Australian Broker Call

Ord Minnett rates ATL as Initiation of coverage with Hold (3) -

Apollo has grown its motor home and campervan rental business, with operations across Australasia, the US and Canada.

Ord Minnett considers the caravan manufacturing and dealership acquisition strategies are both a challenge and an opportunity. The broker initiates coverage with a Hold rating and $1.29 target.

Target price is $1.29 Current Price is $1.44 Difference: minus $0.15 (current price is over target).
If ATL meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Citi rates BPT as Upgrade to Buy from Neutral (1) -

Citi has upgraded to Buy/High Risk from Neutral/High Risk following a -20% underperformance for the shares over the past two months. The analysts point at greater than average leverage to a falling oil price, but also to market concerns about a potential capital raising to fund the next acquisition.

Citi analysts are sympathising with the capital raising risk, while contemplating a scenario whereby a commercial partner can be found to still purchase assets but with less dilution for shareholders.

Meanwhile, point out the analysts, Beach has substantial high-returning opportunity for capital allocation in Cooper. The analysts also suggest the outlook is likely to be stronger than consensus is giving the company credit for, but management needs to provide more details.

Target price is $0.80 Current Price is $0.57 Difference: $0.225
If BPT meets the Citi target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $0.68, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

UBS rates CL1 as Initiation of coverage with Buy (1) -

Class provides cloud-based administration software for self-managed super funds in Australia and UBS notes it has a market share of 23% in FY17 via its flagship product, Class Super.

Consistent growth has been a feature of the business, with the broker noting FY15-17 compound growth rates of 39% in sales and 54% in operating earnings. UBS initiates coverage with a Buy rating and $3.40 target.

Target price is $3.40 Current Price is $2.91 Difference: $0.49
If CL1 meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.54, suggesting upside of 15.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.7

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

UBS rates CTD as Initiation of coverage with Neutral (3) -

UBS observes Corporate Travel Management has made 15 acquisition since listing and has an impressive track record of successfully integrating businesses, extracting substantial revenue and cost synergies.

The broker initiates coverage with a Neutral rating and its base case assumes no further acquisitions. Target is $23.90.

Target price is $23.90 Current Price is $23.90 Difference: $0
If CTD meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $21.14, suggesting downside of -10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

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

In the light of a recent wave of global consolidation in the industry, Credit Suisse weighs up whether Dulux might be predator or prey. On the prey side, the broker sees the core paint business as attractive but the home improvement businesses not so. Dulux could divest these to unlock value, but a solid share price rules out a private equity bid.

On the predator side, the broker believes the company is likely targeting a UK paint acquisition. Factoring in its analysis sees Credit Suisse lift its target to $6.85 from $6.05 and upgrade to Neutral.

Target price is $6.85 Current Price is $6.89 Difference: minus $0.04 (current price is over target).
If DLX 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 $6.40, suggesting downside of -10.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.4

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

Citi rates DMP as Sell (5) -

Citi expects sales trends to remain firm, especially relative to industry growth, driven by the traction of the company's digital offer and weaker competitors.

Nevertheless, the broker suspects overall sales growth is likely to slow from here on, and there is modest downside risk to Australia, while Europe could soften a little as well.

Sell rating and $45.50 target retained.

Target price is $45.50 Current Price is $54.20 Difference: minus $8.7 (current price is over target).
If DMP meets the Citi target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $64.45, suggesting upside of 19.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Ord Minnett rates FMG as Accumulate (2) -

Ord Minnett suspects current cyclical and structural factors will favour the use of higher grade ore but over time market conditions should normalise.

The broker forecasts the company's realised price to be -35% below the 62% iron benchmark in the June quarter. Beyond this, the stock continues to screen attractively on valuation, balance sheet free cash flow measures.

Target is $6.30. Accumulate rating retained.

Target price is $6.30 Current Price is $5.07 Difference: $1.23
If FMG meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.67, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

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

Factoring in higher reserve releases and other changes, Citi lifts forecasts for earnings per share in FY17 by 21% and FY18 by 5%. The broker now forecasts FY17 reported insurance margin of 15.3%, towards the top end of revised guidance.

