credit Suisse has downgraded to Neutral from Outperform while bumping up its price target to $12 from $9.50. The analysts explain the downgrade has been inspired by the incredibly strong share price rally in recent weeks.

The analysts believe investors are already pricing in some modest growth contribution from the Dassault partnership.

Price target has been positively impacted by weaker AUD, lower discount rate and modest increases to long-term earnings, explain the analysts. They struggle to justify the current premium.

Target price is $12.00 Current Price is $12.82 Difference: minus $0.82 (current price is over target).
If ALU 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 $10.20, suggesting downside of -20.4% (ex-dividends)

The company's fiscal year ends in June.

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

Deutsche Bank rates CPU as Sell (5) -

Deutsche Bank observes global corporate activity has declined -15% in the four months to October. There is some hope it will recover in the second half but, at present, M&A activity is lagging market index levels.

Deutsche Bank continues to believe weaker corporate activity and overly ambitious medium-term targets for margins in mortgage servicing adds downside risk over the short to medium term.

Sell rating and $13 target maintained.

Target price is $13.00 Current Price is $15.23 Difference: minus $2.23 (current price is over target).
If CPU meets the Deutsche Bank target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.89, suggesting downside of -8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: -0.1

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

Morgan Stanley rates DMP as Overweight (1) -

Morgan Stanley was surprised by the share price reaction to what it considered was a solid trading update.

The broker notes investors appear overly concerned by the low number of stores being opened in the year-to-date but passes it off as merely timing.

Overweight rating, $53 price target and Cautious industry view.

Target price is $53.00 Current Price is $46.34 Difference: $6.66
If DMP meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $47.22, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Macquarie rates ECX as Outperform (1) -

FY17 earnings were ahead of Macquarie's estimates. The broker observes Right2Drive contributed to half of the net profit growth.

Guidance appears conservative and while management has a history of being conservative it has indicated there will be increased investment in FY18.

Macquarie retains an Outperform rating. Target is raised to $4.60 from $4.40.

Target price is $4.60 Current Price is $4.30 Difference: $0.3
If ECX meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.65, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Citi rates FLT as Sell (5) -

Post the AGM's guidance for underlying profits before tax to rise by between 6%-19% on the prior year, Citi analysts have added 2% on top of their estimated growth numbers.

The analysts make no change to their Sell rating as they remain of the view the current share price is already reflecting all of the stated cost-out benefits. From here onwards, say the analysts, upgrades to transformation targets are required to drive meaningful further upside.

Target price lifts to $45.50 from $43.70.

Target price is $45.50 Current Price is $47.02 Difference: minus $1.52 (current price is over target).
If FLT meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.04, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Credit Suisse rates FLT as Underperform (5) -

Credit Suisse observes profit in the Australian business is expected to fall in the first half while international business appears to be in line with expectations.

At this stage the broker is bearish on the expectation of a more prolonged re-set in Australia. The main positives out of the company's update include progress in transforming the US and Canadian leisure business and development of corporate business in Europe.

Credit Suisse maintains an Underperform rating and raises the target to $39.25 from $39.13.

Target price is $39.25 Current Price is $47.02 Difference: minus $7.77 (current price is over target).
If FLT meets the Credit Suisse target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.04, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Deutsche Bank rates FLT as Hold (3) -

The AGM update was reasonably positive, in Deutsche Bank's view. First half guidance for pre-tax profit implies 6-19% growth.

Over the longer term, the broker observes stabilisation of airfares, combined with cost rationalisation, means the company is on track to return to a 2% net margin.

Hold retained and target is $50.

Target price is $50.00 Current Price is $47.02 Difference: $2.98
If FLT meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $45.04, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Morgan Stanley rates FLT as Underweight (5) -

The company has provided FY18 guidance for pre-tax profit of $350-380m. The Australian performance looks weak to Morgan Stanley, despite flattening airline prices and cost reduction initiatives.

The broker suggests Australian earnings are deeply cyclical and earnings growth will slow and, hence, the current trading multiple is too rich.

