Australian Broker Call

Macquarie rates AGL as Neutral (3) -

The broker estimates the ACCC's electricity price recommendations, which imply -$37-62MWh lower prices, would cost AGL -$0.47-1.09 in value. The broker had already factored in such a scenario and as a result retains a $22.50 target and Neutral rating.

The broker believes the lower end of the value decrease is more likely and thus suggests yesterday's price reaction was overdone.

Target price is $22.50 Current Price is $21.41 Difference: $1.09
If AGL meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $23.86, suggesting upside of 11.4% (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

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

Morgan Stanley is surprised at the share price falls after the ACCC's electricity inquiry report. The broker believes the moves in the share price imply a -30% weighting to the downside case, which is considered too high.

Implementing the recommendations would not be straightforward, the broker acknowledges, and prefers Origin Energy ((ORG)) where, if the proposed reduction in wholesale costs occurs, the effect would be at least neutral, as Origin is a net purchaser of energy.

Equal-weight rating. Target is $22.88. Industry view: Cautious.

Target price is $22.88 Current Price is $21.41 Difference: $1.47
If AGL meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $23.86, suggesting upside of 11.4% (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

Ord Minnett rates AGL as Accumulate (2) -

Ord Minnett believes the ACCC report into electricity retailing has caught investors by surprise because of the notion of price re-regulation at a federal level. The broker retains a view that this would only serve to reduce market competition and any decrease in unit retail margins would be offset by market share gains by the incumbents.

The broker considers a reaction to the recommendations overdone and reiterates an Accumulate rating. Target is $24.50.

Target price is $24.50 Current Price is $21.41 Difference: $3.09
If AGL meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $23.86, suggesting upside of 11.4% (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 ANN as Neutral (3) -

Ahead of upcoming reporting season, Citi has transferred coverage of healthcare stocks to a new lead analyst, which has led to a general re-assessment of preferences, forecasts and valuations.

In a general sense, the new king in town remains most positive on those with international exposure, even with elevated valuations suggesting a little bit of caution seems justified.

Ansell retains its Neutral rating, while the price target improves to $27 from $24.25.

Target price is $27.00 Current Price is $27.55 Difference: minus $0.55 (current price is over target).
If ANN meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.66, suggesting downside of -3.2% (ex-dividends)

The company's fiscal year ends in June.

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 AQG as Outperform (1) -

Credit Suisse notes the June quarter was strong and 2018 oxide guidance has been upgraded to 110-130,000 ounces while cost guidance is lowered. Sulphide expectations are unchanged and on schedule for commissioning in the September quarter.

Outperform rating and $5.30 target maintained.

Target price is $5.30 Current Price is $2.58 Difference: $2.72
If AQG meets the Credit Suisse target it will return approximately 105% (excluding dividends, fees and charges).

Current consensus price target is $4.00, suggesting upside of 55.0% (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: 1.0

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

Macquarie rates AQG as Outperform (1) -

Successful exploration has led Alacer to increase 2018 Copler production guidance. The company's sulphide project remains on track, the broker notes, with first gold expected this quarter.

First gold will be a key catalyst for the stock, the broker suggests. Outperform and $3.00 target retained.

Target price is $3.00 Current Price is $2.58 Difference: $0.42
If AQG meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $4.00, suggesting upside of 55.0% (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: 1.0

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

Credit Suisse rates AST as Neutral (3) -

Draft rate of return guidelines have been released by the Australian Energy Regulator to determine the next five-year periods from 2020. The reduction to allowed equity risk premium is worse than Credit Suisse expected.

A clear agenda to reduce the network outperformance versus allowances has emerged as a response to high energy prices, in the broker's view. AusNet is already on a cash tax-paying position and should be in a better position than Spark Infrastructure ((SKI)), in the broker's opinion.

Neutral rating maintained. Target is reduced to $1.55 from $1.80.

