Australian Broker Call

Deutsche Bank rates ALL as Buy (1) -

North American peer IGT has posted an earnings result that surprised to the upside, but gaming revenues declined. The broker believes Aristocrat is continuing to gain market share.

Buy and $27.40 target retained.

Target price is $27.40 Current Price is $20.76 Difference: $6.64
If ALL meets the Deutsche Bank target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $24.43, suggesting upside of 17.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Deutsche Bank rates ALQ as Hold (3) -

The June Q earnings result from US peer Foraco suggests to the broker the recovery in minerals testing continues, which is a positive for ALS, albeit the pace of recovery remains static.

Hold and $7.73 target retained.

Target price is $7.73 Current Price is $7.60 Difference: $0.13
If ALQ meets the Deutsche Bank target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $7.08, suggesting downside of -8.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Credit Suisse rates API as Underperform (5) -

The company has downgraded FY17 net profit growth to around 5% from prior guidance of at least 10%.The downgrade is from a further deterioration in consumer sentiment despite the company maintaining retail market share.

Credit Suisse lowers revenue growth and margin assumptions for the retail division. Target is reduced to $1.75 from $1.90. Underperform retained.

Target price is $1.75 Current Price is $1.76 Difference: minus $0.01 (current price is over target).
If API meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.81, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -1.0

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

Credit Suisse rates AQG as Outperform (1) -

June quarter production was in line with guidance. Credit Suisse observes the sulphide project is on schedule and coming in under budget.

Outperform and $5.30 target retained.

Target price is $5.30 Current Price is $2.17 Difference: $3.13
If AQG meets the Credit Suisse target it will return approximately 144% (excluding dividends, fees and charges).

Current consensus price target is $3.88, suggesting upside of 80.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 1.0

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

Deutsche Bank rates AQG as Buy (1) -

Copler production fell short of the broker's estimate in the June Q but 2017 guidance has been maintained on an expected pick-up in the second half. The Copler sulphide project is the major driver, and here the capex budget is being reduced by courtesy of the Turkish lira exchange rate.

Alacer is fully funded to deliver first gold in the second half of 2018 and the broker sees excellent value. Buy retained. Target falls to $4.10 from $4.20.

Target price is $4.10 Current Price is $2.17 Difference: $1.93
If AQG meets the Deutsche Bank target it will return approximately 89% (excluding dividends, fees and charges).

Current consensus price target is $3.88, suggesting upside of 80.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 1.0

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

Macquarie rates AQG as Outperform (1) -

June quarter production was weaker than Macquarie expected. Full year guidance is unchanged and the company is observed to be making good progress on the sulphide project.

The sulphide project is now 48% complete and on track for first gold in the third quarter of 2018. The broker observes the company is in a stronger funding position than previously forecast and appears set to realise further savings.

Outperform. Target is $2.80.

Target price is $2.80 Current Price is $2.17 Difference: $0.63
If AQG meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $3.88, suggesting upside of 80.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 1.0

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

UBS rates AQG as Buy (1) -

June quarter results were in line with UBS. Construction of the sulphide project is on time and capital expenditure has been trimmed.

Nevertheless, with around 12 months to first gold and nameplate production not expected until 2019, the broker suggests investors are in little hurry to re-price the stock.

There is also considerable choice domestically and other gold exposures have a greater leverage to gold price movements. Buy. Target is $4.30.

Target price is $4.30 Current Price is $2.17 Difference: $2.13
If AQG meets the UBS target it will return approximately 98% (excluding dividends, fees and charges).

Current consensus price target is $3.88, suggesting upside of 80.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 1.0

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

UBS rates BDR as Neutral (3) -

June quarter production disappointed. UBS believes, with investors having significant choice locally, the company will need to do more to reduce production variability to offer the value that can offset the currency risk.

The broker considers the risk profile is skewed to the downside as a significant lift in grades is needed to underpin 2017 production guidance. Neutral retained. Target is reduced to $0.21 from $0.23.

Target price is $0.21 Current Price is $0.20 Difference: $0.015
If BDR meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $0.24, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Deutsche Bank rates BLD as Buy (1) -

US-based Heidelberg Cement has reported its June Q result, noting strong pricing and volumes in Australian concrete and aggregates. Boral's acquisition of Headwaters reduces the impact of Australian earnings but the broker believes strong east cast demand will remain a driver through FY17 and beyond.

