Australian Broker Call

Citi rates A2M as Neutral (3) -

The company is scheduled to report on February 20th, and Citi analysts concede, while they remain focused on the multiple risks on the company's horizon, there is a fair chance the released financials will surprise in a positive manner, and that will overshadow anything relating to further-out risks.

No changes made ahead of the results release.

Target price is $10.65 Current Price is $12.85 Difference: minus $2.2 (current price is over target).
If A2M meets the Citi target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.30, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.4

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

Morgans rates AGL as Reduce (5) -

AGL's first half profits met Morgans' expectations thanks to margin growth, but the absence of a buyback disappointed.

AGL's growth program requires capital expenditure but the broker says it is unlikely it can do that and return cash to shareholders without taking on debt (a possibility given its relatively low gearing of 30%). Regulatory issues remain a threat heading into the election.

Target price rises to $18.17 from $18.02. Broker maintains a Reduce rating, believing the stock to be overvalued given Morgan's view on electricity prices (it expects a push to increase renewable energy should Labor win).

Target price is $18.17 Current Price is $21.39 Difference: minus $3.22 (current price is over target).
If AGL meets the Morgans target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.87, suggesting downside of -2.4% (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

Citi rates AMC as Buy (1) -

First half results were largely in line with expectations. The headwinds from raw material costs in the first half are expected to reverse in the second half.

There was no change to guidance. Citi maintains a Buy rating and $15 target.

Target price is $15.00 Current Price is $14.58 Difference: $0.42
If AMC meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $15.22, suggesting upside of 4.4% (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: 0.8

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

Citi rates AZJ as Sell (5) -

Citi found the first half result messy, with a 50% adoption of the UT5 ruling. Coal revenue was weaker on lower volumes, affected by industrial action and the weather.

Guidance for non-network EBIT has been retained at $390-430m, which signals to the broker almost no growth in the second half.

Sell maintained. Target price is $3.80.

Target price is $3.80 Current Price is $4.45 Difference: minus $0.65 (current price is over target).
If AZJ meets the Citi target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.34, suggesting downside of -2.4% (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

Macquarie rates AZJ as Outperform (1) -

First half results were weaker than expected, although the variance to Macquarie's forecasts reflects the application of UT5 to the December numbers rather than a delay until 2019.

Adjusted, the broker considers this a solid result. The growth outlook in above-rail is unchanged.

Outperform rating and $4.66 target maintained.

Target price is $4.66 Current Price is $4.45 Difference: $0.21
If AZJ meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.34, suggesting downside of -2.4% (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

Citi rates BEN as Neutral (3) -

First half earnings were below Citi's estimates with a lower-than-expected bad debt expense not enough to offset the weak core profit result.

Despite the bank's aspirations to grow mortgages ahead of system, mortgage growth actually weakened in the first half to 2.7%.

Moreover, the broker notes a contraction in commercial lending also left overall loan growth anaemic. The broker maintains a Neutral rating and $11.25 target.

Target price is $11.25 Current Price is $10.41 Difference: $0.84
If BEN meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $10.60, suggesting upside of 1.8% (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

Macquarie rates BEN as Underperform (5) -

First half results were slightly softer than Macquarie expected. First half cash profit was $220m, -2% below estimates, while headline results were supported by lower bad debt charges.

The broker continues to believe the current operating environment will provide challenges for a regional bank that is significantly exposed to retail banking, because of falling house prices and elevated competition in mortgages.

In this context, Macquarie finds it hard to justify the current valuation premium and maintains an Underperform rating and $10.25 target.

Target price is $10.25 Current Price is $10.41 Difference: minus $0.16 (current price is over target).
If BEN meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.60, suggesting upside of 1.8% (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

Citi rates BHP as Buy (1) -

Citi analysts have been forced to lift input iron ore pricing for their modeling, and the result is for some hefty increases to producer estimates in Australia.

Buy rating retained, while the price target has gained $1 to $39.

Target price is $39.00 Current Price is $36.01 Difference: $2.99
If BHP meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $35.93, suggesting downside of -0.2% (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: 0.5

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

UBS rates CLV as Initiation of coverage with Buy (1) -

Clover Corp specialises in encapsulation technology to produce ready-to-blend powders rich in omega-3 and omega-6. UBS believes Clover is benefiting from the premiumisation of infant formula in China.

The company has a strong growth outlook and North American demand for fortified foods could also lift following the conclusion of the US government's "first 1000 days" policy.

