Australian Broker Call

Morgans rates CAT as Add (1) -

The company has signed a league-wide deal with the Australian National Basketball for supply of its athlete monitoring and analytics system. This is the fifth sporting league to sign an exclusive agreement with Catapult.

Morgans assumes strong growth will continue and retains an Add rating. Target is steady at $4.23.

Target price is $4.23 Current Price is $3.52 Difference: $0.71
If CAT meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

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

Citi observes Challenger is continuing to enjoy strong momentum, both operationally and in the share market. The latter has now triggered a downgrade to Sell from Neutral.

The analysts find revenue strength "impressive" but warn investors the translation into bottom line growth is "less obvious". EPS estimates have been increased: FY17 +1%; FY18 and FY19 +3%. Price target lifts to $10.00 from $9.55.

The analysts do note, despite strong apparent momentum, management did not change guidance for this year.

Target price is $10.00 Current Price is $10.62 Difference: minus $0.62 (current price is over target).
If CGF meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.83, suggesting downside of -5.7% (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

Credit Suisse rates CGF as Outperform (1) -

Challenger has reported Sep Q annuity sales growth of 46% year on year. Attention now turns to just how much growth can be currently funded, but the broker sees another 40% or so before an equity raising would be needed.

The broker has upgraded forecasts and expects high single digit earnings growth to be achieved despite the headwind of low rates. Target rises to $11.50 from $10.50, Outperform retained.

Target price is $11.50 Current Price is $10.62 Difference: $0.88
If CGF meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $9.83, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

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

Quarterly sales were strong, Morgan Stanley observes, and changes to pension eligibility are expected to remain supportive and help insulate margins. Growth and longer-dated sales are demanding further capital, the broker adds.

September quarter retail annuity sales of $1.03bn delivered net book growth of $334m. Morgan Stanley retains an Equal-weight rating and In Line industry view, continuing to flag risks to medium-term growth expectations. Target is raised to $9.70 from $8.40.

Target price is $9.70 Current Price is $10.62 Difference: minus $0.92 (current price is over target).
If CGF meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.83, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

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

First quarter retail annuity sales were up 46% and impressed Morgans. Importantly, sales mix continues to improve.

The broker remains cautious regarding the margin contraction implied in FY17 guidance and, while liking the longer-term story, believes valuation metrics are becoming more stretched.

Rating is downgraded to Hold from Add and the broker awaits a more attractive entry point for the stock. Target rises to $11.02 from $10.14.

Target price is $11.02 Current Price is $10.62 Difference: $0.4
If CGF meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $9.83, suggesting downside of -5.7% (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

Ord Minnett rates CGF as Lighten (4) -

The first quarter update suggests to Ord Minnett that retail sales in life were strong, offset partially by higher redemptions.

The broker believes in the company's ability to grow but worries the risks taken to achieve the targeted returns are not reflected in the share price.

Ord Minnett retains a Lighten rating. Target is raised to $7.33 from $6.98..

Target price is $7.33 Current Price is $10.62 Difference: minus $3.29 (current price is over target).
If CGF meets the Ord Minnett target it will return approximately minus 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.83, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

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

The company has affirmed its FY17 NPAT guidance of $210-22m, expecting continued momentum in upgrade sales and Chinese tender units being similar to FY16.

Morgan Stanley suspects the guidance is conservative with the one area of uncertainty being the impact of the recent launch of Advanced Bionics' HiRes Ultra implant. Equal-weight rating, $129 target retained. Industry view is In-Line.

Target price is $129.00 Current Price is $136.90 Difference: minus $7.9 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $118.59, suggesting downside of -13.5% (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

Citi rates CTX as Neutral (3) -

It has now emerged that Caltex is not the sole bidder for petrol stations currently owned by Woolworths ((WOW)). As a matter of fact, media reports signal BP has put a higher offer to Woolworths than has Caltex.

Citi thinks Caltex feels it might be about to lose supply to these stations. Any impact will be long dated, suggest the analysts. They estimate a loss to the tune of 5% if this scenario develops against Caltex's current wholesale agreement, which draws validity from Woolworths' ownership.

