Australian Broker Call

Macquarie rates AGL as Neutral (3) -

Macquarie believes the near-term strength in power pricing ignores the uncertainty being created by the prospect of a new government with a stronger bias to renewables.

Churn has moved back to longer-term levels in electricity and gas, faster than the broker expected, which is positive for retail earnings.

The broker upgrades FY19 and FY20 estimates for earnings per share by 0.6% and 1.2%, respectively. In the medium term Macquarie is conservative about the outlook and reduces the contribution from the Newcastle gas plant, offset by lower discount rate.

The broker maintains a Neutral rating and raises the target to $20.78 from $20.61.

Target price is $20.78 Current Price is $21.98 Difference: minus $1.2 (current price is over target).
If AGL meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.94, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Macquarie rates AHG as Upgrade to Outperform from Neutral (1) -

Macquarie believes Automotive Holdings will be a strong strategic fit with AP Eagers ((APE)), which has announced an all-scrip merger for the remaining shares it does not hold.

The broker believes the merger is compelling for shareholders of Automotive Holdings, providing a tactical opportunity. Automotive comparables ease materially after June suggesting a bottom in the industry may be approaching.

The broker upgrades to Outperform from Neutral and raises the target to $2.65 from $1.95.

Target price is $2.65 Current Price is $2.42 Difference: $0.23
If AHG meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.05, suggesting downside of -15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Deutsche Bank rates ARF as Initiation of coverage with Sell (5) -

Deutsche Bank does not believe the industry's issues have been solved, as is implied by the stock price. The business has been an exceptional performer, growing distributions from FY13 at a compound rate of 8.7%.

This has been driven by favourable market structures and accretive developments. For this reason the stock is trading at a significant premium to net tangible assets, which the broker believes was previously warranted.

Deutsche Bank initiates coverage with a Sell rating and $2.35 target.

Target price is $2.35 Current Price is $2.79 Difference: minus $0.44 (current price is over target).
If ARF meets the Deutsche Bank target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Market Sentiment: -0.5

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

Macquarie rates BKL as Neutral (3) -

In initial response to the Q3 update, Macquarie analysts find the release marks "the weakest 3Q earnings result since 2015". The analysts point out Blackmores was cycling a supply impacted pcp through 3Q19 which suggests the underlying trends are weaker.

In addition, invoiced sales (pre-rebates) were down -8% for the quarter, note the analysts. They remind investors Blackmores is underperforming its peers in China and today's update seems to provide more evidence of this. Neutral rating retained, alongside the observation that a struggling company on weakening trend is likely to face ongoing pressure on the share price. Target $95.

Target price is $95.00 Current Price is $88.10 Difference: $6.9
If BKL meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $90.92, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

UBS rates CKF as Buy (1) -

UBS highlights the multi-pronged growth strategy through expansion of KFC in Australia, Germany and The Netherlands, together with a opportunity to roll out Taco Bell in Australia. The broker considers the valuation attractive and retains a Buy rating.

Target is raised to $8.00 from $7.80. The broker observes potential risk of higher-than-usual wage increases under a Labor government and inflation in chicken feed costs could result in higher chicken prices.

UBS estimates that absorbing these costs could reduce FY20 net profit estimates by -7-11%.

Target price is $8.00 Current Price is $7.08 Difference: $0.92
If CKF meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.76, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in April.

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

Citi rates CYB as Buy (1) -

CYBG released their capital notice and in response Citi's UK analyst has reduced estimates, first by -7% for FY20, and subsequently by -1-3% for the following years. Higher costs are to blame. Citi sticks with the Buy rating as it believes much of the bad news is already priced in.

The broker sees a lack of catalysts plus ongoing margin pressure dominating the bank's outlook, but also recognises the improving return profile is attractive for long-term investors. Results for 1H are scheduled for release on 15th May. Buy. Target GBP2.30.

Current Price is $3.93. Target price not assessed.

