Australian Broker Call

Macquarie rates AJM as Underperform (5) -

The company has announced a binding offtake agreement with a subsidiary of Ganfeng Lithium. Macquarie observes this reduces some of the uncertainty with the prior J&R Optimum Energy agreement, which it in part replaces. Prepayment will also provide some funding relief.

Macquarie calculates that, assuming the company achieves maximum pricing of US$950/t, refinancing of the debt facility will be required at the end of the term. Going ahead with the expansion may provide an opportunity to refinance.

The broker lifts the target to $0.20 from $0.19. Underperform maintained.

Target price is $0.20 Current Price is $0.21 Difference: minus $0.01 (current price is over target).
If AJM meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Macquarie rates AUB as Outperform (1) -

The company will undertake a $116m equity raising to fund a $21.7m acquisition and pay down debt. AUB Group will purchase an additional 44% interest in Adroit Insurance Brokers and make a $91.7m debt repayment.

No changes are made to FY19 guidance but Macquarie believes there is a high probability of an upgrade at the first half result. The broker believes investors will be disappointed with the lazy balance sheet and lack of an earnings upgrade.

Outperform rating maintained. Target is reduced to $13.72 from $15.28.

Target price is $13.72 Current Price is $13.65 Difference: $0.07
If AUB meets the Macquarie target it will return approximately 1% (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

Macquarie rates BIN as Outperform (1) -

The company has maintained FY19 guidance for operating earnings growth of 15-20%, excluding the impact of Dial-a-Dump. Macquarie trims earnings expectations for FY19 by -4% and for FY20 by -2%, factoring in a slightly more muted volume growth profile.

Macquarie observes the stock is been sold off heavily in recent weeks amid fears around the residential exposure. However, the broker believes infrastructure markets will help offset this.

Macquarie maintains an Outperform rating and reduces the target to $3.15 from $3.20.

Target price is $3.15 Current Price is $2.28 Difference: $0.87
If BIN meets the Macquarie target it will return approximately 38% (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

Ord Minnett rates CIM as Accumulate (2) -

At this stage Ord Minnett finds no suggestion that CIMIC has mis-priced any of its contracts, in view of the provisions taken by Lend Lease ((LLC)) in relation to its engineering business. CIMIC is not involved in NorthConnex.

However, the Lend Lease provisions, and negative market reaction, are considered a reminder for investors of the risks associated with the contracting sector. Accumulate rating and $48.90 target retained.

Target price is $48.90 Current Price is $45.18 Difference: $3.72
If CIM meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $47.94, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in December.

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 CTX as Upgrade to Outperform from Neutral (1) -

While uncertainties exist, Credit Suisse believes Caltex is on an undemanding multiple and there is increasing exposure to the convenience retail segment. The broker downgrades 2018 estimates to reflect guidance on retail margins and downtime at Lytton, while outer-year upgrades are spread across fuel distribution and convenience.

An alliance with Woolworths ((WOW)) reduces sourcing complexity and participation in the rewards program adds to the company's market position. Credit Suisse upgrades to Outperform from Neutral and raises the target to $33.07 from $32.55. Without the distractions of contracts/M&A, better optimisation of fuels and infrastructure appears likely.

Target price is $33.07 Current Price is $27.06 Difference: $6.01
If CTX meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $32.08, suggesting upside of 18.6% (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

Morgans rates ELD as Downgrade to Reduce from Hold (5) -

Full year results beat expectations with underlying operating earnings 3.6% ahead of Morgans' forecasts. The company has proven, in the broker's view, it can still grow earnings despite the drought and a decline in cattle price.

Management remains confident of delivering 5-10% earnings growth out to FY20, organically, through acquisitions and via cost control measures.

Still, Morgans believes the stock is fully valued and downgrades to Reduce from Hold. Target is raised to $7.80 from $7.05.

Target price is $7.80 Current Price is $7.72 Difference: $0.08
If ELD meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

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 HSO as Neutral (3) -

Private equity firm Brookfield has made a new offer for Healthscope and will be provided with access to the books, which prior suitor BGH-AusSuper has been denied. The Brookfield cash offer represents a 22.6% premium over Friday's closing price, the broker notes, but should it fail to acquire necessary shareholder support, that offer falls to 16.3%.