Target price is $1.55 Current Price is $1.57 Difference: minus $0.02 (current price is over target).
If AST meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.74, suggesting upside of 10.6% (ex-dividends)

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

Ord Minnett rates BRG as Buy (1) -

The latest US trade tariffs are an incremental negative for Breville, Ord Minnett suggests, not because there is a specific impact but because it represents an escalation of the US/China trade conflict into consumer goods.

The tariffs now include items such as cooking stoves, ranges and ovens for domestic purposes. Coffee and juice makers remain off the list for now but the broker awaits a Chinese response.

Buy rating and $15.60 target maintained.

Target price is $15.60 Current Price is $11.59 Difference: $4.01
If BRG meets the Ord Minnett target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $13.56, suggesting upside of 17.0% (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 CBA as Underweight (5) -

Commonwealth Bank has re-rated recently and Morgan Stanley observes the PE multiple is back in keeping with the long-run average.

Nevertheless, the broker believes the stock remains in a downgrade cycle and benefits of home loan re-pricing are already factored in.

Underweight. Price target is $64. Industry view: In-Line.

Target price is $64.00 Current Price is $74.63 Difference: minus $10.63 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $73.63, suggesting downside of -1.3% (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

UBS rates CLW as Downgrade to Neutral from Buy (3) -

UBS downgrades to Neutral from Buy on the back of a strong performance in the share price. The broker expects the asset mix to remain in demand but this is incorporated in the price, while there is increased uncertainty around acquisitions.

Security holders are being asked to approve the sale of the ATO building in Adelaide. After taking into account the divestment of Grace Logistics, WW Dandenong's final payment and this building sale, UBS expects the company to swiftly deploy proceeds to maintain a growing distribution profile. Target is unchanged at $4.25.

Target price is $4.25 Current Price is $4.29 Difference: minus $0.04 (current price is over target).
If CLW meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.11, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Citi rates COH as Neutral (3) -

Ahead of upcoming reporting season, Citi has transferred coverage of healthcare stocks to a new lead analyst, which has led to a general re-assessment of preferences, forecasts and valuations.

In a general sense, the new king in town remains most positive on those with international exposure, even with elevated valuations suggesting a little bit of caution seems justified.

Ironically, and this notwithstanding current valuations, Citi sees greatest potential for positive news in August with CSL, Cochlear, and ResMed. Target price for Cochlear has jumped to $196.50 from $175. Neutral rating retained.

Target price is $196.50 Current Price is $201.94 Difference: minus $5.44 (current price is over target).
If COH meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $172.64, suggesting downside of -14.5% (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 CSL as Buy (1) -

Ahead of upcoming reporting season, Citi has transferred coverage of healthcare stocks to a new lead analyst, which has led to a general re-assessment of preferences, forecasts and valuations.

In a general sense, the new king in town remains most positive on those with international exposure, even with elevated valuations suggesting a litle bit of caution seems justified. Key pick is CSL, with earnings risk still considered to the upside.

Ironically, and this notwithstanding current valuations, Citi sees greatest potential for positive news in August with CSL, Cochlear, and ResMed. Target price for CSL has jumped to $232 from $215. Buy rating retained.

Target price is $232.00 Current Price is $198.19 Difference: $33.81
If CSL meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $192.38, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

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: 0.5

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

Macquarie rates CTD as Neutral (3) -

Corporate Travel has announced a $40m capital raising to cover all of the cost of acquiring 75.1% of Lotus Travel, which would make the company the biggest player in Hong Kong. The broker sees multiple synergy levers that can be pulled across cost, suppliers and systems.

More M&A is required to drive scale and offshore growth, the broker suggests, and given a strong balance sheet, the broker assumes the raising is to provide near term acquisition flexibility. Target rises to $26.00 from $24.10. Neutral retained on valuation.

Target price is $26.00 Current Price is $27.50 Difference: minus $1.5 (current price is over target).
If CTD 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 $26.67, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Morgan Stanley rates CTD as Overweight (1) -

Morgan Stanley considers the acquisition of Lotus offers marginal near-term accretion, albeit with significant longer-term upside from improved margins and synergies.