The broker initiates coverage with a Buy rating and $1.80 target.

Target price is $1.80 Current Price is $1.60 Difference: $0.2
If CLV meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

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

Ord Minnett rates CPU as Lighten (4) -

Ord Minnett considers Computershare in a sweet spot, where earnings growth is resulting from cost savings and interest rate increases in the US. Computershare will report its first half result on February 13.

The broker remains concerned pressure on the UK mortgage servicing division will rear in FY21 and registry maintenance may face greater headwinds in the US.

The broker maintains a Lighten rating and raises the target to $17.09 from $16.97.

Target price is $17.09 Current Price is $18.31 Difference: minus $1.22 (current price is over target).
If CPU meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.91, suggesting downside of -2.2% (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: -0.3

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

Macquarie rates CYB as Outperform (1) -

The broker found CYBG's trading update reassuring, providing clarity on margins and Virgin Money related cost savings estimates. Financial targets will be refreshed in June but the broker believes current consensus forecasts appear to be conservative.

On share price weakness the broker sees the stock as attractive, albeit only marginally cheaper than UK peers. Ultimately a resolution with regard Brexit is required to drive a re-rating, but for now the broker retains Outperform and $5.00 target.

Target price is $5.00 Current Price is $3.52 Difference: $1.48
If CYB meets the Macquarie target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $5.43, suggesting upside of 54.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

This company reports in GBP. 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 DOW as Downgrade to Neutral from Outperform (3) -

First half net profit was below Credit Suisse forecasts. The broker is perplexed about the change in segment reporting, finding the rationale and lack of advance notice a problem.

Credit Suisse lowers FY19 estimates by -7%, largely because of higher financing and tax expenses. Management also appears cautious on the potential pace of improvement at the Spotless business.

Credit Suisse reduces the target to $7.40 from $8.25 and downgrades to Neutral from Outperform.

Target price is $7.40 Current Price is $7.04 Difference: $0.36
If DOW meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 11.0% (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

Macquarie rates FBU as No Rating (-1) -

NZ ready-mix concrete data for December were largely consistent with the broker's forecast, which assumes a plateauing construction cycle. It appears ready-mix price increases are running slightly behind inflation.

The broker is currently restricted from making a recommendation.

Current Price is $4.85. Target price not assessed.

Current consensus price target is $4.72, suggesting downside of -2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.0

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

Citi rates FMG as Neutral (3) -

Citi analysts have been forced to lift input iron ore pricing for their modeling, and the result is for some hefty increases to producer estimates in Australia.

Neutral rating retained, while the price target has lifted to $6.20 from $5.40.

Target price is $6.20 Current Price is $6.26 Difference: minus $0.06 (current price is over target).
If FMG meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.32, suggesting downside of -15.0% (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: 0.0

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

UBS rates FNP as Initiation of coverage with Buy (1) -

Freedom Foods is a vertically-integrated manufacturer of UHT dairy and plant-based beverages as well as cereals and snacks. UBS observes a significant expansion opportunity in Asia.

The broker believes the company is well-positioned to expand both domestically and offshore with 52% compound growth in earnings per share forecast over FY19-22.

The broker initiates coverage with a Buy rating and $6.70 target.

Target price is $6.70 Current Price is $5.38 Difference: $1.32
If FNP meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $6.79, suggesting upside of 26.1% (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

Citi rates GPT as Neutral (3) -

2018 was in line with expectations. 2019 guidance consists of 4% growth in distributions and free funds from operations.

However, Citi points out GPT typically guides conservatively. The broker notes office was strong and retail held up well. Neutral rating and $5.49 target maintained.

Target price is $5.49 Current Price is $6.10 Difference: minus $0.61 (current price is over target).
If GPT meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.55, suggesting downside of -9.1% (ex-dividends)

The company's fiscal year ends in December.

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 GPT as Outperform (1) -

2018 earnings were in line with guidance and consistent with Macquarie's expectations. 2019 guidance is for 4% growth and slightly below Macquarie's forecasts. However, the company has a track record of upgrading throughout the year.

The broker believes developments of Sunshine Plaza, the acquisition of Eclipse and gradual lease up in GWOF should aid growth. A partial offset will be the downtime in office assets in Melbourne.

Macquarie maintains an Outperform rating and $5.95 target.

Target price is $5.95 Current Price is $6.10 Difference: minus $0.15 (current price is over target).
If GPT meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.55, suggesting downside of -9.1% (ex-dividends)

The company's fiscal year ends in December.