Current consensus price target is $3.55, suggesting downside of -9.8% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

This company reports in GBP. 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

Morgans rates GBT as Add (1) -

One of the company's main competitors, Bravura, has made an indicative and non-binding takeover bid at $2.50 a share. Morgans believes the bid undervalues the company's long-term potential and the multiples are way below global comparable software takeover multiples.

GBST is developing a global franchise as a supplier of core systems to large banks and wealth managers. Morgans maintains an Add rating, in the expectation that a change of control event will occur sometime in the next 12 months. Target is raised to $3.47 from $2.43.

Target price is $3.47 Current Price is $2.50 Difference: $0.97
If GBT meets the Morgans target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $2.66, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.7

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

Deutsche Bank rates GEM as Downgrade to Sell from Hold (5) -

Deutsche Bank believes the business may be underperforming peers. The company's competitive position is a bigger driver of profitability than the macro environment.

Occupancy growth at the start of 2019 appears lower than peers and could represent a slowing of momentum from the December half, the broker suggests.

Deutsche Bank downgrades to Sell from Hold, suspecting that consensus is giving the company the benefit of the doubt on improvements in occupancy and assuming around 10% growth in revenue. Target is $2.70.

Target price is $2.70 Current Price is $3.25 Difference: minus $0.55 (current price is over target).
If GEM meets the Deutsche Bank target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.42, suggesting upside of 5.2% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

UBS rates GEM as Buy (1) -

UBS believes increases by the industry position the company for a price increase in July. The broker's survey of over 200 childcare centres revealed a mix of both pricing increases and decreases.

The broker envisages upside earnings risk from occupancy improving throughout 2019. Industry sources have noted an improvement in occupancy from the start of 2019.

UBS considers the stock's valuation appealing and retains a Buy rating and $3.80 target.

Target price is $3.80 Current Price is $3.25 Difference: $0.55
If GEM meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.42, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Credit Suisse rates ILU as Outperform (1) -

Iluka's overall production was in line with the broker albeit with a skew towards zircon. Zircon sales were lower in a cautious environment due to trade uncertainty, with post Chinese New Year buying slow to ramp back up. Titanium demand remains robust. Outperform and $10.40 target retained.

Target price is $10.40 Current Price is $9.08 Difference: $1.32
If ILU meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $10.46, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Macquarie rates ILU as Neutral (3) -

The first quarter result was mixed, in Macquarie's view, with the seasonal impact of planned shut-downs having a greater impact on sales versus expectations. The zircon market appears tight and the company is managing volumes to ensure a stable pricing outlook.

Meanwhile, industry supply has tightened the rutile market and the broker envisages upside risk to the base case. Macquarie maintains a Neutral rating and $9.20 target.

Target price is $9.20 Current Price is $9.08 Difference: $0.12
If ILU meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $10.46, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Morgan Stanley rates ILU as Overweight (1) -

First quarter production was in line with Morgan Stanley's estimates. The broker considers it too early in the year to identify trends.

Strong demand for high-grade titanium dioxide feed stocks was in evidence and the company expects continued growth in 2019. Demand is outstripping Iluka's capacity to supply.

Overweight rating and Attractive industry view maintained. Target is $11.25.

Target price is $11.25 Current Price is $9.08 Difference: $2.17
If ILU meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $10.46, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Ord Minnett rates ILU as Accumulate (2) -

Ord Minnett found the first quarter production result mixed, with a seasonally weak zircon market, a planned outage for maintenance at the synthetic rutile kiln and delayed shipments.

Overall, rutile production was better than forecast. A sluggish market after Chinese New Year led to weaker zircon sales versus expectations. Ord Minnett maintains an Accumulate rating with a $10.50 target.

Target price is $10.50 Current Price is $9.08 Difference: $1.42
If ILU meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $10.46, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

UBS rates ILU as Buy (1) -

Production in the March quarter was ahead of UBS estimates, albeit down sequentially because of the outage from the kiln re-lining and a transition to the newly-built Cataby mine.

