Australian Broker Call

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

Morgan Stanley believes the company's activist regulatory campaign adds uncertainty and reduces the opportunity for cost reductions and top-line growth.

The broker suspects the market may not be fully pricing in the low margin for safety as the campaign will be long, public and drawn out and the Queensland intermodal sale may not proceed.

Morgan Stanley downgrades to Underweight from Equal-weight. Target is reduced to $4.00 from $4.88. Industry view: Cautious.

Target price is $4.00 Current Price is $4.41 Difference: minus $0.41 (current price is over target).
If AZJ meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.46, suggesting upside of 1.2% (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

Morgans rates CAR as Add (1) -

Morgans upgrades forecasts for the Korean business Encar.com. Korea may not ever be as lucrative as Australia but this business is entrenched in the local market and Morgans notes, for the time being, has no competitors of significance.

The broker maintains an Add rating and raises the target to $16.76 from $15.30.

Target price is $16.76 Current Price is $14.21 Difference: $2.55
If CAR meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $14.31, suggesting upside of 0.7% (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

Deutsche Bank rates CLQ as Buy (1) -

The company has announced an increase in the size of the refinery at Sunrise. Deutsche Bank expects the company will focus on high-grade cobalt mineralisation during the first 10 years of mine life.

The broker believes implied grades are achievable but, while there is revenue uplift, it comes at a cost. Higher waste removal is required and the broker has incorporated an additional $100m in capital expenditure into its estimates. Buy rating and $1.50 target maintained.

Target price is $1.50 Current Price is $1.00 Difference: $0.5
If CLQ meets the Deutsche Bank target it will return approximately 50% (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 DCG as Initiation of coverage with Buy (1) -

Citi has initiated coverage with a Buy rating and $1.45 price target considering the company well positioned to benefit from increased infrastructure spending in Victoria, plus increased spending by miners, in particular in iron ore.

The shares have re-rated already, but Citi suggests there is still plenty of upside potential left. Helping the cause is the view that margins have bottomed and will move higher.

Target price is $1.45 Current Price is $1.18 Difference: $0.27
If DCG meets the Citi target it will return approximately 23% (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

Deutsche Bank rates HT1 as Buy (1) -

Management has retained its FY18 guidance at the AGM update. Deutsche Bank expects it will achieve, and may exceed, current FY18 consensus operating earnings forecasts of $113-114m.

Buy rating and $2.70 target.

Target price is $2.70 Current Price is $2.28 Difference: $0.42
If HT1 meets the Deutsche Bank target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.37, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in December.

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 KLA as Outperform (1) -

Macquarie increases the target to $30 from $25, reflecting increased confidence in the exploration potential at both Fosterville and Macassa as well as additional value at Cosmo and Taylor. Outperform.

Target price is $30.00 Current Price is $23.71 Difference: $6.29
If KLA meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 MIN as Downgrade to Hold from Accumulate (3) -

The company intends to sell 49% of Wodgina as part of an offtake and partnering process. Ord Minnett values Wodgina at $2.4bn on a 100% basis. Wodgina accounts for $12.60 a share or 65% of valuation.

The broker believes Wodgina can largely self-fund its vertical integration, so Mineral Resources will need to consider how much of the sale proceeds should stay with the joint venture, how much should be spent on other businesses and how much returned to shareholders.

Ord Minnett downgrades to Hold from Accumulate. Target is $19.50.

Target price is $19.50 Current Price is $19.68 Difference: minus $0.18 (current price is over target).
If MIN meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.00, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Morgan Stanley rates MPL as Underweight (5) -

Morgan Stanley believes the bear case for health insurers is coming into focus as policy uncertainty drives a new era of low premium increases which could crunch margins.

Addressing affordability and improving the value proposition is emerging as a key election policy debate. The broker retains an Underweight rating and reduces the target to $2.35 from $2.60. Industry view: In Line.

Target price is $2.35 Current Price is $2.99 Difference: minus $0.64 (current price is over target).
If MPL meets the Morgan Stanley target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.01, suggesting upside of 0.6% (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

Citi rates MQG as Upgrade to Neutral from Sell (3) -

Macquarie is "firing on all cylinders", in Citi's words, with Friday's FY18 result boosted by lower taxes. Plenty of growth opportunities are on the horizon. So what's not to like?

Citi had, until now, stoically stuck with a below the market price target accompanied by a Sell rating, but today is the day. Sell rating upgraded to Neutral while the price target makes a leap all the way to $110.15 from a miserly $79.50. It's called vindication, or from a different angle: egg on the face.

The analysts have now joined the chorus of peers predicting guidance for the year ahead will prove conservative.

