Australian Broker Call

Deutsche Bank rates BSL as Hold (3) -

Deutsche Bank upgrades 2018 and 2019 estimates for East Asian hot rolled coil prices by 20-30% and forecasts for the company's Australian steel spreads by 30%. In turn, FY18 and FY19 operating earnings forecasts are raised by 2% and 10% respectively.

The broker retains a Hold rating on valuation and raises the target to $13 from $11.

Target price is $13.00 Current Price is $13.08 Difference: minus $0.08 (current price is over target).
If BSL meets the Deutsche Bank target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.57, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Macquarie rates CCL as Outperform (1) -

The company will raise prices by 15c from November 1 to capture the new container deposit scheme starting in NSW on December 1. The scheme will start charging suppliers on November 1 to create liquidity for initial refunds.

Macquarie envisages risks to earnings over 2018 as the scheme is bedded down but believes current pricing incorporates a degree of downside while the outlook for Indonesia is strong.

Outperform. Price target is reduced to $8.80 from $8.82.

Target price is $8.80 Current Price is $7.97 Difference: $0.83
If CCL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.71, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates CMA as Add (1) -

The company's portfolio is valued at $760m across 18 assets with a weighted average lease expiry of 4.3 years. Leasing activity undertaken in the September quarter has reduced FY18 expiries to 3.6% and occupancy has increased to 98.6%.

Morgans believes the distribution yield is attractive, around 7.6%, underpinned by a majority of rental income having fixed rental increases of over 3.0% per annum.

Add rating and $2.56 target.

Target price is $2.56 Current Price is $2.42 Difference: $0.14
If CMA meets the Morgans target it will return approximately 6% (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

Ord Minnett rates EPW as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage on ERM Power with a Buy rating and $1.65 target, as it is adapting to changes in the market with the government looking to address rising electricity prices and the regulator flagging potential power shortages.

The broker believes the stock is attractive both in terms of valuation and growth. The biggest risk is the uncertainty associated with the recently proposed national energy guarantee and how the company can meet new requirements.

Target price is $1.65 Current Price is $1.29 Difference: $0.36
If EPW meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $1.48, suggesting upside of 17.2% (ex-dividends)

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

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

The company's Board has indicated another strategic review of the portfolio is in place, even prior to the arrival of the newly appointed CEO, point out analysts at Citi. They don't like it. It is seen as creating a lot of uncertainty at a time when underlying earnings growth is uncertain already.

Rating has been downgraded to Neutral from Buy, with a new target price of NZ$8.00. The analysts are asking the question whether a flat market outlook suggests a construction cycle peak is near?

Earnings estimates have been culled.

Current Price is $6.84. Target price not assessed.

Current consensus price target is N/A

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: 0.3

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

Credit Suisse rates FBU as Outperform (1) -

The company has named Ross Taylor as the new CEO. He is expected to finalise a detailed portfolio review in the March quarter, which Credit Suisse suggests signals a desire for a more streamlined collection of businesses.

Guidance for FY18 is weaker than expected, largely because of the construction business, and the broker lowers forecasts by -25%. Still, Mr Taylor's appointment is viewed as a positive move and an Outperform rating is retained.

Target is reduced to NZ$8.50 from NZ$9.20.

Current Price is $6.84. Target price not assessed.

Current consensus price target is N/A

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: 0.3

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

Deutsche Bank rates FBU as Buy (1) -

The company has announced a further NZ$160m in estimated building losses in FY18, mainly because of the convention centre project. The chairman has stated that, given the uncertainty over construction, the market should expect quarterly updates on project performance to be provided.

Deutsche Bank welcomes the announcement that Ross Taylor will be the new CEO as his construction experience will be helpful as the company navigates a return to profitability in construction.

Buy rating retained. Target reduced to NZ$8.29 from NZ$9.49.

Current Price is $6.84. Target price not assessed.

Current consensus price target is N/A

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: 0.3

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

Macquarie rates FBU as Underperform (5) -

The company expects a further -NZ$160m loss in building in FY18.

Macquarie suspects consensus FY18-19 earnings revisions are likely to be negative because of the lagged impact of the recent decline in NZ dwelling consents, a falling NZ market share and further losses in building & interiors.