The broker raises the target to $6.30 from $6.05 but downgrades to Sell from Neutral, as the stock appears too expensive.

Citi suspects the underlying margin may still be under some pressure from elevated claims inflation in motor vehicles and the earn-through of prior commercial insurance pricing.

Target price is $6.30 Current Price is $6.97 Difference: minus $0.67 (current price is over target).
If IAG meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.53, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Credit Suisse rates IAG as Outperform (1) -

Following a guidance upgrade, the broker assumes shareholders will be rewarded with a dividend increase given IAG's reserve releases. As to how the underlying margin will fare from here is still a difficult question, the broker suggests, given a wide range of outcomes implied by guidance.

The broker has lifted earnings forecasts and notes that IAG looked expensive on a PE basis a week ago and as such looks more expensive now. But the broker believes IAG is in a margin expansion phase and thus in the early stages of a multi-year upgrade cycle, meaning PE is misleading.

Outperform retained. Target rises to $7.25 from $6.90.

Target price is $7.25 Current Price is $6.97 Difference: $0.28
If IAG meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.53, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Deutsche Bank rates IAG as Hold (3) -

The company has announced that its FY17 insurance margin should be well ahead of guidance. The target range has increased to 13.5-15.5% from 10.5-12.5%. The upgrade was driven by reserve releases.

Deutsche Bank observes the domestic insurers have benefited over the past decade from benign inflation yet cautions investors against capitalising reserve releases.

The broker understands the temptation to incorporate these as a, relatively, recurring part of earnings but warns inflation can quickly bring an end to such releases.

Hold rating retained. Target is raised to $6.20 from $5.80.

Target price is $6.20 Current Price is $6.97 Difference: minus $0.77 (current price is over target).
If IAG meets the Deutsche Bank target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.53, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

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

Insurance Australia Group has raised its FY17 insurance margin guidance range  to 13.5-15.5% from 10.5-12.5%.

Despite price rises, Macquarie believes structural claim issues in motor vehicle insurance should mean the underlying margin contracts into FY18.

The broker believes the multiples are now stretched and downgrades to Underperform from Neutral. Target is raised to $6.05 from $5.95.

Target price is $6.05 Current Price is $6.97 Difference: minus $0.92 (current price is over target).
If IAG meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.53, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Morgans rates IAG as Upgrade to Hold from Reduce (3) -

Insurance Australia Group expects reserve releases of around 5% of NEP in FY17 and has upgraded insurance margin guidance to 13.5-15.5%.

Morgans argues that elevated reserve releases are a lower-quality item and not sustainable. The broker finds the market's view on the stock peculiar, as recent weather downgrades were ignored while the elevated reserve releases appear to be rewarded.

The broker upgrades FY17 estimates by around 20% and FY18 by 2%. Target is lifted to $6.27 from $5.56. Rating is upgraded to Hold from Reduce.

Target price is $6.27 Current Price is $6.97 Difference: minus $0.7 (current price is over target).
If IAG meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.53, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Ord Minnett rates IAG as Hold (3) -

Insurance Australia Group has revealed large reserve releases in the second half of FY17 that Ord Minnett observes, not only have one-off benefits to profits, but also suggest the possibility of modest underlying margin increases versus the first half.

Upside in the medium term is expected to come from cost savings and increases in commercial market prices along with scheme reforms and price increases in NSW CTP.

The broker believes the upside is captured already in the numbers and maintains a Hold rating. Target is raised to $6.90 from $6.40.

Target price is $6.90 Current Price is $6.97 Difference: minus $0.07 (current price is over target).
If IAG meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.53, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

UBS rates IAG as Neutral (3) -

Insurance Australia Group has upgraded its FY17 guidance range for insurance margins to 13.5-15.5%, reflecting an increase in prior year reserve release expectations to "at least 5.0%", which UBS notes is the largest full year release on record.