Target price is $110.15 Current Price is $111.42 Difference: minus $1.27 (current price is over target).
If MQG meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $109.85, suggesting downside of -1.4% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Morgan Stanley rates NHF as Underweight (5) -

Morgan Stanley believes the bear case for health insurers is coming into focus as policy uncertainty drives a new era of low premium increases which could crunch margins. Addressing affordability and improving the value proposition is emerging as a key election policy debate.

Underweight rating. Target is reduced to $5.10 from $5.95. In-Line industry view.

Target price is $5.10 Current Price is $5.58 Difference: minus $0.48 (current price is over target).
If NHF meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.20, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

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

Citi transfers coverage of Australian energy to another analyst. In the large cap stocks the broker's top pick is Caltex ((CTX)) followed by Origin Energy, which is downgraded to Neutral from Buy. The broker raises the target to $10.13 from $10.06.

Target price is $10.13 Current Price is $9.87 Difference: $0.26
If ORG meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $9.84, suggesting downside of -0.3% (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

Citi rates ORI as Sell (5) -

First half results missed Citi's expectations. Notwithstanding improved trends in explosives, the operating issues remain unresolved. The stock is trading well above historical levels and the broker believes it remains overbought.

The main disappointment was a further delay in the new Burrup ammonium nitrate plant. Management now guides to low plant availability in FY19. Sell rating and $16.50 target maintained.

Target price is $16.50 Current Price is $19.00 Difference: minus $2.5 (current price is over target).
If ORI meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.29, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Credit Suisse rates ORI as Neutral (3) -

In the wake of Orica's result, the broker notes the market environment is improving but the swing factor is whether the company can overcome recent execution issues. With safety performance continuing to deteriorate, there's not a lot of evidence yet, the broker suggests.

Cost reduction has slowed as a result. That said, earnings are expected to be significantly skewed to the second half. The broker retains Neutral. Target falls to $17.60 from $17.64.

Target price is $17.60 Current Price is $19.00 Difference: minus $1.4 (current price is over target).
If ORI 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 $18.29, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Deutsche Bank rates ORI as Hold (3) -

Deutsche Bank observes, while the company maintained a positive outlook for the second half and FY19, the earnings base continues to decline. Operating earnings were slightly below forecasts.

While the explosives outlook has improved, a series of operating mishaps is diminishing the operating leverage. Deutsche Bank maintains a Hold rating and the target edges down to $18.

Target price is $18.00 Current Price is $19.00 Difference: minus $1 (current price is over target).
If ORI 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 $18.29, suggesting downside of -3.7% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Macquarie rates ORI as Neutral (3) -

First half net profit missed expectations. The improvement to manufacturing performance remains key to the stock after persistent production issues at the main plants, Macquarie observes. Moreover, Burrup's performance is uncertain until heat exchanger equipment is replaced in FY19.

Macquarie retains a Neutral rating and reduces the target to $18.70 from $19.05.

Target price is $18.70 Current Price is $19.00 Difference: minus $0.3 (current price is over target).
If ORI meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.29, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates ORI as Overweight (1) -

First half results suggest to Morgan Stanley that the upside associated with an improving environment is subject to the resolution of several problems with operations.

Operating profit was below expectations. Underlying conditions support a skew to the second half and Morgan Stanley's positive stance is predicated on the outlook for FY19 and beyond.

Overweight. Target is reduced to $20.10 from $20.70. Industry view is Cautious.

Target price is $20.10 Current Price is $19.00 Difference: $1.1
If ORI meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $18.29, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Morgans rates ORI as Hold (3) -

First half results were worse than Morgans expected. There were issues with all major manufacturing plants and operating cash flow was disappointing. The company expects a much stronger second half and FY19.

Full utilisation rates for Burrup have again been pushed out. Morgans believes the company needs to overcome internal challenges before it can benefit from improving commodity markets and the operating conditions enjoyed by its customers.

The broker does not expect pressure to be completely alleviated until FY20. Hold rating maintained. Target is reduced to $18.15 from $18.60.

Target price is $18.15 Current Price is $19.00 Difference: minus $0.85 (current price is over target).
If ORI meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.29, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates ORI as Hold (3) -

First half results were weaker than expected and down -37% on a year ago. Higher input costs and operating issues from plant shutdowns affected profits.

Ord Minnett believes there are significant risks surrounding the company's growth prospects, along with uncertainty around the profit profile of Burrup and the future for Bontang once Burrup ramps up. Hold rating and $19 target maintained.

Target price is $19.00 Current Price is $19.00 Difference: $0
If ORI meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $18.29, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in September.

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 OSH as Sell (5) -

Citi's oil price sensitivity estimate versus the company's debt covenants and cash suggests something needs to give: either a dialling back of dividends, exploration and other discretionary expenditure, or the raising of debt and a small amount of equity.

