Australian Broker Call

Macquarie rates ABP as Outperform (1) -

Abacus Property Group has acquired the remaining 75% stake in Storage King for $50m. Macquarie assesses the transaction to be circa 1% accretive to the group's annualised funds from operations (FFO).

The broker considers the acquisition consistent with the group's strategy, providing Abacus Property with avenues for further growth.

Target rises to $3.11 from $3.08. Outperform retained.

Target price is $3.11 Current Price is $2.85 Difference: $0.26
If ABP meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.94, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates ABP as Hold (3) -

Abacus Property Group will be acquiring the remaining 75% interest in Storage King for $50m. 

Ord Minnett believes the acquisition will simplify managing Abacus’s storage assets and provide an avenue to grow management fees. Further, the move will enable Abacus to retain the ability to leverage the platform and expand its own portfolio.

Hold recommendation is retained with the target price increasing to $3.20 from $3.10.

Target price is $3.20 Current Price is $2.85 Difference: $0.35
If ABP meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.94, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates ALQ as Outperform (1) -

The global drilling company Boart Longyear expects exploration activity will continue for longer into the year and will start earlier in 2021 as miners try to cover lost ground in 2020.

The current commodity prices are expected to encourage more investment back into the sector and Boart Longyear expects a better outlook for mining and exploration in the third quarter.

Macquarie expects ALS's net profit for the first half to be $82m, down -16% versus last year.

Outperform rating is retained with a target price of $10.30.

Target price is $10.30 Current Price is $9.31 Difference: $0.99
If ALQ meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $9.11, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates ANN as Underperform (5) -

Ansell's first four months into FY21 saw better than expected sales and successful management of cost increase. This has led the protective equipment manufacturer to upgrade its FY21 earnings growth guidance to US135c-US145c. 

In the near term, Macquarie considers Ansell positively leveraged to the demand for PPE on account of covid-19. Over the medium term, the broker is more cautious on the outlook noting the limited barriers to entry for its exam products. 

Underperform and target rises to $33.35 from $31.80.

Target price is $33.35 Current Price is $40.97 Difference: minus $7.62 (current price is over target).
If ANN meets the Macquarie target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $41.09, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Morgan Stanley rates ANN as Overweight (1) -

Ansell has upgraded FY21 guidance, representing a change of around 6% at the mid-point, calculates Morgan Stanley. The broker highlights demand for PPE is likely to remain elevated for some time.

There are several reasons to stay overweight the stock as the analyst expects FY21 organic growth to be substantially higher than the 3-5% long-term target level, and given the early timing of the upgrade could indicate conservatism on behalf of management.

Additionally, balance sheet flexibility is considered to offer optionality. The Overweight rating is unchanged. Target is increased to $45.50 from $43.50. Industry view is In-Line.

Target price is $45.50 Current Price is $40.97 Difference: $4.53
If ANN meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $41.09, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Macquarie rates BXB as Outperform (1) -

Brambles today provided a trading update while also updating guidance for FY21 towards the top end of the range provided with the release of FY20 financials in August.

Macquarie, in an initial response, notes its current projections are in-line with today's updated guidance. The broker says it is not overly concerned by the near-term margin impacts from higher costs, which are pandemic-related.

Importantly, operating leverage is back, enthuses the analyst, supported by the ongoing expectation of a 1%pt margin improvement in US margins, albeit skewed to 2H FY21.

Macquarie seems content sticking with its Outperform rating and a $12.35 price target.

Target price is $12.35 Current Price is $9.56 Difference: $2.79
If BXB meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $12.23, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Macquarie rates CCX as Outperform (1) -

Macquarie looks at opportunities in the plus-size market offshore and suggests City Chic Collective could consider some M&A opportunities which may be an effective means of customer acquisition offshore.

The broker is of the view City Chic could find opportunities among the "vulnerable" plus-size market participants currently in financial distress.

Outperform rating retained with a target price of $4.30.

Target price is $4.30 Current Price is $2.53 Difference: $1.77
If CCX meets the Macquarie target it will return approximately 70% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting upside of 45.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates COE as Add (1) -

Cooper Energy announced an interim agreement at the Sole gas project, with plant operator APA Group ((APA)) and its industrial and energy retailer customers. 