While typically viewing abnormal releases as a one-of item, as low inflation is likely to persist in the near term, the broker envisages higher reserve releases will continue to benefit FY18 and FY19, albeit at a more moderate rate.

Neutral rating retained. Target rises to $6.30 from $6.00.

Target price is $6.30 Current Price is $6.97 Difference: minus $0.67 (current price is over target).
If IAG meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.53, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Ord Minnett rates MFD as Initiation of coverage with Accumulate (2) -

Ord Minnett observes Mayfield Childcare has started solidly as a listed company. The broker believes the announcement of its first acquisition, post IPO, signals a new phase for the company.

The 58 places are earnings accretive and have been fully funded from existing cash and debt facilities. Nevertheless, the company has cautioned the new centre will only provide a minor contribution to 2017.

Ord Minnett initiates coverage with an Accumulate rating. Valuation is $1.34.

Current Price is $0.00. Target price not assessed.

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Credit Suisse rates NCM as Underperform (5) -

The larger but less seismically damaged area of Newcrest's Cadia mine has recommenced production having shut down in April. The cost of remediation has been mitigated to some extent by the processing of low grade stockpiles during the shutdown, the broker notes.

The key short term risk remains full remediation, and the broker believes the Cadia "scare" will force Newcrest into an anxious attempt to reduce asset concentration. Underperform and $18.20 target retained.

Target price is $18.20 Current Price is $20.43 Difference: minus $2.23 (current price is over target).
If NCM meets the Credit Suisse target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.55, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.6

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

Deutsche Bank rates NCM as Sell (5) -

Newcrest will now commence a 2-4 week testing phase of Panel Cave 2 at Cadia. While technical risks continue, the update confirms for Deutsche Bank that the recovery at Cadia East is on track.

The stock continues to trade at a premium to valuation and the broker maintains a Sell rating. Target is $18.

Target price is $18.00 Current Price is $20.43 Difference: minus $2.43 (current price is over target).
If NCM meets the Deutsche Bank target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.55, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.6

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

Macquarie rates NCM as Neutral (3) -

Extraction of ore has re-commenced from Panel Cave 2 at Cadia East on a trial basis. Macquarie's forecasts for Cadia for FY18 remain at the bottom end of guidance, noting that ramping the panel caves back to full production has still not been de-risked.

The broker suspects the company will inject further capital underground to improve ground support and ensure the mine can better handle significant seismic events in the future.  Neutral rating and $22 target retained.

Target price is $22.00 Current Price is $20.43 Difference: $1.57
If NCM meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $19.55, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.6

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

Deutsche Bank rates NEC as Hold (3) -

The federal government has effectively removed licence fees for free-to-air TV broadcasters in FY17. Deutsche Bank adjusts numbers to take into account the absence of licence fees and now expects the removal will be made permanent.

Offsetting this, the broker lowers advertising market forecasts for FY18 and FY19 to factor in the likely restrictions on gambling advertising.

Deutsche Bank's updated FY17 forecasts for operating earnings now sit within the company's new guidance range of $200-210m.

In FY18 and beyond the broker expects around half of the benefits from the removal of licence fees will be offset by the imposition of a spectrum charge and lower advertising market forecasts.

Hold rating retained. Target rises to $1.30 from $1.10.

Target price is $1.30 Current Price is $1.40 Difference: minus $0.095 (current price is over target).
If NEC meets the Deutsche Bank target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.24, suggesting downside of -11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

UBS rates NEC as Sell (5) -

The federal government will remove licence fees for free-to-air TV broadcasters and apply this retrospectively to FY17. The savings impact will be in FY18.

UBS notes the broader media reform package still needs to be debated by Parliament and the next sitting is not until August 8. The company is now guiding to FY17 operating earnings of $200-210m, which factors in the cut to license fees but no incremental spectrum fee or gambling advertising restrictions.

UBS retains a Sell rating and $1.15 target.

