Australian Broker Call

Morgans rates ACF as Add (1) -

FY19 results were below expectations. Morgans is encouraged by some projects which are coming on line and likes the outlook for civil infrastructure activity on the east coast, although project timing remains uncertain.

Over the medium term the business is well-positioned for growth and the broker maintains an Add rating. Target is reduced to $0.34 from $0.40.

Target price is $0.34 Current Price is $0.28 Difference: $0.06
If ACF meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates AOG as Neutral (3) -

Aveo's board has unanimously approved Brookfield's takeover bid. Shareholders will vote in early November. The broker retains Neutral and a $2.15 target, in line with the bid.

Target price is $2.15 Current Price is $2.12 Difference: $0.03
If AOG meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.15, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates ASB as Outperform (1) -

Austal posted a record FY19 result with every metric improving. The US operations are "firing", the broker suggests, and there is upside risk to forecasts. A transition year for A&NZ delivered a significant earnings turnaround.

The company boasts a solid order book and numerous tender opportunities in the commercial & defence segments outside of the US. At 19x FY20 PE valuation remains attractive, the broker notes. Outperform retained, target rises to $4.75 from $4.00.

Target price is $4.75 Current Price is $4.31 Difference: $0.44
If ASB meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.30, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates ASB as Hold (3) -

FY19 earnings were in line with upgraded guidance. Ord Minnett was impressed by the underlying strength in the US shipbuilding margin and believes there is upside risk to FY20.

However, the company's business model does not have a strong track record of consistent earnings (EBIT) and free cash flow, unlike the large US-listed defence contractors, nor does it have a diverse earnings stream.

The broker considers the recent run in the share price has meant the stock is fully valued and maintains a Hold rating. Target rises to $4.10 from $3.60.

Target price is $4.10 Current Price is $4.31 Difference: minus $0.21 (current price is over target).
If ASB meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.30, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates BGA as Buy (1) -

FY19 earnings were in line with downgraded guidance. Milk supply was flat and there was a material step-up in milk supply investment over the year. UBS believes balance-sheet concerns are overstated, pointing out debt is not expected to increase materially in FY20.

The broker believes significant upside is on offer, despite a challenging outlook. A modest improvement in seasonal conditions is expected in FY21. UBS maintains a Buy rating and reduces the target to $5.60 from $7.00.

Target price is $5.60 Current Price is $4.00 Difference: $1.6
If BGA meets the UBS target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Ord Minnett rates CLH as Lighten (4) -

FY19 net profit was marginally ahead of Ord Minnett's forecasts. There was a material miss at the top line. The company is guiding to purchased debt ledger cash collections of $145-155m, which the broker estimates is an organic improvement of 8-17%.

This is likely to be difficult to achieve, Ord Minnett suspects, given historical economics and the declining liquidation profile observed in the business in recent years. Ord Minnett maintains a Lighten rating and lowers the target to $1.10 from $1.20.

Target price is $1.10 Current Price is $1.22 Difference: minus $0.12 (current price is over target).
If CLH meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.5

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

Morgans rates CMW as Hold (3) -

FY19 results were slightly ahead of guidance. Morgans notes active assets will deliver returns for investors over the medium to long term and there is a solid recurring income base.

The company also has a wider range of capital sources. Cromwell Property has identified a $1bn pipeline of value-add opportunities. Morgans maintains a Hold rating and raises the target to $1.22 from $1.20.

Target price is $1.22 Current Price is $1.24 Difference: minus $0.02 (current price is over target).
If CMW meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.15, suggesting downside of -7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Ord Minnett rates EXP as Buy (1) -

Net profit in FY19, while down -36%, was ahead of Ord Minnett's forecasts. The company has undergone material changes over the last year, faced with a host of challenges including a softening of the North Queensland tourism market and the lingering impact of two skydiving tragedies.

The broker considers the company's response both prudent and proactive. In the broker's view, skydiving remains the jewel in the crown despite the fact earnings can be volatile.

Skydiving forecasts are upgraded while the adventure contribution has been lowered. Buy rating maintained. Target is raised to $0.39 from $0.37.