Neutral rating retained. Target is raised to $36.33 from $36.06. Citi considers the current share price as "fair value", not as offering investors a compelling entry point.

Target price is $36.33 Current Price is $32.87 Difference: $3.46
If CTX meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $35.34, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.2

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

Credit Suisse rates CTX as Outperform (1) -

Caltex has indicated it is interested in Woolworths' ((WOW)) petrol stations but now reports have BP leading the race. The broker cannot see any economic rationale for BP to outbid Caltex but if it does, some 22% of Caltex' volumes are at risk.

The actual earnings risk is nevertheless much lower. The broker had BP as a seller, not a buyer, but will applaud Caltex if it elects not to pay a silly price. Outperform and $40 target retained.

Target price is $40.00 Current Price is $32.87 Difference: $7.13
If CTX meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $35.34, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.2

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

Macquarie rates CTX as Neutral (3) -

Caltex has confirmed its interest in acquiring the Woolworths ((WOW)) fuel business. Macquarie observes there is both risk and opportunity in the deal. There is also a risk management may be pressured into overpaying to secure the asset.

Should Caltex lose the bid Macquarie estimates a potential impact of 3-12% on group EBIT. The broker retains Neutral rating and a $32.97 target.

Target price is $32.97 Current Price is $32.87 Difference: $0.1
If CTX meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $35.34, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.2

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

Ord Minnett rates CTX as Accumulate (2) -

Caltex has confirmed its interest in acquiring the Woolworths ((WOW)) fuels business, for which it is currently the sole contractor. Ord Minnett observes the loss of these volumes would be a negative for Caltex but believes any change of control will take time to accomplish.

There are likely to be several implications and opportunities whether or not the company retains the business, the broker notes. Caltex could leverage its infrastructure advantage, access a new loyalty partner and expand its convenience store ambitions.

Accumulate retained. Target price is $38.00.

Target price is $38.00 Current Price is $32.87 Difference: $5.13
If CTX meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $35.34, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.2

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

UBS rates CTX as Neutral (3) -

Caltex has confirmed it has made a conditional and confidential proposal to acquire the fuel business of Woolworths ((WOW)). Caltex is currently the exclusive supplier of petrol and diesel to Woolworths.

UBS notes that BP and Vitol are also in the bidding process. On the basis of known quantities UBS estimates the termination of the supply agreement could negatively affect Caltex EBIT by $70-90m per annum.

In the event Caltex is unsuccessful, the broker anticipates a significant delay before the contract could be terminated. Possible issues for the competition regulator, the ACCC, and the Foreign Investment Review Board also exist. In the event of success, upside for Caltex will depend on the price paid.

Target price of $33.85 and Neutral rating retained.

Target price is $33.85 Current Price is $32.87 Difference: $0.98
If CTX meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $35.34, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.2

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

Deutsche Bank rates DCN as Initiation of coverage with Buy (1) -

Dacian Gold owns the Mt Morgan gold project in Western Australia with the key deposit being the 1.6m ozs high grade underground resource, Westralia. A definitive feasibility study and maiden reserve will be released this quarter.

Deutsche Bank initiates coverage with a Buy rating and $4.00 target and, in an ASX gold sector deprived of quality pre-development projects, believes this is a compelling opportunity.

Target price is $4.00 Current Price is $3.30 Difference: $0.7
If DCN meets the Deutsche Bank target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $4.50, suggesting upside of 35.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Macquarie rates EVN as Outperform (1) -

September quarter production was soft. Macquarie notes high costs persist at Edna May and Cracow.

Some of this may be smoothed out with the addition of the low-cost Ernest Henry production but the broker suspects Edna May remains problematic.

Outperform rating and $2.90 target retained.

Target price is $2.90 Current Price is $2.17 Difference: $0.73
If EVN meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $2.67, suggesting upside of 17.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.9

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

Citi rates FBU as Buy (1) -

Fletcher Building has reconfirmed expectations for FY17 and Citi analysts reiterate their Buy recommendation with a Target Price of NZ$11.40. Citi's forecasts are positioned at the top end of guidance.

