Australian Broker Call

Deutsche Bank rates ABC as Downgrade to Sell from Hold (5) -

Deutsche Bank has a mixed outlook for Australian building materials, remaining positive on Australian infrastructure while considering the residential market has clearly peaked.

The broker believes the largest volume declines will continue to be in multi-residential. Rating is downgraded to Sell from Hold.

Current Price is $4.51. Target price not assessed.

Current consensus price target is $4.74, suggesting upside of 5.1% (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 BGL as Outperform (1) -

The company has reported a doubling of the Bellevue resource in the December quarter and grades have been boosted by the inclusion of the Viago high-grade discovery.

Macquarie expects more positive drilling results from areas surrounding the old Bellevue workings. The broker maintains an Outperform rating and $0.70 target.

Incorporating the cash flow statement lifts earnings per share by 5%, although the broker notes the company lacks meaningful earnings as exploration continues.

Target price is $0.70 Current Price is $0.52 Difference: $0.18
If BGL meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Citi rates BPT as Neutral (3) -

Citi notes Beach Energy is continuing with its rapid de-gearing. The broker believes buoyant oil prices will continue to help put the company in a net cash position by the end of FY20.

Revenue was in line with Citi's estimates in the December quarter while production beat forecasts at 7.42mmboe. Neutral rating maintained. Target is raised to $1.80 from $1.70.

Target price is $1.80 Current Price is $1.80 Difference: $0
If BPT meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.95, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Macquarie rates BPT as Neutral (3) -

Production in the December quarter was stronger than expected, offset by weaker pricing. The upgrade to guidance to 28-29 mmboe is slightly better than Macquarie had anticipated.

Beach Energy expects to be net cash by the end of the March quarter, more than a full quarter ahead of Macquarie's forecasts. However, the company has highlighted a priority to pay down debt and the broker does not anticipate a substantial dividend will be paid.

Rating stays on Neutral as the broker has two main concerns which will weigh on future earnings. The first is that Western Flank production cannot be sustained and the second is the Otway, where drilling of Blackwatch has been delayed to FY20. Target is raised to $1.80 from $1.70.

Target price is $1.80 Current Price is $1.80 Difference: $0
If BPT meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.95, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Ord Minnett rates BPT as Buy (1) -

December quarter production and sales were ahead of expectations. Full year guidance has been upgraded to 28-29 mmboe. Ord Minnett is encouraged by initial results from the company's drilling campaigns.

The broker also notes ongoing free cash generation has enabled further reductions in debt and the company expects to be debt free by the end of the March quarter 2019.

Buy rating maintained and the target is raised to $2.20 from $2.15.

Target price is $2.20 Current Price is $1.80 Difference: $0.4
If BPT meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $1.95, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Morgans rates CBA as Add (1) -

The interim report release is scheduled for February 6 and Morgans is looking for cash earnings of $4,919m with an interim dividend of $2.01. Home loan repricings since early October should have provided some offset from ongoing headwinds, predict the analysts.

Add rating retained on the observation that things have been improving recently and the outlook for system home loan growth is looking better, according to Morgans. Target price $76 (unchanged). Estimates have been slightly reduced.

Target price is $76.00 Current Price is $69.88 Difference: $6.12
If CBA meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $70.93, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

Ord Minnett rates CLH as Lighten (4) -

The company has acquired a receivables management business in New Zealand. Ord Minnett assumes the business was purchased at book value.

The company has indicated it expects the acquisition to generate earnings (EBIT) of at least $2.75m in FY20, implying an acquisition multiple of 5x.

The broker presumes the acquisition effectively replaces some of the organic PDL acquisition profile and does not expect guidance to be adjusted.

Lighten rating and $1.25 target maintained.

Target price is $1.25 Current Price is $1.39 Difference: minus $0.14 (current price is over target).
If CLH meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.5

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

Deutsche Bank rates CTX as Buy (1) -

The company achieved a refiner margin of US$7.77/bbl in the December quarter, equating to a full year result of US$9.99/bbl. There were some unplanned outages in the second half and this has led to volumes being a little worse than Deutsche Bank expected.

Profit guidance for the Lytton refinery of $161m in 2018 is in line with forecasts. Deutsche Bank has a Buy rating and $28 target.