Underweight retained. Target is $38. Industry view is Cautious.

Target price is $38.00 Current Price is $47.02 Difference: minus $9.02 (current price is over target).
If FLT meets the Morgan Stanley target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.04, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Morgans rates FLT as Hold (3) -

Improved trading conditions and the company's new Business Transformation Program have driven an earnings recovery, Flight Centre revealed at its AGM. The FY18 profit guidance range is somewhat wide, the broker notes, but in line with consensus.

The current trading price suggests to the broker a recovery has already been priced in. Hold and $47 target retained.

Target price is $47.00 Current Price is $47.02 Difference: minus $0.02 (current price is over target).
If FLT meets the Morgans target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.04, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

UBS rates FLT as Neutral (3) -

FY18 guidance for pre-tax profit implies 6-16% growth and is broadly in line with UBS estimates.

The broker retains current  forecasts and envisages the two main catalysts are increased confidence around long-term targets and scope for capital management.

The broker notes a more judicious approach to costs and the company is setting up the business for structural challenges. Neutral rating and $47.50 target maintained.

Target price is $47.50 Current Price is $47.02 Difference: $0.48
If FLT meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $45.04, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Credit Suisse rates FXJ as Neutral (3) -

The separation of Domain is imminent as this will start trading on a deferred settlement basis on November 16 under a ticker DHA. Credit Suisse values the company's current stake in Domain at an enterprise value of $2.2bn.

Fairfax is to retain 60% of Domain. Credit Suisse forecasts Domain digital revenue to grow 21% in FY18 and for strong growth to continue in the medium to longer term.

The broker continues to believe the separation process will provide share price support for Fairfax in the near term and a Neutral rating and $1.06 target are maintained.

Target price is $1.06 Current Price is $1.12 Difference: minus $0.06 (current price is over target).
If FXJ meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.15, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Citi rates GMG as Buy (1) -

Citi analysts have been supportive for Goodman Group for quite a while and they now reiterate their view that operational pressures are building for an upside surprise, including from fund performance and capital management.

Citi has left Buy rating and $9.42 price target unchanged.

Target price is $9.42 Current Price is $8.77 Difference: $0.65
If GMG meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $8.37, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Deutsche Bank rates GMG as Hold (3) -

FY18 guidance is for growth in operating earnings per share of 6%. Management has advised that the average cost of debt has fallen as a result of a number of capital management initiatives.

Deutsche Bank observes asset sales have progressed more than expected and increases forecasts for asset sales to $1.4bn for the first half, estimating earnings on investments to decline by -1%.

Deutsche Bank retains a Hold rating and raises the target to $8.20 from $8.18.

Target price is $8.20 Current Price is $8.77 Difference: minus $0.57 (current price is over target).
If GMG meets the Deutsche Bank target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.37, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Macquarie rates GMG as Outperform (1) -

Macquarie found few changes in the September quarter in key operating metrics, although a restructure of the debt facilities improves the outlook for operating earnings.

The broker does not find the valuation appealing, currently, although still suggests risk remains skewed to the upside. The stock is expected to continue to outperform its peers given the certainty of near-term earnings, balance sheet options and further upside from urban renewal.

Outperform retained. Target is $8.49.

Target price is $8.49 Current Price is $8.77 Difference: minus $0.28 (current price is over target).
If GMG 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 $8.37, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

UBS rates GMG as Neutral (3) -

September quarter update revealed stable development work, although UBS notes commencements were low. The broker considers the business well-run with a conservative capital structure in a sector with strong tailwinds.

Valuation is full, although UBS suggests there is no short-term de-rating in sight. Neutral rating and $8.30 target maintained.

Target price is $8.30 Current Price is $8.77 Difference: minus $0.47 (current price is over target).
If GMG meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.37, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Macquarie rates GTN as Outperform (1) -

Macquarie observes the core businesses are largely on track and the trends are strengthening. USTN was affected by short-term volatility, typical of the business in this stage of development.

