Australian Broker Call

Macquarie rates AFG as Outperform (1) -

Preliminary FY19 results were ahead of Macquarie's estimates. The company will acquire Connective for $120m but has not quantified any revenue synergies.

Macquarie calculates Connective would hold 38% market share but does not incorporate any Connective earnings impact at this point.

The broker will review forecast when the official FY19 result is released on August 23 but envisages potential upside risk to forecasts. Outperform maintained. Target is raised to $2.64 from $1.43.

Target price is $2.64 Current Price is $2.10 Difference: $0.54
If AFG meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

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 ARF as Neutral (3) -

FY19 earnings are in line with expectations. FY20 distribution guidance of 14.3c per security was reaffirmed.

Macquarie considers the child care subsidy has largely been captured in the results and the company will benefit from moderating supply and a continued shift in structural demand.

The company continues to pursue opportunities outside of early learning centres, where the financial returns are similar. Valuation remains the hurdle and the broker retains a Neutral rating. Target is reduced to $2.78 from $2.80.

Target price is $2.78 Current Price is $2.81 Difference: minus $0.03 (current price is over target).
If ARF meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Citi rates BSL as Buy (1) -

Despite concerns over slowing global growth and escalating trade war tensions, Citi believes stimulus measures should help boost sentiment. For the near term, underlying steel margins have improved.

At the upcoming results, the broker now believes that earnings guidance for the first half of FY20 will trigger consensus upgrades. A Buy rating is reiterated and the target lifted to $15 from $14. BlueScope will report its results on August 19.

Target price is $15.00 Current Price is $12.88 Difference: $2.12
If BSL meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $13.89, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Credit Suisse rates BSL as Outperform (1) -

Credit Suisse expects BlueScope Steel will meet consensus when it reports, the only wildcards being the dividend (broker tips 8c) and cash (broker tips top end of range, leaving room for capital management), and news on North Star funding.

The broker notes the first-half outlook is on the up, with US and Australian steel markets improving, although scrap price pressures remain.

Target price steady at $15. Outperform rating retained.

Target price is $15.00 Current Price is $12.88 Difference: $2.12
If BSL meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $13.89, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Credit Suisse rates CGF as Neutral (3) -

Challenger's full-year result met the broker but proved a mixed bag, with Life in line and a -3% miss in Funds management largely being offset by lower than expected corporate costs.

A stabilisation in the Life cash operating earnings margin was viewed favourably, but sales remain slow albeit with a favourable mix.

EPS forecasts fall -0.2% in FY20 and -3.2% in FY21 reflecting a forecast fall in Funds Management and Life earnings.

The dividend forecast jumps 12.7% after the flat FY19 dividend. Neutral rating retained and target price lowered to $7.20 from $7.50.

Target price is $7.20 Current Price is $6.98 Difference: $0.22
If CGF meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.22, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates CGF as Outperform (1) -

FY19 result were broadly in line with Macquarie's expectations. FY20 guidance for net profit of $500-550m is unchanged.

Macquarie recognises the challenges of low interest rates but believes offsets are coming through on the funding side and margin pressures will be less significant going forward.

Industry disruption will cause domestic sales to remain soft in the near future, in the broker's view, while net book growth will still benefit from an increase in Japanese sales volumes in FY20.

Outperform maintained. Target is reduced to $8.40 from $8.80.

Target price is $8.40 Current Price is $6.98 Difference: $1.42
If CGF meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $7.22, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

FY19 results were in line with estimates and guidance is unchanged. Morgan Stanley was surprised at the increasing capital intensity in the second half, stemming from reinvestment into non-investment-grade fixed income.

The broker believes the sales outlook is subdued with a multi-year disruption ahead in the advice industry. Equal-weight rating maintained. Target is raised to $6.95 from $6.85. Industry view: In-line.

Target price is $6.95 Current Price is $6.98 Difference: minus $0.03 (current price is over target).
If CGF 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 $7.22, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates CGF as Hold (3) -

FY19 net profit was below expectations and at the bottom of the target range of $545-565m, Morgans notes. Overall, the broker considers the result underpins confidence that the earnings profile has largely been re-based.

However deteriorating sales momentum in Australia on adviser disruption impacts is likely to be apparent. Morgans maintains a Hold rating and reduces the target to $7.31 from $7.37.

Target price is $7.31 Current Price is $6.98 Difference: $0.33
If CGF meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $7.22, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates CGF as Lighten (4) -

FY19 net profit was slightly below Ord Minnett's forecasts. The life business shows an increase in cash operating earnings margins in the second half, a reversal of declines that have been occurring since 2011.