Underperform rating is retained. Target is reduced to NZ$6.30 from NZ$6.54.

Current Price is $6.84. Target price not assessed.

Current consensus price target is N/A

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: 0.3

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

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

The announcement of a new CEO and a further NZ$125m in construction provisions has not removed the uncertainty that Morgan Stanley envisages for the stock. The estimated loss for the business is now -NZ$160m with the chairman indicating 80% relates to the International Convention Centre project.

One of Morgan Stanley's key concerns was the possibility that project losses in this segment would spread to the infrastructure business. Importantly, the AGM provided no sign that this has occurred.

Equal-weight rating. Target is NZ$8.50. Industry view is: Cautious.

Current Price is $6.84. Target price not assessed.

Current consensus price target is N/A

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: 0.3

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

UBS rates FBU as Buy (1) -

The company has flagged a further -NZ$160m in losses in the construction segment. The major contributor was a further cost escalation at the SkyCity Convention Centre project.

UBS calculates that, post earnings revisions, the valuation impact is -6% and, hence, the gap to the price target persists and a Buy rating is maintained.

The broker suspects apprehension about construction earnings will continue for another 18-24 months until the Convention Centre and Commercial Bay are completed. Target is reduced to NZ$8.32 from NZ$8.84.

Current Price is $6.84. Target price not assessed.

Current consensus price target is N/A

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: 0.3

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

Ord Minnett rates IFN as Initiation of coverage with Hold (3) -

Ord Minnett  initiates coverage with a Hold rating and $0.72 target, with the stock looking fully valued and potential structural headwinds in its traditional sources of revenue.

The broker expects wholesale prices to normalise after peaking in 2018-19 and large-scale generation certificate prices to come down as a renewable energy target is achieved. The broker ascribes no value to the company's suite of development options.

Target price is $0.72 Current Price is $0.74 Difference: minus $0.015 (current price is over target).
If IFN meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Market Sentiment: 0.0

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

Citi rates IGO as Downgrade to Sell from Neutral (5) -

Citi analysts agree with Mr Market; production performance is meeting expectations and the Nova ramp up is on schedule. It's just that the share price has run too far up. Hence, Citi has now downgraded to Sell from Neutral.

On the analysts' calculation, the share price is now incorporating nickel priced at US$6.15/lb; this is well above spot and what Citi analysts at this stage are prepared to put into their modeling.

Target price falls to $3.50 from $3.67 as earnings estimates have been trimmed.

Target price is $3.50 Current Price is $4.47 Difference: minus $0.975 (current price is over target).
If IGO meets the Citi target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.82, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Credit Suisse rates IGO as Downgrade to Underperform from Neutral (5) -

September quarter revealed a solid start as Nova ramps up to nameplate. Credit Suisse notes material movements were sustained at Tropicana and the underground study is progressing.

The broker downgrades to Underperform from Neutral on valuation. Target is raised to $3.70 from $3.35.

Target price is $3.70 Current Price is $4.47 Difference: minus $0.775 (current price is over target).
If IGO 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 $3.82, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Deutsche Bank rates IGO as Hold (3) -

Deutsche Bank observes the company has had a good start to the financial year with production in line with guidance. The maiden quarter of commercial production at Nova delivered nickel in concentrate at the top end of guidance.

Production at other assets was in line with guidance although costs were at the top of the range, the broker notes, at Tropicana, Jaguar and Long.

Hold. Target is raised to $3.70 from $3.60.

Target price is $3.70 Current Price is $4.47 Difference: minus $0.775 (current price is over target).
If IGO meets the Deutsche Bank target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.82, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Macquarie rates IGO as Neutral (3) -

Production at Nova has started to exceed Macquarie's expectations. The broker upgrades FY18 production estimates by 7% and 5% for nickel and copper respectively.

Factoring in higher depreciation rates for Nova and increased exploration expense drives a -$10-20m reduction in earnings forecasts.

Macquarie maintains a Neutral rating and raises the target 18% to $4.50.