The company has indicated that full-year guidance metrics are on track. Zircon markets were described as stable, despite commentary that buying activity remains slow in some sectors.

UBS maintains a Buy rating and $11 target. The broker believes an improving operating performance and further rises in feedstock prices should drive the stock higher.

Target price is $11.00 Current Price is $9.08 Difference: $1.92
If ILU meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $10.46, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Citi rates JHG as Neutral (3) -

Citi has refreshed its numbers ahead of the quarterly market update scheduled for May 2nd and arrived at the conclusion there are some green shoots emerging, but not sufficiently to get excited about.

While the analysts see longer term value at these prices, they also concede to get the share price genuinely moving the market would like to see improvement in flows and performance sustained for longer. Neutral rating and target at $36.40.

Target price is $36.40 Current Price is $34.96 Difference: $1.44
If JHG meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $33.98, suggesting downside of -2.8% (ex-dividends)

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: 0.2

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

Macquarie rates MLX as Outperform (1) -

Macquarie observes the operating performance of Renison and Nifty has been improving and earnings beat estimates in the March quarter.

Cash and working capital were 3% higher than forecast. The broker increases estimates for earnings per share by 3-8% for FY19-23. Outperform rating and $0.60 target maintained.

Target price is $0.60 Current Price is $0.27 Difference: $0.33
If MLX meets the Macquarie target it will return approximately 122% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Deutsche Bank rates MPL as Buy (1) -

Deutsche Bank observes the company has enjoyed a widening in margins, driven by changing customer mix and improved contracting.

The broker believes a higher gross margin is sustainable and its further moves to alleviate pressures via out-of-home care should continue to support outcomes. A Buy rating is reiterated. The $3.10 target is maintained.

Target price is $3.10 Current Price is $2.70 Difference: $0.4
If MPL meets the Deutsche Bank target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.64, suggesting downside of -2.4% (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 MPL as Underweight (5) -

Morgan Stanley expects an unprecedented number of disruptions to the private health insurance industry over the next 12 months. These include major product reforms taking affect from April as well as the likely 2% cap on annual premium increases for at least two years.

Also, growth in hospital substitute providers including at-home and day hospitals as well as deteriorating perceptions of private hospitals may have an impact.

The broker considers the product reform risks for the insurers manageable and notes Medibank Private's brand perception is recovering. The broker maintains an Underweight rating and raises the target to $2.40 from $2.30. Industry view: In-Line.

Target price is $2.40 Current Price is $2.70 Difference: minus $0.3 (current price is over target).
If MPL meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.64, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in June.

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 Equal-weight (3) -

Morgan Stanley expects an unprecedented number of disruptions to the private health insurance industry over the next 12 months. These include major product reforms taking affect from April as well as the likely 2% cap on annual premium increases for at least two years.

Also, growth in hospital substitute providers including at-home and day hospitals as well as deteriorating perceptions of private hospitals may have an impact.

Equal-weight rating maintained. Target is raised to $5.30 from $5.25. Industry view: In-line.

Target price is $5.30 Current Price is $5.45 Difference: minus $0.15 (current price is over target).
If NHF meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.71, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Morgan Stanley rates NUF as Overweight (1) -

Morgan Stanley believes the business is on track for earnings and working capital targets. The broker believes the current share price is capitalising current seasonal challenges, although greater confidence in the balance sheet is required for any sustained re-rating.

The broker envisages scope for material de-leveraging through the second half and significant valuation upside. Overweight rating. Target is $7.10. Industry view is Cautious.

Target price is $7.10 Current Price is $5.21 Difference: $1.89
If NUF meets the Morgan Stanley target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $6.44, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

Deutsche Bank rates OZL as Hold (3) -

The company produced 27,000t of copper in the March quarter, largely in line with Deutsche Bank's estimates. Gold production of 35,000 ounces was down -13% quarter on quarter and below the broker's estimates.

Deutsche Bank notes management has signalled its confidence in West Musgrave by increasing ownership to 70%. Deutsche Bank reduces estimates for 2019 earnings per share by -11%. Hold rating maintained. Target is $10.50.