The broker remains confident in the medium-long term investment case. Outperform. Target is reduced to $3.60 from $3.76.

Target price is $3.60 Current Price is $2.50 Difference: $1.1
If GTN meets the Macquarie target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

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

Citi is now anticipating weaker poultry volume growth over the next 12 months supported by the view that red meat seems poised to take back market share from poultry given lower prices for red meat.

On that basis earnings estimates have been pared back by -1-2% and the rating has been pulled back to Neutral from Buy. Target price drops -10c to $3.65.

The company is also facing higher feed costs but Citi points out due to hedging the impact won't be felt until nine months into the future.

Target price is $3.65 Current Price is $3.55 Difference: $0.1
If ING meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

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 JHG as Upgrade to Buy from Neutral (1) -

It appears earnings missed expectations in the trading update but Citi analysts are of the view the combination of better flows and the strong performance of equity markets at present offers plenty of compensation.

In addition, targeted merger synergies have been lifted to US$125m (still below Citi's forecast of US$130m) by management and the analysts assume the market will see this as a positive.

Citi sees Janus Henderson offering superior EPS growth vis-a-vis peers. Upgrade to Buy from Neutral. Target price lifts to US$39, which converts to $50.75 for Australian investors.

Target price is $50.75 Current Price is $47.31 Difference: $3.44
If JHG meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $49.99, suggesting upside of 5.7% (ex-dividends)

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.7

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

Deutsche Bank rates JHG as Hold (3) -

The company's pro-forma adjusted earnings per share missed Deutsche Bank's estimates. The broker remains cautious on the flow outlook and because of the integration period.

Deutsche Bank retains a Hold rating and raises the target to US$37 from US$36.

Current Price is $47.31. Target price not assessed.

Current consensus price target is $49.99, suggesting upside of 5.7% (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: 0.7

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

Morgan Stanley rates JHG as Overweight (1) -

September quarter adjusted income was slightly below Morgan Stanley's estimates. The broker notes net synergies have been upgraded, which adds 1-2% to earnings estimates, all else being equal.

Overweight retained. Industry view is In-Line. Target is $57.00.

Target price is $57.00 Current Price is $47.31 Difference: $9.69
If JHG meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $49.99, suggesting upside of 5.7% (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: 0.7

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

UBS rates JHG as Buy (1) -

September quarter adjusted net profit was below UBS estimates, largely reflecting a seasonally-lower recognition of performance fees and higher tax rate.

A further improvement in investment performance bodes well for future flow prospects, the broker suggests.

The broker retains a Buy rating. Target is raised to US$40.00 from US$38.75.

Current Price is $47.31. Target price not assessed.

Current consensus price target is $49.99, suggesting upside of 5.7% (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: 0.7

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

Citi rates JHX as Upgrade to Buy from Neutral (1) -

Citi analysts have decided to grant James Hardie the benefit of the doubt. The EBIT margin surprised in the face of cost headwinds, but competitors have been reporting solid volume growth, point out the analysts.

If the stars align this year, this company's margin may well surprise to the upside in FY19, suggest the analysts. Rating upgraded to Buy from Neutral. Target price lifts to $23 from $20.10.

Also, Citi reminds investors Fermacell was offered and declined back in 2008. This year the response was "yes", but execution remains key.

Target price is $23.00 Current Price is $20.58 Difference: $2.42
If JHX meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $21.88, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

Deutsche Bank rates JHX as Buy (1) -

September quarter net profit was 12% ahead of Deutsche Bank's estimates, largely because of better US fibre cement margins.

Volume declines of -2% were disappointing but the broker considers this well flagged, given the hurricanes in Texas and Florida.

A Buy rating is retained. Target is raised to $22.28 from $20.67.

Target price is $22.28 Current Price is $20.58 Difference: $1.7
If JHX meets the Deutsche Bank target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $21.88, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

Macquarie rates JHX as Outperform (1) -

September quarter results were characterised by a strong beat to estimates in the US and Macquarie observes the trends are pointing to continued improvement.

