Australian Broker Call

Morgans rates ADI as Hold (3) -

APN Industria has acquired a $28.8m asset in Melbourne to be funded by a placement and SPP at $2.88, implying a distribution yield of 6%, Morgans notes. FY20 guidance remains unchanged.

Target rises to $2.96 from $2.95, Hold retained.

Target price is $2.96 Current Price is $2.94 Difference: $0.02
If ADI meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates ALX as Hold (3) -

Atlas Arteria's announced capital raising to acquire more of APRR and to make large one-off payments to Macquarie Group ((MQG)) and Eiffage are "big numbers", Morgans notes, but will leave a portfolio more concentrated to the higher quality APRR, and a cleaner structure, which makes the company more appealing to an interested party.

The broker recommends shareholders take up the raising. Target falls to $7.36 from $7.39, Hold retained.

Target price is $7.36 Current Price is $7.93 Difference: minus $0.57 (current price is over target).
If ALX meets the Morgans target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.82, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

UBS rates ALX as Neutral (3) -

Following completion of the equity raising and plans for an increased stake in APRR, UBS upgrades the target to $8.00 from $7.85. The additional stake is expected to deliver $100m in extra cash flow, using 2021 forecasts.

The broker also considers the $200m payment to Macquarie Group ((MQG)) and Eiffage will reduce the perceived equity risk. Neutral maintained.

Target price is $8.00 Current Price is $7.93 Difference: $0.07
If ALX meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.82, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

UBS rates AMP as Downgrade to Sell from Neutral (5) -

UBS envisages risks to the Contemporary platform profit margins while the economics around the pivot towards advice are untested. Execution risks around the strategic outlook are expected to grow.

As a result, with the shares now trading at a 10% premium to the $1.80 target, the broker finds little allowance for medium-term risks and downgrades to Sell from Neutral.

Target price is $1.80 Current Price is $1.90 Difference: minus $0.1 (current price is over target).
If AMP 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 $1.83, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in December.

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 APT as Overweight (1) -

Importantly, Morgan Stanley notes the final audit report regarding the non-compliance with anti-money laundering rules does not recommend significant operating changes, monetary penalties or contains adverse findings against the board.

Moreover, in relation to governance and oversight there is now an appropriate level of awareness and engagement, the report suggests.

Overweight rating and $44 target. Industry view is In-Line.

Target price is $44.00 Current Price is $32.19 Difference: $11.81
If APT meets the Morgan Stanley target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $33.00, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgans rates APT as Add (1) -

While a young Afterpay Touch failed to comply fully with compliance legislation, those issues have been addressed and the independent auditor has found the company's monitoring "effective, efficient and intelligent".

An AUSTRAC fine still cannot be ruled out, but Morgans suggests it would be trivial in the context of an $8bn market cap.

Otherwise, the broker notes Afterpay's early progress in the UK/US is encouraging and upside is on offer if its offshore strategy is successfully executed. Add retained, target rises to $35.82 from $32.60.

Target price is $35.82 Current Price is $32.19 Difference: $3.63
If APT meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $33.00, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

UBS rates APT as Sell (5) -

The company has released the executive summary of the independent auditor's report into anti-money laundering compliance. Historical non-compliance has been confirmed although, UBS notes, Afterpay Touch is now compliant.

The report is still subject to review by AUSTRAC which will determine if and what action may be taken. Some of the issues identified by the auditor highlight the regulatory uncertainty facing the company and UBS maintains a Sell rating and $17.60 target.

Target price is $17.60 Current Price is $32.19 Difference: minus $14.59 (current price is over target).
If APT meets the UBS target it will return approximately minus 45% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.00, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgans rates AVN as Add (1) -

Aventus Group has launched its first property syndicate since the fund internalised, in line with a strategy of diversified income and managed third party capital. The group will take a 25% interest and provide funds/property management.

FY20 guidance has been reconfirmed and the broker notes dividend guidance implies a yield in excess of 6%. Target rises to $2.86 from $2.69, Add retained.