Buy and $7.96 target retained.

Target price is $7.96 Current Price is $6.81 Difference: $1.15
If BLD meets the Deutsche Bank target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $7.07, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.7

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

Citi rates BWP as Sell (5) -

Citi analysts comment FY17 performance met their expectations, but FY18 guidance was cautious, reflecting ongoing leasing headwinds. Given increased uncertainty, the analysts view current valuation as "generous".

Target price has appreciated to $2.65 from $2.62. Sell rating retained as the analysts also believe investor sentiment now represents an additional headwind.

Target price is $2.65 Current Price is $2.90 Difference: minus $0.25 (current price is over target).
If BWP 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 $2.77, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.8

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

Morgan Stanley rates BWP as Underweight (5) -

FY17 results were in line with Morgan Stanley's estimates. FY18 guidance is supported by capital profits and highlight for the broker how the investment proposition is moving up the risk curve.

Underweight rating, Cautious industry view and $2.60 target retained.

Target price is $2.60 Current Price is $2.90 Difference: minus $0.3 (current price is over target).
If BWP meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.77, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.8

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

Ord Minnett rates BWP as Hold (3) -

FY17 earnings per share of 17.51c was up 4.3%, in line with expectations. While management would not be drawn on the extent to which underlying earnings are expected to decline over the next 12 months, Ord Minnett estimates about -2%.

Hold rating retained. Target reduced to $3.10 from $3.20.

Target price is $3.10 Current Price is $2.90 Difference: $0.2
If BWP meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.77, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.8

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

UBS rates BWP as Sell (5) -

UBS believes the risk profile is considerably increased over the next three years as the company looks to re-let and re-develop a material proportion of its portfolio.

The broker does not believe the 6% distribution yield compensates for the execution risk. Moreover, a lack of clarity around capital expenditure and returns does not provide confidence. Sell maintained. Target is raised to $2.73 from $2.66.

Target price is $2.73 Current Price is $2.90 Difference: minus $0.17 (current price is over target).
If BWP meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.77, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.8

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

Ord Minnett rates CGF as Lighten (4) -

Ord Minnett is concerned about the valuation metrics as the business model relies on generating earnings predominantly through leverage in risk assets.

Nevertheless, the market likes the strong volume growth outlook and the broker believes it will be difficult for the company to disappoint in this aspect.

The broker envisages no immediate catalyst for a de-rating but believes a capital raising is likely in the near future to fund growth and there are clear risks if property values fall. Lighten rating unchanged. Target is raised to $9.30 from $9.00.

Target price is $9.30 Current Price is $12.62 Difference: minus $3.32 (current price is over target).
If CGF meets the Ord Minnett target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.25, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Macquarie rates GMA as Outperform (1) -

First half net profit beat Macquarie's forecasts, with the variance largely reflecting claims that were around -$30m below expectations.

The broker expects earnings will support a 10% dividend yield for FY17 and FY18 and the forecast trajectory of regulatory capital requirements supports ongoing capital returns..

Outperform rating retained. Target rises to $3.66 from $3.63.

Target price is $3.66 Current Price is $3.20 Difference: $0.46
If GMA meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

UBS rates GMA as Sell (5) -

First half reported net profit was ahead of UBS estimates, boosted by one-of claims recovery. The company has announced a $100m buy-back, which drives upgrades to earnings per share of 3.4% in FY17 and 4.2% in FY18.

UBS believes more buy-backs are likely but, with the stock now back at a -15-20% discount to net asset value, these are becoming less accretive for shareholders.

The broker does not believe the shares sufficiently reflect the risk of NSW and Victoria following the mining states and experiencing some normalisation of cyclically low delinquencies. Sell rating and $2.60 target maintained.

Target price is $2.60 Current Price is $3.20 Difference: minus $0.6 (current price is over target).
If GMA meets the UBS target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Morgans rates GWA as Hold (3) -

While building activity is easing, Morgans believes favourable conditions should still support earnings in FY17, given the lag between approvals and completions, when most of the company's products are installed.

Hold rating retained. Target rises to $3.00 from $2.56.