Morgans assesses the interim agreement is a material positive and will allow the company to start selling gas into the GSAs (gas sales agreements) it has with its Sole customers, starting with its industrial customers on 1 December 2020 and energy retailer customers on 1 January 2021.

Separately, the company posted a first quarter result in-line with the broker's expectations. The company has not provided FY21 guidance.

Morgans lowers 2021 estimates for Sole to sit in line with the transition agreement. As a result, the target has been reduced to $0.43 from $0.46.  Although at the same time, the analyst notes the improvement in risk profile from securing the transition agreement and maintains the Add rating.

Target price is $0.43 Current Price is $0.32 Difference: $0.11
If COE meets the Morgans target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $0.42, suggesting upside of 30.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates CSR as Outperform (1) -

CSR's first-half net profit beat consensus by 31% while being ahead of Credit Suisse's estimate by 8%. Stronger building products segment operating income was offset by weakness in aluminium and corporate.

While acknowledging a reduction in marketing and travel costs, CSR insists there will be no snap-back in FY21 although the broker allows for a cost increase of -$5m.   

The company continued to surprise by establishing a record of above-market revenue performance and good cost management. Outperform rating is retained with the target rising to $5.40 from $5.30.

Target price is $5.40 Current Price is $4.66 Difference: $0.74
If CSR meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates CSR as Outperform (1) -

First half net profit was ahead of Macquarie's estimates. The highlight for the broker was the EBIT performance in building products and the declaration of 12.5c in interim dividends, including a 4c special.

The broker believes the restructuring initiatives aimed at cost reductions by FY22 position the business well in the current environment.

The broker was less impressed with aluminium earnings and the lack of visibility associated with coal-related cost exposures. Macquarie retains an Outperform rating and raises the target to $5.10 from $4.60.

Target price is $5.10 Current Price is $4.66 Difference: $0.44
If CSR meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

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

CSR's first half earnings (EBIT) were in-line with Morgan Stanley's expectation. The buiding products division's earnings were flat but 17% above the broker's forecast, while the aluminium division earnings were lower than forecast.

The building products business held up well in the face of cyclical and covid-related headwinds, in the opinion of the analyst. It appears that the Gyprock business has taken share, and across building products margins held up better than anticipated given top-line
declines.

The interim dividend of 8.5 cents was complemented by a 4c special dividend and combined was above the broker's expectation of 9 cents. 

The Equal-weight rating and target of $4.70 are unchanged. The industry view is cautious.

Target price is $4.70 Current Price is $4.66 Difference: $0.04
If CSR meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates CSR as Accumulate (2) -

CSR's first-half FY20 net profit beat Ord Minnett's estimate by 11.3%. Group operating earnings were 4.3% ahead of the broker's estimate. An interim dividend of 8.5c per share (fully franked) was declared, above Ord Minnett's 7.5c along with a special dividend of 4c per share.

Tighter cost control saw higher building product margin. Management remains cautious on the outlook for demand due to the ongoing uncertainty and headwinds but the broker is more upbeat and believes CSR would benefit from a resurgence in the detached housing market.

Target rises to $5.00 from $4.80. Accumulate recommendation is maintained.

Target price is $5.00 Current Price is $4.66 Difference: $0.34
If CSR meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

UBS rates CSR as Buy (1) -

CSR reported first half profit (NPAT) 32% above the forecast by UBS. The beat came from building products, driven by better revenues and earnings (EBIT) margins, explains the broker.

The aluminium result was in-line, but the second half is expected to be weaker than anticipated. The company cites reduced discretionary spending, streamlining businesses and operational improvements for the beat.

While some costs are expected to return as business conditions normalise, the analyst considers as long as market activity does not weaken significantly from here, margins have upside.

The company's dividend and special dividend surprised the broker to the upside. More shareholder returns are likely, in the opinion of UBS, due to net cash and certainty over near term property cash flows.

Buy rating maintained with the target increased to $5.19 from $4.77.