Shareholders will also have an option to take shares in an unlisted vehicle that would own Healthscope. But there are all sorts of hoops that have to be jumped through and complexities to the deal, which won't be wrapped up until April, if at all. On that basis, the broker makes no changes. Neutral and $2.25 target retained.

Target price is $2.25 Current Price is $2.37 Difference: minus $0.12 (current price is over target).
If HSO meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.23, suggesting downside of -6.1% (ex-dividends)

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 HSO as Hold (3) -

Brookfield Capital Partners has returned with a second proposal to acquire Healthscope via scheme of arrangement at $2.585 per share. Due diligence has been granted. If the scheme of arrangement is unsuccessful Brookfield also makes an off-market takeover offer at $2.455 a share.

Hold rating and $2.26 target maintained.

Target price is $2.26 Current Price is $2.37 Difference: minus $0.11 (current price is over target).
If HSO 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 $2.23, suggesting downside of -6.1% (ex-dividends)

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 HSO as Equal-weight (3) -

The company has received an improved takeover proposal from Brookfield Capital Partners. This would see Brookfield acquire Healthscope either through a scheme of arrangement, at $2.585 per share comprising either all-cash or shares in an unlisted entity controlled by Brookfield, or an off-market takeover at $2.455 a share. The latter is conditional on the scheme of arrangement being unsuccessful and a 50.1% shareholder acceptance.

Morgan Stanley believes the fundamentals are taking a backseat to the potential reorganisation of assets and a takeover premium is likely to remain in the stock. With the new higher offer, the broker increases the target to $2.46 from $2.37 and believes the risk/reward looks balanced. Equal-weight rating maintained. Industry view is In-Line.

Target price is $2.46 Current Price is $2.37 Difference: $0.09
If HSO meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.23, suggesting downside of -6.1% (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

Ord Minnett rates HSO as Hold (3) -

Healthscope has received an increased bid from Brookfield Capital Partners by way of a scheme of arrangement or, if unable to make a complete takeover, via an off-market bid, and due diligence has been granted. Ord Minnett believes one of the proposals is likely to be successful.

The broker's Hold rating and $2.10 target are maintained.

Target price is $2.10 Current Price is $2.37 Difference: minus $0.27 (current price is over target).
If HSO meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.23, suggesting downside of -6.1% (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

Credit Suisse rates LLC as Downgrade to Neutral from Outperform (3) -

Lend Lease has announced additional provisions on problem projects in its engineering division. Credit Suisse believes the shares have likely been oversold but the catalysts that will restore confidence in the business are some way off.

The broker reduces FY19 estimates for operating earnings by -37%. A quick solution is likely to be a sale of the engineering business but the broker acknowledges this may not maximise shareholder value.

Credit Suisse downgrades to Neutral from Outperform and lowers the target to $16.20 from $19.30.

Target price is $16.20 Current Price is $12.77 Difference: $3.43
If LLC meets the Credit Suisse target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $15.92, suggesting upside of 24.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Macquarie rates LLC as Neutral (3) -

Moody's has placed the company's credit rating on negative outlook, albeit not negative watch, and Macquarie reviews the balance sheet. The broker suggests current liquidity and a limited debt maturity profile should provide reasonable capacity, absent further significant provisions.

The broker still believes uncertainty will prevail in the engineering business because of the persistent downgrades. Neutral rating and $15.08 target maintained.

Target price is $15.08 Current Price is $12.77 Difference: $2.31
If LLC meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $15.92, suggesting upside of 24.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Morgan Stanley rates LLC as Overweight (1) -

Morgan Stanley downgrades FY19 estimates for earnings per share by -40% because of provisions on engineering projects. Nevertheless, the broker finds reasons to remain positive as, even with a downwardly revised FY20 estimate, the stock trades well below its 15-year average. The broker considers this compelling, given the ongoing momentum in the real asset business. The balance sheet is also intact.

