Australian Broker Call

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

The Australian Energy Regulator has released its final determination for the company's Victorian transmission network. The final revenue determination is 1.7% higher than the draft.

Morgan Stanley retains an Equal-weight rating. Target is $1.59. Industry view: Cautious.

Target price is $1.59 Current Price is $1.75 Difference: minus $0.16 (current price is over target).
If AST 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 $1.61, suggesting downside of -7.3% (ex-dividends)

The company's fiscal year ends in March.

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 AST as Accumulate (2) -

The  Australian Energy Regulator has handed down a final determination for the company's Victorian transmission business, with the maximum allowable revenue  -7% below Ord Minnett's estimates.

Nevertheless, the broker does not envisage any long-term risk to the sustainability of dividends. Accumulate rating retained. Target is $1.85.

Target price is $1.85 Current Price is $1.75 Difference: $0.1
If AST meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.61, suggesting downside of -7.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

Macquarie rates AWC as Outperform (1) -

Given the company's earnings leverage to alumina, and incorporating downgrades to alumina forecasts for FY17 and FY18, Macquarie reduces estimates for earnings by -15% and -12%  respectively.

Target is reduced to $2.10 from $2.30. Outperform retained.

Target price is $2.10 Current Price is $1.84 Difference: $0.26
If AWC meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.80, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: -0.4

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

Citi rates AWE as Buy (1) -

March quarter production was below expectations. Sales revenue was higher,  because of sales from Tui and realised gas pricing.

 Citi believes the market is concerned about the progress with Waitsia but suggests project guidance, moving into FEED in June, signals otherwise.

Buy, High Risk retained. Target is reduced to $0.71 from $0.77.

Target price is $0.71 Current Price is $0.46 Difference: $0.255
If AWE meets the Citi target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $0.56, suggesting upside of 23.3% (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

UBS rates AWE as Buy (1) -

UBS observes a strong quarter from Bass gas partly offset the impact of selling the Tui oil field in March. The broker reduces gas pricing expectations for future Waitsia gas sales to match the mid point of the company's guidance.

Buy rating retained.  Target is reduced to $0.60 from $0.63.

Target price is $0.60 Current Price is $0.46 Difference: $0.145
If AWE meets the UBS target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $0.56, suggesting upside of 23.3% (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

Ord Minnett rates BHP as Hold (3) -

Ord Minnett has cut its iron ore price forecast for CY17 to US$73 a tonne from US$82/tonne on continued supportive industry dynamics, but an anticipated more cautious mindset among Chinese traders.

The results is for reduced earnings estimates and this pulls back the price target to $25 from $26. Hold rating retained.

Target price is $25.00 Current Price is $23.72 Difference: $1.28
If BHP meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $27.65, suggesting upside of 16.6% (ex-dividends)

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: 0.5

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

Macquarie rates CHC as No Rating (-1) -

The company has announced another FY17 earnings upgrade along with a $275m equity raising to partly fund co-investment commitments alongside capital partners.

Macquarie upgrades estimates  for FY17 earnings per share by 5.8% and FY18 by 3.1%. The broker is currently on research restrictions and cannot provide a rating or target at this point.

Current Price is $5.67. Target price not assessed.

Current consensus price target is $5.33, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Morgan Stanley rates CHC as Overweight (1) -

Morgan Stanley expects the capital raising to fund $333m in co-investment across the company's funds will drive at least $1.8bn in growth in assets under management and sets the company up for ongoing growth in future years.

The company has upgraded forecasts for FY17, which the broker believes largely reflects a $10m performance fee from the Charter Hall Office Trust. While expecting growth will slow down the broker believes there is still plenty of opportunity.

Overweight rating retained. Target is $5.65. Industry view is Cautious.

Target price is $5.65 Current Price is $5.67 Difference: minus $0.02 (current price is over target).
If CHC meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.33, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

UBS rates CHC as Neutral (3) -

The company has raised $275m and upgraded forecast for earnings per share by 6% for FY17. The raised capital will be used to invest in existing and new partnerships.

As a result of the capital raising and assume deployment of proceeds into funds, UBS estimates accretion of 3-4%. The broker retains a Neutral rating.  Target rises to $5.60 from $5.40.

