Australian Broker Call

Macquarie rates AGL as Neutral (3) -

Macquarie believes AGL is a winner from the re-election of the Coalition government but the broader issue of lower prices for power will still be a focus politically. The government's new generation initiative is about the upgrade of network infrastructure.

However, Macquarie suggests the 12 shortlisted generation projects will struggle to meet a 2021 timeline for market impact. The broker retains a Neutral rating and $20.67 target.

Target price is $20.67 Current Price is $22.03 Difference: minus $1.36 (current price is over target).
If AGL 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 $20.70, suggesting downside of -6.0% (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 BEN as Underweight (5) -

The results of the federal election reduce the tail risks on credit quality and the mortgage market, but Morgan Stanley suggests the regionals will benefit less than the major banks given the competitive status quo is likely locked in.

On one hand, policies to promote competition and mortgage price transparency are less likely, which enhances the pricing power of all banks, but on the other hand, new policies to specifically level the playing field are less likely and this removes a source of upside risk, in the broker's view.

Underweight maintained. Industry view: In-Line. Target price raised to $9.70 from $9.40.

Target price is $9.70 Current Price is $11.26 Difference: minus $1.56 (current price is over target).
If BEN 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 $9.57, suggesting downside of -15.0% (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

Morgan Stanley rates BOQ as Underweight (5) -

The results of the federal election reduce the tail risks on credit quality and the mortgage market, but Morgan Stanley suggests the regionals will benefit less than the major banks given the competitive status quo is likely locked in.

On one hand, policies to promote competition and mortgage price transparency are less likely, which enhances the pricing power of all banks, but on the other hand, new policies to specifically level the playing field are less likely and this removes a source of upside risk, in the broker's view.

Bank of Queensland is also facing specific hurdles, given weak mortgage loan growth and the need for significant investment. Underweight rating retained. Industry view is In-Line. Price target is raised to $8.20 from $8.10.

Target price is $8.20 Current Price is $9.19 Difference: minus $0.99 (current price is over target).
If BOQ 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 $8.74, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in August.

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 BSL as Outperform (1) -

The broker suggests reduced US steel tariffs for Canada could result in US steel spread pressure as imports potentially rise, impacting on already materially lower steel prices. US scrap prices may rise on likely increased supply from Turkey and reduced supply from Canada.

There is no change to forecasts for BlueScope. Outperform and $16.50 target retained.

Target price is $16.50 Current Price is $12.44 Difference: $4.06
If BSL meets the Credit Suisse target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $15.59, suggesting upside of 25.3% (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 DUB as Hold (3) -

Morgans updates forecasts to reflect the recent capital raising and trading update. Revenue growth was subdued in the third quarter but sales are expected to accelerate in the fourth quarter.

No specific guidance was published. The broker assesses the company is now well capitalised, with the majority of the capital raised to be deployed to improve sales. Hold rating. Target raised to $0.90 from $0.77.

Target price is $0.90 Current Price is $0.94 Difference: minus $0.04 (current price is over target).
If DUB meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Market Sentiment: 0.0

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

Morgans rates ELD as Hold (3) -

Elders reported a -34% fall in first half net profit. FY19 earnings guidance is unchanged for underlying earnings (EBIT) of $72-75m. Morgans believes this requires a strong rebound in the second half and acquisitions are expected to do the heavy lifting.

Earnings were affected by prolonged drought conditions on Australia's east coast, Queensland floods, lower wool volumes and reduced cattle prices. Morgans maintains a Hold rating and raises the target to $6.71 from $6.30.

Target price is $6.71 Current Price is $6.67 Difference: $0.04
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: 0.0

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

Citi rates IPL as Neutral (3) -

First half results were in line with expectations, and excluding non-recurring items earnings (EBIT) were up 17%. The shares have underperformed on the back of external issues and unplanned outages.

Citi considers these temporary and not systemic and expects a strong earnings rebound in FY20. Queensland contract renewals are progressing and a decision on Gibson Island's future is imminent.

While the stock holds valuation appeal it still lacks re-rating catalysts and the broker maintains a Neutral rating. Target is reduced to $3.40 from $3.45.