Target price is $10.50 Current Price is $10.55 Difference: minus $0.05 (current price is over target).
If OZL meets the Deutsche Bank target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.23, suggesting upside of 6.4% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Ord Minnett rates PDL as Hold (3) -

Pendal Group has announced a 9% increase in funds under management at the end of the March quarter. Net inflows were assisted by large low-margin flows from cash and fixed income products in the institutional channel.

JO Hambro business, historically the driver of flows, reported another quarter of outflows. Ord Minnett maintains a Hold rating and $8.50 target.

Target price is $8.50 Current Price is $8.66 Difference: minus $0.16 (current price is over target).
If PDL meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.06, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

UBS rates PMV as Buy (1) -

UBS observes the implied multiple for Smiggle has heavily de-rated. The broker believes Premier Investments' share price either ascribes no value to apparel brands or values Smiggle at 9-12x enterprise value/EBIT if the apparel brands are worth around $411m.

Either way, the broker considers this unjustified and reiterates a Buy rating and $19.80 target.

Target price is $19.80 Current Price is $16.36 Difference: $3.44
If PMV meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $18.03, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

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

Macquarie envisages downside risk to flows and downgrades to Underperform from Neutral. The stock is currently trading at an 8% premium to the sector.

Outflows have largely been driven from institutional channels, but there was also a continuation of broad-based outflows in recent quarters in the intermediary and retail channels.

Market conditions remain supportive, in the broker's view. Target is raised to $38 from $36.

Target price is $38.00 Current Price is $40.26 Difference: minus $2.26 (current price is over target).
If PPT meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $39.14, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Morgans rates PPT as Hold (3) -

Morgans was disappointed with the March quarter flows, noting $1.3bn of the $1.9bn in net outflows related to the loss of a single Australian equities mandate. On the positive side, a recovery in markets largely offset the impact of outflows on funds under management.

The broker marginally reduces estimates for FY19 and FY20 earnings per share by -1% and -2%, respectively. The broker considers the stock inexpensive for a fund manager but remains cautious about the outflows.

Hold rating maintained. Some signs of progress under the new management are required before Morgans becomes more positive. Target is raised to $39.99 from $36.60.

Target price is $39.99 Current Price is $40.26 Difference: minus $0.27 (current price is over target).
If PPT meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $39.14, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

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

Macquarie continues to envisage near-term risk to flows, absent a turn in performance. However, the broker upgrades to Neutral from Underperform following the recent weakness in the share price.

Consistent with peers, market movements for the March quarter broadly offset the reduction experienced in the prior quarter. Target is raised to $4.85 from $4.60.

Target price is $4.85 Current Price is $4.88 Difference: minus $0.03 (current price is over target).
If PTM meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.42, suggesting downside of -9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.5

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

Citi rates RHC as Neutral (3) -

In March, Ramsay Health Care had organised meetings with its operations in France, Northern Europe and the UK. Citi analysts have grabbed the opportunity to also meet with competitors and industry players in the region.

The conclusion drawn is that, after several years of difficult external operating environment, the European businesses of Ramsay Health Care will likely improve in FY20, largely driven by an increase in French and UK tariffs.

In addition, the analysts believe post-Brexit the attention in the UK will focus on decreasing the surgical wait lists, which would be yet another positive. In the meantime, circa 70% of group profits are still generated in Australia and a new Labor government could raise headwinds, suggest the analysts.

Estimates have been lifted by up to 3% for the years ahead, which pushes up the price target to $67 from $65. Neutral rating retained.

Target price is $67.00 Current Price is $63.67 Difference: $3.33
If RHC meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $63.27, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Citi rates RIO as Buy (1) -

Rio Tinto had previously warned investors it would not meet production guidance this year, but, judging from Citi's initial response to the March quarter production update released today, the March quarterly update significantly fell short of expectations.