The broker believes the mid point of pre-tax profit guidance for FY20 of $500-550m can be achieved. Ord Minnett's main concern is whether there is an appropriate risk-adjusted return to shareholders. Lighten maintained. Target is $6.50.

Target price is $6.50 Current Price is $6.98 Difference: minus $0.48 (current price is over target).
If CGF 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 $7.22, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates CGF as Neutral (3) -

FY19 normalised pre-tax profit was in line with UBS estimates. Recent FY20 guidance is unchanged. UBS believes lower bond yields into FY20 will place further pressure on domestic annuity demand, the key swing factor for the outlook.

The broker suspects Challenger could fall short of re-based pre-tax return targets, with estimates implying 14.2% in FY20. Neutral rating and $6.95 target maintained.

Target price is $6.95 Current Price is $6.98 Difference: minus $0.03 (current price is over target).
If CGF meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.22, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Citi rates CPU as Neutral (3) -

At face value, Citi analysts believe FY19 financial performance is minimally better-than-expected/guided, while guidance for -5% contraction in FY20 appears to be a disappointment. However, this guidance appears to be heavily impacted by changes in accounting.

Underlying, the analysts believe, FY20 guidance is merely in-line with expectations. Also, management is anticipating flat margins for the year ahead. Equally important, guidance for FY20 does not include any impact from share buyback.

Target price is $17.00 Current Price is $15.10 Difference: $1.9
If CPU meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $16.29, suggesting upside of 7.9% (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

Ord Minnett rates CPU as Hold (3) -

It appears, on initial analysis, FY19 financials released today mostly missed Ord Minnett forecasts, albeit by a very thin margin only. Of more importance is the fact that management has guided towards negative growth of -5% for the year ahead, with accountancy the key factor in this negative guidance.

However, Ord Minnett believes management's guidance for flat margins, which underpins the FY20 outlook, looks rather "optimistic". The broker als retains a few question marks about the outlook for FY21.

Target price is $16.25 Current Price is $15.10 Difference: $1.15
If CPU meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $16.29, suggesting upside of 7.9% (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

Ord Minnett rates CSL as Accumulate (2) -

On initial assessment, Ord Minnett suggests CSL released yet another strong result, but it was in-line with expectations. Management's guidance for FY20, however, appears to be better than what the market, and Ord Minnett, had been expecting.

FY19 financials include lower than expected operational earnings and higher operational costs, as well as a lower impact from FX and a lower tax rate in H2. The broker had expected a higher dividend.

Target price is $210.00 Current Price is $234.00 Difference: minus $24 (current price is over target).
If CSL meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $213.40, suggesting downside of -8.8% (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

Citi rates DXS as Buy (1) -

Upon initial assessment, Citi analysts find today's FY19 release was strong, but in-line with recently provided guidance. They note Office trends remain extremely strong, with Sydney a true stand-out.

Target price is $14.10 Current Price is $13.21 Difference: $0.89
If DXS meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $12.80, suggesting downside of -3.1% (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

Credit Suisse rates EVN as Underperform (5) -

Credit Suisse expects Evolution Mining will report roughly in line with consensus, with the dividend and net profit being the only wildcards.

The broker pegs dividend risk to the upside, given the company's cash surplus. Target price steady at $2.60. Underperform rating.

Target price is $2.60 Current Price is $5.15 Difference: minus $2.55 (current price is over target).
If EVN meets the Credit Suisse target it will return approximately minus 50% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.73, suggesting downside of -27.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.4

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

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

FY19 results were broadly in line with expectations. Citi finds the risk/reward less compelling now as the stock is trading well above peers, performance fees are lumpy and the medium-term growth prospects are some time away.

Rating is downgraded to Sell from Neutral. The broker believes the company has taken an innovative approach to funds management, offering eligible investors 7.5% loyalty units if they subscribe to the new high conviction trust IPO. Target is steady at $54.

Target price is $54.00 Current Price is $55.79 Difference: minus $1.79 (current price is over target).
If MFG meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.03, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.8

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

Credit Suisse rates MFG as Underperform (5) -

Magellan Financial Group's full-year result beat consensus by 3%, thanks to other income, performance fees and lower employee expenses.

The result shared the news space with the launch of Magellan's High Conviction Trust. The broker expects the trust will pull $2bn in inflows in FY20, yielding a one-off unit cost to Magellan of $150m, which will be funded by a $275m institutional placement.

Credit Suisse upgrades outer earnings by 10% and raises the target price to $49.30 from $42.90. Underperform rating retained.