Target price is $4.50 Current Price is $4.47 Difference: $0.025
If IGO meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.82, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Morgan Stanley rates IGO as Overweight (1) -

Morgan Stanley observes production was stable at Nova in the September quarter and Bollinger is on track. Bollinger is expected to commence production from the March quarter of 2018 which should allow the company greater flexibility in the project.

Overweight retained. Target is $3.75. Attractive sector view retained.

Target price is $3.75 Current Price is $4.47 Difference: minus $0.725 (current price is over target).
If IGO meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.82, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

UBS rates IGO as Neutral (3) -

The company has reported September quarter production at Nova achieved around 90% of the annualised target of 1.5mtpa. UBS observes the mine is on track to meet guidance for the December half.

Key to the broker's rating is that, even if it is wrong on the timing or magnitude of the electric vehicle battery demand and the impact on nickel prices, the Nova mine will still make money through the cycle.

 Neutral  rating retained. Target is $3.75.

Target price is $3.75 Current Price is $4.47 Difference: minus $0.725 (current price is over target).
If IGO meets the UBS target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.82, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

UBS rates LLC as Neutral (3) -

UBS observes, post the company's update on underperforming engineering projects, the share prices declined -12%. While the outlook for winning projects on a risk-adjusted basis appears robust the broker remains cautious about further provisions on existing projects.

UBS assumes that the earnings margin for Australian engineering D&C contracts declines to 2.0% from 4.5%. UBS retains a Neutral rating and $18.10 target.

Target price is $18.10 Current Price is $16.55 Difference: $1.55
If LLC meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $17.81, suggesting upside of 7.4% (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

Morgans rates NAM as Add (1) -

A significant increase in the 2017 Australian cotton crop has supported a strong first half result, Morgans observes. The larger crop underpinned revenue growth of 38% and an 82% increase in underlying operating earnings.

The broker observes the stock is still trading at a material discount to its diluted net tangible assets. The company has now eliminated the co-operative overhang which should help reduce this discount.

Morgans retains an Add rating and $0.54 target.

Target price is $0.54 Current Price is $0.48 Difference: $0.06
If NAM meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in February.

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 NUF as Upgrade to Add from Hold (1) -

The company will purchase the European product portfolio called "Century", to be divested because of competition requirements arising from ChemChina's acquisition of Syngenta.

Morgans notes, importantly, the acquisition generates materially higher margins and has a stronger cash flow conversion than Nufarm. The acquisition is expected to significantly strengthen the scale and product offering of the company's European business.

Based on an attractive growth profile and undemanding valuation Morgans upgrades to Add from Hold and raises the target to $10.00 from $9.20.

Target price is $10.00 Current Price is $8.73 Difference: $1.27
If NUF meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $9.31, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in July.

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 RBL as Add (1) -

Morgans observes the company overcame ongoing strong competition in the t-shirt market in the September quarter with financial results broadly in line with expectations.

The company continues to operate a fast-growing global marketplace in art-inspired consumer goods and the broker finds the potential for its merchandise idly attractive.

Add rating retained and target is $1.27.

Target price is $1.27 Current Price is $0.79 Difference: $0.48
If RBL meets the Morgans target it will return approximately 61% (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

Ord Minnett rates RCR as Buy (1) -

The company has been awarded two new contracts, at the Emerald Solar Farm in Queensland and with Indonesia's PT Kartanegara Energi Perkasa.

In Ord Minnett's view, the solar contract price appears reasonable and the energy contract win was needed to restore profitability to a unit that made a small loss in the second half of FY17.

Buy rating and $5.08 target maintained.

Target price is $5.08 Current Price is $4.18 Difference: $0.9
If RCR meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.91, suggesting upside of 17.0% (ex-dividends)

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

Morgan Stanley rates RMD as Overweight (1) -

Global mask sales have been lower than Morgan Stanley expected for two quarters, offset by robust sales in devices.

Once back-order issues are resolved the broker envisages an acceleration in re-supply sales of F20/N20 should reverse the negative margin trend and drive positive revisions to earnings.

Overweight rating. Industry view is In-Line. Price target is US$77.90.

Current Price is $10.20. Target price not assessed.

