Australian Broker Call

Citi rates ABC as Sell (5) -

The released interim report card proved in line with the profit warning out less than one month ago. Management thinks the housing downturn has further to go, potentially until 2021, so Citi analysts have sharpened their estimates further south.

Earnings are thus expected to decline further in 2020. Dividends are suspended and management is looking to grow through M&A. Management does anticipate some pick up in demand from mining projects.

Price target tumbles to $3 from $3.30. Sell rating retained.

Target price is $3.00 Current Price is $3.07 Difference: minus $0.07 (current price is over target).
If ABC meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.13, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates ABC as Underperform (5) -

First half earnings (EBIT) were ahead of estimates. Credit Suisse expects larger price/volume deterioration in the second half with offsetting factors unlikely to be material.

The decline in profitability of construction materials now means lime is around 30% of operating earnings (EBITDA) and increasingly important.

While demand from gold/lithium sources might restore modest volume growth, the broker cautions against being too optimistic. Underperform rating maintained. Target is reduced to $2.70 from $3.00.

Target price is $2.70 Current Price is $3.07 Difference: minus $0.37 (current price is over target).
If ABC 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 $3.13, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates ABC as Neutral (3) -

Adelaide Brighton reported marginally ahead of forecasts but there is no change to a weak FY outlook. No dividend was announced, as expected, and given the company's expansion and capex plans and a stretched balance sheet, the broker assumes no dividends through FY20.

On a 17x forward PE and limited growth, the broker retains Neutral, noting an intent to acquire and build out an integrated, infrastructure-oriented business model carries risk and reduces dividend prospects near-term.

Target falls to $3.40 from $3.75.

Target price is $3.40 Current Price is $3.07 Difference: $0.33
If ABC meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates ABC as Underweight (5) -

First half net profit was ahead of Morgan Stanley's forecasts. Full year guidance implies a -35% decline in net profit.

This highlights the major structural changes faced by the business as well as a difficult cyclical backdrop, the broker suggests.

Further declines in earnings are also expected in 2020. Underweight. Target is $3. Industry view: Cautious.

Target price is $3.00 Current Price is $3.07 Difference: minus $0.07 (current price is over target).
If ABC meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.13, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.7

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

Ord Minnett rates ABC as Hold (3) -

First half net profit was ahead of Ord Minnett's estimates and in line with guidance. The broker is comfortable with the 2019 guidance but believes the impact from pricing re-sets as well as cyclical headwinds will flow through to the first half of 2020.

The broker found the rationale for not declaring an interim dividend clear, as gearing breached the upper end of management's 25-45% target.

This weighed on cash conversion. Upside in the medium-term could stem from the strategy to integrate downstream and build exposure to the infrastructure sector. Hold rating and $3.50 target maintained.

Target price is $3.50 Current Price is $3.07 Difference: $0.43
If ABC meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.7

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

UBS rates ABC as Sell (5) -

First half results were in line with expectations, given recent guidance. The results were affected by lower volumes and margin pressure as a result of the contraction in residential activity.

UBS believes the outlook is challenged as infrastructure work is not able to offset the housing decline in a seamless way.

The company has reaffirmed its intention to take market share in infrastructure work where it is vertically integrated and to also maintain the capacity to fund acquisitions.

Sell rating and $3.15 target maintained. The broker believes, while the macro outlook is improving, the risk/reward is not supportive.

Target price is $3.15 Current Price is $3.07 Difference: $0.08
If ABC meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates AOG as Hold (3) -

FY19 net profit was in line with recently downgraded guidance. The main focus is on the scheme implementation deed with Brookfield. Morgans notes earnings are under pressure and the balance sheet is stretched.

In the absence of the offer, the share price would fall materially and the bidders are likely aware of this.

The offer, therefore, prevents further security holder pain in a short-term view and leaves plenty of value, potentially, on the table for the long-term, hence the scrip option. Hold maintained. Target is $2.15.