Target price is $2.86 Current Price is $2.80 Difference: $0.06
If AVN meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.89, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

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

Credit Suisse downgrades to Neutral from Outperform as the stock has "defied gravity", despite alumina prices falling significantly. The broker believes the alumina price has found a floor at US$280/t.

While there is no reason to sell the stock, the broker suspects there may be opportunities to enter at a more attractive level if the current macro environment does not improve. Target is reduced to $2.40 from $2.70.

Target price is $2.40 Current Price is $2.32 Difference: $0.08
If AWC meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.22, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: -0.3

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

Citi rates BOQ as Sell (5) -

Bank of Queensland has announced a fully underwritten placement to raise $250m while simultaneously cutting the dividend by -20%. The use of the proceeds will be revealed in February.

Further weakness for FY20 has now been confirmed but Citi suspects investors are unimpressed with the resultant return from FY21 onwards.

Investors have effectively pre-funded the strategy transformation and the broker awaits the February briefing to judge the merits of the plan. Sell rating maintained. Target is reduced to $7.75 from $8.50.

Target price is $7.75 Current Price is $8.10 Difference: minus $0.35 (current price is over target).
If BOQ meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.79, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.7

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

Credit Suisse rates BOQ as Neutral (3) -

Bank of Queensland has launched a $275m capital raising in order to strengthen its balance sheet. Credit Suisse is somewhat surprised by the timing and size, given the detail of the strategic transformation plan will not be presented until February.

The broker believes there is a long road ahead in terms of improved efficiency and returns. Neutral rating maintained. Target is reduced to $8.65 from $9.15.

Target price is $8.65 Current Price is $8.10 Difference: $0.55
If BOQ meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.79, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.7

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

Macquarie rates BOQ as Underperform (5) -

Bank of Queensland has announced a capital raising of $275m. While this appears prudent, Macquarie asserts investors are effectively being asked to fund the bank's transformation strategy before being able to evaluate its merits.

Furthermore, the broker continues to believe current consensus estimates do not fully incorporate the downside risk associated with lower rates. Underperform retained. Target is reduced to $7.50 from $8.00.

Target price is $7.50 Current Price is $8.10 Difference: minus $0.6 (current price is over target).
If BOQ meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.79, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.7

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

Morgan Stanley rates BOQ as Underweight (5) -

Morgan Stanley observes new management is accelerating the transformation of the bank to address falling revenue and rising costs. As yet, no details of the plan have been provided and the broker expects FY20 to be a "re-building" year with a -25% cut to the dividend.

Bank of Queensland is raising $275m in capital to accelerate the transformation. There is no update on the AUSTRAC investigation, which the bank first reported in the first half of FY19.

Underweight rating. Industry view is In-Line. Price target is reduced to $7.50 from $8.00.

Target price is $7.50 Current Price is $8.10 Difference: minus $0.6 (current price is over target).
If BOQ meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.79, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.7

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

Morgans rates BOQ as Reduce (5) -

Morgans had warned Bank of Queensland would likely need to accelerate its investment spending and that the new CEO would engage in "kitchen sinking" that would undermine the bank's tier one capital. Hence no surprise in the announced raising.

The broker also expects another dividend cut given the bank is not offering a DRP discount. There may be an AUSTRAC-related risk, but this is unlikely to be a major reason behind the raising, the broker believes. Reduce retained, target falls to $7.20 from $8.00.

Target price is $7.20 Current Price is $8.10 Difference: minus $0.9 (current price is over target).
If BOQ meets the Morgans target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.79, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.7

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

Ord Minnett rates BOQ as Lighten (4) -

Ord Minnett assesses the $275m capital raising requires a degree of trust from investors, given the transformation program update will not be provided until February.

The broker suspects the market will give more credit to cost saving plans than revenue programs, as the bank is grappling with significant structural challenges for which there are no easy fixes.

Ord Minnett maintains a Lighten rating and reduces the target to $7.70 from $8.20.

Target price is $7.70 Current Price is $8.10 Difference: minus $0.4 (current price is over target).
If BOQ meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.79, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.7

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

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

Bank of Queensland will undertake a capital raising of $275m. The book build will be priced between $7.69 and $7.78 per share, representing a -10-11% discount to the last close and a 6% premium to net tangible assets.