Target price is $1.15 Current Price is $1.40 Difference: minus $0.245 (current price is over target).
If NEC meets the UBS target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.24, suggesting downside of -11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

UBS rates OGC as Neutral (3) -

The ramping up of Haile has been slower than expected yet UBS acknowledges mine ramp ups are seldom smooth and the reduction in 2017 production to 120,000 ounces has not change the favourable longer-term view of the project.

There is continued upside to exploration, which could lift production if new underground ore sources can be commercialised, although the broker acknowledges this will take further capital.

UBS retains a Neutral rating and reduces the target to $4.20 from $4.35.

Target price is $4.20 Current Price is $4.12 Difference: $0.08
If OGC meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.73, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Credit Suisse rates QAN as Outperform (1) -

The broker has decided the domestic airline duopoly between Qantas and Virgin Australia ((VAH)) is now a stable one, with Qantas' loyalty program dominant within that duopoly. Domestic contributes 70% of value, with the more competitive international business only contributing 15%.

The broker suggests such stability deserves a premium valuation given the volatility of the international airline game. Target rises to $6.75 from $5.00. Outperform retained.

Target price is $6.75 Current Price is $5.60 Difference: $1.15
If QAN meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $5.54, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.9

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

Citi rates REA as Buy (1) -

The company's acquisition of mortgage broker, SmartLine, will accelerate its push into financial services. Management may be bullish on the prospect, but Citi envisages leads to agents are the bigger opportunity.

While the company is ready to start charging for this service the broker is yet to include any revenue in estimates. Buy rating retained. Target rises to $73.00 from $72.50.

Target price is $73.00 Current Price is $67.97 Difference: $5.03
If REA meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $63.50, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

Citi rates SGP as Buy (1) -

Citi analysts believe there are now sufficient signs the residential landscape is changing in Australia. As a result, Citi's preference now lies with residential projects that are longer dated (i.e. land), have embedded price gains to support margins, product at relatively affordable prices to support volumes, and buyer profiles tilted to owner occupiers and domestic purchasers.

Taking all of the above into account, the analysts reiterate their preference for Stockland in the sector, believing Mirvac ((MGR)) is at a greater risk for share price de-rating. Hence why the latter is rated Sell.

Target price is $5.08 Current Price is $4.72 Difference: $0.36
If SGP meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.84, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

Morgan Stanley rates SRX as Overweight (1) -

The company expects to deliver dose sales growth of 5.5% and constant currency operating earnings of $72m in FY17.

Of note, Morgan Stanley suspects the growth estimate in the Americas (4.7%), below its expectations (6.4%), could be a sign of ongoing market share losses to a key competitor.

With new management in place, and a priority to finalise a submission for expanded coverage with the US FDA in the first half, Morgan Stanley believes the company is taking appropriate steps to leverage the data it has for maximum benefit in the existing salvage market.

Overweight. In-Line view retained. Target is $17.90.

Target price is $17.90 Current Price is $15.80 Difference: $2.1
If SRX meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $22.25, suggesting upside of 35.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

UBS rates SRX as Buy (1) -

The company's trading update has confirmed dose sales and operating earnings in line with UBS forecasts for FY17.

The company will also write off -$90m in capitalised R&D in the second half and take a pre-tax restructuring charge of -$5.3m, relating to a -15% reduction in group employees.

UBS estimates these measures have the capacity save around $20m in costs while the write-down reduces amortisation. Buy rating retained. Target is $27.45.

Target price is $27.45 Current Price is $15.80 Difference: $11.65
If SRX meets the UBS target it will return approximately 74% (excluding dividends, fees and charges).

Current consensus price target is $22.25, suggesting upside of 35.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Ord Minnett rates SSG as Buy (1) -

Positive sales trends have continued through May and the company is confident it will achieve FY17 operating earnings at the top end of guidance, which is  $13.7-15.0m. This suggests to Ord Minnett the company will eclipse the original prospectus forecast of $14.7m.

The stores take a few years to mature in terms of the contribution to earnings and, with the company having opened 32 stores in FY15, the broker envisages a significant tailwind to earnings coming in FY18 as these ramp up. Ord Minnett retains a Buy rating. Target is $1.13.