Target price is $5.60 Current Price is $5.67 Difference: minus $0.07 (current price is over target).
If CHC 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 $5.33, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Morgan Stanley rates CPU as Underweight (5) -

Morgan Stanley believes the price/earnings ratio is elevated. Registry is ex growth and mortgage servicing run-off is likely to exceed organic growth until FY20.

A cost reduction program target in the UK is likely in February next year. Morgan Stanley believes such programs are necessary for the company to remain competitive and insulated earnings.

Underweight rating retained. Target is $11.70. Industry view: In-Line.

Target price is $11.70 Current Price is $14.74 Difference: minus $3.04 (current price is over target).
If CPU meets the Morgan Stanley target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.69, suggesting downside of -8.4% (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: 0.3

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

Morgans rates CPU as Add (1) -

Computershare reaffirmed FY17 guidance at its investor day. The UK and US mortgage servicing businesses remain on track to reach targets and cost-outs are also running to plan, the broker notes.

Management believes margin income will become a slight tailwind by FY18. The broker retains Add, lifting its target to $15.42 from $14.84.

Target price is $15.42 Current Price is $14.74 Difference: $0.68
If CPU meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $13.69, suggesting downside of -8.4% (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: 0.3

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

Credit Suisse rates FBU as Outperform (1) -

Credit Suisse observes two consecutive months of strong building consents in New Zealand. The broker believes this bodes well for the company's first half earnings.

The NZ government's decision to expand its infrastructure expenditure through to 2020 is also considered a positive and could help extend the NZ building and construction cycle peak.

Outperform retained. Target is NZ$9.80.

Current Price is $7.83. Target price not assessed.

Current consensus price target is $9.00, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.7

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

Ord Minnett rates FMG as Accumulate (2) -

Ord Minnett has cut its iron ore price forecast for CY17 to US$73 a tonne from US$82/tonne on continued supportive industry dynamics, but an anticipated more cautious mindset among Chinese traders.

The results is for reduced earnings estimates and this pulls back the price target to $7.30 from $7.60. Accumulate rating retained.

Target price is $7.30 Current Price is $5.31 Difference: $1.99
If FMG meets the Ord Minnett target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $6.45, suggesting upside of 22.7% (ex-dividends)

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: 0.3

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

Macquarie rates LLC as Outperform (1) -

The company has provided an additional update on its Australian engineering on services business.  Mega projects are expected to comprise around 25-35% of the $4bn engineering revenue target.

While stock has returned 16.1% in the last quarter versus the A-REIT sector at 5.4%, Macquarie remains positive  on the stock, given the attractive outlook for earnings per share that is underpinned by pre-sold residential revenue and strong leverage to growing infrastructure expenditure.

Outperform retained. Target is $16.52.

Target price is $16.52 Current Price is $16.03 Difference: $0.49
If LLC meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $16.70, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Morgans rates MDL as Add (1) -

Mineral Deposits' 50% owned TiZir reported positive free cash flow in the March Q. A capital raising has cleared Mineral Deposits' debt obligation and left the company cash positive. 

Elsewhere, Grande Cote mined and processed record levels in the quarter and the Tyssedal furnace restarted ahead of schedule. The broker does not think the company will need to draw down further to support TiZir but refinancing TiZir bonds maturing in September remains an issue.

Add retained, target falls to 71c from 96c.

Target price is $0.71 Current Price is $0.51 Difference: $0.2
If MDL meets the Morgans target it will return approximately 39% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 1.0

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

UBS rates MGR as Buy (1) -

UBS argues that residential pre-sales could be mis-priced and the market should apply a sharper discount rate to the company's $3bn worth of pre-sales, based on market evidence of securitise pre-sales. This reflects the fact the latter have been substantially de-risked.

The broker retains a Buy rating, given the company's office exposure, residential portfolio value and overweight NSW situation. Target is raised to $2.52 from $2.35.

Target price is $2.52 Current Price is $2.27 Difference: $0.25
If MGR meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.35, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

Citi rates MML as Neutral (3) -

Cash flow was negative in the March quarter because of capital expenditure and head grades that were below reserve.

Citi believes completing the E15 shaft should improve operations. Until then, the broker retains a Neutral, High Risk recommendation.Target is $0.38.