Target price is $0.39 Current Price is $0.27 Difference: $0.12
If EXP meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates FCT as Add (1) -

Operating revenue was up 13% in FY19, almost entirely from Australia although the first international customer was billed in the last weeks of the period. Gross profit grew 15% and operating expenditure 29%.

Morgans observes, while not apparent from the profit & loss statement, the company has undertaken a tremendous workload to set up revenue growth in FY20 and beyond.

A number of distribution partners have been signed to facilitate this. While timing is difficult, the broker believes, as revenue accelerates, so will the share price improve. Speculative Buy (Add) maintained. Target is reduced to $0.33 from $0.36.

Target price is $0.33 Current Price is $0.25 Difference: $0.08
If FCT meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Citi rates FNP as Buy (1) -

Citi observes the company has not deviated from its strategy and higher returns are likely going forward, pointing out the company has resisted the temptation to leverage the high-margin daigou channel to sell to China.

Instead it has focused on alternatives, supported by its office in China and local partnerships. Citi believes the strategy has been vindicated, given the adverse impact that e-commerce laws had on Bellamy's Australia ((BAL)) and Blackmores ((BKL)).

Citi trims FY20 and FY21 estimates by -6% and -13%, respectively, on higher depreciation and lower margin expansion forecasts. Buy rating maintained. Target rises to $5.90 from $5.65.

Target price is $5.90 Current Price is $5.32 Difference: $0.58
If FNP meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $6.05, suggesting upside of 13.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Morgans rates FNP as Hold (3) -

FY19 results missed forecasts but Morgans is encouraged by developments in dairy and plant-based beverages.

Strong earnings growth is expected going forward and the company should benefit from scaling of new facilities and production of higher-margin dairy nutrition products.

The growth outlook was not quantified but Morgans suspects investors are relieved that the company is now through its peak capital expenditure cycle. Hold rating maintained. Target is reduced to $5.16 from $5.52.

Target price is $5.16 Current Price is $5.32 Difference: minus $0.16 (current price is over target).
If FNP meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.05, suggesting upside of 13.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

UBS rates FNP as Buy (1) -

FY19 earnings were slightly ahead of expectations. Significant earnings leverage was visible in the dairy division, with second half margins up 310 basis points.

Continued improvements in operating efficiencies and the contribution from lactoferrin and cream are expected to support margin expansion into FY20.

The company has emphasised that pricing and volume for FY20 milk supply has been contracted. Exports to China and Southeast Asia remain the growth drivers, with around 80% of new volumes to be exported.

UBS finds the valuation attractive and retains a Buy rating. Target is $7.10.

Target price is $7.10 Current Price is $5.32 Difference: $1.78
If FNP meets the UBS target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $6.05, suggesting upside of 13.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

UBS rates FXL as Neutral (3) -

FY19 results were slightly below expectations. UBS notes volume growth is solid and expected to accelerate in FY20.

A consolidation of brands is expected to drive cost reductions but this will be largely offset by growth in operating expenditure because of new product investment. No earnings guidance was provided.

UBS needs to assess the unit economics of new products before considering a more positive view. Neutral rating maintained. Target rises to $1.90 from $1.35.

Target price is $1.90 Current Price is $1.85 Difference: $0.05
If FXL meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgans rates GDG as Add (1) -

FY19 underlying net profit was in line with forecasts. Morgans observes a strong start to FY20, including record sales in July. The stock is trading on 18x the broker's FY20 estimates for earnings per share, considered undervalued versus its medium-term growth profile.

The company is in a strong position to deliver a compound earnings growth story over time, Morgans asserts. Add rating and $0.83 target maintained.

Target price is $0.83 Current Price is $0.50 Difference: $0.33
If GDG meets the Morgans target it will return approximately 66% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates GNX as Add (1) -

The company generated positive operating earnings (EBITDA) for the first time in FY19, albeit not as strong as Morgans estimated. Output from the KS1 solar farm was below forecasts, offset by a R&D refund and liquidated damages from the contractor.

Morgans understands there are some design changes to the K2H project which could increase the capital cost. Estimates are increased by 5% to allow for this, although costings have not been released by the company.