The deal underpins the contribution from Asia to the 22% earnings growth factored into the broker's FY20 estimates.

Morgan Stanley reiterates an Overweight rating, In-Line industry view and $31 target.

Target price is $31.00 Current Price is $27.50 Difference: $3.5
If CTD meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $26.67, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

UBS rates CTD as Buy (1) -

Corporate Travel is expected to generate around $2.5bn in transaction value from Asia after the Lotus acquisition. UBS believes Europe and North America are the next areas the company is likely to focus on.

Momentum within the broader business is strong and market share gains are expected to accelerate in the second half. The broker envisages strong growth opportunities from the roll-out of the technology in Asia and North America in the short to medium term. Buy rating and $27.50 target maintained.

Target price is $27.50 Current Price is $27.50 Difference: $0
If CTD meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $26.67, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Macquarie rates DCN as Outperform (1) -

Dacian has announced a capital raising via placement and SPP, looking to secure $45m at $2.70 per share. The money will be used to extinguish the production royalty on the Jupiter mine, the broker notes, and to accelerate exploration at Cameron Well.

The broker is surprised at the raising given a solid cash balance, but sees merit in the royalty buyout. Outperform retained, target falls to $3.60 from $3.70.

Target price is $3.60 Current Price is $3.01 Difference: $0.59
If DCN meets the Macquarie target it will return approximately 20% (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 FPH as Downgrade to Sell from Neutral (5) -

Ahead of upcoming reporting season, Citi has transferred coverage of healthcare stocks to a new lead analyst, which has led to a general re-assessment of preferences, forecasts and valuations.

In a general sense, the new king in town remains most positive on those with international exposure, even with elevated valuations suggesting a little bit of caution seems justified.

Rating is downgraded to Sell from Neutral following share price rally. Price target falls to NZ$12.50 from NZ$13.40.

Current Price is $13.53. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

This company reports in NZD. 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

Citi rates HSO as Neutral (3) -

Ahead of upcoming reporting season, Citi has transferred coverage of healthcare stocks to a new lead analyst, which has led to a general re-assessment of preferences, forecasts and valuations.

In a general sense, the new king in town remains most positive on those with international exposure, even with elevated valuations suggesting a little bit of caution seems justified.

Healthscope remains on Neutral with a lower price target; $2.20 instead of $2.40.

Target price is $2.20 Current Price is $2.21 Difference: minus $0.01 (current price is over target).
If HSO meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.30, suggesting upside of 4.0% (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 IVC as Downgrade to Neutral from Buy (3) -

Ahead of upcoming reporting season, Citi has transferred coverage of healthcare stocks to a new lead analyst, which has led to a general re-assessment of preferences, forecasts and valuations.

In a general sense, the new king in town remains most positive on those with international exposure, even with elevated valuations suggesting a little bit of caution seems justified.

Ironically, InvoCare is part of the healthcare sector at Citi. Rating downgraded to Neutral from Buy following share price appreciation. Price target improves to $14.25 from $14.

Target price is $14.25 Current Price is $13.82 Difference: $0.43
If IVC meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $12.39, suggesting downside of -10.3% (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

Macquarie rates KLA as Outperform (1) -

Kirkland's June Q gold production was up 12% quarter on quarter, beating the broker's forecast by 10%. The miner is on track to exceed 2018 production guidance, the broker notes.

Kirkland is trading at a premium to peers but the broker sees this as justified given its growth profile, low costs and strong balance sheet. Target rises to $33 from $30, Outperform and "a top pick" retained.

Target price is $33.00 Current Price is $28.21 Difference: $4.79
If KLA meets the Macquarie target it will return approximately 17% (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 LLC as Hold (3) -

Ord Minnett continues to believe Lend Lease is well-positioned and has a favourable industry backdrop for competing and winning new projects. The broker continues to forecast relatively strong earnings growth for FY19 and FY20.