Morgan Stanley acknowledges the quantum, timing and frequency of provisions could weigh on investor sentiment but maintains an Overweight rating. Target is cut to $17.95 from $23.05. Industry view is Cautious.

Target price is $17.95 Current Price is $12.77 Difference: $5.18
If LLC meets the Morgan Stanley target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $15.92, suggesting upside of 24.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

UBS rates LLC as Neutral (3) -

The company has taken a $350m post-tax provision to account for a number of underperforming projects. Issues include lower productivity in the post-tunnelling phases of NorthConnex, wet weather, access issues and remedial work arising from defective design. UBS suspects the stock will trade sideways until the troublesome projects are completed, circa 2020.

Along with the provisions Lend Lease has announced a comprehensive review. UBS reduces revenue and margin forecasts to partly reflect restructuring charges that may be needed in the engineering business. The broker retains a Neutral rating and reduces the target to $15.20 from $19.50.

Target price is $15.20 Current Price is $12.77 Difference: $2.43
If LLC meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $15.92, suggesting upside of 24.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Morgans rates LNK as Add (1) -

A consortium led by Link Administration will acquire PEXA which will mean Link's shareholding increases to between 35.1-44.2%. Morgans expects the transaction to be around 3% accretive to earnings in FY20 rising to 10% accretive in FY21.

Morgans believes the PEXA core exchange will grow into a strong Australian infrastructure asset and, while it faces competition risks, these are somewhat mitigated by the significant first-mover advantage. The extent of upside will ultimately come from whether management can grow ancillary revenue streams.

Morgans maintains an Add rating and reduces the target to $9.29 from $9.55.

Target price is $9.29 Current Price is $7.69 Difference: $1.6
If LNK meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $8.56, suggesting upside of 11.2% (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 MLX as Outperform (1) -

A decision to change leadership suggests to Macquarie that the board has increased its focus on delivering an improved performance at Nifty. The company has appointed Damien Marantelli as managing director, effective immediately. The company has also announced that the chief operating officer, Alan King, would also depart immediately.

Turning around the performance of Nifty is critical, the broker points out, while remaining confident in the potential of the project. Macquarie reiterates an Outperform rating and $0.80 target.

Target price is $0.80 Current Price is $0.44 Difference: $0.36
If MLX meets the Macquarie target it will return approximately 82% (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

Citi rates NVT as Neutral (3) -

Navitas has again rejected an offer from the BGH consortium on the basis it looks little different to the last one, including the price, which management believes undervalues the company. Navitas is also in talks with other interested parties, although the 18% stake held by Rodney Jones and AusSuper is an impediment, the broker notes.

The company's AGM is Thursday and in the meantime the broker retains Neutral and a $5.30 target on the assumption someone will take Navitas over.

Target price is $5.30 Current Price is $5.11 Difference: $0.19
If NVT meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.98, suggesting downside of -2.6% (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 NXT as No Rating (-1) -

NextDC has announced an increase in contract commitments, taking S2 utilisation to close to 50%. Citi is advising with regard the Asia Pacific Data Centre ((AJD)) takeover and hence is now restricted on providing a recommendation or target.

Current Price is $6.21. Target price not assessed.

Current consensus price target is $7.81, suggesting upside of 25.7% (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

Deutsche Bank rates NXT as Hold (3) -

The company has announced a new 9MW contract at S2, largely as expected. Deutsche Bank is encouraged by the deal, as it reinforces commentary regarding the strong pipeline of opportunities, and further contract wins are considered possible.

However, the timing of the announcement and lack of deals in the second half suggests that hyper-scale negotiations have long lead times and can be unpredictable. The broker maintains a Hold rating and raises the target to $6.40 from $6.30.

Target price is $6.40 Current Price is $6.21 Difference: $0.19
If NXT meets the Deutsche Bank target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 25.7% (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

Morgan Stanley rates NXT as Overweight (1) -

The company has signed 9MW of additional commitments for the S2 data centre which brings total committed volumes for Sydney's second data centre to 14MW, or 47% of planned capacity.