Target price is $2.15 Current Price is $2.12 Difference: $0.03
If AOG meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.15, suggesting upside of 1.4% (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 AOG as Downgrade to Hold from Accumulate (3) -

FY19 underlying profit was in line with recent guidance. Ord Minnett downgrades to Hold from Accumulate as the stock is trading close to the $2.15 offer price from Brookfield.

The broker considers the prospects of a higher offer are low, despite being at a material discount to what is deemed fair value. Target is set at $2.15.

Target price is $2.15 Current Price is $2.12 Difference: $0.03
If AOG meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.15, suggesting upside of 1.4% (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 APE as Add (1) -

Upon initial read, stockbroker Morgans believes the interim report represents a "strong beat". It was accompanied by management's confidence to provide $30m in synergies from integrating Automotive Holdings ((AHG)) in a quick time-frame.

The broker argues Auto performance was robust in a really tough market. Morgans considers this business as incredibly well positioned for any up-tick in trading conditions.

Target price is $9.05 Current Price is $11.76 Difference: minus $2.71 (current price is over target).
If APE meets the Morgans target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.59, suggesting downside of -10.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

Morgans rates APT as Add (1) -

The FY19 net loss of -$44m were slightly better than Morgans expected. The results suggest continuing strong sales momentum and stable margins across the business.

The broker downgrades FY20 and FY21 estimates for earnings per share by -5% and -9%, respectively, factoring in higher investment expenditure associated with offshore expansion.

Add rating maintained. Target rises to $31.75 from $28.85.

Target price is $31.75 Current Price is $29.53 Difference: $2.22
If APT meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates APT as Buy (1) -

Traction in the US is strong but the key for Ord Minnett in the FY19 result was the initial customer acquisitions in the UK, which were well above expectations. Hence, revenue forecasts are upgraded 1-5%.

Ord Minnett retains a Buy rating and raises the target to $35.10 from $32.00. Average merchant fees were slightly ahead of expectations, particularly in the US.

Target price is $35.10 Current Price is $29.53 Difference: $5.57
If APT meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates APX as Buy (1) -

Upon initial appraisal, Citi believes Appen released a strong result today. Management has guided towards the top end of its guidance range, with the analysts observing market consensus already is positioned near the top of the range.

While Citi's FY19 forecast is actually above guidance, the analysts are not perturbed. Buy rating reiterated.

Target price is $29.79 Current Price is $24.38 Difference: $5.41
If APX meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $26.33, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

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 BAL as Neutral (3) -

Yesterday, we reported Bellamy's FY19 report card proved well below expectations. Today, Citi analysts follow up by stating there simply is too much upside risk to downgrade this stock to Sell.

Earnings estimates have been reduced by double digit percentages. Price target tumbles to $8 from $9.55. Citi analysts state they need to see evidence of improved sales and earnings before they consider recommending buying the stock.

For now, the 2H19 sales decline of -11% is described as "disappointing" with Citi analysts pointing towards the fact marketing spend doubled and manufacturing was materially better than expected.

Target price is $8.00 Current Price is $7.57 Difference: $0.43
If BAL meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.09, suggesting upside of 6.8% (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 BAL as Equal-weight (3) -

FY19 results and FY20 guidance were below expectations. Morgan Stanley notes management is executing a significant re-branding in a difficult market.

While the medium-term revenue outlook has been pushed back the broker assesses the opportunity remains, with growth in FY21 supported by the launch of organic infant formula products, cereals and yoghurts and the entry into Indonesia and the Philippines.

Equal-weight rating maintained. Target is reduced to $8.70 from $10.00. Cautious industry view.

Target price is $8.70 Current Price is $7.57 Difference: $1.13
If BAL meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $8.09, suggesting upside of 6.8% (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 BAL as Hold (3) -

FY19 results missed expectations. FY20 guidance is also weaker than Morgans expected. Nevertheless, the broker finds early signs of improvement following the re-branding and launch of the re-formulated organic infant formula.

While there are a number of high-margin products ahead for release there is still plenty to prove, in the broker's view, following an underwhelming 12 months.

Hold rating maintained until there is evidence of strong earnings growth returning. Target is reduced to $7.65 from $7.95.

