Australian Broker Call

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

2016 was a big year of change for Alumina Ltd, UBS notes, given alterations to the AWAC JV with Alcoa. If the alumina price holds at its current US$320/t, the company should be able to increase returns to shareholders.

But this is not UBS' base case. The broker has lifted its alumina forecast to US$280 from US$260, resulting in 67-75% earnings forecast increases in FY17-18. The broker nevertheless suggests alumina is overbought and will retreat once Chinese restocking ends. 

This view, and a solid share price run, sees UBS downgrading to Sell. Target rises to $1.50 from $1.45.

Target price is $1.50 Current Price is $1.66 Difference: minus $0.16 (current price is over target).
If AWC 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 $1.44, suggesting downside of -11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

Credit Suisse rates AZJ as Neutral (3) -

The company has submitted a proposal to the Queensland Competition Authority for the UT5 period. Aurizon is asking for an 11% price increase in the first year and a 19% revenue uplift for the four-year period.

Credit Suisse considers this proposal highly unrealistic and expects a 7% revenue uplift. Starting the regulatory negotiations in this way suggests to the broker that the process may not be significantly more efficient than the process for UT4 which took around 3.5 years.

The broker maintains a Neutral rating and raises its target to $4.75 from $4.65, on the expectation of higher coal volume growth.

Target price is $4.75 Current Price is $4.95 Difference: minus $0.2 (current price is over target).
If AZJ meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.73, suggesting downside of -5.0% (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

Deutsche Bank rates AZJ as Buy (1) -

The company has started the UT5 process for the regulated network undertakings for the central Queensland coal network for July 1 2017 to June 30 2021.

The regulated asset value is currently $6.2bn. The company is seeking maximum allowable revenue over the four-year period which is an 11% increase in tariffs based on the forecast of a 226mt coal haulage. If the volumes increase then the tariff will fall.

Deutsche Bank retains a Buy rating and $4.95 target.

Target price is $4.95 Current Price is $4.95 Difference: $0
If AZJ meets the Deutsche Bank target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $4.73, suggesting downside of -5.0% (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

UBS rates BHP as Neutral (3) -

2016 has seen a step-change in BHP cash flow thanks to commodity price increases, the forecasts for which the broker has now revised substantially upward. This results in 70-80% forecast earnings increases in FY17-18 to be 60% above consensus, while still being below spot price implications.

Given capex is expected to increase in 2017, the broker expects BHP will first pay down debt, but the broker sees potential for shareholder returns. Neutral retained, target rises to $25.00 from $23.50.

Target price is $25.00 Current Price is $25.61 Difference: minus $0.61 (current price is over target).
If BHP meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.27, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates CMW as Hold (3) -

The company has reiterated FY17 guidance at its AGM. Cromwell has confirmed it made a fully funded cash offer to privatise Investa Office ((IOF)) at $4.45.

IOF independent directors have subsequently informed Cromwell they did not believe the proposal was compelling or attractive and ceased discussions.

Morgans notes, if Cromwell exited its 9.83% stake, gearing would likely move back to 36% from 43% and this would be a positive. A Hold rating is retained. Target is lowered to $0.97 from $1.04.

Target price is $0.97 Current Price is $0.92 Difference: $0.055
If CMW meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $0.93, suggesting upside of 1.8% (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 CSL as Neutral (3) -

The company's 2016 R&D briefing highlighted positive headline data for Hizentra, with US FDA submission expected in mid 2017. In haemophilia Afstyla/Idelvion have been favourably received post the launch.

A decision on the progress to a phase III trial for CSL112 is expected to be made in the second half. A Neutral rating is retained with a $110 price target.

Target price is $110.00 Current Price is $99.22 Difference: $10.78
If CSL meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $109.13, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in June.

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 CSL as Hold (3) -

The company has outlined a bullish case for its immunoglobulin, haemophilia and specialty therapies and played down the competitive threats. Sales targets for the medium term are above Ord Minnett's expectations.

While encouraged by the opportunity, especially for the new hereditary angioedema therapy, the broker is wary that the sales targets may prove ambitious. R&D expense guidance is lifted to 10-11% of sales in FY17.