Target price is $0.38 Current Price is $0.38 Difference: $0.005
If MML meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $0.44, suggesting upside of 27.5% (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

Credit Suisse rates MQG as Neutral (3) -

Credit Suisse notes first quarter activity trends were consistent with the recent US investment banking season, although the broker acknowledges Macquarie Group's business mix is more leverage to areas of observed market weakness.

The broker expects a profit of $2.11bn at the FY17 results on May 6, just shy of consensus.

Credit Suisse retains a Neutral rating and $95 target.

Target price is $95.00 Current Price is $93.00 Difference: $2
If MQG meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $82.82, suggesting downside of -11.7% (ex-dividends)

The company's fiscal year ends in March.

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

Morgan Stanley rates NST as Overweight (1) -

March quarter production was flat and short of Morgan Stanley's expectations. Nevertheless, the broker believes the company is cruising towards its FY17 guidance. The broker expects the net cash position to increase to $500m by the end of FY17.

Overweight rating retained. Target is $5.30. Industry view: Attractive.

Target price is $4.85 Current Price is $4.28 Difference: $0.57
If NST meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.39, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Macquarie rates NXT as Outperform (1) -

The company is a large and growing consumer of energy and Macquarie assesses its exposure following the recent increase in forward electricity prices. Contracted electricity prices could almost double from 2017 to 2018 in the broker's estimates.

Macquarie observes the company has many levers to help mitigate the rising costs and the potential impact is expected to be minor albeit currently unknown.

Outperform rating retained. Target is $4.30

Target price is $4.30 Current Price is $4.16 Difference: $0.14
If NXT meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.43, suggesting upside of 5.6% (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

Citi rates OGC as Buy (1) -

March quarter production was strong and beat Citi's estimates. The broker expects the company to easily meet guidance and maintains a Buy call.

A High Risk rating is retained because of continued uncertainty in the Philippines. Target is $4.70.

Target price is $4.70 Current Price is $4.24 Difference: $0.46
If OGC meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.53, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.5

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

Macquarie rates OGC as Outperform (1) -

Macquarie was impressed with Didipio in the March quarter, as production beat estimates by 69% because of higher head grade via softer ore.

The broker now estimates production of around 140,000 ounces in 2017, exceeding the top end of guidance at 130,000 ounces.

Outperform rating and $6.25 target retained.

Target price is $6.25 Current Price is $4.24 Difference: $2.01
If OGC meets the Macquarie target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $4.53, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.5

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

Ord Minnett rates OGC as Buy (1) -

First quarter production was solid, in Ord Minnett's view. The broker notes a government confirmation next week may be an important catalyst for the future of Didipio.

The mine produced 51,000 ounces, around 43% of yearly guidance. This was due to better grades and throughput.

The upcoming Philippines government decision on an important government position may have a material impact on the regulatory environment and the broker believes the market would react favourably if Gina Lopez was not confirmed.

Buy rating  retained. Target is raised to $4.50 from $4.20.

Target price is $4.50 Current Price is $4.24 Difference: $0.26
If OGC meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.53, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.5

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

Macquarie rates ORE as Neutral (3) -

March quarter results were in line with expectations. Workers been done to rectify production problems but Macquarie believes the real question is what will happen in FY18.

The company expects to be able to provide FY18 in guidance following the completion of the bathymetric survey in Argentina in June.

Neutral maintained. Target is $3.17.

Target price is $3.17 Current Price is $3.15 Difference: $0.02
If ORE meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.19, suggesting upside of 36.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Citi rates ORG as Neutral (3) -

March quarter production was higher than Citi estimated. APLNG performed strongly and production testing is likely to be completed in the first quarter of 2018.

The broker believes there is still uncertainty regarding details of the government's gas market scheme, specifically around volume and price and where the responsibility lies with domestic supply.

The broker suspects an increase in gas supply to the market would likely weaken the company's current market power as it is the only large player with gas. Neutral rating maintained. Target is reduced to $7.53 from $7.58.

Target price is $7.53 Current Price is $7.18 Difference: $0.35
If ORG meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $7.42, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Ord Minnett rates ORG as Accumulate (2) -

Previously, Ord Minnett suggested the market may be overlooking the benefits that the trend in wholesale electricity prices will have on Origin Energy's business. The analysts are still of the same view.