The bank will outline a new strategy in February and UBS expects this will focus on niche areas where Bank of Queensland has an advantage.

The broker does not envisage a rapid turnaround, given the current environment, and upgrades to Neutral from Sell. Target is $8.25.

Target price is $8.25 Current Price is $8.10 Difference: $0.15
If BOQ meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $7.79, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.7

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

Ord Minnett rates CLH as Lighten (4) -

The CEO has resigned suddenly and the relatively new CFO will take on the role with immediate effect. This is a surprise to Ord Minnett, as Anthony Rivas had signed a new three-year contract in June.

The broker suspects recent press reports highlighting the company's collection practices and including a significant increase in bankruptcy applications could have put further pressure on the board.

The company has not stepped away from guidance for FY20 purchased debt ledgers revenue of $140-150m. Ord Minnett maintains a Lighten rating. Target is reduced to $1.00 from $1.10.

Target price is $1.00 Current Price is $1.12 Difference: minus $0.12 (current price is over target).
If CLH meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

Citi rates CTX as Buy (1) -

Caltex Australia will spin off its freehold petrol stations. Citi estimates, at a 6% capitalisation rate, the proceeds net of fees could amount to $700m. Proceeds are expected to be used to buy back shares off market.

Citi assesses Caltex Australia has overcome its trough in earnings in 2019 and expects the benefits for the refining margin to emerge in 2020. Buy rating and $30.50 target maintained.

Target price is $30.50 Current Price is $33.70 Difference: minus $3.2 (current price is over target).
If CTX meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.25, suggesting downside of -10.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Credit Suisse rates CTX as Neutral (3) -

Caltex Australia proposes to sell a 49% interest in 250 freehold fuel retail sites, representing most of its freehold retail holdings. Superficially, the proposed divestment of the freehold retail sites is attractive and from an economic perspective Credit Suisse is favourably disposed to monetising the assets.

The broker upgrades near-term fuel retail and refiner margins which drive changes to forecasts. The target is raised to $28.11 from $26.85. Credit Suisse maintains a Neutral rating.

Target price is $28.11 Current Price is $33.70 Difference: minus $5.59 (current price is over target).
If CTX meets the Credit Suisse target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.25, suggesting downside of -10.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Morgan Stanley rates CTX as Upgrade to Overweight from Equal-weight (1) -

Caltex Australia has announced a plan to spin off its retail property division, selling up to a 49% interest in 250 sites. This is in addition to the 50 that will be sold separately.

Morgan Stanley considers this a sensible strategy as it improves the balance sheet and offers the potential for buybacks.

At the same time, retail fuel margins appear to have improved and downside risk is reduced, in the broker's opinion.

Rating is upgraded to Overweight from Equal-weight. Target is raised to $34 from $24. Industry view is In-Line.

Target price is $34.00 Current Price is $33.70 Difference: $0.3
If CTX meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $30.25, suggesting downside of -10.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Ord Minnett rates CTX as Accumulate (2) -

2019 convenience retail earnings (EBIT) and the refiner margin are better than Ord Minnett expected. Caltex Australia has also proposed an IPO of up to 49% of 250 convenience retail freehold sites.

Ord Minnett notes the IPO is yet to receive board approval but expects this will occur within the next 12 months. Accumulate rating maintained. Target rises to $32 from $27.

Target price is $32.00 Current Price is $33.70 Difference: minus $1.7 (current price is over target).
If CTX meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.25, suggesting downside of -10.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

UBS rates CTX as Neutral (3) -

UBS considers the trading update positive, with scope to return capital if the company's proposed IPO of the retail property network proceeds. Caltex Australia expects retail earnings (EBIT) to be $190-210m in 2019.

The company is also proposing an IPO of up to 49% of the retail property portfolio, intending to use any proceeds to return capital. UBS lifts estimates by 6-10% to reflect the trading update, but makes no adjustment for the proposed IPO.

Neutral rating maintained. Target is raised to $28.90 from $25.30.