Barangaroo South and Docklands apartment projects are considered the key earnings drivers for the next 3-5 years. Hold rating maintained. Target is lowered to $19.60 from $20.00.

Target price is $19.60 Current Price is $19.95 Difference: minus $0.35 (current price is over target).
If LLC 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 $18.75, suggesting downside of -6.0% (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

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

Morgan Stanley believes Lovisa is an expensive stock. While acknowledging the options in a global roll-out the broker suggests that maintaining the multiple is crucial to the steeper and longer-dated growth profile.

Regardless of the potential, the broker envisages the stock has elevated execution risks and lower terminal multiple than others which have engaged in such a roll-out. Rating is downgraded to Underweight from Equal-weight. Target is raised to $9.50 from $5.05. Industry view is In-Line.

Target price is $9.50 Current Price is $10.10 Difference: minus $0.6 (current price is over target).
If LOV meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.68, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in July.

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 MND as Sell (5) -

Citi believes Monadelphous is well-placed to capitalise on the anticipated increase in mining engineering and construction expenditure in Western Australia. However, potential contract wins in iron ore are only likely to contribute materially in the first half of FY20.

The company has benefited from the LNG construction cycle but, given Ichthys-related work is expected to be completed in early FY19, this division's revenue is likely to decline by around -10%, in Citi's view.

Sell rating maintained. Target is reduced to $13.25 from $13.40.

Target price is $13.25 Current Price is $14.30 Difference: minus $1.05 (current price is over target).
If MND meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.28, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Credit Suisse rates NST as Underperform (5) -

Production expectations for FY19 have been increased as Credit Suisse calculates how the Jubilee plant may be utilised across available ore sources. The broker acknowledges the path to production is unclear but upgrades earnings assumptions as well.

Target is raised to $5.20 from $4.55. Underperform rating maintained.

Target price is $5.20 Current Price is $7.11 Difference: minus $1.91 (current price is over target).
If NST meets the Credit Suisse target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.91, suggesting downside of -16.9% (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

Credit Suisse rates OGC as Outperform (1) -

June quarter production was strong, up 14%. Credit Suisse observes Haile is consistently achieving gold recoveries while exploration results at Waihi are underpinning projected life extension.

The broker has retained an Outperform rating and $3.80 target.

Target price is $3.80 Current Price is $3.81 Difference: minus $0.01 (current price is over target).
If OGC meets the Credit Suisse target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.60, suggesting upside of 20.7% (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: 0.9

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

Morgan Stanley rates ORG as Overweight (1) -

Morgan Stanley is surprised at the share price falls after the ACCC's electricity inquiry report. The broker believes the moves in the share price imply a -30% weighting to the downside case, which is considered too high.

Implementing the recommendations would not be straightforward, the broker acknowledges, and prefers Origin Energy over AGL ((AGL)) where, if the proposed reduction in wholesale costs occurs, the effect would be at least neutral, as Origin is a net purchaser of energy.

Overweight rating, $10.88 target and Cautious industry view maintained.

Target price is $10.88 Current Price is $9.58 Difference: $1.3
If ORG meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $10.12, suggesting upside of 5.6% (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

Ord Minnett rates ORG as Accumulate (2) -

Ord Minnett believes the ACCC report into electricity retailing has caught investors by surprise because of the notion of price re-regulation at a federal level.

The broker retains a view that this would only serve to reduce market competition and any decrease in unit retail margins would be offset by market share gains by the incumbents.

The broker considers a reaction to the recommendations overdone and reiterates an Accumulate rating. Target is $10.40.

Target price is $10.40 Current Price is $9.58 Difference: $0.82
If ORG meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $10.12, suggesting upside of 5.6% (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 PRY as Sell (5) -

Ahead of upcoming reporting season, Citi has transferred coverage of healthcare stocks to a new lead analyst, which has led to a general re-assessment of preferences, forecasts and valuations.