Target price is $3.00 Current Price is $3.19 Difference: minus $0.19 (current price is over target).
If GWA meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.69, suggesting downside of -16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.6

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

Deutsche Bank rates IPL as Buy (1) -

US peer Mosaic posted a strong June Q result, but subdued outlook commentary and lowered guidance led to a -5% share price fall, the broker notes. The company nevertheless expects a recovery in phosphate demand, with China the swing factor.

Despite the subdued outlook, the broker retains Buy and a $4.15 target for Incitec.

Target price is $4.15 Current Price is $3.22 Difference: $0.93
If IPL meets the Deutsche Bank target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $3.70, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Deutsche Bank rates JHX as Buy (1) -

The June Q earnings report for US peer Louisiana-Pacific was positive, with siding volumes increasing by 3%. The broker concurs with the company's expectation for US housing start growth.

Buy and $22.39 target retained for James Hardie.

Target price is $22.39 Current Price is $18.93 Difference: $3.46
If JHX meets the Deutsche Bank target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $21.03, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.6

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

Citi rates MTR as Downgrade to Neutral from Buy (3) -

Citi downgrades to Neutral from Buy on the belief that consensus market forecasts are too optimistic, albeit not dramatically so. One factor mentioned is the anticipated Commonwealth Games uplift which Citi suggests is likely to be more moderate than the market expects.

A strong Aussie dollar represents yet another downside risk, point out the analysts. Estimates have been cut. Price target drops to $3.15 from $3.27 in response.

Target price is $3.15 Current Price is $2.95 Difference: $0.2
If MTR meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.26, suggesting upside of 18.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Morgan Stanley rates MTR as Downgrade to Equal-weight from Overweight (3) -

Morgan Stanley observes strength in Australian outbound growth and moderation in inbound growth as a higher Australian dollar makes the country more expensive for foreigners and translation of offshore assets.

The broker finds it hard to draw many positives for the company from the current conditions and downgrades to Equal-weight from Overweight. Target is reduced to $3.20 from $4.20.  Industry view is In-Line.

Target price is $3.20 Current Price is $2.95 Difference: $0.25
If MTR meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.26, suggesting upside of 18.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Macquarie rates NUF as Outperform (1) -

Ahead of the company's FY17 results on September 26 Macquarie reviews the outlook. The broker believes the internal initiatives and options on M&A provide a clear path to growth.

Below-average rainfall in some regions of Australia has reduced plantings and that is negative for the Australasian business.

Meanwhile, North America is observed to be going well and the broker forecasts a 21% lift in EBIT in the second half. South America is mixed, with Brazil performing well but not sufficient to offset weakness in Argentina.

Outperform rating retained. Target is reduced to $9.90 from $10.30.

Target price is $9.90 Current Price is $8.55 Difference: $1.35
If NUF meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $9.58, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

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

Morgan Stanley considers Navitas a company in transition, as it re-negotiates contracts and changes its relationship with some customers.

The broker observes the recent divergence in the share price performance with IDP Education ((IEL)) has been stark. Navitas shares are down -10% whereas IDP shares are up 29%.

Morgan Stanley believes it is appropriate that Navitas shares trade at a meaningful discount to IDP and calculates -10-30% is justified. Equal-weight rating retained. Target is lowered to $4.50 from $4.95. Industry view: Attractive.

Target price is $4.50 Current Price is $4.32 Difference: $0.18
If NVT meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.40, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Deutsche Bank rates OFX as Hold (3) -

Ozforex' AGM noted 1% active client growth from end FY17 (March), down from 4% for FY17. Volumes increased by 8%, as they did in FY17, despite cycling Brexit volatility.

Limited growth in clients outside of North America remains a key concern for the broker, although volatility across currency pairs has indeed remained subdued. Ironically, the strong Aussie dollar acts as a headwind for US-driven earnings. Hold and $1.60 target retained.

Target price is $1.60 Current Price is $1.67 Difference: minus $0.07 (current price is over target).
If OFX meets the Deutsche Bank target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Citi rates RIO as Buy (1) -

It appears Rio Tinto's interim financial performance fell short of market expectations, including Citi's. The analysts are anticipating market consensus will be reduced by single digit percentages for the years ahead. Citi estimates have been cut.

The analysts add the company topped up its on market share buyback program in the UK by US$1bn, but this was widely expected. Most importantly, Citi points out there is circa 25% upside at spot iron ore prices for 2H17. Buy rating and $66 price target retained.