The acquisition of Fermacell comes as a surprise to the broker but, on balance, suggests a relatively low-risk platform for European growth.

Outperform retained. Target is raised to $24.40 from $20.80.

Target price is $24.40 Current Price is $20.58 Difference: $3.82
If JHX meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $21.88, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

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

September quarter results disappointed Morgan Stanley in terms of the volumes, although price and margin were better than expected.

The broker expects solid growth, but suggests such growth is unlikely to be matched by cash flow for some time, given elevated capital expenditure and asbestos payments.

Equal-weight rating. Target is raised to $20.50 from $20.00. Cautious industry view.

Target price is $20.50 Current Price is $20.58 Difference: minus $0.08 (current price is over target).
If JHX meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.88, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

Ord Minnett rates JHX as Hold (3) -

September quarter net profit was 11.9% ahead of Ord Minnett's estimates. The main highlight was the margin performance from North American fibre cement. The main disappointment was the volume growth, as demand remains well below target.

The broker believes the Fermacell acquisition makes strategic sense and provides the company with the necessary presence in relationships in Europe.

The broker maintains a Hold rating and raises the target to $19.80 from $18.35.

Target price is $19.80 Current Price is $20.58 Difference: minus $0.78 (current price is over target).
If JHX 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 $21.88, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

Morgans rates MRG as Downgrade to Hold from Add (3) -

The difficult FY17 season has taken its toll on Murray River. Following a stocktake, the company will write-down -$4.3m of the value of its inventory. Morgans understands high-priced clusters suffered quality issues due to the weather and other factors.

The result is a material reduction in the broker's forecast earnings and a more conservative view going forward. Downgrade to Hold. On the positive side, an ex-Costa Group COO will take over as CEO. Target rises to 45c from 43c.

Target price is $0.45 Current Price is $0.44 Difference: $0.01
If MRG meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Morgans rates NAN as Add (1) -

The broker has remodeled its assumptions for Nanosonics with regard management equipment service agreements and also added in contributions form new products. US feedback suggests Trophon is well regarded but its penetration into the wider hospital system is under question.

Management reaffirmed expectations at the AGM that growth will come from core businesses and new products. The broker has eased nearer terms forecasts and lifted longer term. Add retained, target rises to $3.40 from $2.91.

Target price is $3.40 Current Price is $2.91 Difference: $0.49
If NAN meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Citi rates ORE as Buy (1) -

Following a site visit, Citi analysts have returned with increased confidence this company can reach nameplate capacity by end FY18. This should drive costs lower, explain the analysts.

Add strength in the lithium market, and it would appear Orocobre should enjoy higher margins and increased cash flows. This remains Citi's favourite lithium exposure. Buy rating retained. Target $5.50.

Target price is $5.50 Current Price is $6.00 Difference: minus $0.5 (current price is over target).
If ORE meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.91, suggesting downside of -18.3% (ex-dividends)

The company's fiscal year ends in June.

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 RHC as Neutral (3) -

Credit Suisse assesses the potential implications for the company's UK business from the recent decline in UK NHS e-referral work, as noted by Spire in its first half results.

The UK represents 9% of Ramsay Health Care's revenue and 8% of operating earnings in FY17. This suggests potential downside risk to the broker's FY18 estimates, to the tune of -4-5%, although growth in elective surgery waiting lists should mean volumes recover.

Neutral retained. Target is $71.60.

Target price is $71.60 Current Price is $67.47 Difference: $4.13
If RHC meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $73.26, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

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

Following the strong share price rally, Citi has pulled back its rating to Neutral from Buy. The analysts do highlight Santos remains their favourite exposure in the sector.

The analysts reiterate their view that on implied long term oil price assumptions, the sector in general looks "expensive".

Citi see potential blue-sky value of $6.47 from de-risking growth and delivering further cost-out, but also suggests this is likely to be a multi-year process. In the near term, the analysts continue to see risk to the price of crude oil. Target lifts to $4.71 from $4.30.