Current Price is $9.61. Target price not assessed.

Current consensus price target is $12.05, suggesting upside of 27.3% (ex-dividends)

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: 0.3

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

Credit Suisse rates FBU as Neutral (3) -

Fletcher Building reiterated guidance at its AGM. The broker still sees the top end of 12% growth as ambitious, reliant on improvement in building approvals in the Dec Q.

NZ provides 66% of earnings and the NZ housing sector remains strong, the broker notes. Neutral and NZ$10.10 target retained.

Current Price is $9.61. Target price not assessed.

Current consensus price target is $12.05, suggesting upside of 27.3% (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: 0.3

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

Deutsche Bank rates FBU as Buy (1) -

Management has reaffirmed FY17 EBIT guidance at NZ$720-760m, representing 9% growth year on year, but has signalled that the NZ dollar, currently trading above levels budgeted by the company, may adversely affect the final result.

The company continues to expect earnings from the Higgins acquisition will offset the impact of discontinued operations. Deutsche Bank's Buy retained. Target is NZD11.41.

Current Price is $9.61. Target price not assessed.

Current consensus price target is $12.05, suggesting upside of 27.3% (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: 0.3

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

Macquarie rates FBU as Underperform (5) -

FY17 EBIT guidance of NZ$720-760m is maintained but the company has qualified it by flagging a weaker NZ dollar.

Macquarie observes activity levels in Western Australia are likely to remain well down on previous years while there is every indication that New Zealand will have another good year in the construction sector.

Underperform and NZ$8.00 target retained.

Current Price is $9.61. Target price not assessed.

Current consensus price target is $12.05, suggesting upside of 27.3% (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: 0.3

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

Morgans rates FTT as Add (1) -

The company has filed an amended investigational new drug application with the US Food and Drug Administration. Morgans considers this a key catalyst which could be material for the share price.

The broker observes sentiment in the emerging health care sector has improved recently and believes the stock is well placed to experience further share price appreciation. Add rating retained. Target is raised to 9.3c from 6.3c.

Target price is $0.09 Current Price is $0.07 Difference: $0.022
If FTT meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Deutsche Bank rates GBT as Buy (1) -

The immediate outlook is challenging despite the stock offering compelling medium-term value, in Deutsche Bank's view. The challenges are the result of a significant exposure to Brexit via depreciation of the British pound, which affects around 45% of group revenue.

The broker retains a Buy rating despite the high risk in the short term and reduces the target to $5.00 from $5.10.

Target price is $5.00 Current Price is $3.92 Difference: $1.08
If GBT meets the Deutsche Bank target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $4.82, suggesting upside of 23.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

UBS rates GNC as Neutral (3) -

The FY17 east coast crop harvest is looking like being the third largest on record. Although competition has increased significantly since FY11-12 (when the crops were larger) UBS still expects grain receivals for Graincorp to be very strong.

A large crop should reduce the pressure on the balance sheet. UBS maintains FY17 distribution estimate at 10.0c per share to allow for de-leverage.

Neutral rating retained. Target is raised to $8.75 from $8.60.

Target price is $8.75 Current Price is $7.94 Difference: $0.81
If GNC meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.95, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.6

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

Morgans rates IDT as Add (1) -

The company has reiterated expectations for modest growth in its base business and continues to focus on cost containment. Morgans reviews forecasts regarding the production rate for the suite of generic products.

The broker extends the forecast time in which the company will reach production capacity on generics to four from three years. As a result the net loss forecast is increased to $2.2m from $1.1m for FY17.

Morgans retains an Add rating and lowers the target to 38c from 44c.

Target price is $0.38 Current Price is $0.23 Difference: $0.155
If IDT meets the Morgans target it will return approximately 69% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Morgans rates LVH as Add (1) -

Quarterly cash flow was broadly in line with expectations. Morgans notes the main driver of future revenue - Talent Community members - grew 32% to 178,000 in the quarter.

