Australian Broker Call

Macquarie rates AGI as Neutral (3) -

Ainsworth's underlying result was in line with the broker but reinstatement of the dividend surprised as the broker had assumed FY19. FY guidance is broadly in line with the broker but this is dependent on 600 unit sales in Kentucky which are pending regulatory approval.

The outcome is thus material, but otherwise the broker would need to see improvement in new game performance before affording Ainsworth a premium multiple. Neutral retained, target rises to $2.28 from $2.19.

Target price is $2.28 Current Price is $2.07 Difference: $0.21
If AGI meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

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

The company expects US tax reforms to reduce its tax rate to 29% from 32% in FY18. While a positive for earnings, the uplift is lower than Morgan Stanley had expected. The tax impact beyond FY19 remains unclear.

Management reiterated guidance for "continued growth" in the 2018 fiscal year at the recent AGM and appears happy with current consensus forecasts for 22% growth in NPATA.

The broker has upgraded EPS forecasts across FY18-20 by 2-5%. Equal-weight rating retained and target raised to $26.00 from $25.00. Industry view is Cautious.

Target price is $26.00 Current Price is $24.75 Difference: $1.25
If ALL meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $27.39, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Macquarie rates APA as Neutral (3) -

The AEMC's draft report on scheme pipelines notes that if implemented in full, the new package will help pipeline users negotiate lower prices and better terms for their gas transportation. The broker had allowed -$40m of risk with regard to the new scheme, but the scope of this proposal takes that to -$70m, or -28cps.

APA's earnings certainty will remain clouded for the next 12-24 months, the broker warns. Neutral and $7.82 target retained.

Target price is $7.82 Current Price is $7.80 Difference: $0.02
If APA meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $8.49, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Ord Minnett rates ASB as Accumulate (2) -

First half results were well ahead of estimates. Guidance has been maintained for FY18 revenue of $1.3-1.4bn, in line with FY17.

Ord Minnett observes the balance sheet is in a firm position and the current order book is at $3.4bn, with a tender pipeline that is relatively full.

Accumulate rating maintained and target is lifted to $2.05 from $2.00.

Target price is $2.05 Current Price is $1.84 Difference: $0.21
If ASB meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

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

Macquarie rates BIN as Outperform (1) -

Bingo's result came in slightly below the broker but this reflected increased investment to support growth, which the broker sees as a positive.

Bingo's investment thesis is underpinned by the broker's three-year forecast compound earnings growth rate of 30%pa, benefiting from strong market positioning and a competitive business model that provides for market share gains. Outperform retained, target rises to $3.00 from $2.60.

Target price is $3.00 Current Price is $2.54 Difference: $0.46
If BIN meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Macquarie rates CAB as Neutral (3) -

Cabcharge's profit result came in short but underlying earnings only missed the broker slightly. No guidance was provided.

The broker sees green shoots appearing in the form of an increase in fares processed and booking growth turning positive in November, but the company is still cycling the headwinds of state government enforced processing fee cuts. Neutral and $2.00 target retained.

Target price is $2.00 Current Price is $1.79 Difference: $0.21
If CAB meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Credit Suisse rates CAJ as No Rating (-1) -

First half revenue was in line with Credit Suisse. EBITDA guidance is upgraded to $23-25.0m for FY18, incorporating two acquired businesses. The broker suggests interest cost is unlikely to be an issue the the second half.

The broker is restricted on the stock at present and cannot provide a target or rating.

Current Price is $0.27. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Ord Minnett rates CAJ as Upgrade to Buy from Accumulate (1) -

First half results were in line with expectations. Ord Minnett believes the company is set to participate in strong industry growth rates and its balance sheet offers opportunities for acquisitions.

Meanwhile, attention is on the proposed takeover of Integral Diagnostics ((IDX)) as successful completion is far from certain. Regardless of the outcome, the broker believes the stock presents good value and upgrades to Buy from Accumulate. Target is $0.32.

Target price is $0.32 Current Price is $0.27 Difference: $0.05
If CAJ meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Macquarie rates CGC as Outperform (1) -

Costa's profit result beat the broker by 10% and the dividend was also higher than expected. FY profit growth guidance has been upgraded to "approximately 25%" from a prior "at least 20%". The group has made another three avocado acquisitions.

With avocados joining already strong tomato, citrus and mushroom businesses, Costa is another step closer to achieving its goal of all-year-round production, the broker notes, which is positive for the margin and earnings outlook. Outperform retained, target rises to $7.60 from $7.00.