Target price is $49.30 Current Price is $55.79 Difference: minus $6.49 (current price is over target).
If MFG meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.03, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.8

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

Macquarie rates MFG as No Rating (-1) -

FY19 net profit was ahead of Macquarie's estimates while management and performance fees were broadly in line.

The company has announced a $275m share placement to fund future growth initiatives, with most of the proceeds to be directed towards the launch of a closed-end high conviction trust and support a new retirement income product.

Macquarie is currently on research restrictions and cannot provide a rating or target at present. FY20 funds management expenses are expected to be $115-120m.

Current Price is $55.79. Target price not assessed.

Current consensus price target is $49.03, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.8

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

Morgan Stanley rates MFG as Underweight (5) -

Second half profit was ahead of Morgan Stanley's estimates but increasing capital intensity and potential dilution to earnings per share from the capital raising are expected to weigh on the share price.

Morgan Stanley welcomes the news the company is building a direct-to-consumer platform and developing new strategies including retirement income.

The broker assesses this capitalises on the vacuum left in the retail wealth segment, given the exit of the banks, and provides an alternative to the growing strength of industry super funds.

Morgan Stanley lifts FY20 estimates for net profit by 4% and raises the target to $38.50 from $38.00. Underweight maintained. Industry view is: In-Line.

Target price is $38.50 Current Price is $55.79 Difference: minus $17.29 (current price is over target).
If MFG meets the Morgan Stanley target it will return approximately minus 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.03, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.8

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

Morgans rates MFG as Hold (3) -

FY19 results were in line with expectations. The company has launched an underwritten $275m institutional placement to support growth initiatives.

Morgans suggests the company's initiatives can deliver significant medium-term growth in funds under management.

However, the stock is susceptible to short-term market volatility, in the broker's view. Hold maintained. Target is raised to $57.80 from $49.22.

Target price is $57.80 Current Price is $55.79 Difference: $2.01
If MFG meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $49.03, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.8

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

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

Ord Minnett downgrades to Sell from Hold on valuation grounds. While supporting the strategy to continue investing in listed structures through manager-funded priority offers, the broker considers this simply an incremental driver of growth.

The company has raised capital to further invest in listed products, which tend to come with loyalty bonuses funded by the manager.

While supportive of the building of direct-to-consumer relationships and retirement products, Ord Minnett believes the market is paying up for success. Target is raised to $49.60 from $40.33.

Target price is $49.60 Current Price is $55.79 Difference: minus $6.19 (current price is over target).
If MFG meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.03, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.8

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

UBS rates MFG as Sell (5) -

FY19 net profit was well ahead of UBS estimates which purely reflected one-off unrealised asset gains. Otherwise, funds management profit was in line. Of more interest to the broker was the $270m equity raising announcement to fund future growth initiatives.

While deploying capital to fund investor discounts for closed-end funds makes strategic sense, the increasing capital intensity of flows is an indication to the broker the company is entering a more mature growth phase.

Partnership costs are becoming more of a recurring feature and, hence, the broker envisages downside risks to value. Sell rating maintained. Target rises to $45.00 from $43.35.

Target price is $45.00 Current Price is $55.79 Difference: minus $10.79 (current price is over target).
If MFG meets the UBS target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.03, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.8

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

UBS rates MYX as Neutral (3) -

Based on competitor results in the second quarter, UBS notes US generics appear to be suffering from the same pressures that affected FY18.

The issues have not worsened, the broker adds, and the impact on each manufacturer appears to be variable but, in terms of Mayne Pharma, a lack of new product approvals and competitive pressure for certain products such as dofetilide are likely to result in material contraction in gross profit.

The broker maintains a Neutral rating and $0.53 target. The company is due to report results on August 23.

Target price is $0.53 Current Price is $0.48 Difference: $0.05
If MYX meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $0.56, suggesting upside of 15.6% (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 NAB as Buy (1) -

On initial appraisal, Citi analysts applaud the fact NAB released a "clean" market update, which also proved to be slightly better-than-expected. The analysts point out this comes hot on the heels of a favourable ASIC court conclusion yesterday.

Even without the DRP, the CET1 is still better than the 10.3% penciled in by the analysts. They anticipate a positive response from Mr Market today.

Target price is $29.50 Current Price is $27.55 Difference: $1.95
If NAB meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $26.99, suggesting downside of -2.0% (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

Credit Suisse rates NCM as Underperform (5) -

Credit Suisse notes variance risks ahead of Newcrest Mining's result include exploration expenses, net finance charges and non-operating charges for foreign exchange and fair value gains and losses.

No impairments are expected and the broker pegs dividend risk to the upside. Target price steady at $20.30 and Underperform rating retained.