Morgan Stanley believes the amount of megawatts signed is a key metric on which the stock will trade in the near term. Current forecast for FY19 is for 7.5MW, incrementally, and this deal exceeds that volume.

Overweight rating. In-Line industry view. Target is $9.20.

Target price is $9.20 Current Price is $6.21 Difference: $2.99
If NXT meets the Morgan Stanley target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 25.7% (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

Morgans rates NXT as Hold (3) -

The company has sold 9MW in Sydney's second data centre. Morgans notes this was partially anticipated as capital expenditure guidance from August indicated a large increase in S2 capacity, although it was not factored into forecasts. The broker suspects this is an existing customer and, as is typical of larger deals, will take around three years to become full paying.

The broker now factors in the acquisition of AJD into forecasts as well as the new accounting standards. The net result is operating earnings are upgraded by around 16% on an annualised basis. Hold rating maintained. Target is reduced to $6.94 from $7.06.

Target price is $6.94 Current Price is $6.21 Difference: $0.73
If NXT meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 25.7% (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

UBS rates NXT as Buy (1) -

The new Sydney data centre (S2) has now increased its contracted commitments by around 9MW to more than 14MW. As a result of strong demand the company has also announced that the third build-out phase has been pulled forward, with 22MW of the total 30MW now under design and development.

UBS believes the announcement is a strong reminder of the structural shift to the cloud and this underpins its Buy rating. Target is $9.30.

Target price is $9.30 Current Price is $6.21 Difference: $3.09
If NXT meets the UBS target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 25.7% (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 OZL as Outperform (1) -

The company has updated the reserve and resources for Prominent Hill, with an extension of the mine life to 2030. A maiden resource estimate has also been provided for Fremantle Doctor. Macquarie notes the resource grades are higher than the nearby Khamsin deposit and broadly in line with the original block cave resource at Carrapateena,

Macquarie observes a strong five-year production growth profile while the updated resource estimates should provide positive de-risking catalysts. The broker maintains an Outperform rating and $11.60 target.

Target price is $11.60 Current Price is $9.19 Difference: $2.41
If OZL meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $10.63, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Macquarie rates PLS as Outperform (1) -

The board has approved the expansion of Pilgangoora in order to lift concentrate production to 850,000tpa from 330,000tpa. Stage 2 is expected to be commissioned in the second quarter of FY20.

Macquarie believes this represents another important step for Pilgangoora and, with strong support from offtake partners, expects funding will be finalised this year. Outperform rating maintained. Target is steady at $1.20.

Target price is $1.20 Current Price is $0.84 Difference: $0.36
If PLS meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 28.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Citi rates QBE as Buy (1) -

QBE has suggested its Asia-Pacific simplification process is now complete, with much improved loss ratios. An imminent sale of tranche 2 of its North American personal lines operations is also expected.

Asia-Pacific is now seeing rate rises, the broker notes, and momentum is improving in North America and A&NZ. Savings on QBE's reinsurance program will expose the insurer to a higher frequency of major risk losses, but these are currently trending down, the broker points out.

Add it all up and the broker has lifted earnings forecasts and its target to $12.80 from $12.00, Buy retained.

Target price is $12.80 Current Price is $11.49 Difference: $1.31
If QBE meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $12.30, suggesting upside of 7.1% (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: 0.7

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

Macquarie rates QBE as Outperform (1) -

QBE has advised FY19 reinsurance cover will have more protection for severe loss but less cover for the frequency of losses. Macquarie notes the earnings changes from higher catastrophe budget are offset by higher investment income.

The company has also exited around $400m in US personal lines over the last six months which will provide a headwind of around 2.5% to gross written premium.

Macquarie maintains an Outperform rating on the back of the ongoing remediation in the portfolio and the continuation of buybacks. Target is reduced to $12.40 from $12.50.

Target price is $12.40 Current Price is $11.49 Difference: $0.91
If QBE meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $12.30, suggesting upside of 7.1% (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: 0.7

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

Morgans rates QBE as Hold (3) -

Management has confirmed QBE is on track to deliver against its FY18 combined operating ratio guidance of 95-97%. Morgans also notes favourable commentary on continuing rate increases and improving attritional claims ratio trends.