Hold retained. Target is $100.

Target price is $100.00 Current Price is $99.22 Difference: $0.78
If CSL meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $109.13, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in June.

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 CSL as Buy (1) -

CSL's R&D day did indeed highlight progress on innovation, but also made it clear, the broker notes, that new product launches will add materially to near term growth. Several developments are ahead of schedule and the company is already setting sales targets.

R&D day reminds why it is not instructive to value CSL a comparative PE multiple, the broker suggests, given the 10-11% spend on R&D is a commitment to sustaining long term growth. Buy retained, target rises to $114 from $113.

Target price is $114.00 Current Price is $99.22 Difference: $14.78
If CSL meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $109.13, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in June.

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 CSR as Buy (1) -

Based on Deutsche Bank's forecasts, a sale of the stake in Tomago Aluminium would be around 6% dilutive to earnings per share in FY18.

However, the broker believes a sale would likely re-focus investor attention on the high quality building products assets which should attract a higher multiple.

The broker rates CSR as a Buy. Target is $5.06.

Target price is $5.06 Current Price is $4.20 Difference: $0.86
If CSR meets the Deutsche Bank target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.95, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in March.

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

Deutsche Bank rates CWN as Buy (1) -

Deutsche Bank increases earnings forecasts by 3-4% to reflect revised estimates for Macau GGR and Melco Crown earnings.

The broker retains a Buy rating, with the stock trading at a 20% discount to valuation. Target is raised to $15 from $14.

Target price is $15.00 Current Price is $11.99 Difference: $3.01
If CWN meets the Deutsche Bank target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $13.75, suggesting upside of 15.5% (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 DOW as Hold (3) -

The company has been awarded the Sydney growth trains contract, to provide 24 double deck trains and maintenance for an initial period of 25 years. The total value of the contract is $1.7bn.

There are options for up to 45 additional train sets and the maintenance contract to be extended by two five-year periods.

Deutsche Bank estimates that the project management will provide $50m in revenue per annum for two years and maintenance will provide around $30m revenue per annum once all trains have been delivered.

The broker retains a Hold rating  and raises the target to $5.77 from $5.22.

Target price is $5.77 Current Price is $6.08 Difference: minus $0.31 (current price is over target).
If DOW meets the Deutsche Bank target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.32, suggesting downside of -12.5% (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

Macquarie rates DOW as Outperform (1) -

The company has won the Sydney growth trains contract valued at $1.7bn. Macquarie observes this makes two out of three successful bids for the major local rail contracts that are up for grabs.

The contract includes an order of 24 double deck trains with options for up to 45 additional sets and maintenance for an initial period of 25 years plus two optional five year extensions.

The broker retains a Outperform rating and raises the target to $6.40 from $5.55. While the stock has run up strongly, the broker does not envisage valuation multiples as overly demanding. The confirmed contract wins in rail now create a more visible path for earnings growth in FY18.

Target price is $6.40 Current Price is $6.08 Difference: $0.32
If DOW meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.32, suggesting downside of -12.5% (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

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

The company has been awarded the $1.7bn Sydney growth trains contract. Morgan Stanley considers the project relatively low risk.

Downer EDI is estimated to earn $5-10m in EBIT per annum from its project management role across FY17-19. The majority of revenue will be from the maintenance contract and spread over 25 years after the delivery of the first trains.

Morgan Stanley envisages the risk is to the downside with no upcoming catalysts and retains a Equal-weight rating and $4.01 target. Industry view is Cautious.

Target price is $4.01 Current Price is $6.08 Difference: minus $2.07 (current price is over target).
If DOW meets the Morgan Stanley target it will return approximately minus 34% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.32, suggesting downside of -12.5% (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

UBS rates ERA as Sell (5) -

Legacy contracts have meant ERA has sold uranium at an average price of US$30/lb in the first half, the broker notes, despite the spot price falling to under US$20 from over US$30 year to date. While the broker sees higher prices ahead, risk remains as to whether ERA can continue to fund its rehabilitation liability.

Major shareholder Rio Tinto ((RIO)) has extended credit to make up any shortfall, but UBS is concerned that without Ranger 3 Deeps, which Rio does not support, ERA offers little in the way of value. Sell retained, target falls to 5c from 10c.