Target price is $28.90 Current Price is $33.70 Difference: minus $4.8 (current price is over target).
If CTX meets the UBS target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.25, suggesting downside of -10.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Ord Minnett rates CVN as Initiation of coverage with Buy (1) -

Ord Minnett observes the company's discovery of a large crude oil resource at Dorado in Western Australia in mid 2018 has driven a material re-rating.

The next step to realising value is delivery on the project, notably FEED in early 2020 and a final investment decision by the end of the year.

Ord Minnett initiates coverage with a Buy rating and $0.54 target. Despite its strong share price performance, the broker considers Carnarvon Petroleum the cheapest energy stock under coverage.

Target price is $0.54 Current Price is $0.35 Difference: $0.19
If CVN meets the Ord Minnett target it will return approximately 54% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates GXY as Accumulate (2) -

Ord Minnett has modelled a staged approach at Sal de Vida ahead of the release of the definitive feasibility study in the second quarter of 2020. The modelling has reduced the technical, development and funding risk although it has elongated the timeframe.

With spodumene prices near cycle lows and with the company holding $200m in net cash, a valuable asset base is expected to emerge when prices recover. Accumulate rating and $1.60 target maintained.

Target price is $1.60 Current Price is $0.96 Difference: $0.64
If GXY meets the Ord Minnett target it will return approximately 67% (excluding dividends, fees and charges).

Current consensus price target is $1.30, suggesting upside of 35.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.1

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

UBS rates GXY as Neutral (3) -

UBS revises down forecasts for lithium concentrate production for 2019 and 2020. The company expects customer requirements for around 75% of current production will offset reduced mining activity.

Stockpiled ore will be treated with ore sorters at the front end of processing to ensure concentrate production can be maintained. UBS maintains a Neutral rating and reduces the target to $1.10 from $1.20.

Target price is $1.10 Current Price is $0.96 Difference: $0.14
If GXY meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.30, suggesting upside of 35.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.1

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

Citi rates HLS as Neutral (3) -

Citi lowers FY20 estimates for earnings per share by -15% and FY21 by -13%. The company has guided to underlying net profit of $94-102m in FY20 which, at the mid point, is a -7.5% downgrade to consensus.

The broker believes the underperformance of the stock is predominantly related to medical centres and suspects the higher end of the guidance range is unlikely to be reached.

Given the potential of another bid from the major shareholder, and with the share price close to valuation, Citi maintains a Neutral rating. Target is $3.15.

Target price is $3.15 Current Price is $3.08 Difference: $0.07
If HLS meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.09, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Credit Suisse rates HLS as Neutral (3) -

Healius has issued FY20 underlying net profit guidance of $94-102m.

Credit Suisse found limited information regarding the current trading performance of each of the divisions, yet suspects GP recruitment and productivity continue to impact on medical centres, where efficiency savings are yet to be achieved.

The broker retains a Neutral rating and lowers the target to $3.00 from $3.05.

Target price is $3.00 Current Price is $3.08 Difference: minus $0.08 (current price is over target).
If HLS 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 $3.09, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Macquarie rates HLS as No Rating (-1) -

The company provided underlying net profit guidance of $94-102m. The mid point of guidance is -7% below Macquarie's estimates and the broker updates forecasts.

Macquarie is restricted on providing a rating and target at present.

Current Price is $3.08. Target price not assessed.

Current consensus price target is $3.09, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

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

Healius expects underlying net profit of $94-102m, which would be up 1-10% vs FY19. The company has noted a continuation of strong trading conditions in pathology and considers this one of the most important factors to achieve the forecast.

To meet the top end of the range, Healius needs to deliver growth in imaging and medical centre volumes as well as maintain strong GP recruitment. Equal-weight rating. Target is $2.90. In-Line sector view.

Target price is $2.90 Current Price is $3.08 Difference: minus $0.18 (current price is over target).
If HLS 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 $3.09, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Ord Minnett rates HLS as Accumulate (2) -

Guidance in the trading update has fallen short of Ord Minnett's expectations. The broker suspects encouraging trends evident in the June half have stalled.