Target price is $7.60 Current Price is $7.23 Difference: $0.37
If CGC meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $7.54, suggesting upside of 4.3% (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 CGC as Upgrade to Accumulate from Hold (2) -

First half results were ahead of forecasts and show significant progress, Ord Minnett observes. Citrus underpinned the result and the broker expects citrus to decline next year, although positive export prices should restrict the impact.

Ord Minnett increases earnings forecasts by 16% for FY19, noting management is building its growth options, driven by berries, avocados, mushrooms and expansion overseas. Rating is upgraded to Accumulate from Hold. Target is raised to $7.52 from $6.03.

Target price is $7.52 Current Price is $7.23 Difference: $0.29
If CGC meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.54, suggesting upside of 4.3% (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 CGC as Upgrade to Buy from Neutral (1) -

First half results were ahead of estimates. The produce result was the highlight for UBS, beating forecasts by around 31% and driven by citrus and tomatoes. Berry revenue was flat, reflecting heavy deflation over the half.

UBS upgrades estimates for earnings per share by 3-5% across FY18-20. The broker believes the company is well placed to outperform and the valuation is attractive. Rating is upgraded to Buy from Neutral. Target is raised to $7.50 from $6.80.

Target price is $7.50 Current Price is $7.23 Difference: $0.27
If CGC meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.54, suggesting upside of 4.3% (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

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

Full year results were broadly in line with December's guidance and a little above Citi.

The company has announced plans to more than double own-operated stores by transitioning the 496 owned but franchised sites to Caltex operation stores by mid 2020. Management aims to deliver 10-15% EPS growth within 5 years.

Citi downgrades to Neutral from Buy and increases the target price to $39.71 from $37.66.

Target price is $39.71 Current Price is $35.30 Difference: $4.41
If CTX meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $36.84, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

Credit Suisse rates CTX as Outperform (1) -

2017 results were at the top of guidance. Despite the much-discussed weak retail margins in the September quarter, Credit Suisse wonders if this was really the case at all.

The company intends by the mid 2020's to bring all franchise sites in house at a cost of $100-120m over the next three years.

Credit Suisse acknowledges that the breaking up, or at the very least selling some assets, will be a complex process but believes there is value on offer for investors.

Outperform rating. Target is $40.80.

Target price is $40.80 Current Price is $35.30 Difference: $5.5
If CTX meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $36.84, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

Deutsche Bank rates CTX as Hold (3) -

2017 results were slightly below expectations. Deutsche Bank calculates the strategic push to transition to company-owned operations for all retail franchise sites should yield a net sustainable uplift of $120-150m in the convenience retail business within five years.

Costs are expected to remain elevated in the near term and execution remains key to delivering longer-dated earnings gains. Deutsche Bank maintains a Hold rating and raises the target to $37.70 from $36.55.

Target price is $37.70 Current Price is $35.30 Difference: $2.4
If CTX meets the Deutsche Bank target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $36.84, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

Macquarie rates CTX as Neutral (3) -

Caltex' result had been pre-released so no real surprises. The broker's focus was thus on strategic initiatives.

The broker likes the convenience rollout and asset optimisation initiatives but notes that uncertainty around Woolworths ((WOW)) fuel volumes, a subdued outlook for fuel volumes and a tapering of the margin benefit of the shift to premium fuel, the new initiatives will arguably only offset headwinds elsewhere.

Neutral retained. Target rises to $36.20 from $35.40.

Target price is $36.20 Current Price is $35.30 Difference: $0.9
If CTX meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $36.84, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

Morgan Stanley rates CTX as Underweight (5) -

Caltex plans to move all retail franchise sites to company operations by mid 2020, with costs of around $100-120m over the next three years. This is expected to generate around $120-150m of EBIT within five years.

Morgan Stanley "would not be surprised" if Caltex's non-fuel income fell over the next two years through lower rental and franchise income. The broker remains concerned over margin degradation in the base business, which is likely to be compounded by the lower non-fuel income in future.

Underweight rating and $27 target retained. In-Line industry view.

Target price is $27.00 Current Price is $35.30 Difference: minus $8.3 (current price is over target).
If CTX meets the Morgan Stanley target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.84, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

Ord Minnett rates CTX as Downgrade to Hold from Accumulate (3) -

2017 net profit was ahead of estimates. Ord Minnett notes the retail operating model is changing to corporate from franchise, with costs that will weigh on the earnings in the near term. The broker notes many options are being pursued to improve shareholder returns and the retention of Woolworths ((WOW)) petrol volumes are now more likely.