Target price is $3.40 Current Price is $3.39 Difference: $0.01
If IPL meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $3.65, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

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 IPL as Outperform (1) -

It was clearly a challenging first half for Incitec but the broker is heartened by the company's focus on improving plant reliability and low-capital, technology-based investment in its ammonium nitrate business. While this is not a growth investment and will thus not provide a significant uplift in earnings, the broker would rather see the company keep its powder dry.

Which means not distributing more cash to shareholders. In the wake of the result the broker drops its target to $3.78 from $4.00 while retaining Outperform.

Target price is $3.78 Current Price is $3.39 Difference: $0.39
If IPL meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.65, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

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 IPL as Buy (1) -

The interim cash flow, debt and dividend were all better than Deutsche Bank expected but this is likely to be offset by a downgrade to full year expectations.

Deutsche Bank finds few tangible positives on the immediate horizon apart from the rising urea prices, recent rainfall and a lower Australian dollar. Buy rating and $4.10 target maintained.

Target price is $4.10 Current Price is $3.39 Difference: $0.71
If IPL meets the Deutsche Bank target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.65, suggesting upside of 7.6% (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

Macquarie rates IPL as Outperform (1) -

First half net profit was below Macquarie's expectations. The broker notes the earnings downgrade cycle has been acute in the last six months because of a combination of internal and external factors. FY19 is likely to be the cyclical low point however.

Louisiana has been running consistently since mid April and the Queensland rail line is now functioning. Macquarie reduces underlying estimates for earnings per share by -15% in FY19, while FY20 and FY21 estimates are down -11% and -8% respectively.

Outperform rating maintained. Target is reduced to $3.70 from $3.75.

Target price is $3.70 Current Price is $3.39 Difference: $0.31
If IPL meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.65, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

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 IPL as Equal-weight (3) -

Non-recurring issues were substantially known but the first half result was still well below Morgan Stanley's estimates. However, this appears confined to FY19 and does not have a material impact on valuation.

The broker forecasts FY20 earnings (EBIT) of $596m, likely to be up 52% on the reported basis. The broker reduces FY19 estimates for earnings per share by -20%.

Equal-weight rating, Cautious industry view. Target is reduced to $3.50 from $3.60.

Target price is $3.50 Current Price is $3.39 Difference: $0.11
If IPL meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.65, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

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 IPL as Hold (3) -

The interim result was weaker than Morgans expected. FY19 earnings guidance is also below expectations. The broker believes a recovery in depressed fertiliser prices is needed to deliver on guidance.

The future of Gibson Island also overhangs the stock. Morgans maintains a Hold rating for now, intending to be a buyer of the stock closer to $3.00. Target is raised to $3.46 from $3.34.

Target price is $3.46 Current Price is $3.39 Difference: $0.07
If IPL meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.65, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates IPL as Buy (1) -

First half net profit of $41.9m was down -1.5% and below Ord Minnett's forecasts. The broker reduces forecast by -11% for FY19 and -4% for FY20. Ord Minnett expects key commodity prices to recover in FY20, with further potential upside in the ammonia price.

An earnings uplift is also expected from Louisiana, Cheyenne, Moranbah and Phosphate Hill. Buy rating maintained. Target is reduced to $3.75 from $3.90.

Target price is $3.75 Current Price is $3.39 Difference: $0.36
If IPL meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.65, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

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 IPL as Neutral (3) -

The first half result was always going to be messy, UBS asserts, given a series of negative trading updates. However, the broker notes over half of the negative impacts were from external factors, such as flood damage and elevated US gas supply costs.

However, there were also manufacturing issues at Louisiana, Phosphate Hill and Moranbah which had a negative impact.

Reliability challenges highlight the importance of the company executing on its manufacturing excellence strategy, in the broker's view, and FY20 forecasts assume no such outages. UBS maintains a Neutral rating and raises the target to $3.50 from $3.30.

Target price is $3.50 Current Price is $3.39 Difference: $0.11
If IPL meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.65, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

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 MPL as Buy (1) -

Deutsche Bank increases growth assumptions for the private health insurance industry, now the 2% cap on private health insurance premium increases proposed by Labor is unlikely to eventuate.

Buy rating maintained. Target is raised to $3.50 from $3.10.