In a general sense, the new king in town remains most positive on those with international exposure, even with elevated valuations suggesting a little bit of caution seems justified.

Sell rating for Primary Health Care remains firmly in place. Price target nudges higher to $3.30 from $3.20.

Target price is $3.30 Current Price is $3.58 Difference: minus $0.28 (current price is over target).
If PRY meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.61, suggesting upside of 0.9% (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

UBS rates RHC as Neutral (3) -

UBS transfers coverage to another analyst and remodels the earnings drivers. Forecasts are reduced by -4-7% over the longer term.

The broker believes a combination of lower volume growth, adverse shift in mix and pricing pressures in Australian hospitals will negate the incremental benefits from procurement and brownfield additions.

Neutral rating maintained. Target is reduced to $54 from $64.

Target price is $54.00 Current Price is $54.38 Difference: minus $0.38 (current price is over target).
If RHC meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $62.65, suggesting upside of 15.2% (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

Morgans rates RHL as Add (1) -

After Ruralco's trading update Morgans reduces FY18 estimates for underlying net profit by -8.5%, to the mid point of guidance. The broker also takes a more conservative stance in regards to FY19 and FY20 assumptions.

The company has highlighted the impact of challenging seasonal conditions and its exposure to adverse changes in commodity prices.

Encouragingly, recent rainfall across Western Australia and southern Australia is expected to positively affect rural supplies over the fourth quarter. Add rating maintained. Target is reduced to $3.40 from $3.60.

Target price is $3.40 Current Price is $2.91 Difference: $0.49
If RHL meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

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 RMD as Neutral (3) -

Ahead of upcoming reporting season, Citi has transferred coverage of healthcare stocks to a new lead analyst, which has led to a general re-assessment of preferences, forecasts and valuations.

In a general sense, the new king in town remains most positive on those with international exposure, even with elevated valuations suggesting a litle bit of caution seems justified.

Ironically, and this notwithstanding current valuations, Citi sees greatest potential for positive news in August with CSL, Cochlear, and ResMed. Target price for ResMed has jumped to $15 from $13.80. Neutral rating retained.

Target price is $15.00 Current Price is $14.59 Difference: $0.41
If RMD meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $13.59, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

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 RRL as Neutral (3) -

June quarter production was strong and produced a record for FY18, achieving the high end of guidance.

Credit Suisse maintains a Neutral rating and $4.55 target.

Target price is $4.55 Current Price is $5.08 Difference: minus $0.53 (current price is over target).
If RRL meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.23, suggesting downside of -16.7% (ex-dividends)

The company's fiscal year ends in June.

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 RSG as Outperform (1) -

Resolute's update for its Ravenswood mine includes an outlook for longer mine life, lower costs and lower upfront capex. The broker notes Resolute has received approval to go ahead with the expansion.

Reduced capital and operating expenditure offset the impact of lower near-term production. Outperform retained, target rises to $1.60 from $1.50.

Target price is $1.60 Current Price is $1.33 Difference: $0.27
If RSG meets the Macquarie target it will return approximately 20% (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 SCG as Neutral (3) -

The company has acquired 50% of Eastgardens for $720m and has flagged significant redevelopment potential for both retail and mixed use. Citi considers the acquisition strategically appealing, noting opportunities in a growing catchment. Pricing appears fair.

The broker envisages reduced capacity for the $700m buyback program and suspects Eastgardens may need to deliver strong sales growth or attract development returns to be more appealing than a buyback at the recent share price. Neutral rating and $4.19 target maintained.

Target price is $4.19 Current Price is $4.47 Difference: minus $0.28 (current price is over target).
If SCG meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.49, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates SCG as Outperform (1) -

Scentre Group has acquired a 50% stake in Westfield Eastgardens, which it currently manages. Earnings accretion is limited, the broker notes, given a 4.25% cap rate. The broker assumes Scentre will divest non-core assets to address a high gearing level.

The broker retains Outperform and a $4.43 target but suggests the value opportunity has diminished. Unibail ((URW)) is preferred.