Most of the negative surprise stems from Pilbara iron ore where shipments were down -22% qoq and -8% below Citi's estimate. However, taking guidance from management's new guidance, and placing themselves in the middle of the new range, Citi analysts find they only need to reduce forecasts by -4%.

Price target remains intact at $108, and so does the Buy rating.

Target price is $108.00 Current Price is $101.18 Difference: $6.82
If RIO meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $94.67, suggesting downside of -6.4% (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: 0.3

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

Ord Minnett rates RIO as Hold (3) -

Rio Tinto has approved a further US$302m towards advancing the Resolution Copper project in Arizona. This is potentially the most valuable growth option for the company, Ord Minnett believes, from a value accretion perspective.

Project partners Rio Tinto with 55% and BHP Group ((BHP)) with 45% have now invested US$2bn since 2004. Ord Minnett maintains a Hold rating with a $99 target and, while positive on the project, notes there is a long wait, as first production is unlikely before 2030.

Target price is $99.00 Current Price is $101.18 Difference: minus $2.18 (current price is over target).
If RIO meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $94.67, suggesting downside of -6.4% (ex-dividends)

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: 0.3

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

Credit Suisse rates RRL as Underperform (5) -

The pre-feasibility study of Regis Resources' Rosemont underground project largely confirms prior modelling. Mine life expectation has been slightly increased, as have grade assumptions. Costs lower than initial estimate.

The broker retains Underperform and a $4.45 target.

Target price is $4.45 Current Price is $5.02 Difference: minus $0.57 (current price is over target).
If RRL meets the Credit Suisse target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.71, suggesting downside of -6.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.5

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

Macquarie rates RRL as Upgrade to Outperform from Neutral (1) -

The company has a pre-feasibility study and maiden reserve for the Rosemont underground mine. The new mine plan envisages 246,000 ounces at 3.9g/t over a five-year period.

Macquarie upgrades to Outperform from Neutral. Target is $5.60, unchanged. The broker expects further incremental resource and reserve growth as the company continues to drill the underground.

Target price is $5.60 Current Price is $5.02 Difference: $0.58
If RRL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.71, suggesting downside of -6.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.5

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

Macquarie rates SGR as Outperform (1) -

Macquarie upgrades FY20 VIP assumptions, supported by improving macro conditions in China and a view that the Macau VIP will bottom in the June quarter.

Meanwhile, the domestic business, which represents over 80% of operating earnings (EBITDA), is considered defensive and supported by recent capital expenditure. The broker maintains an Outperform rating and raises the target to $5.20 from $5.10.

Target price is $5.20 Current Price is $4.55 Difference: $0.65
If SGR meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.52, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates TWE as Outperform (1) -

Treasury Wine has successfully moved the 2016 vintage on to Chinese shelves to drive FY19 sales. The broker is confident the company can meet its sales target.

A slower Chinese economy nevertheless suggests no price rises for FY20, but the broker believes greater penetration across the Chinese market can offset.

Outperform and $19.85 target retained.

Target price is $19.85 Current Price is $16.15 Difference: $3.7
If TWE meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $17.74, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates TWE as Outperform (1) -

Macquarie reiterates an Outperform rating, noting an upturn in China is a catalyst for the consumer exposures globally. Asia is increasingly contributing to the company's earnings, now 45% of EBIT, which bodes well, in the broker's view, given the high margin profile.

The current share price underperformance provides an attractive entry point, in the broker's view. Target is steady at $19.02.

Target price is $19.02 Current Price is $16.15 Difference: $2.87
If TWE meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $17.74, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

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 WBC as Underweight (5) -

Westpac has re-stated some of its profit and percent loss and balance sheet items in the lead up to the first half result. Changes reflect the adoption of new accounting standards and efforts to improve the presentation of information.

Morgan Stanley finds this has no impact on cash earnings or valuation and price target. The broker maintains an Underweight rating and $24.10 target. Industry view: In Line.

Target price is $24.10 Current Price is $26.39 Difference: minus $2.29 (current price is over target).
If WBC 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 $27.06, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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