Target price is $28.00 Current Price is $27.24 Difference: $0.76
If CTX meets the Deutsche Bank target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $31.00, suggesting upside of 13.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Ord Minnett rates CTX as Buy (1) -

The fourth quarter Caltex refiner margin of US$7.77/bbl was below Ord Minnett's forecasts. Guidance for Lytton earnings (EBIT) of $161m is in line with estimates.

The broker notes refiner margin trends worsened in January and create a source of downside risk for Lytton. Buy rating and $30 target maintained.

Target price is $30.00 Current Price is $27.24 Difference: $2.76
If CTX meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $31.00, suggesting upside of 13.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

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

Morgan Stanley observes EclipX has dislocated from trading, in line with the proposed offer price from McMillan Shakespeare ((MMS)).

In light of the share price movement, the broker strips back valuation to reflect only the core leasing business where there is a track record of profitability and returns.

Target is reduced to $2.32 from $3.00. The broker downgrades to Equal-weight from Overweight. Industry view is In-Line.

Target price is $2.32 Current Price is $2.25 Difference: $0.07
If ECX meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.37, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Morgans rates FDV as Add (1) -

Morgans saw a strong result to finish off FY18 for Frontier Digital. Revenues were some 8.6% ahead of the broker's expectations. Real estate portals Zameen (Pakistan) and Infocasas (Latin America) have been singled out as stand-out performers.

On the other hand, E24 missed and its valuation has now been reduced in the broker's modeling. Add rating retained as the year ahead should be another double digit percentage growth experience. Target price falls to 84c from 95c.

The analysts do make the point that this company remains high risk and investors with a low risk profile should not consider owning it.

Target price is $0.84 Current Price is $0.48 Difference: $0.36
If FDV meets the Morgans target it will return approximately 75% (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

UBS rates FLN as Neutral (3) -

UBS expects an improved growth trajectory in 2019, with potential upside if the Enterprise division gains traction. Nevertheless, the broker still wants to be sure of an acceleration in Marketplace volumes before becoming more positive.

December quarter cash receipts grew 8% while operating cash flow was close to breaking even. Increased revenue forecasts for 2019 and 2020 raise the broker's target to $0.77 from $0.53. Neutral maintained.

Target price is $0.77 Current Price is $0.71 Difference: $0.06
If FLN meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Citi rates FMG as Neutral (3) -

Shipments in the December quarter were -5% below Citi's estimates. This volume miss also resulted in a -6% miss on cash costs. Guidance for FY19 volumes has been maintained in the 165-173mt range.

Citi upgrades estimates based on higher assumed price realisations. Neutral rating maintained. Target is raised to $5.40 from $4.30.

Target price is $5.40 Current Price is $5.85 Difference: minus $0.45 (current price is over target).
If FMG meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.00, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.1

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

Credit Suisse rates FMG as Outperform (1) -

The broker has not made any changes to its numbers for Fortescue and notes the miner's Dec Q production report was in line with expectations. But the broker points out price realisations have been improving since year end and the Brazilian dam disaster has seen spot fines prices shoot up to US$85/t.

The broker's valuation and target assume US$65/t in the March Q and US$61/t in the June Q on 70% realisation. Bottom line: upside potential. Outperform and $5.10 target retained.

Target price is $5.10 Current Price is $5.85 Difference: minus $0.75 (current price is over target).
If FMG 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 $5.00, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.1

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

Morgan Stanley rates FMG as Overweight (1) -

Morgan Stanley was pleased with the operating metrics in the December quarter, noting improving price realisation trends.

Guidance is unchanged at 165-173mt for shipments. Costs are in line with expectations.

Overweight rating and $5.05 target maintained. Industry view is Attractive.

Target price is $5.05 Current Price is $5.85 Difference: minus $0.8 (current price is over target).
If FMG meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.00, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.1

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

Ord Minnett rates FMG as Hold (3) -

December quarter production revealed an achieved price of US$48/t and cash costs of US$13/t. The main issue, Ord Minnett believes, is whether the recent rally in the share price is sustainable.

The broker expects an upgrade cycle based on better iron ore prices but also believes is only a matter of time before these prices retreat.

This view is based on a weakening global growth outlook, a modest surplus in 2019 and the fact that the dam failure at Vale's Feijao mine is unlikely to lead to material destruction of volumes in the near term.

Hold rating maintained and the target is raised to $5.50 from $4.90.