Target price is $3.50 Current Price is $3.34 Difference: $0.16
If MPL meets the Deutsche Bank target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.78, suggesting downside of -16.8% (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

Deutsche Bank rates NHF as Buy (1) -

After the federal election returned the Coalition to power, Deutsche Bank increases growth assumptions for the private health insurance industry.

Buy rating reiterated. Target is lifted to $7.40 from $6.50.

Target price is $7.40 Current Price is $6.66 Difference: $0.74
If NHF meets the Deutsche Bank target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.83, suggesting downside of -12.5% (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

Credit Suisse rates QAN as Upgrade to Outperform from Neutral (1) -

Credit Suisse believes an outright election win, as opposed to a hung parliament, is a positive for corporate travel demand, which has been weak in the run-up. Qantas will also benefit from Virgin Australia's ((VAH)) plans to cut capacity, which will be positive for Qantas domestic and Jetstar, some 70% of earnings.

Lower risk of industrial action, with Labor failing to get up, is another positive. Put it all together and Credit Suisse upgrades to Outperform. Target rises to $6.40 from $6.00.

Target price is $6.40 Current Price is $5.31 Difference: $1.09
If QAN meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $5.92, suggesting upside of 11.5% (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 RHC as Outperform (1) -

Macquarie considers the outcome of the federal election has removed the contracting risk associated with a 2% cap on private health insurance premium increases.

More broadly, the broker's positive investment view is underpinned by an expectation of positive contributions from brownfield developments and more favourable tariff outcomes in France and the UK.

Outperform rating maintained. Target rises to $75 from $72.

Target price is $75.00 Current Price is $69.17 Difference: $5.83
If RHC meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $65.02, suggesting downside of -6.0% (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

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

Morgan Stanley believes, in the wake of the victory by the Coalition in the Australian federal election, that the potential for any significant private health care policy changes is lessened.

Irrespective of government, affordability issues continue, as does low private hospital volume growth, and the broker's forecasts suggest -11% downside to consensus earnings estimates for Ramsay Health Care in FY21.

Equal-weight. Target is raised to $60 from $58. Industry view is In-Line.

Target price is $60.00 Current Price is $69.17 Difference: minus $9.17 (current price is over target).
If RHC meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $65.02, suggesting downside of -6.0% (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

Credit Suisse rates SCG as Outperform (1) -

Scentre Group has sold 50% of Westfield Burwood at a 4.1% premium to book value. The proceeds will initially be used to pay down debt, the broker notes, and provide balance sheet flexibility to pursue other investments.

The broker suggests that in a weak market for retail assets, the deal confirms "quality still has a bid". Outperform retained, target falls to $4.19 from $4.20.

Target price is $4.19 Current Price is $3.93 Difference: $0.26
If SCG meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.84, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in December.

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

Deutsche Bank rates SCG as Sell (5) -

Scentre Group has sold a 50% interest in Westfield Burwood for $575m, representing a 4% premium to the December 2018 book value.

Deutsche Bank considers this a positive outcome, given the abundant supply of shopping centres on the market. The sale is likely to alleviate some balance sheet pressure but the broker suspects gearing could still rise above 35%.

Sell rating maintained with a $3.69 target.

Target price is $3.69 Current Price is $3.93 Difference: minus $0.24 (current price is over target).
If SCG meets the Deutsche Bank target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.84, suggesting downside of -2.4% (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

Macquarie rates SCG as Underperform (5) -

The company has sold a 50% stake in Westfield Burwood at a 4.1% premium to the December book value. Macquarie finds this a positive outcome for prime regional malls, particularly in light of the equity market pricing of listed A-REITs.

However, downward pressure continues as other retail transactions come to market and underlying cash flows remain under pressure, the broker observes. Underperform rating maintained. Target is $3.55.

Target price is $3.55 Current Price is $3.93 Difference: minus $0.38 (current price is over target).
If SCG meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.84, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in December.

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 SCG as Hold (3) -

The company is selling a 50% stake in Westfield Burwood for $575m. Ord Minnett expected the sale, as it is a means of lowering leverage and providing more flexibility to fund developments.

The broker also notes, while Scentre Group has not needed to sell a high-quality asset, it also has not offloaded one of its less productive, more growth-challenged assets.

Hold rating and $4.30 target maintained.