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 HRL as Hold (3) -

HRL's first half earnings disappointed Morgans, reflecting the loss of the meth testing revenue in NZ after regulatory changes.

Margins fell to 5.1% from 13.1% in the previous first-half. The broker notes progress on several initiatives to restore profitability and expects a stronger second half.

Broker downgrades estimates across FY19-FY21. Hold rating retained. Target price falls to 10c from 12c.

Target price is $0.10 Current Price is $0.08 Difference: $0.02
If HRL meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).

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 JBH as Sell (5) -

First half results were better than Citi expected. The trading update has shown a slight slowdown relative to the second quarter.

There is no change to sales guidance. Citi finds second half guidance is stable. Sell rating maintained. Target is $20.20.

Target price is $20.20 Current Price is $22.98 Difference: minus $2.78 (current price is over target).
If JBH 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 $24.98, suggesting upside of 8.7% (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

Macquarie rates JBH as Outperform (1) -

First half results were slightly ahead of Macquarie's forecasts. The broker considers the results credible in a challenging discretionary retail environment. Guidance for FY19 net profit of $237-245m is in line with Macquarie's expectations.

The company has reiterated its sales targets, noting Australia is weaker but this is offset by additional sales in New Zealand. Macquarie finds the quality of the result OK at first inspection.

The company has noted volatile trading over the festive season. Outperform reiterated and $29 target retained.

Target price is $29.00 Current Price is $22.98 Difference: $6.02
If JBH meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $24.98, suggesting upside of 8.7% (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

Credit Suisse rates MGR as Neutral (3) -

First half results were above expectations, with higher-than-expected commercial profits and a less pronounced skew in residential settlements versus forecasts. FY19 guidance has been tightened to 3-4% growth in earnings per share.

While residential markets continue to deteriorate, Credit Suisse notes the product is proving to be resilient and the company is still on track to achieve more than 2500 lot settlements in FY19.

Credit Suisse maintains a Neutral rating as the stock is trading broadly in line with valuation. Target is raised to $2.56 from $2.52.

Target price is $2.56 Current Price is $2.55 Difference: $0.01
If MGR meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.55, suggesting upside of 0.1% (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 MGR as Sell (5) -

The company's first half results beat UBS estimates. The highlight was commercial development, with growth in office and industrial segments of 5% and 10% respectively.

Residential earnings were in line with expectations but the broker believes the market is overlooking the deteriorating outlook.

UBS maintains a Sell rating and raises the target to $2.35 from $2.22.

Target price is $2.35 Current Price is $2.55 Difference: minus $0.2 (current price is over target).
If MGR meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.55, suggesting upside of 0.1% (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

Citi rates NWS as Buy (1) -

News Corp's Q2 report was better-than-expected, on underlying assessment, with growth at REA Group ((REA)) expected to slow, but Citi analysts consider this a temporary revenue dip only. The Q2 result was heavily dominated by full consolidation of Foxtel, point out the analysts.

Despite the company making real progress in digital subscriptions, Citi analysts highlight News and Info Services continues its trend of negative earnings leverage, with revenue declines continuing to outpace falling costs. Buy.

Target price is $20.00 Current Price is $17.74 Difference: $2.26
If NWS meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $21.36, suggesting upside of 20.4% (ex-dividends)

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: 0.4

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

Credit Suisse rates NWS as Neutral (3) -

Second quarter results were in line with expectations. Credit Suisse updates estimates to reflect lower earnings at REA Group ((REA)), given subdued volumes in the Australian market, and also taking into account lower D&A outcomes.

Digital growth in news & information services is encouraging to the broker, although revenues remain well below the 50% level needed to provide a meaningful offset to print declines.

Neutral rating maintained. Target reduced to $20.25 from $20.80.

Target price is $20.25 Current Price is $17.74 Difference: $2.51
If NWS meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $21.36, suggesting upside of 20.4% (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: 0.4

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

Macquarie rates NWS as Outperform (1) -

News Corp posted a solid result, ahead of the broker and consensus. The NIS division saw ad revenue declines moderating, subscriptions rising and cost-outs helping. Digital Real Estate and Books also performed well, leaving the main drag as Foxtel, the broker notes, which suffered from broadcast declines, the costs of the Cricket rights and launch of Kayo.