Target price is $5.19 Current Price is $4.66 Difference: $0.53
If CSR meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates DRR as Initiation of coverage with Outperform (1) -

Macquarie assesses Deterra Royalties offers a low volatility exposure to iron ore, as a 10% move in iron ore translates to a 10-12% move in earnings and valuation.

The broker initiates coverage with an Outperform rating and $5 target. The core royalty is over BHP Group's ((BHP)) Mining Area C. There are four others besides this but only one of them is generating revenue.

The positive view is underpinned by a firm dividend policy of 100% pay-out of earnings. A modest dividend is expected in 2020.

Target price is $5.00 Current Price is $4.06 Difference: $0.94
If DRR meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.27, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

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 GPT as Outperform (1) -

GPT has announced plans to divest a 25% stake in 1 Farrer Place Sydney. The proceeds will be reinvested in new opportunities including logistics development.

Given the strength of the balance sheet, Macquarie questions the rationale. While recognising the development pipeline has higher returns, the broker points out it also carries greater risk.

Outperform and $4.48 target retained.

Target price is $4.48 Current Price is $4.15 Difference: $0.33
If GPT meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.40, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in December.

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 IAG as Hold (3) -

Insurance Australia Group’s new CEO, Nick Hawkins announced a restructure of reporting lines that will see the Australia division being split into direct insurance and intermediated.

The current head of the Australia Insurance business - Mark Millner - will leave in November 2020. Ord Minnett retains its Hold rating and $5.08 target.

Target price is $5.08 Current Price is $4.68 Difference: $0.4
If IAG meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.85, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates IDX as Outperform (1) -

Revenue growth of 4.2% was recorded in the September quarter and, being lower than the growth in national benefits, Macquarie assesses this reflects a higher relative exposure to Victoria.

Still, the broker continues to believe the business is well-positioned for growth over the longer term as the industry fundamentals are attractive and there will be contributions from internal projects.

Macquarie retains an Outperform rating and increases the target to $5.20 from $4.95.

Target price is $5.20 Current Price is $4.12 Difference: $1.08
If IDX meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $4.76, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

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

Lovisa Holdings has announced stores will be temporarily closed in France (24 stores) and the UK (40 stores) due to an increase in covid-19 cases.

The stores will be closed until at least 1 Dec 2020. These stores account for around 15% of the total network. All stores in metro Melbourne are now re-opened.

Morgan Stanley thinks this announcement is a slight negative due to the potential for FY21 consensus earnings to be revised lower and a delay in the ramp-up of the global store roll-out.

The broker also believes the market is likely to look through this development given the company has shown an ability to improve the sales momentum once stores re-open.

Morgan Stanley maintains its Equal-weight rating with a target price of $7.15. Industry view: In-line.

Target price is $7.15 Current Price is $7.26 Difference: minus $0.11 (current price is over target).
If LOV meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.90, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans - Cessation of coverage

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

Morgans rates NCM as Hold (3) -

Despite record low all in sustaining costs (AISC) at Cadia for the quarter, Newcrest Mining's gold production was down and group AISC up to US$930/oz, explains Morgans.

Gold production was down to 503koz for the group after a number of planned maintenance shutdowns across operations in the period.

Lihir missed on the back of additional unplanned downtime and reduced grade and recovery (72.6%), while Telfer production was at a sharply higher A$1.797/oz on planned shutdowns, outlines the broker.

Telfer is considered strategically important for the Havieron Project 45km away. The Hold rating is unchanged and the target is reduced to $32.38 from $34.3.

Target price is $32.38 Current Price is $29.58 Difference: $2.8
If NCM meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $34.88, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Credit Suisse rates OGC as Outperform (1) -

Credit Suisse is disappointed with OceanaGold Corp's September quarter results led by its Haile operations. The company has guided to a better December quarter and expects better grades at the Macraes/Haile operations.

The September quarter was also impacted by a -US$80m impairment from Didipio, which the broker considers is at risk of a further write-down. 

The broker takes a longer-term view and considers OceanaGold one of the few gold companies with genuine growth opportunities. Target is trimmed to $3.35 from $3.85. Outperform retained.

Target price is $3.35 Current Price is $1.85 Difference: $1.5
If OGC meets the Credit Suisse target it will return approximately 81% (excluding dividends, fees and charges).