Add rating and 34c target maintained.

Target price is $0.34 Current Price is $0.21 Difference: $0.13
If LVH meets the Morgans target it will return approximately 62% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Credit Suisse rates MYO as Initiation of coverage with Underperform (5) -

While MYOB is a beneficiary to the shift to cloud-based services and solid industry growth, it faces a material uplift in competition, the broker notes. Market share is at risk in a "land grab".

The company has enjoyed above-peer margins but given SaaS typically generates lower margins than traditional software, margin pressures should eventuate, the broker believes. MYOB is a high quality business but valuation is stretched.

The broker initiates coverage with an Undeperform rating and $3.20 target.

Target price is $3.20 Current Price is $3.69 Difference: minus $0.49 (current price is over target).
If MYO meets the Credit Suisse target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.84, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.2

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

UBS rates NAB as Neutral (3) -

UBS downgrades earnings per share by 3% to account for the sale of 80% of the life business. The broker believes FY16 will be the seventh year of the last 14 where the bank has delivered negative EPS growth.

The broker believes the main focus of the results will be whether the bank cuts its dividend or waits until the first half of FY17, after the release of Basel 4.

The broker retains Neutral rating and a $27.50 target.

Target price is $27.50 Current Price is $27.70 Difference: minus $0.2 (current price is over target).
If NAB meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.19, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.1

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

Credit Suisse rates OGC as Outperform (1) -

The audit of mining operations by the Philippines government has found Didipio compliant with requirements other than a need to better educate a broad range of stakeholders. Oceana will respond by expanding the company's Information, Education and Communication program, the broker notes.

The broker has always praised Oceana's industry leading environmental credentials and retains Outperform and a $4.10 target.

Target price is $4.10 Current Price is $3.92 Difference: $0.18
If OGC meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.12, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

This company reports in USD. 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

Citi rates OSH as Sell (5) -

Citi analysts point out Oil Search will have two opportunities to update investors on its latest strategy insights; during the November site trip and alongside the 2016 financial result in February.

They also note the company's drilling schedule has slipped by 1-2 months compared to prior guidance in July, offering the potential for disappointment. Capex guidance has been lowered, while Q3 production surprised to the upside, carried by PNG LNG.

Citi believes news flow overall might remain positive in the short term, but this might change as dark clouds are forming above the LNG market. On this basis, the analysts retain their Sell rating. Estimates have been slightly lowered. Price target falls to $6.96 from $7.00.

Target price is $6.96 Current Price is $7.17 Difference: minus $0.21 (current price is over target).
If OSH meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.81, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

This company reports in USD. 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

Credit Suisse rates OSH as Underperform (5) -

PNG LNG posted another production record in the Sep Q. Oil Search has not altered production guidance but notes capex has been reduced, leading to solid cash flow.

All well and good, but the broker sees valuation as stretched against its longer term oil price forecasts. Underperform and $5.80 target retained.

Target price is $5.80 Current Price is $7.17 Difference: minus $1.37 (current price is over target).
If OSH meets the Credit Suisse target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.81, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

This company reports in USD. 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

Deutsche Bank rates OSH as Buy (1) -

September quarter production was ahead of Deutsche Bank's estimates, on a higher-than-forecast contribution from PNG LNG. Stronger production was partly offset by a sales underlift.

The company retains its 2016 production guidance of 28-30mmboe. 2016 capex guidance is reduced by around 12% on account of deferrals to 2017 and lower sustaining PNG LNG sustaining capex. Deutsche Bank retains a Buy rating and $8.50 target.

Target price is $8.50 Current Price is $7.17 Difference: $1.33
If OSH meets the Deutsche Bank target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

This company reports in USD. 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

Macquarie rates OSH as Outperform (1) -

Stronger gas sales offset lower liquids volumes in the September quarter. Capex expectations for 2016 are reduced by 10-15% versus prior guidance. Macquarie continues to be impressed with PNG LNG production.

The broker expects with the build in inventory, that Oil Search can capitalise on what appears to be stronger gas pricing in the second half of the year. Outperform retained. Target is $8.40.