Target price is $4.30 Current Price is $3.93 Difference: $0.37
If SCG meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.84, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in December.

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 SCG as Neutral (3) -

UBS was pleasantly surprised by the sale of the 50% of Westfield Burwood at $575m, a 4% premium to book value. This is the first regional asset to change hands since the acquisition of Eastgardens in July last year, the broker adds.

Nevertheless, the sale does not do much for leverage and UBS suspects the market will await evidence of demand from a broader pool of capital as Marion, Adelaide and Midland Gate, Perth are also on the market. Neutral rating and $3.74 target maintained.

Target price is $3.74 Current Price is $3.93 Difference: minus $0.19 (current price is over target).
If SCG 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 $3.84, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates SEA as Add (1) -

First quarter financials were strong and revealed an earnings (EBITDAX) margin of 62%. Morgans considers the highlight was confirmation that the company and infrastructure provider Enterprise had cleared the bottleneck which constrained production growth.

The broker notes, so far this year, the share price has only recovered half as much as the oil price. The broker suspects the discount has been triggered by investor conservatism regarding US/China trade tensions.

The disconnect is not expected to be sustained, with Sundance Energy set to accelerate both production and earnings growth. Add rating maintained. Target is reduced to $1.48 from $1.61.

Target price is $1.48 Current Price is $0.42 Difference: $1.06
If SEA meets the Morgans target it will return approximately 252% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 1.0

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

Deutsche Bank rates SYD as Hold (3) -

April passenger traffic improved but was still behind expectations, up 0.1%. Domestic passenger growth was below expectations, down -1.3%. International was up 2.5%, positively affected by the timing of Easter.

Deutsche Bank retains a Hold rating and $7.40 target.

Target price is $7.40 Current Price is $7.52 Difference: minus $0.12 (current price is over target).
If SYD meets the Deutsche Bank target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.14, suggesting downside of -5.0% (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

Macquarie rates SYD as Underperform (5) -

March and April domestic traffic growth fell -2.3% and international -0.7%. Macquarie notes 2019 growth in the year to date is down -1.8% domestically and up 1.2% for international passengers.

The broker considers the stock's valuation stretched and maintains an Underperform rating. The traffic outlook is considered tough for the rest of 2019. Target is raised to $7.15 from $6.69.

Target price is $7.15 Current Price is $7.52 Difference: minus $0.37 (current price is over target).
If SYD 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 $7.14, suggesting downside of -5.0% (ex-dividends)

The company's fiscal year ends in December.

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 SYD as Sell (5) -

The April traffic report revealed a -1% decline in domestic and 2.5% rise in international traffic. UBS believes the report supports its recent downgrade to Sell.

The broker continues to forecast a flat outcome for 2019. Of particular interest is the continuing slowdown in Australian nationals travelling overseas, which accounts for half of the airport's international traffic. Target is $7.

Target price is $7.00 Current Price is $7.52 Difference: minus $0.52 (current price is over target).
If SYD meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.14, suggesting downside of -5.0% (ex-dividends)

The company's fiscal year ends in December.

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 VAH as Upgrade to Neutral from Underperform (3) -

Virgin has noted domestic demand has weakened and failed to much recover post the Easter period. Virgin's outlook appears worse, Credit Suisse notes, than was provided in last week's Qantas ((QAN)) update.

Virgin is responding by reducing capacity, which is a positive for Qantas, but does have the potential to drive higher per unit revenue. The broker upgrades to Neutral, retaining an 18c target.

Target price is $0.18 Current Price is $0.18 Difference: $0
If VAH meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $0.18, suggesting upside of 1.4% (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

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

The share price of Woolworths is now well above Ord Minnett's discounted cash flow valuation, with the PE multiple high at 26.6x FY19 estimates and 24.9x at FY20 estimates for 6.3% and 7.0% growth in earnings per share, respectively.

The $1.7bn off-market buyback has been supportive , and may remain so, but the broker suggests there could be some weakness to follow, as investors reassess. Rating is downgraded to Lighten from Hold and the target raised to $31 from $30.

Target price is $31.00 Current Price is $33.71 Difference: minus $2.71 (current price is over target).
If WOW meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.98, suggesting downside of -11.1% (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