Target price is $5.50 Current Price is $5.85 Difference: minus $0.35 (current price is over target).
If FMG meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.00, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.1

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

UBS rates FMG as Downgrade to Sell from Buy (5) -

Shipments in the December quarter were in line with UBS forecasts, at 42.5mt. However, costs were 5% higher than expected. The broker forecasts interim underlying earnings of US$543m, down -20%.

Stronger shipments are expected in the second half. UBS points to a lift in the share price of around 18% since the announcement of the Vale tailings dam failure in Brazil and associated supply disruption to the iron ore market.

This brings gains for the year to date to around 35%. UBS believes the current iron ore price is not sustainable and reduces the rating to Sell from Buy on valuation grounds. Target is raised to $5.00 from $4.70.

Target price is $5.00 Current Price is $5.85 Difference: minus $0.85 (current price is over target).
If FMG meets the UBS target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.00, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.1

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

Citi rates IGO as Neutral (3) -

December quarter production was solid at Tropicana, while the ramp up at Nova means the company has maintained guidance.

Nova output beat Citi's estimates and, despite a slow ramp up, has hit reserve grade for a full half-year, while unit costs are trending down.

The broker maintains a Neutral rating and raises the target to $4.30 from $4.10.

Target price is $4.30 Current Price is $4.31 Difference: minus $0.01 (current price is over target).
If IGO 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 $4.46, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Credit Suisse rates IGO as Neutral (3) -

Independence has maintained FY19 production and cost guidance, with Dec Q production at Nova offsetting higher costs in the Sep Q, the broker notes. Tropicana guidance is unchanged.

Target rises to $4.10 from $3.65, Neutral retained.

Target price is $4.10 Current Price is $4.31 Difference: minus $0.21 (current price is over target).
If IGO meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.46, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

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

Weak first half earnings surprised Macquarie, while December quarter production was better than expected.

Higher non-cash charges resulted in operating earnings (EBITDA) for the December quarter missing forecasts by -27% and resulted in only a marginal profit for the year.

The company has changed its capital allocation and now expects to return 15-25% of free cash flow to shareholders in dividends and buybacks. Macquarie expects the change will double cash returns to shareholders from the previous minimum 30% pay-out of earnings.

Macquarie downgrades to Underperform from Neutral. Target is steady at $3.80.

Target price is $3.80 Current Price is $4.31 Difference: minus $0.51 (current price is over target).
If IGO meets the Macquarie target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.46, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Ord Minnett rates IGO as Accumulate (2) -

December quarter production was strong, with An over nickel ahead of estimates and Tropicana also outperforming expectations.

Ord Minnett lowers estimates for FY19 operating earnings (EBITDA) to $316m, but notes the investment thesis is squarely driven by the cash flow.

The broker maintains an Accumulate rating and $4.90 target.

Target price is $4.90 Current Price is $4.31 Difference: $0.59
If IGO meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

UBS rates IGO as Buy (1) -

December quarter production was ahead of forecasts on all key metrics of nickel, copper and gold production. The highlight was a big improvement in copper recoveries at Nova.

The broker suspects, given the strong production momentum at Tropicana and the benefit of mill expansion, guidance may be beaten.

First half results were weaker than expected, but UBS points to accounting decisions and notes cash flow was actually stronger than expected.

While incorporating material downgrades to FY19 and FY20 net profit, the broker highlights this is largely a result of non-cash items. Published earnings materially understate cash flow, in the broker's view.

UBS maintains a Buy rating and raises the target to $4.90 from $4.50.

Target price is $4.90 Current Price is $4.31 Difference: $0.59
If IGO meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

UBS rates LNK as Buy (1) -

The company has sold its corporate & private clients business to Apex Group for GBP240m. UBS does not believe the transaction will have a material bearing on the outlook.

Management expects the sale will allow Link Asset Services to focus on other divisions where technology and other solutions can be more readily applied to drive growth.

As the Brexit exposure is also tempered and balance sheet options are restored earlier than expected, UBS reiterates a Buy rating. Target is reduced to $8.90 from $9.05.

Target price is $8.90 Current Price is $7.26 Difference: $1.64
If LNK meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $8.48, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Ord Minnett rates MIN as Accumulate (2) -

Iron ore production and sales volumes were below Ord Minnett's estimates in the December quarter.

The broker suggests an improving iron ore price should help the company's marginal iron ore projects, although the large of driver of value will be Wodgina (lithium) and closure of the Albemarle deal later this year.