Target price is $8.40 Current Price is $7.17 Difference: $1.23
If OSH meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

This company reports in USD. 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

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

Operations performed strongly in the September quarter Morgan Stanley observes. The focus remains on the expansion opportunities in PNG LNG.

The broker expects plenty of drilling catalysts over the next few months. Equal-weight rating, In-Line sector view and $8.68 target retained.

Target price is $8.68 Current Price is $7.17 Difference: $1.51
If OSH meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

This company reports in USD. 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

Morgans rates OSH as Add (1) -

September quarter operations were strong and, if PNG LNG posts a similar performance in the December quarter, Morgans expects Oil Search will beat its 2016 production guidance of 28-30mmboe.

Improving oil prices provide a supportive tailwind and, coupled with reduced capex, the company is able to re-build its cash position, the broker notes. An Add rating and $8.90 target are maintained.

Target price is $8.90 Current Price is $7.17 Difference: $1.73
If OSH meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

This company reports in USD. 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 OSH as Accumulate (2) -

PNG LNG continues to perform above expectations and Ord Minnett suspects Oil Search is on track to beat 2016 guidance of 28-30mmboe.

The broker observes further debt reduction occurred in the quarter and the report highlighted the characteristics which make Oil Search a relatively low-risk investment.

Ord Minnett's Accumulate rating is retained. Target slips to $7.75 from $8.15.

Target price is $7.75 Current Price is $7.17 Difference: $0.58
If OSH meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

This company reports in USD. 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

UBS rates OSH as Neutral (3) -

September quarter production was underpinned by another record quarter from PNG LNG, UBS observes. 2016 guidance of 28-30mmboe is maintained.

The broker notes the main focus at PNG LNG remains on expansion. Oil Search is targeting a final investment decision on expansion for two, possibly three, trains in the second half of FY18.

The broker's Neutral rating is maintained. Target rises to $7.50 from $7.45.

Target price is $7.50 Current Price is $7.17 Difference: $0.33
If OSH meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

This company reports in USD. 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

UBS rates PDN as Neutral (3) -

September quarter production was up 16% quarter on quarter and up 19% year on year, reflecting an increase in ore milled and a higher grade.

Paladin realised a uranium price of US$25.19/lb versus the spot average of US$25.33/lb. The company expects to realise US$27-28/lb in the December quarter.

UBS notes there was no news on the sell down of Langer Heinrich other than it is progressing. The broker continues to expect the stock will trade at a discount until the deal closes. UBS retains a Neutral rating. Target slips to 17c from 20c. 

Target price is $0.17 Current Price is $0.16 Difference: $0.01
If PDN meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $0.18, suggesting upside of 18.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.0

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

Ord Minnett rates PPT as Hold (3) -

First quarter funds under management revealed negative net flows and Ord Minnett observes the markets remain the key driver of the business.

The stock trades at a slight discount to its competitors and while some of this may be justified, given a more diverse operating business, the broker does not expect the gap to close any time soon.

The broker retains a Hold rating and $45.00 target.

Target price is $45.00 Current Price is $46.03 Difference: minus $1.03 (current price is over target).
If PPT 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 $46.03, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

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

Credit Suisse had originally expected international capacity growth to decline significantly from the 10%+ level of the past year but a new 6.3% growth forecast represents an upgrade to expectations, with new routes to China featuring.

The broker is also upbeat on Sydney Airport's retail growth and interest rate hedging following the company's investor day. Target rises to $6.60 from $6.40 and given the stock's 16% share price fall since its August peak, Credit Suisse upgrades to Neutral.

Target price is $6.60 Current Price is $6.38 Difference: $0.22
If SYD meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.40, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.6

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

Morgans rates SYD as Add (1) -

While the share price is weak in the short term, as Australian bond rates are pulled from all-time lows by higher US Treasury bond yields, Morgans believes the business fundamentals will mean solid returns for investors with a medium-term horizon.