Target price is $7.65 Current Price is $7.57 Difference: $0.08
If BAL meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $8.09, suggesting upside of 6.8% (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 BAL as Hold (3) -

FY19 underlying net profit was below forecasts. FY20 guidance is for revenue growth of 10-15% and a flat operating earnings (EBITDA) margin.

The negatives were moderated by progress on two new products and the continued brand re-building. Ord Minnett retains a Hold rating and reduces the target to $8.00 from $9.50.

Target price is $8.00 Current Price is $7.57 Difference: $0.43
If BAL meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.09, suggesting upside of 6.8% (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 BGA as Buy (1) -

FY19 results were in line with downgraded guidance. UBS believes there is strategic value on offer but the outlook is challenging and contractual price improvements are required to offset a large uplift in costs going into FY20.

The broker is focused on the cash flow, given the historically high working capital impact in the first half. Buy rating and $7 target maintained.

Target price is $7.00 Current Price is $3.99 Difference: $3.01
If BGA meets the UBS target it will return approximately 75% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Credit Suisse rates CAJ as Outperform (1) -

Credit Suisse notes guidance for modest organic growth remains in place. FY19 revenue and earnings were consistent with the July update. The broker envisages multiple positive catalysts including potential M&A.

The stock offers 20% growth into FY21, the broker notes, with more than 40% of this uplift underwritten by indexation commencing in July 2020. Credit Suisse maintains an Outperform rating and $0.28 target.

Target price is $0.28 Current Price is $0.23 Difference: $0.05
If CAJ meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

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

FY19 operating earnings (EBITDA) were slightly ahead of Ord Minnett's forecasts. The company will focus on appropriately managing costs and staffing requirements while ensuring patient and referrer needs.

Additional capital investment will be undertaken as management intends to capture the benefits of the transition to higher-value modalities. In the meantime, Ord Minnett notes industry growth in Victoria is lacklustre.

Given the uncertainty that comes with company transformations, the broker downgrades to Hold from Buy. Target is reduced to $0.24 from $0.27.

Target price is $0.24 Current Price is $0.23 Difference: $0.01
If CAJ meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates CTX as Downgrade to Neutral from Outperform (3) -

Caltex Australia's result fell short of Macquarie as weak industry trends persist. Retail fuel margins are under pressure as competitors look to defend market share by cutting prices, while refiner margins are also soft.

As a result of the retail trend the company will close 50 of its 790 convenience sites which the broker estimates would raise $256m.

Caltex is responding by reducing costs and lowering capex guidance but given the headwinds facing the retail business Macquarie downgrades to Neutral from Outperform. Target falls to $24.78 from $26.50.

Target price is $24.78 Current Price is $24.02 Difference: $0.76
If CTX meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $26.30, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates CWP as Hold (3) -

FY19 net profit was slightly below forecasts. No specific guidance was provided although the company expects earnings in FY20 to be modestly lower.

Morgans believes the development pipeline and embedded value in the WLTC project provide visibility on earnings in the medium-term. Steady dividend growth is also supported by a strong balance sheet.

As the stock is trading within the range of the price target the broker retains a Hold rating. Target is raised to $6.17 from $6.05.

Target price is $6.17 Current Price is $6.45 Difference: minus $0.28 (current price is over target).
If CWP meets the Morgans target it will return approximately minus 4% (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 FPH as Sell (5) -

The company has upgraded FY20 guidance by 2% at the AGM, including higher revenues. Citi analysts point out the upgrade can mostly be explained by favourable FY moves. The new guidance is assuming NZD/USD0.64 versus NZD/USD0.65 previously. Sell.

Target price has remained unchanged at NZ$12.25 (which explains the Sell rating). Citi analysts note AGM comments indicate the Hospitals division (Optiflow) is performing well, while no comments have been forthcoming about the sleep apnea/Homecare operations.

Current Price is $15.38. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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 FPH as Upgrade to Neutral from Underperform (3) -

In the wake of Fisher & Paykal Healthcare's AGM Macquarie has upgraded earnings forecasts to reflect modest growth in the Hospital business combined with a weaker NZD. Commentary around new applications revenue, which the broker notes is a key growth driver, is positive.