While there were a number of positives, this was a typically mixed result, the broker notes. The third quarter will suffer headwinds, particularly REA Group ((REA)) marketing spend, but the broker sees valuation appeal across the group. Outperform retained. Target falls to $24.42 from $24.80.

Target price is $24.42 Current Price is $17.74 Difference: $6.68
If NWS meets the Macquarie target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $21.36, suggesting upside of 20.4% (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: 0.4

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

Morgan Stanley rates NWS as Underweight (5) -

Second quarter earnings were in line with Morgan Stanley's expectations, supported by higher earnings from REA Group ((REA)) and books. Newspapers, Foxtel and Fox sports were flat or negative.

No explicit guidance was provided and the broker estimates the company needs to deliver 15% growth in earnings in the second half to meet consensus expectations.

Underweight rating, US$11.50 target and Attractive industry view maintained.

Current Price is $17.74. Target price not assessed.

Current consensus price target is $21.36, suggesting upside of 20.4% (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: 0.4

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

Morgan Stanley rates OZL as Reinstate Coverage with Equal-weight (3) -

Morgan Stanley reinstates coverage with an Equal-Weight rating and $11 target. The broker considers the company a high-quality, long-life copper exposure with several catalysts at its Australian projects.

However, these catalysts have limited ability to drive valuation upside as they relate to longer-dated projects. Industry view is Attractive.

Target price is $11.00 Current Price is $9.81 Difference: $1.19
If OZL meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $10.68, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates PDL as Overweight (1) -

Pendal Group will increase its ownership in Regnan to 100% from 50%. Regnan provides stock specific governance, research and advisory services.

Morgan Stanley considers this a favourable move, as the acquisition will support the quality and credibility of the company strategies.

Overweight rating. Target is $10.00. Industry view: In-Line.

Target price is $10.00 Current Price is $8.09 Difference: $1.91
If PDL meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $8.98, suggesting upside of 10.9% (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

Ord Minnett rates PGH as Hold (3) -

Ord Minnett finds Pact Group's performance disappointing recently and remains cautious about the outlook, although there is fundamental valuation support. The company is scheduled to release its first half result on February 20.

The broker maintains a Hold rating and raises the target to $4.00 from $3.80. The broker will look to gauge management's appetite for further deals, given commentary that it remains active in M&A.

Target price is $4.00 Current Price is $3.92 Difference: $0.08
If PGH meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.08, suggesting upside of 4.1% (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

Morgan Stanley rates PTM as Underweight (5) -

The company reported -$111m in net outflows in January, which have accelerated versus December and November.

This is consistent with Morgan Stanley's view that Platinum Asset Management faces the greatest de-rating risk among asset managers under coverage.

The broker maintains an Underweight rating, $3.50 target and In-Line industry view.

Target price is $3.50 Current Price is $4.70 Difference: minus $1.2 (current price is over target).
If PTM meets the Morgan Stanley target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.22, suggesting downside of -10.3% (ex-dividends)

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 REA as Buy (1) -

The underlying assumption made by Citi analysts is that management's "soft" guidance for H2 might prove too cautious. The analysts themselves remain convinced the company should achieve rapid acceleration in revenue growth once the listing headwinds subside; but they acknowledge listings are still falling.

The analysts recall the Australian property market has been far too hot for most of the last five years, and now it has rapidly moved to being too cold. They anticipate it will transform into "just right" in the not too distant future.

On this basis, $105 price target and Buy rating retained, while estimates have been reduced by -2%.

Target price is $105.00 Current Price is $72.72 Difference: $32.28
If REA meets the Citi target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $86.44, suggesting upside of 18.9% (ex-dividends)

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

Credit Suisse rates REA as Neutral (3) -

First half results were in line with Credit Suisse estimates. Australia was driven by strong depth revenues while better Asian earnings offset a negative contribution from associates.

The broker finds guidance for the remainder of FY19 more subdued, as management expects a slower rate of revenue growth, reflecting weakness in residential listings and continued declines in new apartment commencements.

Neutral rating maintained. Target is reduced to $79.50 from $85.50.

Target price is $79.50 Current Price is $72.72 Difference: $6.78
If REA meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $86.44, suggesting upside of 18.9% (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 REA as Outperform (1) -

The good news is REA was able to grow revenues by 15% in the first half despite a -3% fall in volumes, Macquarie notes. This provides evidence of counter-cyclical drivers around depth/mix and duration. Thus REA should be able to maintain robust earnings against any weak backdrop.