Interestingly, the analysts have now scrapped DPS estimates for both 2017 and 2018.

Target price is $4.71 Current Price is $4.51 Difference: $0.2
If STO meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting downside of -1.1% (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: 0.3

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

Credit Suisse rates STO as Outperform (1) -

After the investor briefing, Credit Suisse suspects it unlikely there will be a big reserve upgrade in the Cooper Basin in February.

 The broker considers the negativity around the step up in capital expenditure is misguided. As long as expenditure is made to accrue value then it is a good thing, in the broker's opinion.

Outperform retained. Target is raised to $5.00 from $4.65.

Target price is $5.00 Current Price is $4.51 Difference: $0.49
If STO meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting downside of -1.1% (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: 0.3

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

Deutsche Bank rates STO as Buy (1) -

Deutsche Bank observes the company has been stabilised with impressive cost reductions that have helped to reduce debt.

Prima facie, 2018 production guidance appears to be flat year-on-year, with an additional $125m of capital expenditure largely to be spent on exploration.

Deutsche Bank considers the growth initiatives centred on the five core assets are appropriate and compelling.

Buy retained. Target rises to $4.95 from $4.40.

Target price is $4.95 Current Price is $4.51 Difference: $0.44
If STO meets the Deutsche Bank target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting downside of -1.1% (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: 0.3

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

Macquarie rates STO as Outperform (1) -

Macquarie considers the guidance for 2018 provides easy hurdles to surmount. A strong finish to 2017 is expected.

The balance sheet is looking less stretched and the company has the ability to focus on growth while still achieving ambitious debt reduction targets. Macquarie envisages room, if oil prices stay high, to hit the US$2bn target by the end of 2018, almost a year early.

Macquarie retains an Outperform rating and raises the target to $5.00 from $4.90.

Target price is $5.00 Current Price is $4.51 Difference: $0.49
If STO meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting downside of -1.1% (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: 0.3

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

Morgan Stanley rates STO as Overweight (1) -

The turnaround remains on track, Morgan Stanley observes, although higher capital expenditure and production costs guidance for FY18 is incrementally negative.

If spot oil prices are maintained, the broker expects the company will hit its 20% gearing target a year earlier than planned and this brings dividends and/or capital management back into the mix.

Overweight. Target is $4.50. Industry View: In Line.

Target price is $4.50 Current Price is $4.51 Difference: minus $0.01 (current price is over target).
If STO meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.46, suggesting downside of -1.1% (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: 0.3

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

Ord Minnett rates STO as Hold (3) -

Ord Minnett observes the performance from core assets is improving, enabling more to be spent on reserve extensions. New project growth is targeted for beyond 2020.

The broker maintains a Hold rating based on valuation but at spot oil prices envisages potential upside of 30-40% to net profit estimates. Target is raised to $4.60 from $4.50.

Target price is $4.60 Current Price is $4.51 Difference: $0.09
If STO meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting downside of -1.1% (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: 0.3

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

UBS rates STO as Downgrade to Sell from Neutral (5) -

UBS observes 2018 production guidance is marginally below 2017 while capital expenditure guidance is up 17% at the mid point. The company is expecting a broadly flat output from its five key assets.

While the stock has been an effective way to gain exposure to an oil price recovery the broker believes it is now factoring in an oil price that is 10% above spot and downgrades to Sell from Neutral. Target is raised to $4.05 from $3.85.

Target price is $4.05 Current Price is $4.51 Difference: minus $0.46 (current price is over target).
If STO meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.46, suggesting downside of -1.1% (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: 0.3

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

Credit Suisse rates SXL as Outperform (1) -

Following recent share price weakness and a mixed trading update Credit Suisse reiterates an Outperform rating.

The broker considers the trading update, revealing metro radio revenue down -6%, was largely expected and the market is improving.

However, the market appears to be pricing in a precipitous decline in the Australian radio market and the broker is of the view that structural pressures are nowhere near as severe as those facing the TV sector. Target is $1.50.