There remains a risk from further deterioration in mask growth but the company suggests this has stabilised, despite, as the broker notes, the recent update from ResMed ((RMD)) suggesting market share gains.

Macquarie nevertheless upgrades to Neutral from Underperform. Target rises to NZ$16.61 from NZ$14.78.

Current Price is $15.38. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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 FPH as Sell (5) -

At its AGM update the company has signalled first half net profit of NZ$120m on revenue of NZ$560m. Outside of a strong end to the US flu season UBS assesses constant currency revenue trends have not changed.

No new products were announced at the AGM but the company has highlighted its Vitera OSA full face mask has performed well in Australia, Europe and Canada. Sell rating maintained. Target is NZ$12.85.

Current Price is $15.38. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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

Morgan Stanley rates MNF as Overweight (1) -

FY19 results underwhelmed Morgan Stanley. The company has reiterated FY20 guidance and provided more clarity around market share growth domestically as well as the scalability of its global wholesale business. The broker welcomes the update.

Morgan Stanley envisages significant scope for re-rating over the next 12 months, suspecting the quality of earnings is improving and there is a higher proportion of recurring earnings. Target is raised to $6.40 from $5.60. Overweight. Industry view: In-Line.

Target price is $6.40 Current Price is $4.76 Difference: $1.64
If MNF meets the Morgan Stanley target it will return approximately 34% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates MOE as Buy (1) -

First half operating earnings (EBITDA) were ahead of estimates. In terms of the composition, asset management revenue was well ahead of forecasts while corporate advisory revenue was materially lower.

Ord Minnett notes the company's credit funds are generating strong inflows. The broker believes the company is in the early stages of long-term growth, secured by a strong balance sheet.

Buy rating maintained. Target is reduced to $5.58 from $5.63.

Target price is $5.58 Current Price is $3.61 Difference: $1.97
If MOE meets the Ord Minnett target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 MQG as Neutral (3) -

Macquarie surprised friend and foe yesterday by announcing a fresh $1bn capital raising plus a share purchase plan which Citi estimates has the magnitude of $150m. Estimates have been sliced to incorporate the immediate dilution.

All in all, Citi sees this move as further evidence of the fact that near-term earnings at the Golden Donut continue to face the challenge of replacing cyclical market earnings with more robust annuity-style earnings, which should temper expectations in the short term.

The analysts also point out Macquarie is entering a period of elevated capital deployment, which indicates a turning point in the Return on Equity (ROE) trajectory has been reached. The most obvious conclusion to draw seems to be that future composition of earnings will change. Neutral. Target $123.50.

Target price is $123.50 Current Price is $122.53 Difference: $0.97
If MQG meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $130.80, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Credit Suisse rates MQG as Outperform (1) -

The company has guided to the first half results being around 10% higher. Macquarie Group will undertake a non-underwritten institutional placement for $1bn and a share purchase plan, which Credit Suisse assesses should raise an additional $200m.

The funds will be used to invest in a range of opportunities as well as regulatory changes. The additional deployment of capital and continued buoyant conditions lead the broker to believe that FY20 guidance is conservatively framed.

Credit Suisse maintains a forecast for 3% growth in FY20. Outperform rating and $135 target maintained.

Target price is $135.00 Current Price is $122.53 Difference: $12.47
If MQG meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $130.80, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgan Stanley rates MQG as Overweight (1) -

Macquarie Group has announced a capital raising of over $1bn. Morgan Stanley expects this will allow it to maintain flexibility on the balance sheet, absorb higher capital rules and fund investment opportunities.

Guidance for FY20 has been reiterated, expected to be slightly lower than FY19. The company is guiding to first half earnings being up 10% and Morgan Stanley notes a tough comparable exists in the second half.

The broker maintains an Overweight rating and $136 target. In-Line industry view maintained.

Target price is $136.00 Current Price is $122.53 Difference: $13.47
If MQG meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $130.80, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgans rates MQG as Add (1) -

The company has announced a non-underwritten institutional placement and a share purchase plan. This follows recent capital investments by Macquarie Capital in the renewables, technology and infrastructure arenas.