Ord Minnett maintains an Accumulate rating and $20 target.

Target price is $20.00 Current Price is $15.34 Difference: $4.66
If MIN meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $20.07, suggesting upside of 30.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

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

The company's exposure to the public sector as well as minimal exposure to upfront commissions increases Morgan Stanley's earnings conviction.

The broker observes several catalysts, noting EclipX ((ECX)) shareholders will vote on the merger in the current quarter, after which the focus will shift back to fundamentals.

Morgan Stanley upgrades to Overweight from Equal-weight. Target is raised to $17.25 from $16.45. In-Line sector view.

Target price is $17.25 Current Price is $15.37 Difference: $1.88
If MMS meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $17.18, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Morgan Stanley rates NAB as Upgrade to Equal-weight from Underweight (3) -

Morgan Stanley takes a negative stance on all major banks given the challenging operating and regulatory environment.

The broker now upgrades National Australia Bank to Equal-weight from Underweight because low earnings growth and a reduction in the dividend are partially reflected in current trading multiples.

The bank also has less exposure than its peers to the pressure on household cash flows.

Target is reduced to $25.60 from $26.50. Industry view: In-line.

Target price is $25.60 Current Price is $23.79 Difference: $1.81
If NAB meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $28.36, suggesting upside of 19.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Citi rates NWH as Buy (1) -

The acquisition of RCR's mining and heat treatment business is considered in line with the company's strategy to expand into adjacent services.

Citi believes the acquisition increases the leverage to the iron ore capital expenditure cycle while at the same time increasing the recurring revenue base.

The broker maintains a Buy/High Risk rating and $2.25 target.

Target price is $2.25 Current Price is $1.98 Difference: $0.27
If NWH meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.27, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.7

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

Deutsche Bank rates NWH as Hold (3) -

The acquisition of RCR's mining and heat treatment assets makes sound strategic sense, in Deutsche Bank's view, enabling a more maintenance-style revenue stream going forward.

The broker believes the acquisition will also alleviate some concerns in the wake of the iron ore construction phase in the west. Moreover, the $10m consideration for revenue of around $110m is an attractive multiple.

Hold rating maintained. Target is $2.20.

Target price is $2.20 Current Price is $1.98 Difference: $0.22
If NWH meets the Deutsche Bank target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.27, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.7

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

UBS rates NWH as Buy (1) -

The company has acquired the RCR mining and heat treatment business for $10m. This generated $100m in revenue in FY18 and has a high proportion of recurring revenue from product support and maintenance.

UBS make no adjustments, pending further detail at the first half result, regarding recent trading and growth opportunities. Buy rating and $2.35 target maintained.

Target price is $2.35 Current Price is $1.98 Difference: $0.37
If NWH meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.27, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.7

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

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

Ord Minnett notes the company has had a disappointing update followed by an over-reaction to MLC re-pricing its platform offering.

This has opened up an attractive entry point for the stock, as the broker considers the business positioned to grow funds under administration while adviser independence is expedited following the Royal Commission.

December quarter flows were softer than anticipated but Ord Minnett reserves judgement as to the source of the slowdown until the March and June updates. Rating is upgraded to Buy from Hold and the target is reduced to $7.85 from $8.60.

Target price is $7.85 Current Price is $7.04 Difference: $0.81
If NWL meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $7.68, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Citi rates ORG as Buy (1) -

First half gas sales volumes were around 20% above Citi's forecasts. The broker observes the company has successfully taken market share in a tight east coast gas market.

The higher market share is largely responsible for the broker's 3-7% upgrades to FY20-21 estimates for earnings per share.

Buy rating maintained. Target is raised to $8.40 from $8.04.

Target price is $8.40 Current Price is $7.01 Difference: $1.39
If ORG meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $8.60, suggesting upside of 22.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

Ord Minnett rates ORG as Buy (1) -

December quarter production was strong, with record attributable revenue from APLNG of $741m, primarily on the back of higher LNG prices.

Ord Minnett notes all parts of the business are now generating cash which will serve to lower net debt.

The broker maintains a Buy rating and lowers the target to $8.75 from $8.95.

Target price is $8.75 Current Price is $7.01 Difference: $1.74
If ORG meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $8.60, suggesting upside of 22.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

UBS rates ORG as Buy (1) -

UBS notes APLNG continues to deliver strong cash flows. This should be boosted by further cost savings. The broker highlights the flexibility of Origin Energy's generation fleet, which has allowed the company to divert gas to retail and business customers.