Target price is $66.00 Current Price is $65.84 Difference: $0.16
If RIO meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $71.50, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.8

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

Credit Suisse rates RIO as Outperform (1) -

First half numbers were below Credit Suisse expectations. With capacity for further capital returns the broker believes there is a lot to like about the stock.

Unlike prior periods of higher dividends and a lacklustre outlook leading to a poor share price performance after the results, the broker believes the current dynamics in iron ore and aluminium, coupled with capital discipline and appropriate returns, mean the stock can now attract generalist investors and a higher valuation.

Outperform rating and $72 target retained.

Target price is $72.00 Current Price is $65.84 Difference: $6.16
If RIO meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $71.50, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.8

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

Deutsche Bank rates RIO as Buy (1) -

Rio's result was a tad below the broker. The strong interim dividend and extended buyback nevertheless means management is delivering constant returns to shareholders.

A repeatable buyback, debt reduction, capex beats, further divestments, productivity gains and counter-cycle investment in growth lead the broker to suggest Rio is executing the most compelling strategy in the mining sector. Buy and $73 target retained.

Target price is $73.00 Current Price is $65.84 Difference: $7.16
If RIO meets the Deutsche Bank target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $71.50, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.8

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

Macquarie rates RIO as Outperform (1) -

First half earnings were in line with Macquarie's expectations. Capital returns were boosted by a US$1.0bn increase in the buy-back, which offset a softer interim dividend.

Macquarie expects the bulk of the proceeds from the sale of Coal & Allied will be returned via an increase in the buy-back. Outperform rating and $78 target retained.

Target price is $78.00 Current Price is $65.84 Difference: $12.16
If RIO meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $71.50, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.8

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

Morgan Stanley rates RIO as Overweight (1) -

Morgan Stanley considers the first half outstanding, although free cash flow and net debt were helped by low cash taxes and capital expenditure.

Cash distributions to shareholders exceed the broker's estimates by 8%. Overweight rating maintained. Target is $72. Industry view: Attractive.

Target price is $72.00 Current Price is $65.84 Difference: $6.16
If RIO meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $71.50, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.8

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

Morgans rates RIO as Hold (3) -

First half earnings were below expectations. The company has surprised with pay-out ratio of 75% as well as an increased share buy-back versus expectations.

Morgans had expected the company to pay out 60% of underlying earnings as an ordinary dividend. Instead, Rio Tinto has elected to pay an interim dividend of US$1.10 and announced an additional share buy-back of US$1.0bn to make a total 75% pay-out.

The CEO has made clear that the company does not see compelling value in M&A and prefers to develop a low number of projects to ensure optimal development outcomes.

Hold rating maintained. Target is reduced to $61.99 from $62.30.

Target price is $61.99 Current Price is $65.84 Difference: minus $3.85 (current price is over target).
If RIO meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $71.50, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.8

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

Ord Minnett rates RIO as Accumulate (2) -

First half earnings were below Ord Minnett's forecasts. Nevertheless, the broker maintains an Accumulate recommendation given the attractive metrics.

Capital returns were above the broker's forecasts, with a US$3bn return comprising a US$1bn additional share buy-back and an interim dividend of US$1.10 a share.

The broker also believes the stock is likely to be back in a consensus upgrade cycle, given strength in the iron ore price. Target is reduced to $71 from $72.

Target price is $71.00 Current Price is $65.84 Difference: $5.16
If RIO meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $71.50, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.8

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

UBS rates RIO as Buy (1) -

First half earnings were below UBS estimates. Cash generation was assisted by lower capital expenditure. The broker notes the company has delivered on a commitment to return cash to shareholders by way of a dividend of US$1.10 and a US$1bn addition to the on-market buy-back.

A US$2bn reduction in net debt was also ahead of expectations. The broker believes the market should focus on the potential for returns to grow from this point. Buy rating retained. Target is raised to $78 from $75.

Target price is $78.00 Current Price is $65.84 Difference: $12.16
If RIO meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $71.50, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.8

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

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

Q4 numbers proved better than expected and Citi analysts are of the view that management's guidance for FY18 looks "cautious", seen as a reflection of company's expectation the positive potential of the new masks will arrive incrementally and gradually through the financial period.