Recent share price appreciation has reduced the size of the multiple uplift and Ord Minnett is also less confident regarding significant divestments. Rating is downgraded to Hold from Accumulate. Target is $37.50.

Target price is $37.50 Current Price is $35.30 Difference: $2.2
If CTX meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $36.84, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

UBS rates CTX as Buy (1) -

2017 results were ahead of the prior guidance range. Caltex will terminate its remaining franchise agreements over the next three years and an asset optimisation program will be completed in the second quarter of 2018.

Despite the company's historical reluctance to consider asset sales, UBS expects some will be put up for sale, with any proceeds likely to facilitate growth and further buybacks. Buy rating and $39 target maintained.

Target price is $39.00 Current Price is $35.30 Difference: $3.7
If CTX meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $36.84, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

Morgans rates EGH as Downgrade to Hold from Add (3) -

First half results were mixed, Morgans observes, but on track.  FY18 guidance implies a flat full year with a strong second half skew because of the contribution from three new villages as well as the divestment of underperforming villages.

Morgans applies a -35% discount to peers to reflect the ongoing market discontent with Terranora strata approval issues and downgrades to Hold from Add. Target is lowered to $0.34 from $0.41.

Target price is $0.34 Current Price is $0.30 Difference: $0.04
If EGH meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

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

Elmo Software's first half results were better than Morgan Stanley had forecast. The company has announced the acquisition of Pivot Software, a remuneration SaaS product with $4.5m in revenue and 120 customers.

Management's updated guidance for FY18, for $31.2m revenue and $5.7m EBITDA, simply adjusted for the acquisition. Morgan Stanley's FY18-20 EPS forecasts are lifted 29-69%.

Equal-weight rating. Industry view is In-Line. Target raised to $5.90 from $5.15.

Target price is $5.90 Current Price is $5.66 Difference: $0.24
If ELO meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Credit Suisse rates FAR as Outperform (1) -

The company has signed an agreement with Petronas to farm out equity in two blocks in The Gambia. Petronas fully fund 80% of the world costs up to a US$45m cap.

Credit Suisse observes the share price is not reflecting any value outside of SNE, Senegal, and an option to create significant value exists beyond what is being priced.

Outperform rating and $0.14 target maintained.

Target price is $0.14 Current Price is $0.08 Difference: $0.06
If FAR meets the Credit Suisse target it will return approximately 75% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Citi rates HVN as Sell (5) -

In an initial assessment, Citi analysts report Harvey Norman's underlying result failed to meet expectation by some -2%, but then the 12c dividend was well below the 15c anticipated.

While offshore operations continue delivering strong growth, Citi sees a tightening competitive environment in Australia with the retailer forced to ramp up tactical support to franchisees.

Market consensus forecasts are expected to take a hit. Citi reiterates its $3.50 price target, as well as the Sell rating.

Target price is $3.50 Current Price is $3.98 Difference: minus $0.48 (current price is over target).
If HVN 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 $4.27, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates ICQ as Add (1) -

The operating loss in 2017 was better than Morgans forecast. The company is optimistic about double-digit growth in 2018 and Morgans expects the rate of cash burn that is needed to build the business will fall.

The broker expects the Southeast Asian automobile online advertising market will become substantial over time. Add rating maintained. Target is reduced to $0.29 from $0.44.

Target price is $0.29 Current Price is $0.23 Difference: $0.06
If ICQ meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Citi rates ILU as Neutral (3) -

Iluka's full year results were ahead of Citi and, combined with a higher dividend, was a good result despite the headline loss from impairments in the broker's view.

The company is implementing a US$180/t increase in zircon prices and the broker expects further rises in the latter part of 2018 and into 2019. Despite the strong price momentum Citi expects free cash flow generation to halve in 2018 due to lower sales volumes.

Neutral rating retained and target raised to $10.50 from $10.

Target price is $10.50 Current Price is $10.55 Difference: minus $0.05 (current price is over target).
If ILU meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.51, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

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 ILU as Outperform (1) -

2017 results were ahead of expectations. Credit Suisse notes mineral sands market conditions are recovering and earnings are accelerating as underlying demand improves. The company has announced a strong lift in the zircon reference price.

The broker retains a Outperform rating and $11.10 target.

Target price is $11.10 Current Price is $10.55 Difference: $0.55
If ILU meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.51, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

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

Deutsche Bank rates ILU as Sell (5) -

2017 results were in line with estimates. 2018 guidance implies higher operating and capital expenditure, Deutsche Bank observes.