But now they have to account for a weaker-than-expected March quarter update plus the federal government might be intervening in the domestic gas market. Target price falls to $7.75 from $8. Accumulate rating retained on the wholesale electricity benefits.

Target price is $7.75 Current Price is $7.18 Difference: $0.57
If ORG meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $7.42, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

UBS rates ORG as Buy (1) -

The March quarter was broadly in line with the prior quarter but below UBS expectations largely because of lower domestic gas volumes and some downtime in APLNG upstream.

The broker believes the company's share price has been affected by the federal government's proposed domestic gas security mechanism but considers the recent sell-off overdone.

APLNG will not be compelled to divert more gas into the domestic market and the broker does not expect the mechanism will impact contracted gas prices. Buy rating and $8.20 target retained.

Target price is $8.20 Current Price is $7.18 Difference: $1.02
If ORG meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $7.42, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Ord Minnett rates PAC as Buy (1) -

The company reported its strongest ever quarter of net inflows in March, gathering $5.4bn in assets under management. Core funds under management were 5% ahead of Ord Minnett's estimates.

The broker believes the company has turned the corner, with the boutique earnings outlook materially better. Buy rating retained. Target is raised to $7.57 from $7.20.

Target price is $7.57 Current Price is $5.19 Difference: $2.38
If PAC meets the Ord Minnett target it will return approximately 46% (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 PTM as Underperform (5) -

The company has announced a reduction to retail fees and the launch of two new funds. Credit Suisse suspects the cuts to fees will affect earnings by around -10% from FY18 and the new products will only attract minimal flows in the near term, given weak fund performance.

This leads to downgrades to earnings estimates of -12% in FY18 and -14% in FY19. Credit Suisse lowers the target to $4.50 from $5.10. Underperform retained.

Target price is $4.50 Current Price is $4.66 Difference: minus $0.16 (current price is over target).
If PTM meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.31, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.8

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

Macquarie rates PTM as Neutral (3) -

The company has announced updated product fees which, Macquarie calculates, could result in a -9% reduction to FY18 in revenue. The company has also launched two new funds.

The broker reduces FY18 estimates for earnings per share by -10.8%. Target is reduced to $4.39 from $4.93. Neutral maintained.

Target price is $4.39 Current Price is $4.66 Difference: minus $0.27 (current price is over target).
If PTM meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.31, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.8

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

Morgan Stanley rates PTM as Underweight (5) -

Morgan Stanley estimates FY18 earnings will fall -10% from the re-pricing of retail trusts. This comes on the back of around -$1bn in combined outflows in February and March.

Morgan Stanley believes the re-pricing is confirmation of its thesis that gross inflows have been weaker compared with the company's peers. The broker envisages downside risk to forecasts for outflows in the second half.

Underweight. Target is $4.30. Industry view: In-Line.

Target price is $4.30 Current Price is $4.66 Difference: minus $0.36 (current price is over target).
If PTM meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.31, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.8

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

Ord Minnett rates PTM as Downgrade to Sell from Hold (5) -

Platinum has cut the management fee on its management fee only Trust funds by 10%, from 150bps to 135bps from Jul-17 and Ord Minnett has responded with a downgrade to Sell from Hold.

Ord Minnett sees a defensive move aimed at stemming further outflows to lower fee managers such as Magellan ((MFG)) and Antipodes, but with outflows to continue. Cutting fees creates a 9% headwind and the stockbroker now anticipates a large fall (-16%) in EPS in FY18. Target price drops to $4.06 from $4.93.

Target price is $4.06 Current Price is $4.66 Difference: minus $0.6 (current price is over target).
If PTM meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.31, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.8

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

Ord Minnett rates RIO as Accumulate (2) -

Ord Minnett has cut its iron ore price forecast for CY17 to US$73 a tonne from US$82/tonne on continued supportive industry dynamics, but an anticipated more cautious mindset among Chinese traders.

The results is for reduced earnings estimates and this pulls back the price target to $72 from $73. Accumulate rating retained.