New masks have faced headwinds from supply bottlenecks, highlights Citi. Solid growth in devices in France should now be expected too. Small changes to estimates have been made. Target price moves to $10.50, up 50 cents, on rolling forward of valuation modeling.

Target price is $10.50 Current Price is $9.11 Difference: $1.39
If RMD meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $9.78, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

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

Flow generators drove revenue growth in the June quarter but masks were below Credit Suisse forecasts. The broker notes the lack of expansion in gross margin came from an adverse shift in mix, with robust sales of lower-margin flow generators relative to higher-margin masks.

Credit Suisse forecasts stronger mask growth versus flow generators in FY18 but suspects the impact on gross margin may be limited.

Target is reduced to $9.40 from $9.70. Rating is downgraded to Neutral from Outperform.

Target price is $9.40 Current Price is $9.11 Difference: $0.29
If RMD meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $9.78, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

Morgan Stanley rates RMD as Overweight (1) -

Global mask sales remain weaker than Morgan Stanley expected in the fourth quarter. FY18 guidance for flat margins assumes no acceleration in mask sales and the broker suspects this is conservative.

Overweight rating. Industry view is In-Line. Price target is raised to US$77.90 from US$76.30.

Current Price is $9.11. Target price not assessed.

Current consensus price target is $9.78, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

Ord Minnett rates RMD as Hold (3) -

Fourth quarter revenue was up 7% but earnings per share were below Ord Minnett's estimates because of the disappointing mask sales.  The broker continues to believe the new mask range can be successful, given positive industry feedback.

Nevertheless, with earnings growth expected to moderate from FY19 as the product cycle benefit dissipates, the broker lowers the target to $9.00 from $9.75. Hold rating retained.

Target price is $9.00 Current Price is $9.11 Difference: minus $0.11 (current price is over target).
If RMD meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.78, suggesting upside of 6.0% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

UBS rates RMD as Buy (1) -

Back orders continue to obscure the company's results and UBS believes the fourth quarter was not instructive a new mask potential.

The company's flat outlook for gross margin is not considered supportive of higher mask growth.The company is expecting continued high flow generator and rest of the world growth, which is lower margin. Hence, a conservative view is retained on margin.

Buy retained. Target is raised to US$84.75 from US$78.47.

Current Price is $9.11. Target price not assessed.

Current consensus price target is $9.78, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

Citi rates RRL as Neutral (3) -

Citi analysts point out the NSW Court of Appeal has found that consent for a 13-year mine extension to Centennial Coal's Springvale Mine near Lithgow should not have been granted.

The court decision can become relevant to Regis Resources as the company recently negotiated an agreement with Centennial to pipe 4-5GL per annumof the Springvale discharge 70km to its planned 7Mtpa gold mine at McPhillamys.

As no further details are available at this stage, Citi has made no changes. Neutral. Target $3.90.

Target price is $3.90 Current Price is $3.87 Difference: $0.03
If RRL meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.37, suggesting downside of -14.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.4

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

Morgans rates RWC as Hold (3) -

Morgans expects FY17 net profit to increase 22% versus management guidance for it to be in line or slightly ahead of prospectus.

The results, to be reported on August 28, are expected to be driven by market penetration of SharkBite in the US and ongoing scale and cost benefits.

Hold rating retained. Target drops to $3.32 from $3.43.

Target price is $3.32 Current Price is $3.33 Difference: minus $0.01 (current price is over target).
If RWC meets the Morgans target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.45, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

Citi rates SAR as Downgrade to Neutral from Buy (3) -

Citi has downgraded to Neutral from Buy, while lifting its price target to $1.48 from $1.46. The move follows a positive news announcement by the company, as reserve lives have been extended significantly.

The explanation for the move is simply "valuation". Citi's bull case scenario lifts valuation to $1.89/sh while the bear case pulls it down to $1.12/sh. A fall in Deep South grades is responsible for reduced FY18/19 earnings estimates.

Target price is $1.48 Current Price is $1.35 Difference: $0.13
If SAR meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Macquarie rates SAR as Outperform (1) -

The company has delivered a strong reserve and resource update, underpinning Macquarie's mine life assumptions at Karari and Thunderbox.