Current consensus price target is $9.88, suggesting downside of -3.0% (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: 0.7

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

Credit Suisse rates S32 as Neutral (3) -

Credit Suisse considers the fundamentals of the zinc market are amongst the most robust of any commodity because of a sharp contraction in ex-China mine supply and consumption for galvanising supported by a rebound in steel demand.

The company is exposed to zinc via Cannington, with around 70,000 tonnes of payable zinc production in FY17 and guidance for 45,000t in FY18, affected until the replacement crusher chamber is operational. FY19 production is expected to lift to 65,000t if more normalised operations resume.

Credit Suisse retains a Neutral rating. Target is $3.10.

Target price is $3.10 Current Price is $3.25 Difference: minus $0.15 (current price is over target).
If S32 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 $3.19, suggesting downside of -3.3% (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: 0.3

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

Deutsche Bank rates SGP as Hold (3) -

The company has reaffirmed FY18 guidance including growth in distributions of 4%. Management has also guided to higher Sydney settlements and Deutsche Bank notes lower net deposits largely reflect the timing of projects.

Retail continues to underperform, as expected. Deutsche Bank retains a Hold rating and $4.90 target.

Target price is $4.90 Current Price is $4.47 Difference: $0.43
If SGP meets the Deutsche Bank target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.77, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Macquarie rates SGP as Neutral (3) -

The company has reiterated FY18 guidance for growth of 5.0-6.5%. Macquarie's estimates sit above the top end of this range, now 6.9%.

The position of the residential business provides the broker with confidence in the company's ability to keep growing earnings at over 5% per annum for the foreseeable future. Nonetheless, the news flow around the retail property portfolio, the bulk of where capital is invested, remains challenging.

Macquarie retains a Neutral rating and $4.60 target.

Target price is $4.60 Current Price is $4.47 Difference: $0.13
If SGP meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.77, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Ord Minnett rates SGP as Accumulate (2) -

Ord Minnett notes a lack of sales growth in the retail portfolio while guidance for growth in FY18 was reiterated at 5.0-6.5%.

This is underpinned by the margin expansion that is expected in the residential division, with exceptional price and volume growth from Melbourne and Sydney estates.

 Accumulate rating and 5.00 target retained.

Target price is $5.00 Current Price is $4.47 Difference: $0.53
If SGP meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.77, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

UBS rates SGP as Neutral (3) -

September quarter residential results were solid, UBS observes, while the retail segment struggled. The broker's forecasts take into account the unconditional agreement to sell Corrimal for around $70m and operating margins of 17.4% in residential.

The broker was surprised to witness a material drop off in net deposits for the quarter but expects the strength of the Sydney market will allow the company to raise margins. Neutral rating and $4.62 target retained.

Target price is $4.62 Current Price is $4.47 Difference: $0.15
If SGP meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.77, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Credit Suisse rates SM1 as Underperform (5) -

Credit Suisse observes the stock has experienced a rapid re-rating over the past three months amid increasing confidence in its ability to grow infant formula sales.

Credit Suisse also believes the company's direction on a second processing site and the move into value adding is likely to influence the market's view.

The broker takes a cautious approach to margin assumptions and increases the target to NZ$5.98 from NZ$4.74. Underperform maintained.

Current Price is $7.13. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in July.

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: -0.7

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

UBS rates SXL as Neutral (3) -

The AGM trading update confirmed the challenges in the radio advertising market. Total first quarter revenues on a like-for-like basis were -1.7% lower than the prior corresponding quarter.

Offsetting the soft near-term earnings momentum, UBS suggests, is the potential participation in sector M&A following recent changes to media ownership laws.

Neutral rating and $1.25 target retained.

Target price is $1.25 Current Price is $1.20 Difference: $0.055
If SXL meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.29, suggesting upside of 10.5% (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

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

Citi analysts saw a solid, better-than-expected quarterly performance, but the share price has rallied too, and they now think it's best to pull back to Neutral from Buy.

Citi continues to like the assets and management, but would prefer a cheaper entry point. On an unrisked basis, the analysts state their valuation is $0.77/share at US$55/bbl long-term oil price, all else being equal.

Also, the analysts remind investors ramping up CSM projects often go hand in hand with teething problems. Target price lifts to 37c from 35c.