Ord Minnett reduces underlying net profit estimates by -8.4% for FY20 and -12% for FY21. Despite a seemingly weak update, the broker continues to envisage opportunity in the business as well as the potential for corporate activity.

Accumulate rating maintained. Target is reduced to $3.30 from $3.50.

Target price is $3.30 Current Price is $3.08 Difference: $0.22
If HLS meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.09, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

UBS rates HLS as Sell (5) -

The company has issued underlying net profit guidance of $94-102m for FY20. Management believes strong trading in pathology in the first quarter will be the most important means of delivering at the top end of guidance.

UBS considers an assessment of gross cash conversion and free cash flow generation will be the most useful in gauging company performance.

The broker believes the issue for Healius centres on whether an integrated healthcare service provider can generate a reasonable return on invested capital. Sell rating and $2.70 target maintained.

Target price is $2.70 Current Price is $3.08 Difference: minus $0.38 (current price is over target).
If HLS meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.09, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

UBS rates IFL as Downgrade to Sell from Neutral (5) -

With the acquisition of the ANZ P&I business looking increasingly likely to proceed, UBS expects earnings per share will lift 32% into 2020.

However, the broker highlights risks to platform profit margins from new entrants, while the company's decision to double down on platform administration raises medium-term strategic challenges.

UBS downgrades to Sell from Neutral and raises the target to $6.70 from $6.60.

Target price is $6.70 Current Price is $7.73 Difference: minus $1.03 (current price is over target).
If IFL meets the UBS target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.38, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates NBL as Add (1) -

Noni B's AGM update was in line with expectations, with a -4% year to date sales decline cycling a very good prior period, the broker notes. FY20 guidance is reiterated but dependent on a solid Christmas.

The company has acquired 50.1% of EziBuy, increasing exposure to digital and NZ. The acquisition sees the broker's target fall to $3.46 from $3.60, Add retained.

Target price is $3.46 Current Price is $2.68 Difference: $0.78
If NBL meets the Morgans target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Credit Suisse rates NUF as Outperform (1) -

Credit Suisse observes the market is continuing to penalise volatility. The company has sustained lower earnings in the first quarter in all regions but the broker does not find a basis for downgrading second half assumptions.

Credit Suisse reduces first half forecasts and lowers the target to $8.16 from $8.30.  Outperform rating maintained.

The broker suspects the truth in North America lies somewhere between the FY19 results, which benefited from an early order program as well as strong fourth quarter sales, and the downgraded first half performance.

Target price is $8.16 Current Price is $4.98 Difference: $3.18
If NUF meets the Credit Suisse target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $6.26, suggesting upside of 25.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Macquarie rates NUF as Outperform (1) -

First half earnings are expected to be significantly lower, impacted by lower demand in North America. Macquarie expects the Latin American sale to be approved by shareholders at the AGM on December 5.

The broker suspects Australia and North America are approaching the bottom-of-the-cycle conditions, although the update shows this has not yet been reached. The broker expects greater focus on the Omega-3 potential going forward.

Target is reduced to $5.92 from $6.56. Outperform rating maintained.

Target price is $5.92 Current Price is $4.98 Difference: $0.94
If NUF meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.26, suggesting upside of 25.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgan Stanley rates NUF as Overweight (1) -

Nufarm has had a difficult first quarter and has downgraded first half expectations. Nevertheless, Morgan Stanley envisages meaningful upside with a return to more normal seasons and amid the Omega-3 opportunity.

Management now expects first half operating earnings (EBITDA) to be significantly lower. Morgan Stanley reduces forecast by -7% for FY20 and by -2% for FY21.

The broker considers issues in North America and Europe one-off in nature and long-term forecasts are essentially unchanged. Overweight rating and Cautious industry view. Target is $7.20.

Target price is $7.20 Current Price is $4.98 Difference: $2.22
If NUF meets the Morgan Stanley target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $6.26, suggesting upside of 25.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgans rates NUF as Hold (3) -

Nufarm has provided a materially weaker than expected first half update, noting all regions were down on a year ago and the worst is not drought-impacted Australia but North America.