The broker transfers coverage to another analyst and, in the pecking order, LNG-exposed names revert to the least preferred. Sell rating retained. Price target lowered to $6.49 from $6.53.

Target price is $6.49 Current Price is $7.99 Difference: minus $1.5 (current price is over target).
If OSH meets the Citi target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.13, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates PTM as Upgrade to Neutral from Underperform (3) -

The fund manager has underperformed the market by some -30% since its first half result, Credit Suisse notes, as sentiment drove the PE down to 16x from 21x. It is still the most expensive under the broker's coverage, but net flows are positive and fund performance remains strong.

On that basis the broker has left its target unchanged at $5.50 but upgraded to Neutral from Underperform.

Target price is $5.50 Current Price is $6.05 Difference: minus $0.55 (current price is over target).
If PTM meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.28, suggesting upside of 3.8% (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

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

Inflows returned in April, at around $70m in Morgan Stanley's estimates or a 2.5% annualised run rate. The broker notes performance in the key international fund is strong on a one-year view.

Target is $7.00. Equal-weight maintained. Industry view is In-Line.

Target price is $7.00 Current Price is $6.05 Difference: $0.95
If PTM meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.28, suggesting upside of 3.8% (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

Ord Minnett rates PTM as Upgrade to Buy from Sell (1) -

Ord Minnett observes the business performed well in April, with weighted average investment returns of over 2.5% and over $50m of net inflows. Following a marking to market, the broker's forecasts are little changed.

The target is reduced to $6.50 from $6.64, which now offers 16% upside in addition to a fully franked FY19 yield of 5.5%. With over 20% total shareholder return on offer, sustained net inflows and the stock trading at the low end of its PE range the broker upgrades to Buy from Sell.

Target price is $6.50 Current Price is $6.05 Difference: $0.45
If PTM meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.28, suggesting upside of 3.8% (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

Morgans rates REA as Hold (3) -

Morgans upgrades forecasts and valuation to reflect the strong growth in paid depth ad volumes and the proposed purchase of Hometrack Australia. The deal is subject to ACCC approval.

REA Group does not currently have a market data and valuation offer for real estate agents, its main customers, unlike Domain ((DHG)). Morgans expects REA to have an agent-oriented service within 6-9 months.

The broker believes the business should be able to deliver several more years of double-digit earnings growth and strong growth in dividends. A Hold rating is maintained on valuation. Target is raised to $87.66 from $75.60.

Target price is $87.66 Current Price is $83.10 Difference: $4.56
If REA meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $78.12, suggesting downside of -6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

Citi rates REH as Buy (1) -

Citi reiterates the Buy call on Reece as the company announces the acquisition of Morsco, distributor of plumbing, waterworks and HVAC products in the USA for $1.9bn. Such expansion is not without risk, the analysts acknowledge, but they stick with the positive angle.

This acquisition increases Reece's exposure to the expansionary US residential housing cycle at a time when the cycle in Australia is post-peak and moderating, explain Citi analysts. Estimates have increased. Target price gains 8% to $13.11.

Target price is $13.11 Current Price is $10.75 Difference: $2.36
If REH meets the Citi target it will return approximately 22% (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

Morgans rates SLC as Add (1) -

Morgans has increased confidence that significant progress is being made after the company outlined its strategy at its investor briefing.

Sales from Hong Kong and Singapore have been weak relative to market expectations and Morgans expects sales to accelerate meaningfully over the course of 2018. Success on the sales front could mean the company generates a 25% return on equity.

Add retained. Target is $2.81.

Target price is $2.81 Current Price is $1.93 Difference: $0.88
If SLC meets the Morgans target it will return approximately 46% (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

Deutsche Bank rates SYD as Buy (1) -

At the investor briefing management focused on opportunities to promote Sydney as a destination. Further development of the three terminals should continue to underpin the momentum in the retail property business, Deutsche Bank observes.

International growth remains at 3.1% per annum and makes up a greater share of overall growth. Buy rating and $7.50 target.

Target price is $7.50 Current Price is $7.17 Difference: $0.33
If SYD meets the Deutsche Bank target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $7.32, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.9

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

Ord Minnett rates SYD as Buy (1) -

The investor briefing reinforced the reasons why Ord Minnett prefers the stock within the infrastructure sector. The broker believes management has developed a sensible approach to building and expanding on core capabilities.

The broker maintains a Buy rating and $8.45 target.

Target price is $8.45 Current Price is $7.17 Difference: $1.28
If SYD meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $7.32, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.9

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

Citi rates WBC as Neutral (3) -

The interim performance was better than expected, comments Citi. The analysts describe it as an 'old school' result driven by strong NIMs and a beat on BDD's at cycle lows.