Current consensus price target is $3.03, suggesting upside of 60.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

UBS rates ORG as Buy (1) -

UBS notes Origin Energy's September quarter result saw APLNG report the strongest realised LNG prices across the sector, averaging US$5.81/mmbtu.

At the same time, the company remains the only one across the broker's energy coverage whose current market price is below valuation, at spot oil prices.

APLNG sales revenue was 8% ahead of the broker, as lower sales volumes were offset by the stronger realised LNG pricing.

Origin's energy markets division reported encouraging electricity and gas retail volumes, and now exceed pre-covid-19 levels, notes the analyst.

UBS reaffirms its Buy rating with the target price increasing to $7.40 from $7.35.

Target price is $7.40 Current Price is $4.01 Difference: $3.39
If ORG meets the UBS target it will return approximately 85% (excluding dividends, fees and charges).

Current consensus price target is $6.29, suggesting upside of 46.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates PBH as Upgrade to Buy from Hold (1) -

PointsBet Holdings’ first-quarter update shows the business to be in a ramp-up phase. Customer acquisition was above Ord minnett's expectations while the turnover numbers for both the US and Australia were ahead of forecasts.

The broker notes PointsBet has been live in Illinois for 3 weeks in the September quarter but could be a source of material near term turnover. A number of states have seen some progress regarding potential legalisation.

Ord Minnett upgrades to Buy from Hold. Target declines to $12.80 from $13.60.

Target price is $12.80 Current Price is $9.80 Difference: $3
If PBH meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates RMD as Add (1) -

ResMed’s first quarter was above Morgans expectations, underpinned by high single digit revenue growth and expanding gross margins, with lower operating expenses driving ongoing operating leverage.

The broker highlights ventilators continue to benefit from covid-19 demand, albeit slowing, driving an around 6% sales uplift and helping to overcome softness in the sleep business and SaaS.

A faster than expected recovery in patient diagnosis, ongoing strong masks resupply, and benign pricing environment, point to solid profitable growth, says the analyst; especially when coupled with pandemic-induced acceleration of macro trends.

Management continues to expect a U-shaped recovery through FY21, with covid-19 ventilator demand waning and sleep device headwinds, notes the broker. 

Morgans raises FY21-23 earnings estimates and increases the target to $30.99 from $29.33. The Add rating is unchanged

Target price is $30.99 Current Price is $27.47 Difference: $3.52
If RMD meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $27.76, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

Credit Suisse rates SPK as Neutral (3) -

Despite the softer yields and resilient business performance, Credit Suisse notes no material investment interest in Spark New Zealand.

Even against a softer economic outlook, the broker sees Spark New Zealand comparatively well placed to offset the revenue headwind with its track record on cost.

The analyst suggests Spark's earnings could be under pressure over the next 18-24 months due to competition in broadband from Sky TV.

Neutral rating retained with the target rising to NZ$4.62 from NZ$4.38.

Current Price is $4.25. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Ord Minnett rates TWE as Hold (3) -

Ord Minnett reviewed investor feedback on Treasury Wine Estates and found China's investigation is a key share price driver.

In the absence of an interim ruling, there is no near-term positive. The broker believes the investigation could see a greater reallocation of wine from China.

The broker sees upside risk in Asia following the strong first-quarter wine export data. Hold recommendation is reaffirmed with a $10 target price.

Target price is $10.00 Current Price is $9.24 Difference: $0.76
If TWE meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $11.31, suggesting upside of 26.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates URW as Neutral (3) -

The company has provided 2020 guidance of EUR7.2-7.8/share, which is below Macquarie's expectations. The broker had assumed there would be broadly similar earnings over the second half compared with the first.

The reduction in earnings stems from elevated rental relief as larger agreements are executed. The second wave of coronavirus across Europe will also affect the fourth quarter.

The broker considers uncertainty surrounding the corporate strategy is significant and retains a Neutral rating. Target is $2.74.