Target price is $0.05 Current Price is $0.33 Difference: minus $0.28 (current price is over target).
If ERA meets the UBS target it will return approximately minus 85% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: -1.0

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

UBS rates FMG as Neutral (3) -

Going into 2016 the market saw the iron ore price spending the year around US$40/t, the broker notes. Thanks to China the price is averaging US$55/t for the year with current spot near US$80/t. The broker does not see such a price as sustainable and does not believe producers would risk new projects given downside risk.

The broker sees an average in the mid-US$50s for 2017 and suggests Fortescue's gearing levels will fall below target by end-2017. The iron ore forecast price has been lifted 13%, resulting in 61-81% increases to FY17-18 forecast earnings. Target rises to $6.10 from $5.25. Neutral retained.

Target price is $6.10 Current Price is $6.35 Difference: minus $0.25 (current price is over target).
If FMG meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.16, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

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: -0.1

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

UBS rates ILU as Buy (1) -

After four years of price declines and production restraint from Iluka, the potential for the company's product suite to undergo price rises in FY17 is increasing, the broker suggests. 

The broker has not changed price forecasts but has slightly lowered its A$ assumption. Buy and $7.50 target retained.

Target price is $7.50 Current Price is $6.56 Difference: $0.94
If ILU meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.56, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.1

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

Morgans - Cessation of coverage

Forecast for FY17:

Forecast for FY18:

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

UBS rates MGX as Neutral (3) -

Going into 2016 the market saw the iron ore price spending the year around US$40/t, the broker notes. Thanks to China the price is averaging US$55/t for the year with current spot near US$80/t. The broker does not see such a price as sustainable and does not believe producers would risk new projects given downside risk.

However the broker believes based on its forecast 2017 price, Mt Gibson would progress with the restart of Koolan Island, assuming the sea wall can be rebuilt, given a sufficient projected return. Target rises to 36c from 33c, Neutral retained.

Target price is $0.36 Current Price is $0.34 Difference: $0.025
If MGX meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $0.39, suggesting upside of 16.5% (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

UBS rates NCM as Sell (5) -

Newcrest is the "go to" gold stock in the Asia-Pacific given its size and liquidity, the broker notes. Strong production growth, a solid balance sheet and improving operational performance underpin and the company is unlikely to disappoint operationally over the next couple of years, the broker believes. 

But the broker also believes the positives are more than already priced into the stock and that there is better value to be had elsewhere in the sector. Target rises to $13.17 from $12.25. Sell retained.

Target price is $13.17 Current Price is $18.98 Difference: minus $5.81 (current price is over target).
If NCM meets the UBS target it will return approximately minus 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.03, suggesting upside of 10.1% (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

Credit Suisse rates NUF as Outperform (1) -

While the company has made a slow start to FY17 growth prospects appear solid to Credit Suisse. Savings continue to accrue from the FY15-18 restructuring program.

The broker downgrades Latin American expectations, which leads to an overall reduction in earnings per share forecasts of 4%. The company indicates pricing pressure has begun.

A strengthening currency has meant Brazilian growers have delayed purchasing activity to benefit from lower supplier prices. This is expected to normalise the second quarter. Credit Suisse retains an Outperform rating and $9.70 target

Target price is $9.70 Current Price is $9.03 Difference: $0.67
If NUF meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $9.02, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in July.

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

Macquarie rates NUF as Outperform (1) -

Management has guided for EBIT growth in the first half and reiterated his expectations for the full year. Improved contributions from the North American business are a highlight and Europe is also doing well, Macquarie notes.

Competitive pressures are still being experienced in Australia and Brazil, but a good crop season and cost-cutting initiatives are envisaged mitigating the pressures in the former and increased plantings and low inventories will help offset the negatives in the latter.

Outperform rating and $9.50 target retained.

Target price is $9.50 Current Price is $9.03 Difference: $0.47
If NUF meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $9.02, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in July.

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

Ord Minnett rates NUF as Hold (3) -

Ord Minnett updates its model following the trading update at the AGM. Management now expects first half EBIT to be ahead of the prior corresponding period while FY17 is projected to exhibit solid growth relative to FY16.