Meanwhile, retail competition continues to persist, with electricity sales down -4% in the first half. The broker maintains a Buy rating and reduces the target to $9.45 from $10.00.

Target price is $9.45 Current Price is $7.01 Difference: $2.44
If ORG meets the UBS target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $8.60, suggesting upside of 22.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

Ord Minnett rates PAC as Buy (1) -

Ord Minnett observes Pacific Current has replaced all the lost earnings from Aperio by investing less than half the proceeds from the sale of its stake. The broker believes this profitable outcome was worth the wait.

The investment in Carlisle provides further uncorrelated income streams. Annual returns of the last five years for the Carlisle open-end fund have averaged around 20% per annum, with around 16% returned in 2018.

Ord Minnett retains a Buy rating and reduces the target to $8.09 from $8.29.

Target price is $8.09 Current Price is $5.70 Difference: $2.39
If PAC meets the Ord Minnett target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Morgan Stanley rates SGF as Downgrade to Underweight from Equal-weight (5) -

The stock has sold off substantially since its AGM update and, considering the current trading environment shows new vehicle sales in decline, Morgan Stanley suggests it is one of the stocks most at risk within its leasing coverage.

Morgan Stanley lowers earnings estimates by -8% for FY19 and -9% for FY20.

Rating is downgraded to Underweight from Equal-weight. Target is reduced to $2.60 from $3.65. Industry view is In-Line.

Target price is $2.60 Current Price is $2.77 Difference: minus $0.17 (current price is over target).
If SGF meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.49, suggesting upside of 26.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Ord Minnett rates SHL as Resume Coverage with Hold (3) -

Sonic Healthcare has completed the acquisition of US pathology group, Aurora Diagnostics. Management foresees revenue synergies but acknowledges these will take longer to be realised.

The broker is wary of heightened risk surrounding domestic funding cuts after the federal election, particularly in light of review proposals to the Medical Benefits Schedule.

Ord Minnett resumes coverage after a brief period of restriction with a Hold rating and $23.80 target.

Target price is $23.80 Current Price is $23.22 Difference: $0.58
If SHL meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $25.33, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

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

Morgan Stanley believes the company's major exposure in healthcare and public benevolent customers should lead to a more defensive earnings profile, which is less exposed to consumer confidence and wealth affects.

However, the broker estimates between 70-75% of earnings are generated from commissions and this is a near-term earnings risk.

Rating is downgraded to Equal-weight from Overweight. Target is reduced to $10.25 from $14.00. Sector view is In-Line.

Target price is $10.25 Current Price is $9.75 Difference: $0.5
If SIQ meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $12.15, suggesting upside of 24.6% (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

Macquarie rates WAF as Outperform (1) -

Macquarie notes the December quarter was busy, with the development at Sanbrado supported by the execution of the US$230m funding package and the awarding of underground mining and EPCM contracts.

Development in 2019 will accelerate and the optimised mine plan will incorporate higher mill throughput. Outperform rating and $0.50 target maintained.

Target price is $0.50 Current Price is $0.24 Difference: $0.26
If WAF meets the Macquarie target it will return approximately 108% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Morgan Stanley rates WBC as Downgrade to Underweight from Equal-weight (5) -

Morgan Stanley takes a negative stance on all major banks given the challenging operating and regulatory environment. The broker downgrades Westpac to Underweight from Equal-weight, citing lower returns and rising risks in retail banking.

Westpac also has relatively more exposure to the end of the mortgage bull market. There is also limited margin for error on loan losses and a limited capital buffer amid a growing risk of a cut to the dividend.

The broker reduces the target to $24.30 from $26.00. Industry view: In Line.

Target price is $24.30 Current Price is $24.59 Difference: minus $0.29 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.18, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

Ord Minnett rates Z1P as Accumulate (2) -

The December quarter performance beat Ord Minnett's estimates across most metrics. The company is benefiting from new retailer additions as well as a seasonal tailwind.

Meanwhile, bad debts continue to improve and were well ahead of expectations. The product suite continues to resonate, with the broker noting customer numbers increased 20% quarter on quarter.

Accumulate rating maintained. Target rises to $1.20 from $1.00.

Target price is $1.20 Current Price is $1.22 Difference: minus $0.02 (current price is over target).
If Z1P meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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