Productivity benefits are present, unlike peers point out the analysts, and thus transformational change is not on the agenda. Royal Commission concerns remain though, as well as longer-term challenges in the form of costs, lower retail banking profitability, and the potential regulatory fallout from the Royal Commission. Target $31.

Target price is $31.00 Current Price is $29.72 Difference: $1.28
If WBC meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $31.95, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in September.

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 WBC as Neutral (3) -

Westpac's result beat the broker on both the top and bottom lines, thanks to cost discipline and reasonable margin control. It's a good result, the broker suggests, but in a tougher operating environment.

This means the broker has increased FY18 forecast earnings by 1% but lowered outer years. Neutral retained, target falls to $31.50 from $33.50.

Target price is $31.50 Current Price is $29.72 Difference: $1.78
If WBC meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $31.95, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in September.

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 WBC as Buy (1) -

First half net profit was slightly higher than forecast. Deutsche Bank observes some support for very low bad debt charge. Additionally, there was a strong contribution from markets and treasury income.

The main positive was the margin outcome, net interest margin up three basis points half on half. Regardless, the broker considers this an in-line result at best. Buy rating and $34.50 target maintained.

Target price is $34.50 Current Price is $29.72 Difference: $4.78
If WBC meets the Deutsche Bank target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $31.95, suggesting upside of 7.5% (ex-dividends)

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 WBC as Outperform (1) -

Macquarie observes underlying revenue growth trends in the first half were broadly in line with peers, and generally subdued. The bank is benefiting from the unwinding of the customer redress provisions taken in FY17 and also a rebound in markets income.

The broker continues to envisage value at current levels and maintains an Outperform rating. Target is reduced 1.5% to $33.50.

Target price is $33.50 Current Price is $29.72 Difference: $3.78
If WBC meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $31.95, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in September.

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 WBC as Equal-weight (3) -

Morgan Stanley observes the first half result was sound, which has prevented a downgrade for FY18, but an uncertain operating and regulatory environment clouds the outlook for 2019. The broker expects Westpac to achieve underlying revenue growth of around 4% in FY18.

The impact of higher BBSW could be slightly more than previously expected, given the commentary by the CFO, adding to revenue headwinds from front book competition and slowing loan growth.

Equal-weight. Target is raised to $30.50 from $30.00. Industry view: In Line.

Target price is $30.50 Current Price is $29.72 Difference: $0.78
If WBC meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $31.95, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in September.

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 WBC as Add (1) -

First half cash earnings were in line with Morgans. The broker observes the bank is delivering productivity savings that are large enough to offset the cost of doing business. The bank is targeting similar productivity savings in the second half.

Morgans was also pleased that the provision raised in FY17 did not need to be topped up in the first half. Add rating maintained. Target is reduced to $35 from $36.

Target price is $35.00 Current Price is $29.72 Difference: $5.28
If WBC meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $31.95, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in September.

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 WBC as Accumulate (2) -

First half results were ahead of Ord Minnett's forecasts. This was assisted by a larger-than-expected rebound in the markets business and low provision expenses.

The broker expects business will become tougher, given pressure on retail margins from interest-only loans switching and competition. Nevertheless, recent share price weakness has more than priced this in, Ord Minnett asserts.

Accumulate rating and $33.10 target maintained.

Target price is $33.10 Current Price is $29.72 Difference: $3.38
If WBC meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $31.95, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in September.

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 WBC as Sell (5) -

First half results were slightly ahead of expectations. UBS remains concerned about the findings of APRA's targeted review into the bank's mortgage serviceability assessment.

The broker notes guidance is cautious, highlighting further mortgage switching and higher funding costs. The broker maintains a Sell rating amid a cautious view on Australian banks. Target is $26.50.

Target price is $26.50 Current Price is $29.72 Difference: minus $3.22 (current price is over target).
If WBC meets the UBS target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.95, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in September.

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

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

Citi transfers coverage of its Australian energy sector to another analyst. The broker's pecking order now places LNG-exposed names such as Woodside and Oil Search ((OSH)) as its least preferred.

There is speculation that changes to the Petroleum Resource Rent Tax may be introduced in the federal budget, although Citi points out that last year's budget was also flagged as one where changes would be made that never transpired. This year may be different as the government is not preoccupied with gas market reform.

The broker envisages potential for the market to over-react if the media articles prove accurate regarding proposed changes. A bear scenario is one where the government introduces more drastic measures, such as an offshore royalty.

Citi downgrades to Sell from Neutral. Target is raised to $28.68 from $28.34.

Target price is $28.68 Current Price is $32.04 Difference: minus $3.36 (current price is over target).
If WPL 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 $31.31, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in December.

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: 0.0

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