Ord Minnett retains a Hold rating and $9.10 target.

Target price is $9.10 Current Price is $9.03 Difference: $0.07
If NUF meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $9.02, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in July.

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

UBS rates NUF as Buy (1) -

The broker has revisited its Nufarm forecasts and cut FY17 earnings 4%. While Aust cropping conditions are favourable and Nufarm is focusing on regaining market share, this is at the expense of price, the broker notes,and in the midst of tough competition.

LatAm also appears to be facing positive cropping conditions but will Nufarm will be cycling strong sales numbers from a year ago. Overall the broker still finds the stock's valuation undemanding. Buy and $10.00 target retained.

Target price is $10.00 Current Price is $9.03 Difference: $0.97
If NUF meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $9.02, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in July.

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 OSH as Buy (1) -

A headline reduction has been agreed by OPEC members, cutting output to 32.5 mmbbl/d. The main contributors to this headline reduction are Saudi Arabia and Iraq.

Deutsche Bank retains a pre-existing forecast for OPEC production of 33.2 mmbbl/d in 2017. While the deal is helpful for re-balancing oil markets next year, the broker considers this factored into estimates. As such a 2017 Brent forecast of US$55/bbl is retained.

Despite the strong rally in Australian energy stocks in the wake of the announcement, the broker continues to envisage substantial upside potential in buy-rated large cap producers. Deutsche Bank retains a Buy rating and $8.50 target.

Target price is $8.50 Current Price is $7.04 Difference: $1.46
If OSH meets the Deutsche Bank target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $7.80, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

UBS rates PDN as Neutral (3) -

Paladin's legacy contracts have not been sufficient to prevent cash bleed from a tumbling uranium spot price over the course of the year, the broker notes. The company has done a good job of lowering costs but spot remains below the company's cash cost per pound.

The broker has reduced forecast earnings on a lower projected average uranium price. Paladin may yet be caught short on the timing of its convertible bond repayment as the sale of the stake in Langer Heinrich to the Chinese drags on. However the broker believes a shortfall could be covered by debt. 

Target falls to 9c from 17c. Neutral retained.

Target price is $0.09 Current Price is $0.07 Difference: $0.025
If PDN meets the UBS target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $0.16, suggesting upside of 161.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.0

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

Morgans rates RBL as Add (1) -

The company's investor briefing detailed a wide variety of new product formats and improvements to the user experience. Morgans expects the initiatives to deliver another 2-3 years of double digit growth in revenue and gross margin.

Add rating and $1.62 target retained.

Target price is $1.62 Current Price is $0.88 Difference: $0.74
If RBL meets the Morgans target it will return approximately 84% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

UBS rates RIO as Buy (1) -

The broker has revised up commodity price forecasts and as a result, Rio forecast earnings by 60% to be 60% above consensus, albeit still short of spot price implications. The broker sees the company's gearing ratio coming in below the 20-30% target by year-end, as it did in 2015 when a buyback was announced.

The broker thus sees the potential for additional shareholder returns above the ordinary dividend as "high". Target rises to $70 from $61. Buy retained.

Target price is $70.00 Current Price is $58.70 Difference: $11.3
If RIO meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $59.85, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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 S32 as Neutral (3) -

2016 was a consolidation year for South32, the broker notes. The broker forecasts suggest the company will end 2016 with a substantial cash level but management has said it will not look to additional capital returns before the resolution of Anglo's sale of its 40% interest in its manganese JV.

But if South32 does not buy the stake there is scope for another substantial buyback, the broker suggests, plus further returns. On revised commodity price forecasts, the broker lifts earnings forecasts by 60-80% in FY17-18 to be 100% above consensus. Target rises to $2.75 from $2.50, Neutral retained.

Target price is $2.75 Current Price is $2.88 Difference: minus $0.13 (current price is over target).
If S32 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 $2.73, suggesting downside of -4.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.1

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

Citi rates SKI as Buy (1) -

Spark Infra has used its Investor Day to talk up prospects for extra value creation, such as from cost efficiency, and also from Transgrid, report the analysts. While a positive, Citi analysts think it is too early to pay up for these future value options.