Target price is $2.74 Current Price is $2.94 Difference: minus $0.2 (current price is over target).
If URW 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 $3.77, suggesting upside of 30.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: -0.3

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

Credit Suisse rates WBC as Outperform (1) -

Credit Suisse comments Westpac Bank's FY20 result was in-line with expectations and put to rest fears with respect to credit quality, capital and dividends. Even so, Credit Suisse considers the outlook around revenue and expenses to be worse than expected.

A disappointed Credit Suisse has downgraded its earnings forecasts by -3-8% across FY21-23 assuming lower revenue on the back of lower loan balances, fee pressure and higher expenses.

Believing Westpac will benefit from a sector-led recovery and the knowledge that credit issues are not as bad as expected, Credit Suisse retains its Outperform rating and $20.60 target.

Target price is $20.60 Current Price is $17.80 Difference: $2.8
If WBC meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $19.89, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates WBC as Outperform (1) -

FY20 was a challenging year for the banks, Macquarie asserts, and particularly for Westpac. The broker finds it disappointing pre-provision trends are likely to persist into FY21.

The broker believes Westpac needs to improve its underlying performance and deliver productivity benefits that will drive better cost performance and close the valuation gap to peers.

In contrast to the disappointing volume growth, capital generation was better than expected. Outperform retained. Target is $18.

Target price is $18.00 Current Price is $17.80 Difference: $0.2
If WBC meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $19.89, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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) -

The composition of earnings in the second half disappointed Morgan Stanley. The broker suspects a meaningful turnaround in franchise performance and operating earnings is unlikely in FY21.

The broker suspects, recently, Westpac has found it more difficult to manage costs compared with peers. The broker is factoring in some recovery in non-interest income.

Despite the CEO being "very pleased" with the CET1 ratio of 11.1%, Morgan Stanley suggests the ongoing capital build will weigh on dividend prospects.

Equal-weight rating retained. Target is reduced to $17.00 from $17.50. Industry view: In-line.

Target price is $17.00 Current Price is $17.80 Difference: minus $0.8 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.89, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates WBC as Add (1) -

The Westpac FY20 cash earnings were -6% less than Morgans had expected, due to -0.7% lower-than-expected revenue and 1.2% higher-than-expected costs.

The final dividend of 31cps fully franked was lower than the 38cps expected by the broker. Morgans believes the dividend outlook is supported by an improvement in the asset quality outlook.

With increased confidence in dividend normalisation, the broker expects share price upside from cost of equity compression. (The cost of equity is the compensation the market demands in exchange for owning an asset and bearing the risk of ownership).

The analyst reduces cash EPS forecasts by -9.2% and -10.6% for FY21 and FY22, respectively.

The Add rating is unchanged and the target is decreased to $21.50 from $22.50.

Target price is $21.50 Current Price is $17.80 Difference: $3.7
If WBC meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $19.89, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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 Bank's FY20 cash net profit at $2.608bn was mostly in-line with Ord Minnett’s $2.625bn forecast. A final dividend (fully franked) of 31c per share was declared, higher than the broker's 25c estimate.

The second-half cash net profit was just slightly below the broker's forecast, despite impairment expenses coming out well below expectations.

The bank will set out a three-year cost plan at its first-half FY21 result. Ord Minnett expects costs in FY21 to be up slightly and expects core earnings to remain under pressure over FY22-23.

The broker retains its Hold rating with the target price reducing to $18.10 from $18.80.

Target price is $18.10 Current Price is $17.80 Difference: $0.3
If WBC meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $19.89, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates WBC as Buy (1) -

After the FY20 results, UBS considers underlying earnings trends remain weak for Westpac. The balance sheet appears solid to the broker, with Common Equity Tier 1 (CET1) at 11.13%, coming in 20 basis points above forecast, given lower risk weighted assets (RWA).

An underwritten dividend reinvestment plan (DRP) further strengthens capital, notes the analyst. Deferred mortgages are down -70% (to 4% of book) and deferred SME loans are down -90% (to 2% of book), calculates the broker.

The bank's second half credit impairment charge of -$940m came in lower than UBS expected. Importantly, the charge fell very sharply to just -$115m in the fourth quarter.

Buy rating and $20.50 target are unchanged.

Target price is $20.50 Current Price is $17.80 Difference: $2.7
If WBC meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $19.89, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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