Finding another $9m of rebate claims is also concerning. Guidance has been downgraded to "significantly lower" from a prior "flat".

Target falls to $4.90 from $5.48, Hold retained.

Target price is $4.90 Current Price is $4.98 Difference: minus $0.08 (current price is over target).
If NUF meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.26, suggesting upside of 25.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Ord Minnett rates NUF as Hold (3) -

Ord Minnett is cautious about the trajectory of the company's recovery. Nufarm now expects first half operating earnings to be significantly lower than the prior year.

The business has been affected by rebate issues in Europe and poor weather conditions across North America and Australasia.

Further growth opportunities exist in the form of Omega-3 canola although Ord Minnett notes seasonal and regulatory risk continues. Hold rating maintained. Target is reduced to $5.10 from $5.35.

Target price is $5.10 Current Price is $4.98 Difference: $0.12
If NUF meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.26, suggesting upside of 25.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

UBS rates NWL as Sell (5) -

While the company has been a beneficiary of adviser fragmentation, the disruption to specialty platform providers is being driven more by technology and independence than fees, UBS observes.

UBS asserts, given this trend, it could subsequently lead to increased competition and platform fee pressure for Netwealth over the medium term. Sell rating and $7.50 target maintained.

Target price is $7.50 Current Price is $8.61 Difference: minus $1.11 (current price is over target).
If NWL meets the UBS target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.75, suggesting downside of -10.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.5

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

UBS rates ORE as Neutral (3) -

UBS revises down FY20 production forecasts and price expectations. The broker believes the outlook for FY20 is challenged and earnings are down materially.

The company has focused on improving the stability of Olaroz during a time of depressed market conditions. However, concerns are still raised about stage 1, which is yet to achieve expected production rates.

UBS maintains a Neutral rating and reduces the target to $2.70 from $2.75.

Target price is $2.70 Current Price is $2.54 Difference: $0.16
If ORE meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.23, suggesting upside of 27.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates PAC as Buy (1) -

Pacific Current has indicated net profit will be $24-25m in FY20, below Ord Minnett's expectations. The shortfall is attributed to a lower contribution from Seizert and delays in returns from Victory Park.

While these may weigh on FY20, the broker suggests recent investments should deliver slight upgrades to FY21 forecasts. Buy rating maintained. Target is reduced to $7.72 from $8.34.

Target price is $7.72 Current Price is $6.70 Difference: $1.02
If PAC meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates PGL as Outperform (1) -

Macquarie suspects the originations guidance is conservative, although more certainty is required and it will take time to restore confidence.

The broker calculates operating earnings (EBITDA) increase 9% for every 10% increase in the level of originations. Outperform rating and $3 target maintained.

Target price is $3.00 Current Price is $2.20 Difference: $0.8
If PGL meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates SBM as Accumulate (2) -

Ord Minnett notes the Gwalia extension project is on track for completion in the third quarter of FY20 and therefore has greater confidence around FY21 and FY22 production forecasts.

The broker includes slightly improved throughput in its model changes and increases sustaining capital expenditure. The broker expects management will now focus on filling the Gwalia mill.

Accumulate maintained. Target is reduced to $3.10 from $3.20.

Target price is $3.10 Current Price is $2.50 Difference: $0.6
If SBM meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Citi rates SGM as Buy (1) -

Sims Metal will sell its European e-recycling business, considered non-core to its strategy of becoming a leader in recycling cloud servers.

Citi notes the divestment will remove a meaningful portion of earnings but proceeds are likely to be redeployed into acquisitions or capital management.

Given recovering scrap markets, and with China likely to allow imports of high-purity zorba in the second half of FY20, Citi retains a Buy rating and $12.10 target.

Target price is $12.10 Current Price is $10.70 Difference: $1.4
If SGM meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $10.09, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Credit Suisse rates SGM as Outperform (1) -

The company has announced the sale of its e-recycling business in Europe, with Credit Suisse calculating an implied return on the sale price of 16.5%.