Capital will be used for the construction of Cataby, the plant expansion at Jacinth-Ambrosia and dry mine expansions of Lanti and Gangama. Deutsche Bank maintains a Sell rating on valuation. Target rises to $7.70 from $7.60.

Target price is $7.70 Current Price is $10.55 Difference: minus $2.85 (current price is over target).
If ILU meets the Deutsche Bank target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.51, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates ILU as Upgrade to Neutral from Underperform (3) -

A solid result from Iluka beat Macquarie on both earnings and free cash flow. The dividend increase is a surprise given the step-up in capex planned for 2018. The highlight was a positive outlook for zircon and rutile prices.

Macquarie has materially upgraded earnings forecasts to reflect price guidance, noting Iluka's current rutile contract price is well below spot.

Nevertheless, valuation remains limited at this level. Upgrade to Neutral from Underperform. Target rises to $10.50 from $8.80.

Target price is $10.50 Current Price is $10.55 Difference: minus $0.05 (current price is over target).
If ILU meets the Macquarie target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.51, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates ILU as Overweight (1) -

Iluka's full year results were below Morgan Stanley, driven by higher cash inventory movements. Zircon pricing will increase from April 2018, with the company implementing a zircon reference price increase to US$1,410/t. Further increases are expected in the medium term.

Management updated zircon and rutile production guidance for 2018 to 705kt at a cash cost of $574 per tonne.

Target price is $12.30. Industry View: Attractive. Overweight rating retained.

Target price is $12.30 Current Price is $10.55 Difference: $1.75
If ILU meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $10.51, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates ILU as Buy (1) -

2017 results were largely in line. UBS notes a $0.25 final dividend brought the full year returns to $0.31, the highest since 2012. The broker forecasts a lower dividend in 2018, given the project funding requirements.

UBS believes the higher dividend pay-out in 2017 signals the company is confident that higher prices are locked in and strong cash flow is guaranteed for 2018. Buy rating and $11.50 target maintained.

Target price is $11.50 Current Price is $10.55 Difference: $0.95
If ILU meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $10.51, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates KPG as Hold (3) -

First half results were ahead of estimates. The company has reaffirmed its FY18 prospectus forecasts. Morgans believes the company has a visible and relatively defensive growth profile and maintains a Hold rating based on short-term valuation metrics.

New services launched over the half-year include finance, corporate advisory and the investment office. While it will take time to scale up the opportunities the broker expects incremental earnings contribution to come through from FY19. Target is raised to $1.74 from $1.48.

Target price is $1.74 Current Price is $1.60 Difference: $0.14
If KPG meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Morgans rates KSL as Add (1) -

2017 net profit was ahead of expectations. Morgans believes the results highlight positive underlying trends including an improved net interest margin, solid loan growth and sound asset quality metrics.

Nevertheless, the broker notes management still faces several challenges in 2018. Firstly, second half deposit growth was only 6%, as this was slowed to protect margins. The broker suggests this balancing act between growth and profitability is likely to continue.

Add rating maintained. Target is reduced to $1.14 from $1.17.

Target price is $1.14 Current Price is $0.89 Difference: $0.25
If KSL meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

This company reports in PGK. 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

Ord Minnett rates MIL as Buy (1) -

First half results were in line with expectations. Ord Minnett believes the company is doing a good job growing the top line but struggling to deliver efficiency savings that support gross margins.

This needs to be demonstrated in order to justify a re-rating, in the broker's opinion. Buy rating maintained. Target is reduced to $1.14 from $1.78.

Target price is $1.14 Current Price is $0.95 Difference: $0.19
If MIL meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Morgans rates MRG as Hold (3) -

First half results were weak. This largely reflected the legacy issues from previous management, Morgans observes, and a new team intends to turn the operations around, although this is expected to take time.

Morgans downgrades forecasts in line with revised guidance, which is for FY18 underlying EBITDA of $5.5-6.5m. Gearing remains too high and the broker cannot rule out the possibility of a further capital raising or asset sales.

Hold rating maintained. Target is $0.38.

Target price is $0.38 Current Price is $0.38 Difference: $0
If MRG meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Morgans rates MTO as Add (1) -

Morgans observes the first half results, while slightly ahead of expectations, reflected very weak trading conditions.

The broker envisages a number of factors which may provide a rebound for FY19 including reset of insurance income commissions, implementation of used bike sales in MCA retail stores and a full year contribution from recent dealership acquisitions.

Add rating maintained. Target is reduced $5.17 from $5.27.