They remain of the view Spark Infra represents a stand-out value proposition for investors in the sector. Key risk is more M&A as Citi suggests management remains keen, even if added value is long dated. Buy. Target drops by 2% to $2.58.

Target price is $2.58 Current Price is $2.24 Difference: $0.34
If SKI meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.7

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

Ord Minnett rates SKI as Hold (3) -

The company held an inaugural investor briefing for the newly-acquired Transgrid asset. The asset has already exceeded expectations in terms of potential growth drivers.

Ord Minnett is impressed but has not made any changes to modelling. Hold rating and $2.50 target maintained.

Target price is $2.50 Current Price is $2.24 Difference: $0.26
If SKI meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.7

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

Deutsche Bank rates STO as Buy (1) -

A headline reduction has been agreed by OPEC members, cutting output to 32.5 mmbbl/d. The main contributors to this headline reduction are Saudi Arabia and Iraq.

Deutsche Bank retains a pre-existing forecast for OPEC production of 33.2 mmbbl/d in 2017. While the deal is helpful for re-balancing oil markets next year, the broker considers this factored into estimates. As such a 2017 Brent forecast of US$55/bbl is retained.

Despite the strong rally in Australian energy stocks in the wake of the announcement, the broker continues to envisage substantial upside potential in buy-rated large cap producers. Deutsche Bank retains a Buy rating and $5.20 target.

Target price is $5.20 Current Price is $4.39 Difference: $0.81
If STO meets the Deutsche Bank target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

Market Sentiment: 0.5

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

Morgan Stanley rates TCL as Downgrade to Equal-weight from Overweight (3) -

The company's share price is up 12% from the November low, as fundamental value has re-asserted, Morgan Stanley notes.

The broker believes the growth projects will create value over time but there is some short-term risk to valuation, in terms of bond yields, and earnings, in terms of ride sharing.

The broker considers ride-sharing applications are positive in Australia, reducing congestion, but a near-term risk for US roads where customers with three or more occupants pay no toll.

Thus, the rating is downgraded to Equal-weight from Overweight. Target is lowered to $11.22 from $11.96. Cautious sector view retained.

Target price is $11.22 Current Price is $10.13 Difference: $1.09
If TCL meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $11.69, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

Macquarie rates VRT as Neutral (3) -

The company has acquired the Aagaard fertility clinic in Denmark. The company will pay a maximum consideration of $16.5m, including $10.8m at completion and a $5.6m earn out in cash and scrip.

Macquarie observes, with minimal geographical synergies and a history of anaemic organic growth in the country, this acquisition offers a relatively short-lived leg up in terms of group growth. Conditions remain tough, too, on the home front.

The broker retains a Neutral rating and raises the target to $6.70 from $6.50.

Target price is $6.70 Current Price is $5.91 Difference: $0.79
If VRT meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.50, suggesting upside of 22.7% (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

UBS rates WHC as Upgrade to Neutral from Sell (3) -

UBS has upgraded its coking coal price forecasts by 9-27% in FY17-18 and thermal coal by 4-17% leading to earnings forecast increases for Whitehaven of 53-163%. The broker's new prices still remain well below current spot.

While Whitehaven remains beholden to Chinese policy, the recent share price pullback sees UBS upgrade to Neutral. Target rises to $2.90 from $2.60.

Target price is $2.90 Current Price is $2.89 Difference: $0.01
If WHC meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.95, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in June.

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

Deutsche Bank rates WPL as Hold (3) -

A headline reduction has been agreed by OPEC members, cutting output to 32.5 mmbbl/d. The main contributors to this headline reduction are Saudi Arabia and Iraq.

Deutsche Bank retains a pre-existing forecast for OPEC production of 33.2 mmbbl/d in 2017. While the deal is helpful for re-balancing oil markets next year, the broker considers this factored into estimates. As such a 2017 Brent forecast of US$55/bbl is retained.

The broker retains the Hold rating and $27.40 target.

Target price is $27.40 Current Price is $31.54 Difference: minus $4.14 (current price is over target).
If WPL meets the Deutsche Bank target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.19, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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