Morgan was somewhat surprised by the capital raising, given the company had a $6bn regulatory capital surplus as of the end of FY19.

Taking a positive view, this suggests Macquarie Group is finding ample opportunity to deploy this capital above targeted returns and this should support the medium-term growth profile.

Add rating maintained. Target is reduced to $132.30 from $134.20.

Target price is $132.30 Current Price is $122.53 Difference: $9.77
If MQG meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $130.80, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Ord Minnett rates MQG as Upgrade to Accumulate from Hold (2) -

Macquarie Group has launched a capital raising to fund new investments in green energy, technology and infrastructure. The company has also provided an update on the first half, currently expecting net profit to be around 10% above the prior corresponding half.

The primary driver of this performance is strength in the commodities business, which is expected to fade over the remainder of the year. Ord Minnett observes the growth outlook is supported by the depreciation in the Australian dollar and falling bond yields.

Rating is upgraded to Accumulate from Hold and the target reduced to $133 from $134.

Target price is $133.00 Current Price is $122.53 Difference: $10.47
If MQG meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $130.80, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

UBS rates MQG as Neutral (3) -

Macquarie Group will undertake an institutional placement to raise around $1bn. The capital raising will help fund the substantial increase in capital deployment.

Around $900m will be deployed primarily in renewables, including UK offshore wind farms and additional stakes in Taiwanese wind farms as well as technology and infrastructure.

The company also expects the first half net profit to be around 10% ahead of the prior corresponding half, which is broadly in line with UBS estimates. Neutral rating and $125 target maintained.

Target price is $125.00 Current Price is $122.53 Difference: $2.47
If MQG meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $130.80, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Macquarie rates MTS as Underperform (5) -

Metcash has provided a first quarter trading update although numbers were not forthcoming. Management noted food sales growth was in line with expectation but liquor was soft.

Winter is a typically slow quarter for liquor sales, the broker notes, and the segment is cycling strong comparables from last year.

Hardware is the main problem, as weak industry conditions persist and the company lost a big contract in Qld. Contract loss aside, sales still declined, the broker notes, and is consistent with the outlook highlighted for Bunnings ((WES)) in this week's result. More investment is needed to offset multiple headwinds, the broker suggests. Underperform retained. Target falls to $2.41 from $2.44.

Target price is $2.41 Current Price is $2.83 Difference: minus $0.42 (current price is over target).
If MTS meets the Macquarie target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.79, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Morgan Stanley rates MTS as Overweight (1) -

The company has indicated total food sales growth in the first quarter was up 0.6%, better than Morgan Stanley forecast. Liquor sales growth slowed to 0.7% and hardware sales declined -4.4%.

Overweight rating. Industry view: Cautious. Price is $3.10.

Target price is $3.10 Current Price is $2.83 Difference: $0.27
If MTS meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.79, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Ord Minnett rates MTS as Hold (3) -

The first quarter trading update showed sequential improvement in food sales, while hardware sales fell because of trade softness and the loss of a Queensland customer.

The broker assesses support for the valuation still exists but is no longer sufficiently attractive, following the recent share price performance. Hold rating maintained. Target is raised to $3.00 from $2.85.

Target price is $3.00 Current Price is $2.83 Difference: $0.17
If MTS meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.79, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

UBS rates MTS as Buy (1) -

The first quarter trading update was positive as a result of an improved margin mix, UBS observes, despite overall sales being in line with estimates.

Hardware sales were down -4.4% because of weakness in new construction, which is lower margin versus retail. Liquor was also softer.

UBS upgrades estimates by 1% with the reductions to hardware & liquor offset by upgrades to grocery. Buy rating and $3.10 target maintained.

Target price is $3.10 Current Price is $2.83 Difference: $0.27
If MTS meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.79, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

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

FY19 results were in line with expectations. Morgans finds the outlook for FY20 more challenging, suspecting the company is not immune to weaker wood fibre conditions.