Target price is $5.17 Current Price is $4.02 Difference: $1.15
If MTO meets the Morgans target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Morgans rates NTD as Add (1) -

The maiden first half result was in line with prospectus forecasts, which were reiterated.

The company is engaging with various parties relating to potential acquisitions and Morgans is confident it is well-placed to further consolidate the tyre wholesale market.

The broker maintains a Add rating and $1.37 target.

Target price is $1.37 Current Price is $1.26 Difference: $0.11
If NTD meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Credit Suisse rates NWL as Neutral (3) -

First half results were ahead of estimates and Credit Suisse increases forecasts for FY18-20 by 2-3%. The upgrades are largely driven by an increase in revenue profile because of higher margin.

The broker believes the company's platform is best in class and should continue to attract net flows well above peers. Neutral rating maintained. Target rises to $6.50 from $6.15.

Target price is $6.50 Current Price is $6.63 Difference: minus $0.13 (current price is over target).
If NWL meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.18, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates NWL as Hold (3) -

Growth in funds under management and net profit in the first half were ahead of estimates. Ord Minnett suggests, with EBITDA margins ticking over 50% during the half-year, a new baseline for the business is set going forward.

The broker forecasts a 7% beat to prospectus net profit estimates. While regarding the stock as high quality, the broker acknowledges it is expensive and maintains a Hold rating. Target is raised to $6.48 from $6.40.

Target price is $6.48 Current Price is $6.63 Difference: minus $0.15 (current price is over target).
If NWL meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.18, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates NWL as Sell (5) -

First half results were slightly ahead of estimates. UBS notes funds under administration are already sitting above prospectus levels for FY18. The company's net profit guidance upgrade of 3-5% did not surprise the broker and is considered conservative.

However, even assuming strong net flows persist, the broker believes the market is over estimating the profit leverage to growth in funds under administration and this supports a Sell rating. Target is $5.55.

Target price is $5.55 Current Price is $6.63 Difference: minus $1.08 (current price is over target).
If NWL meets the UBS target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.18, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates ONE as Outperform (1) -

Oneview's result met the broker's forecast. The broker believes the company is well positioned to execute on improved operating conditions and drive contract wins.

The commercialisation of four product verticals is a key milestone, the broker suggests, and brand awareness growth should provide a key near term catalyst.

Outperform retained on an attractive valuation versus peers. Target unchanged at $3.50.

Target price is $3.50 Current Price is $1.96 Difference: $1.54
If ONE meets the Macquarie target it will return approximately 79% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Deutsche Bank rates QBE as Sell (5) -

2017 numbers were in line with guidance and re-based expectations. The company has outlined a strategy for 2018 which is expected to simplify the business and Deutsche Bank believes this is a positive step.

The broker's main criticism is the product offering and the fact the geographical reach makes it overly complicated to manage. This is resulting in returns that are well below the cost of capital.

The broker believes once the simplification program is completed the business will be in a more sustainable position. Sell rating and $10 target maintained.

Target price is $10.00 Current Price is $10.22 Difference: minus $0.22 (current price is over target).
If QBE meets the Deutsche Bank target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.93, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in December.

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: 0.3

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

Macquarie rates QBE as Outperform (1) -

QBE's result fell short of the broker on lower gross written premium. The company's capital position is in question given management remains committed to the buyback, the broker notes.

The broker expects premium growth and the expense ratio to remain challenged, but favourable international pricing trends and rising bond yields should provide tailwinds in the medium term. Outperform retained, target falls to $10.70 from $11.10.

Target price is $10.70 Current Price is $10.22 Difference: $0.48
If QBE meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.93, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in December.

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: 0.3

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

Macquarie rates RHC as Outperform (1) -

In an initial assessment, Macquarie analysts observe management has kept FY guidance intact, but reported financials were some -4.5% below what the broker had penciled in.

Compositionally the interim report disappointed too with both the UK and France performing weaker than expected. Outperform. $74.50.

Target price is $74.50 Current Price is $64.96 Difference: $9.54
If RHC meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $73.26, suggesting upside of 12.8% (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

UBS rates RIO as Buy (1) -

Rio Tinto has received a binding offer from Hydro to acquire the ISAL smelter in Iceland, a 53% stake in the Aluchemie anode plant in the Netherlands and 50% of the fluoride plant in Sweden, for $345m.

UBS expects the majority of the cash will be returned to shareholders when received and there is potential for a return of 7% of market cap in 2018, lifting to 10% if spot commodity pricing holds. The broker maintains a Buy rating and $85 target.