Target price is $4.43 Current Price is $4.47 Difference: minus $0.04 (current price is over target).
If SCG 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 $4.49, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates SCG as Buy (1) -

The company has acquired a 50% stake in Eastgardens for $720m. UBS was surprised by the acquisition, having expected the company would, instead, look to sell assets in order to fund its buyback. A capitalisation rate of 4.25% is in line with recent transactions.

The company envisages an opportunity to remix the apparel and upgrade the food offering, although the broker suggests the acquisition may start to raise questions about funding and asset sales over time. UBS retains a Buy rating, centred on continued momentum in specialty sales. Target is $4.58.

Target price is $4.58 Current Price is $4.47 Difference: $0.11
If SCG meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.49, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in December.

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 SHL as Upgrade to Neutral from Sell (3) -

Ahead of upcoming reporting season, Citi has transferred coverage of healthcare stocks to a new lead analyst, which has led to a general re-assessment of preferences, forecasts and valuations.

In a general sense, the new king in town remains most positive on those with international exposure, even with elevated valuations suggesting a little bit of caution seems justified.

The latter also applies for Sonic Healthcare, but more so because of ongoing risks and not because of valuation. Upgrade to Neutral from Sell. New price target $26 (was $21.75).

Target price is $26.00 Current Price is $26.46 Difference: minus $0.46 (current price is over target).
If SHL meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $25.78, suggesting downside of -2.6% (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 SIG as Buy (1) -

Ahead of upcoming reporting season, Citi has transferred coverage of healthcare stocks to a new lead analyst, which has led to a general re-assessment of preferences, forecasts and valuations.

In a general sense, the new king in town remains most positive on those with international exposure, even with elevated valuations suggesting a little bit of caution seems justified.

Post share price shellacking following the loss of the Chemist Warehouse wholesale distribution contract, Citi analysts had upgraded to Buy. This has now been (slightly) amended to High Risk Buy (supported by asset backing). Price target remains 55c.

Target price is $0.55 Current Price is $0.48 Difference: $0.07
If SIG meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $0.49, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in January.

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

Credit Suisse rates SKI as Downgrade to Underperform from Neutral (5) -

Draft rate of return guidelines have been released by the Australian Energy Regulator to determine the next five-year periods from 2020. The reduction to allowed equity risk premium is worse than Credit Suisse expected.

A clear agenda to reduce the network outperformance versus allowances has emerged as a response to high energy prices, in the broker's view.

Several factors are expected to constrain Spark Infrastructure's cash flow and the broker downgrades to Underperform from Neutral. Target is reduced to $2.20 from $2.45.

Target price is $2.20 Current Price is $2.20 Difference: $0
If SKI meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Credit Suisse rates SYD as Downgrade to Underperform from Neutral (5) -

The company faces a period of higher regulatory and contracting risk, Credit Suisse observes. Dividend growth for the next five years is expected to be lower than the growth over the past five years.

Sydney Airport is expected to start paying tax in 2021 and the broker expects management to smooth dividend growth to avoid any decline post 2021. Dividend estimates are reduced by -5% and -3% for 2019 and 2020 respectively.

The broker lowers the rating to Underperform from Neutral and trims the target to $6.75 from $6.80.

Target price is $6.75 Current Price is $6.99 Difference: minus $0.24 (current price is over target).
If SYD meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.40, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in December.

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 TWE as Sell (5) -

Citi observes the company will benefit from a big 2016 vintage in Australia and this should contribute $82m to EBITS, which is 60% of the broker's FY19 growth estimates. Estimates for earnings per share are lifted by 2.5% for FY19 and 1.5% for FY20.

Still, paying a big multiple for a big harvest appears unwarranted to the broker and a Sell rating is maintained. Target is raised to $14.50 from $13.30.

Target price is $14.50 Current Price is $17.72 Difference: minus $3.22 (current price is over target).
If TWE meets the Citi target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.30, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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