Management has also indicated that large catastrophes in the year to date are comfortably inside allowances. Morgans retains a Hold rating and increases the target to $12.28 from $12.01.

Target price is $12.28 Current Price is $11.49 Difference: $0.79
If QBE meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $12.30, suggesting upside of 7.1% (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: 0.7

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

UBS rates QBE as Buy (1) -

QBE has reiterated its FY18 combined ratio guidance of 95-97%. Importantly for FY19, UBS notes premium rate momentum continues to tick higher. This should support margins, which should more than offset the drag from the 2019 reinsurance placement.

With the sale of the remaining US personal lines now imminent, the planned exit of certain business is now largely complete. QBE expects underlying gross written premium growth across most regions in FY19.

Buy and $12.20 target retained.

Target price is $12.20 Current Price is $11.49 Difference: $0.71
If QBE meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $12.30, suggesting upside of 7.1% (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: 0.7

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

Ord Minnett rates QUB as Buy (1) -

Ord Minnett considers the recent developments in the stevedoring industry positive for Qube's 50:50 joint venture in Patrick. Containerised trade through Australia's four major ports grew 6.0% in the September quarter, ahead of estimates and suggesting a strong start to the financial year.

Rival DP World Australia has reportedly lost two service contracts and its Hamburg-Sud contract is up for renewal. In the broker's view, Patrick and/or Victorian International Container Terminal are well placed to win some of this volume.

Buy rating and $3.10 target maintained.

Target price is $3.10 Current Price is $2.56 Difference: $0.54
If QUB meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $2.69, suggesting upside of 5.0% (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 RIO as Outperform (1) -

The company has received strong demand for its ASX off market buyback, with the maximum -14% discount being achieved. Macquarie is encouraged by the demand and assumes that all buybacks are completed by the end of the third quarter of 2019.

The company is generating strong cash flow and potential for additional capital management is envisaged in 2019. Macquarie maintains an Outperform rating and $92 target.

Target price is $92.00 Current Price is $80.60 Difference: $11.4
If RIO meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $88.22, suggesting upside of 9.5% (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: 0.8

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

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

After the latest ANZ job advertising series and UBS proprietary data the broker concludes that FY19 guidance, which indicates net profit of around $200m, should be secure. This view is held despite the softening macro conditions and the slowing in domestic job growth.

The broker believes the company still has cost levers to pull even if the top line were to slow materially. Against revised estimates the broker believes the stock is fairly valued. UBS upgrades to Neutral from Sell. Target is reduced to $18.50 from $19.50.

Target price is $18.50 Current Price is $17.64 Difference: $0.86
If SEK meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $20.51, suggesting upside of 16.3% (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

Credit Suisse rates STO as Neutral (3) -

Credit Suisse believes the growth opportunities present a positive story but worries about how much upside is already incorporated in the share price. The broker still envisages long-term risks, with reserves at GLNG, Cooper and WA gas of concern alongside mounting liabilities for abandonment.

The broker maintains a Neutral rating on the back of remodelling the growth projects and the Quadrant acquisition. Target is raised to $6.58 from $6.35.

Target price is $6.58 Current Price is $6.38 Difference: $0.2
If STO meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.07, suggesting upside of 10.9% (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

UBS rates WOW as Neutral (3) -

Woolworths has announced the sale of its petrol business to EG Group. Woolworths will sell its 540 operated sites and enter into a five-year commercial alliance. Completion of the transaction will be a key catalyst, UBS believes, for a capital return, given the large franking balance.

The broker retains a Neutral rating and reduces FY20 estimates by -2%, with dilution from the fuel sale offset by accretion from an estimated $1.5bn in off-market buybacks in FY20. Target is reduced to $28.20 from $29.20.

Target price is $28.20 Current Price is $29.68 Difference: minus $1.48 (current price is over target).
If WOW meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.92, suggesting downside of -2.6% (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