Target price is $85.00 Current Price is $80.92 Difference: $4.08
If RIO meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $82.66, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.8

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

Credit Suisse rates SDA as Outperform (1) -

2017 results were in line with expectations and growth across all four divisions is expected in 2018.  UltiSat has performed ahead of Credit Suisse estimates since acquisition and delivered 40% underlying revenue growth in 2017.

The 2018 outlook implies around 70% growth in earnings per share. Credit Suisse continues to believe the stock is too cheap, given the significant earnings growth and multiple options on the upside. Outperform rating and $7.50 target maintained.

Target price is $7.50 Current Price is $5.57 Difference: $1.93
If SDA meets the Credit Suisse target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $5.63, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

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: 0.5

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

Morgans rates SDA as Hold (3) -

2017 results were in line with expectations. Management commentary has suggested there is upside risk to earnings in outer years should a prolonged oil & gas recovery continue. Morgans reduces FY18 and FY19 forecasts for earnings per share by -2%.

Integration of acquisitions to deliver clean results and de-leverage the balance sheet are the main risks in the broker's opinion. Hold rating maintained. Target reduced to $5.57 from $5.62.

Target price is $5.57 Current Price is $5.57 Difference: $0
If SDA meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.63, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

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: 0.5

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

UBS rates SDA as Buy (1) -

UBS believes investors reacted harshly to the weak 2017 results and this creates a buying opportunity. The positives the broker observes are a return to organic revenue growth for the legacy business and strong operating cash flow conversion.

The negatives are the resignation of the CFO and Harris CapRock performing below expectations. UBS maintains a Buy rating and raises the target to $5.80 from $5.20.

Target price is $5.80 Current Price is $5.57 Difference: $0.23
If SDA meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.63, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

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: 0.5

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

Morgans rates SHV as Hold (3) -

First half results were well below forecasts. Morgans notes the second half is looking stronger. Assuming reasonable seasonal conditions, recent acquisitions and greenfield planting should underpin strong volume growth over the next few years.

Based on current fundamentals the broker maintains a Hold rating. Target is raised to $4.70 from $4.25. The broker believes the stock is fairly priced in the absence of the almond price rising materially.

Target price is $4.70 Current Price is $4.86 Difference: minus $0.16 (current price is over target).
If SHV meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

UBS rates SHV as Neutral (3) -

In the wake of the weak first half result, UBS downgrades FY18 estimates by -17%, FY19 estimates edge down by just -5%.

On balance, the broker envisages earnings risks are skewed to the upside as the company has suggested quality and volume, on early indications, may be better, and there is potential for recent frost events in California to drive prices higher.

UBS awaits further evidence of sustained pricing trends and harvest progression and maintains a Neutral rating. Target is reduced to $5.00 from $5.14.

Target price is $5.00 Current Price is $4.86 Difference: $0.14
If SHV meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Credit Suisse rates SIQ as Neutral (3) -

The company has completed a fully underwritten placement, raising $75m. Proceeds will be used to strengthen the balance sheet and pursue future acquisitions. The company also intends to undertake a share purchase plan capped at $15m.

Credit Suisse queries the reasons behind raising capital at this point in time. The broker, at this stage, is not sure that the extra flexibility is worth the cost of dilution. Neutral rating maintained. Target drops to $11.25 from $11.60.

Target price is $11.25 Current Price is $11.47 Difference: minus $0.22 (current price is over target).
If SIQ meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.74, suggesting upside of 2.4% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates TCL as Outperform (1) -

Indicative bids for the 51% of the WestConnex being sold by the NSW government are in. Final bids are due in June. The uncertainty around the bid process is an overhang on the shares and creates an attractive entry point, Credit Suisse believes.

A re-rating is expected when the winning bidder is announced. This should be long-term value creation if Transurban wins or short-term higher dividends if others win. Outperform rating and $12.80 target maintained.

Target price is $12.80 Current Price is $11.52 Difference: $1.28
If TCL meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $13.04, suggesting upside of 13.2% (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

Morgans rates XIP as Hold (3) -

First half results were weaker than expected. Morgans expects margins should expand if cost savings and operating improvements are delivered. The company is continuing with its restructuring and cost cutting.

Early benefits are expected in the second half with a stronger financial performance as a result. Morgans maintains a Hold rating. Target is raised to $1.12 from $1.10.

Target price is $1.12 Current Price is $1.13 Difference: minus $0.01 (current price is over target).
If XIP meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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