Despite downward revisions to forecasts recent share price weakness offers upside potential, in the broker's view. Speculative Buy (Add) retained. Target reduced to 30c from 36c.

Target price is $0.30 Current Price is $0.21 Difference: $0.09
If GNX meets the Morgans target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates GTN as Downgrade to Neutral from Outperform (3) -

GTN's -37% drop in profit had been pre-released. The Australian Traffic Network was the key driver of weakness, Macquarie notes, and with earnings visibility clouded there is no end in sight at present.

Management appears to be taking the right steps but clear evidence of sustained stability is required to restore investor confidence. Macquarie downgrades to Neutral from Outperform. Target falls to 85c from $1.35.

Target price is $0.85 Current Price is $0.89 Difference: minus $0.04 (current price is over target).
If GTN meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Citi rates GXY as Neutral (3) -

First half results were in line with expectations. Citi revises 2020-21 estimates for operating earnings (EBITDA) downwards on higher costs and weaker assumed recoveries.

The broker lowers the valuation for Mount Cattlin and adjusts the James Bay asset based on peer group valuations. Hence, the target is reduced to $1.30 from $1.60.

The broker believes the current share price is not ascribing any meaningful value to the development profile, while weak market conditions are likely to keep valuation depressed. Neutral/High Risk rating maintained.

Target price is $1.30 Current Price is $1.13 Difference: $0.17
If GXY meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.54, suggesting upside of 36.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.1

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

Credit Suisse rates GXY as Outperform (1) -

First half results were largely in line with Credit Suisse estimates. Sales guidance is unchanged at 60-70,000t. The price being guided is the "low to mid-US$500/t" range.

Credit Suisse notes the company appears to be seeking control of Alita Resources ((A40)), having appointed a receiver. However the strategic benefit is unclear.

The lithium price is expected to dictate the share price in the near term with the risk of further falls, the broker suspects. Outperform rating maintained. Target is reduced to $2.00 from $2.50.

Target price is $2.00 Current Price is $1.13 Difference: $0.87
If GXY meets the Credit Suisse target it will return approximately 77% (excluding dividends, fees and charges).

Current consensus price target is $1.54, suggesting upside of 36.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.1

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

Macquarie rates GXY as Underperform (5) -

Galaxy posted a small profit against the broker's forecast of a small loss. Sustained weak lithium prices have led to -US$176.8m impairment of Mt Cattlin. First half sales generated -70% less revenue than the year before.

The broker believes the company's balance sheet is in a stronger position than peers and puts it in a solid position to realise value out of its Alita Resources ((A40)) stake. Underperform nevertheless retained. Target falls to $1.10 from $1.30 as valuation cut on James Bay in light of Mt Cattlin impairment.

Target price is $1.10 Current Price is $1.13 Difference: minus $0.03 (current price is over target).
If GXY 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 $1.54, suggesting upside of 36.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.1

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

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

Morgan Stanley found the first half results weak, with spodumene pricing -8% below forecasts. Cash conversion was significantly below forecasts.

Production guidance is maintained at 180-210,000t for 2019 with a sales target of 60-70,000t of shipments in the third quarter.

Equal-weight rating retained. Target is $1.35. Industry View: Attractive.

Target price is $1.35 Current Price is $1.13 Difference: $0.22
If GXY meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.54, suggesting upside of 36.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.1

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

UBS rates GXY as Neutral (3) -

Underlying earnings in the first half were ahead of estimates. The reported loss of -US$172m was driven by three one-off impairments. UBS observes the company is trying to manage two market horizons.

In the short term the market is challenged because of high inventory at concentrators in China. This should reverse by the end of the year. On the longer term, sentiment is positive and four potential customers have been identified after management's trip to China.

The company has secured shipments for the third quarter and discussions are advanced regarding shipments in the fourth quarter. Neutral rating maintained. Target is reduced to $1.30 from $1.40.

Target price is $1.30 Current Price is $1.13 Difference: $0.17
If GXY meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.54, suggesting upside of 36.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.1

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

Citi rates HVN as Neutral (3) -

Citi observes underlying earnings in the second half were very weak in Australasia, although the turnaround in sales momentum heading into FY20 is encouraging.