Target price is $72.00 Current Price is $60.44 Difference: $11.56
If RIO meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $71.63, suggesting upside of 19.0% (ex-dividends)

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: 0.9

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

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

The company has lowered gross margin guidance to 58.3%, versus 58-60%, for the fourth quarter. Citi believes this shows the continuing impact of manufacturing issues in masks, which may persist into the first quarter of FY18.

The broker downgrades to Neutral from Buy on valuation. Target is reduced to $10.00 from $10.32.

Target price is $10.00 Current Price is $9.16 Difference: $0.84
If RMD meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $9.62, suggesting upside of 4.4% (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: 0.6

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

Credit Suisse rates RMD as Outperform (1) -

March quarter results were ahead of Credit Suisse forecasts. Revenue growth was broad-based, although the broker notes US flow generator growth was somewhat soft.

The resolution of the back-order issue for masks is expected in the current quarter and product mix is expected to improve through FY18. Outperform retained. Target is raised to $9.70 from $9.45.

Target price is $9.70 Current Price is $9.16 Difference: $0.54
If RMD meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $9.62, suggesting upside of 4.4% (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: 0.6

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

Morgans rates RMD as Add (1) -

ResMed's quarterly earnings were as forecast but increased freight costs have begun to drag on revenues, the broker notes. Momentum eased for mask sales but market share was retained.

The broker believes mask sale weakness is now behind the company and the new model is being well-received. Supply constraints are also easing. Add retained. Target rises to $10.23 from $10.01.

Target price is $10.23 Current Price is $9.16 Difference: $1.07
If RMD meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $9.62, suggesting upside of 4.4% (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: 0.6

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

Ord Minnett rates RMD as Hold (3) -

Following ResMed's March quarter update, Ord Minnett analysts find there is good evidence ResMed’s new mask ranges have been well-received, but a skew to higher-margin products in the quarter without a visible lift in gross margin keeps the stockbroker on the safe side, for now.

Another disappointment was the sharp slowing in US device sales. According to the analysts, this might point towards having pulled forward sales in the previous quarter. Price target moves up to $9.65 from $9.45. Hold rating retained.

Target price is $9.65 Current Price is $9.16 Difference: $0.49
If RMD meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $9.62, suggesting upside of 4.4% (ex-dividends)

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: 0.6

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

UBS rates RMD as Buy (1) -

March quarter sales growth disappointed UBS. The broker expects the back-order issues to ease and flow generator growth to be sustained.

Buy rating retained. Target rises to US$79.75 from US$78.00.

Current Price is $9.16. Target price not assessed.

Current consensus price target is $9.62, suggesting upside of 4.4% (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: 0.6

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

Morgans rates S32 as Hold (3) -

The broker had expected a weaker quarter for South32 given issues in the Illawarra but the numbers still fell short. A fire at Cannington has taken the mine offline and heavy rain impeded coal production is South Africa.

Cash flow was nevertheless again impressive leaving the company with plenty of fire power for growth options and/or increased shareholder returns, the broker notes. The stock is trading close to fair value hence Hold retained. Target falls to $3.11 from $3.14.

Target price is $3.11 Current Price is $2.78 Difference: $0.33
If S32 meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.10, suggesting upside of 12.1% (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: 0.8

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

UBS rates S32 as Buy (1) -

March quarter production was weak but UBS observes cash flow was strong. As a result FY18 in estimates are trimmed by -8%.

UBS expects the stock to re-rate as the company steps up shareholder returns over the next 12 months and believes it is well positioned because of a lack of iron ore in the commodity mix as well as the strong balance-sheet and high free cash-flow yield.

The broker retains Buy and a $2.80 target.

Target price is $2.80 Current Price is $2.78 Difference: $0.02
If S32 meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.10, suggesting upside of 12.1% (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: 0.8

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

Credit Suisse rates SDA as Outperform (1) -

The company's investor briefing provided an update on the CapRock acquisition.The company has indicated it is comfortable with current market forecasts for around $122m in EBITDA in FY17.

Credit Suisse increases the target to $4.50 from $4.10 because of the increased visibility around synergies arising from the Cap Rock acquisition. Outperform retained.