Target price is $0.37 Current Price is $0.37 Difference: $0.005
If SXY meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Deutsche Bank rates SXY as Hold (3) -

September quarter production was up 6%, with a solid performance at Growler and incorporating the initial contribution from Marauder-1. Revenue missed Deutsche Bank's estimates, driven by a sales under lift.

Deutsche Bank revises up FY18 Brent crude oil assumptions by 2% to reflect the marginally improved macro environment for oil.

Hold rating retained. Target is $0.30.

Target price is $0.30 Current Price is $0.37 Difference: minus $0.065 (current price is over target).
If SXY meets the Deutsche Bank target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.37, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Macquarie rates SXY as Outperform (1) -

September quarter results revealed improved production and higher revenue because of the commencement of Marauder-1.

Macquarie expects further attention to the acreage surrounding Marauder and Growler horizontal drilling to sustain current levels of production.

The broker retains an Outperform rating and raises the target to $0.40.

Target price is $0.40 Current Price is $0.37 Difference: $0.035
If SXY meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Ord Minnett rates SXY as Buy (1) -

September quarter production was supported by the Marauder-1 which came on line late in the quarter.

Ord Minnett believes, despite the strong performance from the Cooper Basin, the key to the stock is delivery from Queensland coal seam gas assets as these represent the majority of estimated value.

The broker retains a Buy rating and $0.39 target.

Target price is $0.39 Current Price is $0.37 Difference: $0.025
If SXY meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Ord Minnett rates VCX as Accumulate (2) -

Ord Minnett observes retail sales growth remains challenged, with the company recording a decline of -0.4% in the September quarter.

The company is actively re-mixing some of its key assets towards higher-demand categories and this is driving elevated churn, and affecting sales and rent because of the downtime.

Accumulate rating. Target is lowered to $3.10 from $3.20.

Target price is $3.10 Current Price is $2.64 Difference: $0.46
If VCX meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.91, suggesting upside of 9.7% (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

Macquarie rates WAF as Outperform (1) -

Macquarie observes drilling through the wet season at Sanbrado was very active, with recent results confirming M1S  continues at depth.

A maiden underground reserve is considered likely with the pre-feasibility due mid-2018.

Outperform and 50c target retained.

Target price is $0.50 Current Price is $0.40 Difference: $0.097
If WAF meets the Macquarie target it will return approximately 24% (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 WES as Sell (5) -

Citi has, post the Q1 sales update, reduced its price target by 20c to $39. The rating remains Sell. Underlying, argue the analysts, sales momentum for Coles has slowed down materially. Competitor Woolworths ((WOW)) will have a better story to tell, anticipate the analysts.

On the other hand, Bunnings' outlook in Australia and New Zealand continues to look robust, in their view. Department stores continue to reveal mixed fortunes for Kmart (ok) and Target (not ok). Citi prefers Woolworths in the sector, "given the challenges facing Coles, Target, and Bunnings UK".

Target price is $39.00 Current Price is $41.41 Difference: minus $2.41 (current price is over target).
If WES meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $41.08, suggesting downside of -1.7% (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

Credit Suisse rates WES as Neutral (3) -

Credit Suisse observes the September quarter was tough and the subsequent quarter is likely to be equally difficult. Coles maintained the week momentum witnessed in the second half of FY17.

Sales revenue in Bunnings UK was driven by significant under-performance in Homebase and the broker would not be surprised if the company closed a large number of the stores at the FY18 result. Meanwhile,Target is in transition which is reflected in a fall in like-for-like sales of -6.4%.

Neutral retained. Target is reduced to $41.82 from $42.07.

Target price is $41.82 Current Price is $41.41 Difference: $0.41
If WES meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $41.08, suggesting downside of -1.7% (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 WES as Sell (5) -

First quarter sales confirm for Deutsche Bank that the retail market in food has become a little tougher because of supply-related fresh deflation.

The broker expects Coles' sales to remain under pressure as Woolworths ((WOR)) continues to extract benefits from its investment and improved execution.

Sell rating and $38 target retained.