Over time, increasing competition delivered margin and earnings compression and material value destruction for shareholders, the broker notes.

The broker believes the company's new strategy is to dominate cloud materials recycling as this opportunity emerges. Outperform rating and $10.60 target maintained.

Target price is $10.60 Current Price is $10.70 Difference: minus $0.1 (current price is over target).
If SGM 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 $10.09, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates SGM as Neutral (3) -

The company has sold its European e-recycling business to Remondis for EUR83.5m. Macquarie does not consider this a hefty price tag and suspects that the multiple reflects limited growth potential and competitive market conditions.

However, the operations are fairly profitable and represent a sizeable portion of the company's "very depressed" FY20 earnings (EBIT).

Macro factors are supporting the stock but the broker believes there is increased risk in relying on these factors to support a further re-rating and retains a Neutral rating. Target is raised to $10.80 from $9.05.

Target price is $10.80 Current Price is $10.70 Difference: $0.1
If SGM meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $10.09, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

Sims Metal has sold its European e-recycling operations for EUR83.5m. Proceeds from the sale will be used to strengthen the balance sheet. Morgan Stanley notes, in FY19, the business contributed around 10% of group earnings.

Assuming relatively stable earnings and the removal of nine months of earnings, implies an EBIT impact of -$16.5m relative to the broker's EBIT forecasts for FY20 of $39m.

Equal-weight rating retained. Target is $9.50. Industry view is Cautious.

Target price is $9.50 Current Price is $10.70 Difference: minus $1.2 (current price is over target).
If SGM 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 $10.09, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates SGM as Lighten (4) -

Sims Metal has sold its European e-recycling business to TSR Recycling, a subsidiary of Remondis. Ord Minnett considers the sale logical as the company has flagged the operations as non-core.

However, the loss of an earnings stream that was sizeable and stable may serve to increase earnings volatility. The broker maintains a Lighten rating and raises the target to $9.50 from $8.50.

Target price is $9.50 Current Price is $10.70 Difference: minus $1.2 (current price is over target).
If SGM meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.09, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates SGM as Sell (5) -

The company has sold its European e-recycling asset, its most profitable asset in this division, to Remondis for EUR83.5m. This leaves the key-recycling assets in the US and Australia.

UBS understands the sale will not impact on the UK scrap yards or the company's move to recycling cloud materials. UBS is surprised at the sale of the European asset, given the balance sheet was already strong.

The broker had expected Sims Metal would sell underperforming scrap yards given a challenging outlook for metal recycling. Sell rating and $8.05 target maintained.

Target price is $8.05 Current Price is $10.70 Difference: minus $2.65 (current price is over target).
If SGM meets the UBS target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.09, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

Sigma Healthcare has reached agreement with Chemist Warehouse to resume the distribution of FMCG product. The details of the contract remain commercial in confidence and the company is still assessing the required cost.

Citi incorporates the agreement in forecasts, despite the lack of guidance, and believes the share price now fully reflects the benefits of the contract. Rating is downgraded to Sell from Neutral/High Risk.

The broker expects investors will focus on FY21 and the new long-term targets. Citi estimates that the original $1.7bn contract was worth around $35-40m in earnings (EBIT) and new forecasts assume almost half comes back in FY22. Target is raised to $0.65 from $0.52.

Target price is $0.65 Current Price is $0.74 Difference: minus $0.09 (current price is over target).
If SIG meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.55, suggesting downside of -26.0% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

Credit Suisse rates SIG as Underperform (5) -

Sigma Healthcare has reached a new first-line agreement with Chemist Warehouse for the supply of FMCG product. No details were disclosed but, given the nature and timing, Credit Suisse suspects the company is likely to have achieved better terms.

The unexpected return of the contract is likely to delay cost reductions. Credit Suisse believes, with Sigma winning back the contract, it will need to reinvest in the business and re-hire.

Underperform retained. Target is raised to $0.55 from $0.50.