The broker envisages a risk the share price may fall further in the short term, particularly as a US Fed rate hike draws nearer. Nevertheless, in the current low rate environment the stock's yield remains attractive. Target price steady at $7.85 and Add rating retained.

Target price is $7.85 Current Price is $6.38 Difference: $1.47
If SYD meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $7.40, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.6

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

Credit Suisse rates TAH as Outperform (1) -

Tabcorp and Tatts ((TTS)) are back talking possible marriage plans again, only a year after deciding not to. On a nil-premium merger and $100m synergies as suggested, both companies would enjoy earnings accretion, the broker calculates.

But the broker does not see $100m synergies given the need to invest to take on corporate bookmakers, and notes Tabcorp could be prepared to pay a 10% premium which would then wipe out accretion. The broker sees Tatts as overvalued and Tabcorp as modestly undervalued.

Outperform and $5.60 target retained for Tabcorp.

Target price is $5.60 Current Price is $4.89 Difference: $0.71
If TAH meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.79, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

Deutsche Bank rates TAH as Hold (3) -

Tabcorp and Tatts ((TTS)) are in trading halts, pending an announcement regarding a scheme of arrangement. Deutsche Bank reviews its merger analysis from November 2015 when discussions between the two companies ceased.

The broker estimates potential synergies of $100m per annum, encompassing overheads, systems, marketing and development spending. On a pro forma basis, a merger is estimated to be 8% accretive.

Target of $4.80 and Hold rating retained.

Target price is $4.80 Current Price is $4.89 Difference: minus $0.09 (current price is over target).
If TAH 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 $4.79, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

Morgan Stanley rates TAH as Overweight (1) -

Merger talks are resuming with Tatts ((TTS)). Amid speculation that Tabcorp could offer at least a 10% premium for Tatts, Morgan Stanley calculates it would be up to 14% accretive to Tabcorp's FY17 earnings per share.

For context, the broker notes the two combined account for around 31% of Australian online wagering turnover. Morgan Stanley expects the regulator will take a keen look at the competition issues, particularly in regard to the future competitive bid process for licence renewals in tote, Keno and lotteries.

Morgan Stanley retains an Overweight rating and In-Line industry view. Target is $5.00.

Target price is $5.00 Current Price is $4.89 Difference: $0.11
If TAH meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.79, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

Deutsche Bank rates TEN as Hold (3) -

Ahead of the FY16 results, Deutsche Bank updates forecasts to reflect expectations of higher revenue share and the 25% reduction in TV licence fees.

The broker expects positive EBITDA and EBIT to be recorded following the negative results in FY15, but still expects the business to be loss making at the NPAT level.

Deutsche Bank maintains a Hold rating and raises the target to $1.20 from 95c.

Target price is $1.20 Current Price is $1.44 Difference: minus $0.24 (current price is over target).
If TEN meets the Deutsche Bank target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.37, suggesting downside of -3.2% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.0

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

Deutsche Bank rates TTS as Hold (3) -

Tatts and Tabcorp ((TAH)) are in trading halts, pending an announcement regarding a scheme of arrangement. Deutsche Bank reviews its merger analysis from November 2015 when discussions between the two companies ceased.

The broker estimates potential synergies of $100m per annum, encompassing overheads, systems, marketing and development spending. On a pro forma basis, a merger is estimated to be 8% accretive.

Hold rating and $3.90 target retained.

Target price is $3.90 Current Price is $3.59 Difference: $0.31
If TTS meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.06, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

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

Merger talks are resuming with Tabcorp ((TAH)). Amid speculation that Tabcorp could offer at least a 10% premium for Tatts Morgan Stanley calculates it would be up to 14% accretive to Tabcorp's FY17 earnings per share.

For context, the broker notes the two combined account for around 31% of Australian online wagering turnover. Morgan Stanley expects the regulator will take a keen look at the competition issues, particularly in regard to the future competitive bid process for licence renewals in tote, Keno and lotteries.

Equal-weight rating and In-Line Industry view are retained. Target is $3.90.

Target price is $3.90 Current Price is $3.59 Difference: $0.31
If TTS meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.06, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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