No formal guidance was provided although modest growth is targeted. Morgans reduces FY20 and FY21 operating earnings (EBITDA) forecast by -16.2% and -14.3%, respectively.

Pulp prices have dropped significantly in recent months largely because of over-production and high levels of inventory at Brazilian pulp mills. A resumption in buying activity is expected to support better prices but the timing is unknown.

Morgans downgrades to Hold from Add given the short-term uncertainty. Target is reduced to $3.16 from $3.90.

Target price is $3.16 Current Price is $2.88 Difference: $0.28
If MWY meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

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 MWY as Downgrade to Hold from Buy (3) -

FY19 results were worse than expected. Ord Minnett notes pricing is also looking a little shaky for 2020. The company has indicated that pulp prices have declined materially because of a combination of higher Brazilian production at the same time as Chinese demand has slowed.

While this is expected to normalise in coming months Ord Minnett suspects the company is concerned that 2020 prices may be negatively affected. The broker downgrades estimates for earnings per share by -24% for FY20 and -28% for FY21.

Rating has been downgraded to Hold from Buy as the results have created significant market uncertainty. Target is reduced to $3.31 from $4.37.

Target price is $3.31 Current Price is $2.88 Difference: $0.43
If MWY meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

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 NAN as Buy (1) -

FY19 operating earnings (EBITDA) were ahead of UBS estimates. The broker expects a step-up in European investment, which should accelerate growth. Upgrade revenue should contribute $4m in FY20.

The broker envisages potential for 2-3 new products in the market within the next five years.

The valuation is considered challenging and requires success in new products but the outlook appears to be improving and the broker maintains a Buy rating. Target is raised to $7.25 from $6.30.

Target price is $7.25 Current Price is $6.37 Difference: $0.88
If NAN meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.93, suggesting downside of -6.9% (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

Credit Suisse rates NEC as Outperform (1) -

Credit Suisse updates dividend forecasts to be consistent with the latest guidance. As a result, dividends of $0.10 per share are expected in FY20 and $0.11 per share in FY21.

The broker believes the company has the balance sheet to sustain a higher pay-out. The stock continues to offer an attractive yield, in the broker's view, and earnings are now considered sufficiently diversified. Outperform rating and $2.10 target maintained.

Target price is $2.10 Current Price is $1.95 Difference: $0.15
If NEC meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.09, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates NSR as Underperform (5) -

For National Storage REIT, results are all about revPAM, or growth in revenue per available square metre. This came in at 0.5%, well below guidance of 4-5%, with management citing election uncertainty, an uncertain macro-economic backdrop and a deteriorating residential market as culprits.

The broker also finds guidance to 4% FY20 earnings growth as soft, given a lower cost of debt, some $600m in acquisitions and underlying growth. A 5.4% yield on a 14% premium to net tangible asset valuation is not compelling.

Underperform retained. Target falls to $1.41 from $1.47.

Target price is $1.41 Current Price is $1.83 Difference: minus $0.42 (current price is over target).
If NSR meets the Macquarie target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.66, suggesting downside of -9.1% (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

Morgans rates NSR as Hold (3) -

FY19 results were in line with guidance. FY20 guidance comprises underlying earnings growth of more than 25%, underpinned by 3-4% revenue growth in the underlying portfolio and an uplift in contributions from new centres.

Acquisitions totalling $400m settled in FY19 and six developments were completed. The upside risk, Morgans believes, relates to higher growth in yields and the benefits from new strategic initiatives.

The downside risk relates to increase in competition in supply and general property market movements. Morgans maintains a Hold rating and $1.73 target.

Target price is $1.73 Current Price is $1.83 Difference: minus $0.1 (current price is over target).
If NSR meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.66, suggesting downside of -9.1% (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 NSR as Downgrade to Hold from Accumulate (3) -

FY19 net profit was in line with guidance. Guidance for FY20 growth is unchanged. Ord Minnett suggests self-storage centres have, effectively, flat organic income growth prospects over the next 12-18 months because of lower housing market turnover.

The broker believes the stock is trading at fair value albeit not at a premium. Rating is downgraded to Hold from Accumulate.