Target price is $4.50 Current Price is $3.81 Difference: $0.69
If SDA meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Macquarie rates SEH as Outperform (1) -

First quarter results were in line with Macquarie's estimates. The company reported gas demand in China increased 10% over the March quarter, driven by heating consumption, industry and a shift to gas from coal.

Outperform and $0.20 target retained.

Target price is $0.20 Current Price is $0.09 Difference: $0.107
If SEH meets the Macquarie target it will return approximately 115% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

UBS rates SGP as Downgrade to Neutral from Buy (3) -

UBS observes the company's residential business is in a sweet spot although retail sales were light, as expected.

The broker downgrades to Neutral from Buy on valuation and a belief that momentum and the residential operating environment is unlikely to get any better. Target is $4.76.

Target price is $4.76 Current Price is $4.85 Difference: minus $0.09 (current price is over target).
If SGP meets the UBS 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 -2.0% (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 SHV as Downgrade to Hold from Add (3) -

Mild growing conditions in spring and summer have resulted in plenty of shells but not as many nuts, Morgans notes, forcing Select harvests to reduce its FY17 almond crop estimate by 5-10%. The broker downgrades forecasts by 11%.

Some 65% of the crop has been forward-sold and prices remain relatively stable, which is pleasing to Morgans. A cut in target to $5.60 from $6.05 nevertheless leads to a downgrade to Hold.

Target price is $5.60 Current Price is $5.44 Difference: $0.16
If SHV meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

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 SYR as Outperform (1) -

The company has provided a positive market update with Balama on schedule for commissioning in the June quarter and first production in August.

The company has confirmed a nre five-year European offtake of 15-25,000 tpa. Credit Suisse revises the target to $7.45 from $7.80. Outperform retained.

Target price is $7.45 Current Price is $2.28 Difference: $5.17
If SYR meets the Credit Suisse target it will return approximately 227% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 117.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

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

The company's estimates for the first year of production are around -20% below Morgan Stanley's forecasts but the broker acknowledges this is warranted given a lack of offtakes.

Although a slow ramp up is likely to affect valuation estimates negatively the broker believes this is a prudent move, given the lack of offtake, as it allows for capital preservation.

Equal-weight retained. Target is $2.75. Industry view is Attractive.

Target price is $2.75 Current Price is $2.28 Difference: $0.47
If SYR meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 117.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

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

Morgan Stanley acknowledges its positive view on the stock was wrong and, with the benefit of hindsight, it should have been bearish. The positive thesis was based on a forecast lift in audience and advertising revenue share. The first part has materialised but the second has not.

Morgan Stanley notes the first half results confirm a full year loss amid uncertainty over the renewal of the company's bank facility. While the stock  is trading at a substantial discount to peers, the broker observes the risks are notably much higher.

Rating is downgraded to Equal -weighted from Overweight. Target is reduced to $0.40 from $2.50. Attractive industry view retained.

Target price is $0.40 Current Price is $0.27 Difference: $0.13
If TEN meets the Morgan Stanley target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 46.1% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Macquarie rates VOC as Outperform (1) -

Macquarie believes the economics of the company's Australia-Singapore cable will be negatively affected by a parallel roll out of a competing cable.

While the company is facing integration challenges that may affect near-term operating momentum, the broker is of the view that underlying assets can deliver earnings growth over the medium and longer term which would ultimately present an opportunity for share price upside relative to current levels.

Outperform retained. Target is reduced to $5.00 from $5.20.

Target price is $5.00 Current Price is $3.37 Difference: $1.63
If VOC meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $5.13, suggesting upside of 49.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

Ord Minnett rates VRL as Downgrade to Hold from Buy (3) -

The admission that Gold Coast theme parks are not seeing the numbers of visitors that would have been expected pre-Dreamworld disaster has triggered yet another downgrade to forecasts. On Ord Minnett's revised numbers this translates into a debt coverage problem. Hence asset sales now have become a must, suggest the analysts.

In addition, with theme park trading weak into the all-important May/June annual pass pre-sale period, Ord Minnett analysts see significant uncertainty overhanging the division into FY18. Downgrade to Hold from Buy. Price target tumbles to $3.53 from $4.63.

Target price is $3.53 Current Price is $3.63 Difference: minus $0.1 (current price is over target).
If VRL meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.55, suggesting downside of -1.0% (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