The bad news is the near term backdrop will likely be weak, management warns, given Easter, Anzac Day, school holidays and the NSW and federal elections looming. The broker nonetheless expects solid earnings growth both in the second half and in FY20, when easier comparables will be cycled.

Outperform and $90 target retained.

Target price is $90.00 Current Price is $72.72 Difference: $17.28
If REA meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $86.44, suggesting upside of 18.9% (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

Morgan Stanley rates REA as Overweight (1) -

Morgan Stanley found the first half commendable, ahead of expectations. However, the broker suspects the shares may initially trade lower as consensus estimates are adjusted to reflect lower second half growth.

No specific guidance was provided but the company expects lower revenue growth in the second half as January listings are down -11% and the NSW and federal elections in March and May will weigh.

Industry view is Attractive. Overweight rating retained. Target is $90.

Target price is $90.00 Current Price is $72.72 Difference: $17.28
If REA meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $86.44, suggesting upside of 18.9% (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 REA as Add (1) -

REA's first half results outpaced the broker by 7.7.%.

Morgans says strong growth and revenue depth - Premiere ads proving the star - more than offset weakness in media and finance revenue. 

 But the broker expects the stock will be digging in for a protracted market share battle with PropertyGuru after reporting a second write-down in Asia. Risks to the downside and upside include falls/rises in Australian listings, rejection/acceptance of new product initiatives, a deterioration/improvement in US and Asian operation, and irrational/rational competitive behaviour.

Target price raised to $89.57 from $89.55. Add retained.

Target price is $89.57 Current Price is $72.72 Difference: $16.85
If REA meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $86.44, suggesting upside of 18.9% (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 REA as Hold (3) -

First half results were considered mixed, but ahead of Ord Minnett's forecasts. Management appears more circumspect about the second half outlook.

The decline in listings volumes is expected to accelerate, amid the upcoming elections and a continued decline in property as well as weak new dwelling construction.

Ord Minnett does not expect listings to improve until FY20 at the earliest. The broker maintains a Hold rating and trims the target to $76 from $79.

Target price is $76.00 Current Price is $72.72 Difference: $3.28
If REA meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $86.44, suggesting upside of 18.9% (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

UBS rates REA as Neutral (3) -

UBS found the first half impressive, although believes the confirmation that growth is set to slow has probably driven underperformance in the share price. Moreover, this could suggest earnings risk in FY20.

Consensus appears to factor in around 12% revenue growth in FY20, which the broker suspects is at risk, as price increases could slow and depth comparables become more difficult from the second half, while developer tailwinds should eventually abate.

UBS remains qualitatively positive on the business but retains a Neutral rating on valuation. Target is steady at $75.

Target price is $75.00 Current Price is $72.72 Difference: $2.28
If REA meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $86.44, suggesting upside of 18.9% (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

Citi rates RIO as Buy (1) -

Citi analysts have been forced to lift input iron ore pricing for their modeling, and the result is for some hefty increases to producer estimates in Australia.

For Rio Tinto, which still has to update on 2018 financials, the impact starts in 2019. Buy rating retained, while the price target has risen to $102 from $89.

Target price is $102.00 Current Price is $92.18 Difference: $9.82
If RIO meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $88.79, suggesting downside of -3.7% (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: 0.4

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

UBS rates S32 as Buy (1) -

Ghana's government is auditing all large-scale mining companies. The government has suspended the Ghana Manganese Company pending technical and financial audits.

This is owned by Ningxia Tian Yuan, one of the largest integrated manganese producers.

UBS envisages modest upside to forecasts if the disruption is prolonged. Manganese accounts for 18% of revenue and 44% of South32's operating earnings (EBIT) in FY18.

Therefore, this news could provide upside risk to forecasts. Buy rating and $4.10 target maintained.

Target price is $4.10 Current Price is $3.69 Difference: $0.41
If S32 meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.88, suggesting upside of 5.2% (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: 0.7

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

Morgan Stanley rates SFR as Reinstate Coverage with Overweight (1) -

Morgan Stanley reinstates coverage with an Overweight rating and $8.65 target. Industry view is Attractive.

Despite the relatively short mine life, the broker believes the stock is carrying its exploration and development upside for free, providing more potential for upside over the next 12 months.

The broker believes the upside surprise could come as Monty ore is introduced at the mill at DeGrussa, lifting grades and potential recoveries.

Target price is $8.65 Current Price is $7.50 Difference: $1.15
If SFR meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $7.44, suggesting downside of -0.9% (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