Target price is $20.30 Current Price is $36.60 Difference: minus $16.3 (current price is over target).
If NCM meets the Credit Suisse target it will return approximately minus 45% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $25.58, suggesting downside of -30.1% (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

Macquarie rates NEC as Outperform (1) -

Macquarie believes, despite weaker advertising markets, Nine Entertainment is well-placed heading to FY20 amid the capture of merger synergies.

The broker pulls back expectations for TV and radio earnings to reflect the weaker advertising markets. FY19 and FY20 estimates for earnings per share are reduced by -0.9% and -3.4% respectively.

Outperform maintained. Target is raised to $2.15 from $2.00. The company will report its results on August 22.

Target price is $2.15 Current Price is $1.90 Difference: $0.25
If NEC meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.09, suggesting upside of 10.0% (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

Macquarie rates OFX as Neutral (3) -

The first quarter trading update revealed corporate strength which was offset by weak consumer business, Macquarie observes.

Nevertheless, the broker notes strong broad-based activity in the month of July has returned FY20 income to growth, despite the first quarter being down -3.4%.

Macquarie reduces FY20 and FY21 estimates for earnings per share by -2.8% and -2.9% respectively.

Target is reduced to $1.47 from $1.76, reflecting the combination of reduced EPS estimates and a lower earnings (EBIT) multiple. Neutral maintained.

Target price is $1.47 Current Price is $1.49 Difference: minus $0.02 (current price is over target).
If OFX meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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 asserts the best time to buy REA Group is during periods of cyclical weakness. The broker's analysis concludes that 5-8 months after a rise in auction clearance rates, which has been evident since May, there will be a recovery in listings.

This should be followed by a meaningful rise in expectations for earnings per share. The broker maintains an Overweight rating and Attractive industry view. Target is raised to $110 from $90.

Target price is $110.00 Current Price is $105.08 Difference: $4.92
If REA meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $98.51, suggesting downside of -6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

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

Following a significant market sell-off, Ord Minnett trims near-term iron ore and metallurgical coal price forecasts by -5%. The broker suggests a trading opportunity has opened up, given the aggressive -20% sell-off in Rio Tinto, versus BHP Group ((BHP)) at -12%.

Further Chinese policy support is considered likely, despite the uncertainty around trade tensions and the steel production outlook. The broker upgrades Rio Tinto to Buy from Hold. Target is reduced to $105 from $106.

Target price is $105.00 Current Price is $87.98 Difference: $17.02
If RIO meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $101.59, suggesting upside of 15.5% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates SBM as Underperform (5) -

Credit Suisse previews St Barbara Mining, and assesses the main wildcard in the result will be guidance for the recently acquired Atlantic.

Growth is emerging, spot gold prices are favourable and target price is steady at $2.76.

Underperform rating retained, despite the miner trading below spot net present value, given the company doesn't yet meet the broker's price-deck based valuation.

Target price is $2.76 Current Price is $3.67 Difference: minus $0.91 (current price is over target).
If SBM meets the Credit Suisse target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.24, suggesting downside of -11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.4

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

Ord Minnett rates SZL as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage on Sezzle with a Buy rating and $3 target. The company occupies the "buy now, pay later" segment in North America.

The broker notes strong product market fit is evidenced by exceptional growth rates and increasing repeat customer usage.

The recently oversubscribed IPO has positioned the business well to grow its underlying merchant sales as well as gain access to large retailers, in the broker's view.

Target price is $3.00 Current Price is $2.42 Difference: $0.58
If SZL meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 1.0

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

Ord Minnett rates WBC as Hold (3) -

Ord Minnett notes Westpac Banking Corp has been delivered what appears to be an emphatic win by the Federal Court in the responsible lending case brought by the Australian Securities and Investment Commission. ASIC's application has been dismissed.

Potentially, the broker suggests this may remove some tail risk from the mortgage market, with a reduced likelihood of successful class actions or other litigation.

However, the broker notes this is only one judge's view and responsible lending rules are likely to evolve.

Westpac has long argued that the responsible lending rules do not require the bank to guarantee a borrower maintains their current standard of living and the judgement appears to support this view. Hold rating and $28.50 target maintained.

Target price is $28.50 Current Price is $28.42 Difference: $0.08
If WBC meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $28.53, suggesting upside of 0.4% (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

Credit Suisse rates WSA as Neutral (3) -

Credit Suisse expects few surprises from the Western Areas result, and is positioned at the midpoint of consensus.

A cash surplus allows a token dividend. Target price steady at $2.45 and Neutral rating retained.

Target price is $2.45 Current Price is $2.43 Difference: $0.02
If WSA meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.55, suggesting upside of 4.9% (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