Target price is $0.55 Current Price is $0.74 Difference: minus $0.19 (current price is over target).
If SIG meets the Credit Suisse target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.55, suggesting downside of -26.0% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

Morgan Stanley rates SIG as Underweight (5) -

The company has a new agreement with Chemist Warehouse for the FMCG portion of the business. Supply is expected to reach a full rate by July 2020. Sales in the first full year of operations are expected to be $700-800m.

However, Morgan Stanley notes this will delay the timing of some of the savings from Project Pivot and may affect FY20 guidance.

Underweight rating, In-Line industry view and $0.49 target.

Target price is $0.49 Current Price is $0.74 Difference: minus $0.25 (current price is over target).
If SIG meets the Morgan Stanley target it will return approximately minus 34% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.55, suggesting downside of -26.0% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

UBS rates SIG as Sell (5) -

Sigma Healthcare has announced a new deal with Chemist Warehouse to recommence as its first-line supplier of FMCG product from December 1, 2019. The new contract is expected to deliver annualised sales of $700-800m.

The company expects this will provide an acceptable return for shareholders but probably delay some savings, impacting FY20 operating earnings guidance.

UBS awaits further clarification on the deal and retains a Sell rating and $0.50 target.

Target price is $0.50 Current Price is $0.74 Difference: minus $0.24 (current price is over target).
If SIG meets the UBS target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.55, suggesting downside of -26.0% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

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

The company has flagged a tough environment and a shift to tax being paid. The re-sets in South Australia and Victoria have an -89 basis points reduction in equity risk premium.

Macquarie updates estimates for the final price outcome for the VPN 2020 pricing and change in the timing of the final decision to July 2021. Target is lowered to $2.37 from $2.41.

Rating is upgraded to Outperform from Neutral. The broker notes the yield of 6% in 2021 is superior to the company's regulated utility peers.

Target price is $2.37 Current Price is $2.14 Difference: $0.23
If SKI meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.26, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates SPK as Neutral (3) -

Macquarie explores the strategy behind Spark Sport and the expected commercial returns. The broker suspects the company is in limbo, now locked into a six-year deal with NZ Cricket and with limited scope to add new content.

As sport is not a major driver, and with only modest earnings growth forecast in the medium term, Macquarie retains a Neutral rating.

The broker notes improving free cash flow and the potential for upside from 5G support the sustainability of the current dividend. Target is raised to NZ$4.59 from NZ$4.45.

Current Price is $4.26. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.0

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

UBS rates VCX as Neutral (3) -

UBS updates earnings to account for recent asset sales. The broker suspects Vicinity Centres may shift back to capitalising lost rent in order to reduce earnings volatility.

While lower debt costs continue to provide a buffer to any underlying cash flow weakness, the broker notes assets remain under pressure. Neutral rating and $2.60 target maintained.

Target price is $2.60 Current Price is $2.63 Difference: minus $0.03 (current price is over target).
If VCX 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 $2.55, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

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

Westpac has announced it will work through its response to AUSTRAC's statement of claim, commencing an independent review and appointing an external expert.

The bank is also withholding all, or part of, the grant of the 2019 short-term variable reward to the full executive team. The company's -$80m pre-tax cost of the response is expected to be included in FY20 cash earnings as a notable item.

Equal-weight rating maintained. Target is $25.50. Industry view: In Line.

Target price is $25.50 Current Price is $24.83 Difference: $0.67
If WBC meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $26.89, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Ord Minnett rates WBC as Hold (3) -

Westpac has announced a response to the allegations by AUSTRAC. The bank has committed to close in the LitePay product, lifting staff levels to address legal requirements of the anti-money laundering and counter-terrorism financing act, as well as changing reporting lines and appointing an external expert.

The pre-tax expense is estimated at -$80m for FY20. Also, CEO Brian Hartzer has just announced his departure and chairman Lindsay Maxted will retire early. The board does not believe there has been any indifference by the executive team, but has instigated a review to investigate the facts.

Ord Minnett notes Westpac has lost about -$6bn of its market capitalisation over the past three days which substantially prices in the risk and impact from the AUSTRAC action and maintains a Hold rating and $26.70 target.

Target price is $26.70 Current Price is $24.83 Difference: $1.87
If WBC meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $26.89, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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