Target price is $1.13 Current Price is $0.60 Difference: $0.535
If SSG meets the Ord Minnett target it will return approximately 90% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Deutsche Bank rates SUN as Buy (1) -

Deutsche Bank has increased reserve release assumptions by $62m to $278m on the back of commentary from Insurance Australia Group ((IAG)) around long-tail claims inflation.

Suncorp is the broker's preferred domestic insurer because of the potential for capital relief from advanced accreditation for its bank and the strategic options.

Deutsche Bank retains a Buy rating and raises the target to $14.60 from $14.00.

Target price is $14.60 Current Price is $15.11 Difference: minus $0.51 (current price is over target).
If SUN meets the Deutsche Bank target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.93, suggesting downside of -7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

Deutsche Bank rates SWM as Upgrade to Hold from Sell (3) -

The federal government has effectively removed licence fees for free-to-air TV broadcasters in FY17. Deutsche Bank adjusts numbers to take into account the absence of licence fees and now expects the removal will be made permanent.

Offsetting this, the broker lowers advertising market forecasts for FY18 and FY19 to factor in the likely restrictions on gambling advertising.

While continuing to forecast Seven West operating earnings to fall by -12% in FY17, the broker's changes result in upgrades to forecasts for FY18 and beyond. Target is raised to $0.80 from $0.70 and the recommendation is upgraded to Hold from Sell.

Target price is $0.80 Current Price is $0.74 Difference: $0.065
If SWM meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $0.75, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

UBS rates SWM as Neutral (3) -

The federal government will remove licence fees for free-to-air TV broadcasters and apply this retrospectively to FY17. The savings impact will be in FY18.

UBS notes the broader media reform package still needs to be debated by Parliament and the next sitting is not until August 8.

UBS retains a Neutral rating and $0.75 target.

Target price is $0.75 Current Price is $0.74 Difference: $0.015
If SWM meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $0.75, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

UBS rates TAH as No Rating (-1) -

UBS reviews assumptions to account for current market trends as well as the weaker-than-expected trading update, which has led to downgrades to estimates for earnings per share of -9% for FY17 and FY18.

The broker suspects a further deterioration in losses from Sun Bets and Luxbet could result in strategic reviews of these businesses and possibly result in restructure. As a result, capitalising these losses is unlikely to result in accurate interpretation of future earnings potential.

UBS remains restricted on rating and price target.

Current Price is $4.46. Target price not assessed.

Current consensus price target is $4.59, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Morgan Stanley rates VCX as Underweight (5) -

The sale of Wodonga Plaza and Terrace Central, whilst positive for improving portfolio quality, appears to Morgan Stanley to highlight a growing risk premium for less productive discount department store-exposed shopping centres.

The broker believes the company could look to sell more of these less-productive malls and improve portfolio quality, although this would invariably drive further dilution of cash flow.

The broker's FY18 forecasts for free funds from operations sits -1.5% below consensus and reflects 1.7% growth on FY17. The broker does not incorporate any further asset sales.Underweight retained. Target is $2.65. Industry view: Cautious.

Target price is $2.65 Current Price is $2.73 Difference: minus $0.08 (current price is over target).
If VCX meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.95, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Morgans rates VMY as Add (1) -

The company has announced the third and final uranium converter account to process its concentrate in two uranium hexafluoride for nuclear fuels at plants in Canada, the US and France.

With these improvements in place a final investment decision is anticipated, coupled with financing, offtake and/or joint-venture agreements.

Morgans would expect to revise the valuation when terms of funding the development are announced and retains an Add rating and $0.42 target.

Target price is $0.42 Current Price is $0.13 Difference: $0.29
If VMY meets the Morgans target it will return approximately 223% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Credit Suisse rates WES as Neutral (3) -

The broker has lowered its forecast price assumptions for coking and PCI coal. This results in slight earnings downgrades to Wesfarmers group forecasts.

Neutral and $42.95 target retained.

Target price is $42.95 Current Price is $40.77 Difference: $2.18
If WES meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $40.40, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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