The broker expects the environment to continue improving for housing-led retailers throughout FY20 and FY21, although the magnitude of the upswing is uncertain.

Citi expects capital raisings to persist as the company balances a number of priorities such as releasing franking credits, deleveraging the balance sheet and maintaining capital programs.

The dividend in FY20 and FY21 is not expected to be covered by cash, which suggests further capital raisings if there is no appetite to increase debt. Neutral rating and $4 target maintained.

Target price is $4.00 Current Price is $4.42 Difference: minus $0.42 (current price is over target).
If HVN meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.00, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Credit Suisse rates HVN as Neutral (3) -

FY19 results missed forecasts. The company has announced an equity raising of $173m. Credit Suisse suspects this will exacerbate investor debates regarding gearing. The franchisee segment was affected by weaker profitability and also increased expenditure on compliance.

Credit Suisse recognises that the overwhelming majority of the impact of this is cyclical and will reverse in an improving economy. The broker also notes that Harvey Norman's profitability typically lags its franchisees because of working capital arrangements.

Offshore market have supported further store-based expansion, with the company holding 90 stores in offshore markets as of FY19 and targeting another 21 by the end of FY21, with Malaysia a particular focus. Neutral rating maintained. Target is raised to $4.37 from $4.28.

Target price is $4.37 Current Price is $4.42 Difference: minus $0.05 (current price is over target).
If HVN meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.00, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Macquarie rates HVN as Neutral (3) -

Harvey Norman's FY19 result was in-line. Australia & International missed below expectations but were more than offset by Property and Other, which includes share trading gains, the broker notes.

Domestic earnings continue to decline and there is still a lot to worry about from a corporate governance perspective, the broker warns. However, improvement in Australian sales in the first half so far is encouraging and 50% of earnings remain in good shape (International & Property). Neutral retained, target falls to $4.10 from $4.40.

Target price is $4.40 Current Price is $4.42 Difference: minus $0.02 (current price is over target).
If HVN meets the Macquarie target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.00, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Morgan Stanley rates HVN as Underweight (5) -

Retail earnings (EBIT) were below Morgan Stanley's estimates. Franchising profit was down -12%, missing forecasts because of Harvey Norman's increased monitoring costs.

The company has announced a renounceable pro rata entitlement offer to raise $173m to reduce debt.

Morgan Stanley maintains an Underweight rating and Cautious industry view. Target is $3.20.

Target price is $3.20 Current Price is $4.42 Difference: minus $1.22 (current price is over target).
If HVN meets the Morgan Stanley target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.00, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

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

FY19 results, which were below forecasts, indicate an investment phase has commenced for the company's franchisees. Lower sales drove higher levels of tactical support. This meant franchising pre-tax profit was reduced in the second half.

Ord Minnett notes the external environment in some locations internationally is challenging, while tough comparables are an issue in the NZ division.

Given the challenges, valuation support is reduced in the broker's view. While the final dividend was well above forecasts, Harvey Norman announced another entitlement offer, which Ord Minnett suspects reflects a desire to retain low levels of gearing.

Rating is downgraded to Lighten from Hold and the target is $4.

Target price is $4.00 Current Price is $4.42 Difference: minus $0.42 (current price is over target).
If HVN meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.00, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

UBS rates HVN as Neutral (3) -

FY19 net profit was below forecasts. UBS reduces estimates by -8-9% to reflect the softer second half trading, primarily in Australia where margins were materially below estimates.

The broker now forecasts a -26 basis points decline in FY20 franchisee margins. Property profits were flat and Harvey Norman has pointed out there is yet to be any observed benefit from fiscal stimulus.

The company has announced a $174m rights issue which UBS expects will be used to fund a higher pay-out ratio in FY20 and beyond. Neutral maintained. Target is reduced to $4.00 from $4.10.

Target price is $4.00 Current Price is $4.42 Difference: minus $0.42 (current price is over target).
If HVN 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 $4.00, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Macquarie rates MLX as Downgrade to Neutral from Outperform (3) -

Macquarie believes declining tin prices will force a funding squeeze for Metals X and the broker is now assuming a $20m capital raising. Updated reserve estimates have led to a cut in earnings forecasts.