The broker observes Karari has continued to increase its endowment at depth and drilling is the only current constraint to extending the mine life. A maiden underground reserve at Thunderbox is considered an important step to further strengthen the case for a bulk underground mine.

Outperform retained. Target rises to $1.50 from $1.40.

Target price is $1.50 Current Price is $1.35 Difference: $0.15
If SAR meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Ord Minnett rates SDF as Accumulate (2) -

Ord Minnett expects robust earnings growth, unlikely in double digits, when the company reports FY17 results on August 23.

The broker maintains an Accumulate recommendation and raises the target to $2.90 from $2.70.

Target price is $2.90 Current Price is $2.58 Difference: $0.32
If SDF meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.83, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Morgans rates SHV as Downgrade to Reduce from Hold (5) -

The company has issued materially lower guidance for FY17 net profit because of a lower Australian dollar almond price and cost pressures. Morgans consequently downgrades FY17 net profit forecasts by -40.3% and makes material revisions to FY18 and FY19 as well.

The broker observes the quantum and timing of the downgrade is disappointing and reflects one of the most difficult seasons on record for the company.

Moreover, the belated recognition of material cost pressures is a concern. Rating is downgraded to Reduce from Hold and the target to $4.05 from $4.75.

Target price is $4.05 Current Price is $4.92 Difference: minus $0.87 (current price is over target).
If SHV meets the Morgans target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.5

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

UBS rates SHV as Neutral (3) -

The company has announced slightly higher FY17 volumes and lower pricing guidance. Low almond crack-out rates have affected costs as well as increased rent and electricity.

As a result FY17 net profit guidance is $7.5-8.5m, marginally below UBS estimates. The broker downgrades forecasts for earnings per share by -9% for FY17 and -6-7% for future periods.

Neutral rating maintained. Target is $4.56.

Target price is $4.56 Current Price is $4.92 Difference: minus $0.36 (current price is over target).
If SHV meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.5

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

Citi rates SUN as Neutral (3) -

Citi analysts can hardly believe how weak Suncorp's financial result is. Stand outs, it appears, are General Insurance in New Zealand and the domestic banking operations. The latter is described as of "poor quality".

Management announced a $100m investment in its Marketplace strategy and the analysts suggest investors probably won't like this either. With headwinds on the horizon for FY18, the analysts predict the outlook for the share price is looking bleak. Neutral. Target $14.25.

Target price is $14.25 Current Price is $14.50 Difference: minus $0.25 (current price is over target).
If SUN meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.45, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

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

Macquarie has reviewed forecasting assumptions and downgrades the stock to Underperform from Neutral as a result. Target is lowered to NZ$5.00 from NZ$5.30.

This downgrade reflects the strong margins currently being enjoyed, and the market's expectations for margin growth at a time when competitor activity has stepped up.

Macquarie does not expect margin growth and would not be surprised if the company signals further investment in development.

Current Price is $5.08. Target price not assessed.

Current consensus price target is $5.10, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: -0.2

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

Ord Minnett rates TTS as Lighten (4) -

Ord Minnett expects a weak FY17 result when the company reports in August 17.  Net profit estimates are lowered by -5.5% for FY17 and -5.0% for FY18 after weaker wagering and digital indicators.

Target is trimmed to $4.00 from $4.10. Lighten rating retained.

Target price is $4.00 Current Price is $4.03 Difference: minus $0.03 (current price is over target).
If TTS meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.26, suggesting upside of 5.2% (ex-dividends)

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Deutsche Bank rates TWE as Hold (3) -

The National Vintage Report 2017 notes a 5% increase on the 2016 crush, marking the third year of growth and the highest tonnage in history.

The broker sees this as a positive for Treasury Wines, particularly given volume growth in premium fruit to which the company is more exposed. Hold and $12.00 target retained.

Target price is $12.00 Current Price is $12.54 Difference: minus $0.54 (current price is over target).
If TWE meets the Deutsche Bank target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.93, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Deutsche Bank rates WOR as Buy (1) -

After analysing the metrics of the takeover in the US of an unlisted contracting company by Jacob's Engineering, the broker concludes further upside in WorleyParsons' share price will stem from another takeover offer given WorleyParsons deserves a similar multiple. Buy and $13.74 target retained.

Target price is $13.74 Current Price is $12.21 Difference: $1.53
If WOR meets the Deutsche Bank target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $12.30, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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