Target price is $1.50 Current Price is $1.11 Difference: $0.39
If SXL meets the Credit Suisse target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $1.29, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Credit Suisse rates TME as Neutral (3) -

The company's update at the AGM highlights fickle growth in several of the key divisions, Credit Suisse observes. At the same time, another minor investment cycle is underway and the broker remains supportive of the company's strategy.

With the stock trading in line with valuation, the broker maintains a Neutral rating. Price target is reduced to NZ$4.35 from NZ$4.40.

Current Price is $3.90. Target price not assessed.

Current consensus price target is $4.55, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Morgans rates VHT as Add (1) -

Volpara's first half result was largely in line with the broker's expectations. The highlight for the broker was a reconfirmation of expected annual recurring revenue.

The broker retains a positive view on the digital health name and makes no changes to forecasts. Add and 81c target maintained.

Target price is $0.81 Current Price is $0.64 Difference: $0.17
If VHT meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Morgans rates VVR as Add (1) -

Viva has settled $53m of acquisitions announced earlier in the year and announced a further $9m acquisition of assets in regional Qld. The broker has made no changes and expects portfolio revaluation and further acquisitions ahead.

The broker notes an attractive FY18 yield of 6.5%, albeit beholden to bond rates. Add and $2.53 target retained.

Target price is $2.53 Current Price is $2.17 Difference: $0.36
If VVR meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Macquarie rates WFD as Outperform (1) -

While a soft operating environment is persisting, Macquarie expects the flagship shopping centres to be resilient. The broker observes sales growth was relatively flat in the September quarter.

Given a less onerous earnings multiple versus global peers, Macquarie retains an Outperform rating and $9.72 target.

Target price is $9.72 Current Price is $8.34 Difference: $1.38
If WFD meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $9.01, suggesting upside of 8.0% (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: 0.4

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

UBS rates WFD as Buy (1) -

September quarter results came in as expected although occupancy declined to 93.4% across both flagship and regional centres, and warrants attention UBS believes.

The stock is currently trading on a 30% premium to US peers which the broker believes is justified to reflect the unique developments underway.

Buy retained. Target is raised to $9.35 from $9.00.

Target price is $9.35 Current Price is $8.34 Difference: $1.01
If WFD meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $9.01, suggesting upside of 8.0% (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: 0.4

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

Citi rates XRO as Buy (1) -

Citi has dropped the High Risk attachment to its Buy rating, while lifting its price target to NZ$43.20 from NZ$29.10. The analysts note the company has, for the first time ever, reported positive EBITDA and operating cashflow, as expected, but Citi had higher expectations nevertheless.

Given the financial performance disappointed because of slower growth than forecast in North America, described as "non-core" by Citi, the analysts are non-plussed.

The High Risk label has disappeared because of ongoing improvement in financial profile as well as the fact Xero has ample cash, explain the analysts. They remain attracted to the company's high growth profile.

Current Price is $29.65. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Deutsche Bank rates XRO as Hold (3) -

The company has, unexpectedly, decided to de-list from the NZX in favour of a sole ASX listing, and Deutsche Bank suggests the fall in the shares are a reaction to this, rather than the first half results.

The first half produced strong revenue growth and operating leverage. The company has stated that, after cash break-even is achieved, it will re-invest in growth.

Hold retained. Target rises to NZ$34.65 from NZ$33.40.

Current Price is $29.65. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Macquarie rates XRO as Downgrade to Underperform from Neutral (5) -

The company's first half results were in line with Macquarie's forecasts. Xero has also announced its intention to de-list from the NZX. The company intends to focus its liquidity on one market, and the broker observes this should make trading the shares easier.

Following a period of strong price appreciation the broker downgrades to Underperform from Neutral. An aggressive set of valuation assumptions does not generate the valuation that justifies a positive stance, Macquarie believes.

Target is increased to NZ$30 from NZ$23.

Current Price is $29.65. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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