Cuts to production, and the dilution of a raising, lead the broker to cut its target to 16c from 30c. Downgrade to Neutral from Outperform.

Target price is $0.16 Current Price is $0.14 Difference: $0.02
If MLX meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates MMM as Neutral (3) -

Marley Spoon's pre-reported result featured weak cashflow and a -10% decline in active customers, albeit partly a seasonal effect. FY20 guidance is maintained and further debt/funding options are being explored.

The broker had expected volatility as the company seeks scale but the customer decline introduces uncertainty. Meal kits still have high growth potential in the broker's view and the partnership with Woolworths ((WOW)) is supportive, but metrics will need to improve to provide greater investor confidence. Neutral and 68c target retained.

Target price is $0.68 Current Price is $0.47 Difference: $0.21
If MMM meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

This company reports in EUR. 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 MX1 as Add (1) -

FY19 results were slightly ahead of expectations. Thales Group has completed a $10m investment by way of a convertible note and the two companies will jointly design and manufacture an new range of ultra-miniature x-ray tubes.

Morgans takes a more conservative stance on sales projections, awaiting more evidence of a sustainable run rate. Speculative Buy (Add) maintained. Target is 47c.

Target price is $0.47 Current Price is $0.36 Difference: $0.11
If MX1 meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates NXT as Buy (1) -

FY19 results revealed strong pricing discipline, Citi assesses. However, S2 is taking longer than expected to come to market at scale. The broker observes the company is not sacrificing price for volume which bodes well for profits.

Demand also remains robust. While the outlook is more encouraging and constructive, large-scale developments take time and the broker suggests patience is required, but should be rewarded in FY21. Buy rating maintained. Target rises to $8.45 from $8.09.

Target price is $8.45 Current Price is $5.93 Difference: $2.52
If NXT meets the Citi target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 31.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Ord Minnett rates NXT as Accumulate (2) -

FY19 net loss was greater than Ord Minnett expected. FY20 guidance is also lower than expected, as delays in the S2 construction push out some of the contract and wholesale revenue.

Of more concern, however, is the slow growth at M2 and B2. While the broker believes NextDC will benefit from the upcoming explosion in data usage stemming from 5G, artificial intelligence and big data, it appears it will take longer than previously expected.

Accumulate rating maintained. Target is lowered to $7 from $8.

Target price is $7.00 Current Price is $5.93 Difference: $1.07
If NXT meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 31.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

UBS rates PGL as Buy (1) -

UBS observes the FY19 result showed early signs the company is targeting higher credit quality. At the end of the year the book was skewed 39% to "premium risk grade" customers.

The broker believes the company has grown because it services the demand for small-medium enterprise (SME) loans that is unmet by the major banks. The company has recently expanded into New Zealand and launched a line of credit and B2B.

UBS believes the company has a first mover advantage over other SME online lenders as it has more brand recognition, lower costs, and is at least three times the size of its rivals with a more diverse funding mix. Buy rating maintained. Target rises to $5.15 from $4.55.

Target price is $5.15 Current Price is $4.70 Difference: $0.45
If PGL meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates PPE as Add (1) -

FY19 results were in line with expectations. With scope for further acquisitions, Morgans continues to like the growth profile. While no formal guidance was provided the company is confident there will be continued organic growth and recent acquisitions should drive further upside.

Morgans notes estimated profit for FY20 is heavily skewed to healthcare and social services along with information technology. These are defensive areas and fast-growing, which should result in growth well above GDP. Add rating maintained. Target rises to $3.83 from $3.67.

Target price is $3.83 Current Price is $3.47 Difference: $0.36
If PPE meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates PPE as Buy (1) -

FY19 net profit was in line with estimates. Ord Minnett believes the year ahead provides an opportunity to leverage the company's expertise across the health care industry and expand its services and clients.

The broker believes the key quality being demonstrated by management is the ability to cross-sell staff and/or expertise and generate revenue synergies as new geographies or vertical markets are opened up.

Ord Minnett maintains a Buy rating and raises the target to $3.74 from $3.50.