Target price is $38.00 Current Price is $41.41 Difference: minus $3.41 (current price is over target).
If WES meets the Deutsche Bank target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $41.08, suggesting downside of -1.7% (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

Macquarie rates WES as Outperform (1) -

September quarter retail sales were up 1.9% with the results driven by growth in Bunnings Australasia and Coles. However, Macquarie observes the outlook for Target and Bunnings in the UK is problematic.

As the stock offers a reasonable return and upside to earnings from higher commodity prices the broker maintains an Outperform rating. Target is reduced -1% to $43.72.

Target price is $43.72 Current Price is $41.41 Difference: $2.31
If WES meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $41.08, suggesting downside of -1.7% (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

Morgan Stanley rates WES as Underweight (5) -

Morgan Stanley observes sales at Coles continue to slow as deflation and competition impact the food business. Meanwhile, Bunnings is showing no effect from the weaker consumer environment and soft housing cycle.

The broker considers the stock's valuation is rich, for no earnings growth. Underweight rating retained. Industry view is cautious. Target is $39.

Target price is $39.00 Current Price is $41.41 Difference: minus $2.41 (current price is over target).
If WES meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $41.08, suggesting downside of -1.7% (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

Morgans rates WES as Hold (3) -

September quarter sales were largely in line with expectations and Morgans makes minimal changes to forecasts. Bunnings in Australasian stood out, with strong like-for-like sales growth of 10.8%, comfortably above forecasts.

Bunnings UK and Ireland remains a work in progress, the broker notes, with like-for-like sales down -11.9%. Despite steady sales in the core home improvement and garden categories, performance was adversely affected by significant clearance of discontinued ranges.

Hold rating retained. Target rises to $41.46 from $40.54.

Target price is $41.46 Current Price is $41.41 Difference: $0.05
If WES meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $41.08, suggesting downside of -1.7% (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

Ord Minnett rates WES as Hold (3) -

Results were mixed in the September quarter, with the strong retail divisions of Bunnings Australasia and Kmart performing well while weakness was experienced in Coles, Target and Bunnings UK & Ireland.

Ord Minnett notes industrial divisions have improved because of cost savings and improved commodity pricing. The broker remains concerned that both Kmart and Target cannot succeed at the same time.

Ord Minnett retains a Hold rating and $44 target.

Target price is $44.00 Current Price is $41.41 Difference: $2.59
If WES meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $41.08, suggesting downside of -1.7% (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

UBS rates WES as Neutral (3) -

September quarter retail sales were softer than expected. Sales at Coles slowed again, which UBS equates to around 40 basis points loss in share. Nevertheless, commentary around market rationality and a lack of step-up in price investment is considered positive.

Bunnings in Australasia was strongly higher, up 11.5% and above expectations, supported by cycling of the Masters liquidation and adverse weather in the prior corresponding quarter. UBS retains a Neutral rating and reduces the target to $41.60 from $41.90.

Target price is $41.60 Current Price is $41.41 Difference: $0.19
If WES meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $41.08, suggesting downside of -1.7% (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

Credit Suisse rates WHC as Neutral (3) -

Credit Suisse observes net debt has fallen to just $65m and the company continues to generate a strong cash flow at spot coal prices.

The broker suspects there is a real risk the company starts a buy-back earlier than the FY18 result, excluding any consideration of M&A.

Credit Suisse retains a Neutral rating and $3.40 target.

Target price is $3.40 Current Price is $3.65 Difference: minus $0.25 (current price is over target).
If WHC meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.49, suggesting downside of -3.1% (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

Macquarie rates WHC as Underperform (5) -

Macquarie notes the company has taken advantage of higher prices and accelerated repayment of its bank debt sooner than expected. Although this is a positive step, two critical issues for the broker are not related to debt.

The first is how much traction the company can get in the semi-soft market and the second how the company will balance a plan to develop Vickery and potential acquisitions. If the company can place its semi-soft from Maules Creek Macquarie believes it likely that the development at Vickery will go ahead.

Underperform retained. Target price rises to $3.20 from $3.10.

Target price is $3.10 Current Price is $3.65 Difference: minus $0.55 (current price is over target).
If WHC meets the Macquarie target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.49, suggesting downside of -3.1% (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