Target price is $3.74 Current Price is $3.47 Difference: $0.27
If PPE meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates PWH as Add (1) -

FY19 results were broadly in line with expectations, underpinned by 26% revenue growth. Morgans increases operating earnings (EBITDA) estimates for FY20 by 2%. No formal guidance was provided but management has indicated the outlook is positive.

Morgans expects earnings growth over the next few years to be driven by motorsports and increasing revenue from OEM contracts. The broker is now more confident in the growth outlook and maintains an Add rating. Target is raised to $5.30 from $4.83.

Target price is $5.30 Current Price is $4.72 Difference: $0.58
If PWH meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates RCW as Add (1) -

FY19 results were well above guidance, with total operating revenue up 70%. Growth came mainly from the core business although two strategic acquisitions were completed over the year, Morgans notes. These, while loss-making, expand the company's technological base.

Morgans assesses liquidity is a challenge for shareholders as limited daily turnover amplifies movements. While revenue surged the share price went the other way.

The broker is pleased with management's execution and maintains a Speculative Buy (Add) rating. Target is 35c.

Target price is $0.35 Current Price is $0.25 Difference: $0.1
If RCW meets the Morgans target it will return approximately 40% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Citi rates RSG as Buy (1) -

The company has reported June half earnings for the first time, having moved to a December year end. Revenue was less than Citi expected. The broker reduces estimates for 2019 because of higher-than-expected costs in the first half.

Resolute Mining is quite different in its profile now, Citi asserts, having bid for Toro Gold which has the Mako mine in Senegal. The broker expects the long, complex ramping up of the Syama underground, which has meant a low cash balance, will be supported by the debt-funded acquisition of Mako cash flow.

Buy/High Risk rating maintained. Target is reduced to $2.30 from $2.45.

Target price is $2.30 Current Price is $1.64 Difference: $0.66
If RSG meets the Citi target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Macquarie rates RSG as Outperform (1) -

Higher than expected operating costs led to a miss for Resolute Mining. The broker expects the Mako mine to be an immediate contributor in the second half. This, and the continued ramp up of Syama, are key for the company in the near term.

Outperform and $2.30 target retained.

Target price is $2.30 Current Price is $1.64 Difference: $0.66
If RSG meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Ord Minnett rates SSM as Buy (1) -

NBN has revised activation forecasts for FY20. FY20 fixed-line activations are reduced by -20%, although the mix in technology has shifted slightly in favour of HFC/FTTC. FY20 is still expected to deliver 14% volume growth.

Offsetting the reduced volume forecasts, Ord Minnett assesses the activation mix should be incrementally positive for revenue-per-ticket assumptions.

FY20 forecasts are unchanged while FY21 and FY22 forecasts are revised higher, given a better understanding of the revenue attached to maintenance versus activations. Ord Minnett maintains a Buy rating and raises the target to $2.87 from $2.73.

Target price is $2.87 Current Price is $2.76 Difference: $0.11
If SSM meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates SZL as Buy (1) -

Maiden first half earnings were ahead of estimates. The company has over 496,000 active customers in North America as of the end of July and active retailers now stand at 5793.

The "buy now pay later" sector in North America is experiencing hyper rates of growth, Ord Minnett observes, and the company's offering is clearly gaining traction. The broker maintains a Buy rating and raises the target to $3.15 from $3.00.

Target price is $3.15 Current Price is $2.44 Difference: $0.71
If SZL meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 1.0

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

Ord Minnett rates XF1 as Buy (1) -

Ord Minnett was pleased that credit sales from North America in FY19 were up 110%. EMEA was up 93%. Asia-Pacific grew more slowly with credit sales up 30%. The broker considers the international opportunity is compelling, and offshore now contributes 19% of credit sales.

The broker downgrades to Speculative Buy from Buy, driven by slowing credit sales growth forecasts in Asia-Pacific and the continued cash burn. Target is reduced to $0.60 from $0.90.

Ord Minnett requires evidence that the reinvestment in the cost base is bearing fruit in order to become more enthused.

Target price is $0.60 Current Price is $0.39 Difference: $0.21
If XF1 meets the Ord Minnett target it will return approximately 54% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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