The broker forecasts 2-3% growth in earnings per share for the next five years based on a stabilising occupancy rate of 85%. Target is reduced to $1.85 from $2.00.

Target price is $1.85 Current Price is $1.83 Difference: $0.02
If NSR meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.66, suggesting downside of -9.1% (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

Citi rates OZL as Buy (1) -

Citi isn't worried about the large fall in profits in H1, expecting things to re-balance in H2. Besides, the shortfall in sales had been flagged well in advance. The analysts note Carrapateena is on schedule and budget for first concentrate production in November.

The price of copper is under pressure because of China-USA tension, and this puts pressure on the broker's forecasts also. Citi still expects to see a higher price for the red metal in 2020. Buy. Target $12.40 (down -10c).

Target price is $12.40 Current Price is $8.99 Difference: $3.41
If OZL meets the Citi target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $10.82, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in December.

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 OZL as Upgrade to Neutral from Underperform (3) -

First half net profit was ahead of Credit Suisse estimates. The underlying result includes various non-cash adjustments, as usual, the broker notes. Cash flow remain strong.

2019 guidance is unchanged although costs are now at the lower end of expectations. Credit Suisse upgrades to Neutral from Underperform on valuation. Target of $9.50 maintained.

Target price is $9.50 Current Price is $8.99 Difference: $0.51
If OZL meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $10.82, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in December.

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 OZL as Outperform (1) -

OZ Minerals' earnings came in better than expected leading to a dividend increase. While the company is progressing medium term growth options the key catalyst is delivering Carrapateena on time and on budget, the broker notes.

To that end, guidance has been refined and the capex budget reaffirmed, with first concentrate production expected in November. Outperform retained. A change of accounting standards leads to a target price fall to $11.20 from $11.50.

Target price is $11.20 Current Price is $8.99 Difference: $2.21
If OZL meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $10.82, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in December.

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 OZL as Equal-weight (3) -

First half dividend and cash were in line with Morgan Stanley's estimates. Underground production rates at Prominent Hill continue to improve and C1 costs are expected at the lower end of guidance.

The prefeasibility study is now due in early 2020 at West Musgrave. The broker maintains an Equal-weight rating and $10.50 target. Industry view is Attractive.

Target price is $10.50 Current Price is $8.99 Difference: $1.51
If OZL meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $10.82, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in December.

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 OZL as Add (1) -

Morgans was not surprised by a softer first half as most of the details were pre-released with the production results. The broker remains focused on the re-confirmation of the Carrapateena schedule and budget as this has the dominant impact on valuation.

The broker believes a recent pull-back in the stock has been overdone as the fundamentals are strong including a low cost base and robust operating margins. Add rating maintained. Target is reduced to $10.95 from $11.15.

Target price is $10.95 Current Price is $8.99 Difference: $1.96
If OZL meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $10.82, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in December.

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 OZL as Hold (3) -

First half earnings were broadly in line with forecasts. Ord Minnett notes first concentrate for Carrapateena is budgeted for November, a milestone that may be a de-risking event.

Expansion at Prominent Hill is being studied, in order to increase haulage rates. Ord Minnett maintains a Hold rating and reduces the target to $10.20 from $10.70.

Target price is $10.20 Current Price is $8.99 Difference: $1.21
If OZL meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $10.82, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in December.

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 OZL as Buy (1) -

First half results were in line with expectations. The most significant catalyst is Carrapateena, due to produce first concentrate in November. Capital expenditure for 2019 was reaffirmed.

The company expects the ramp up of Carrapateena to take 18 months. UBS maintains a Buy rating for the copper exposure, long mine life and valuation. Target is reduced to $11.00 from $11.30.

Target price is $11.00 Current Price is $8.99 Difference: $2.01
If OZL meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $10.82, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in December.

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 PRU as Downgrade to Neutral from Buy (3) -

The share price has been on a tremendous run, which underpins Citi's decision to downgrade to Neutral/High Risk from Buy/High Risk. The analysts acknowledge if gold rallies higher, this would translate positively for Perseus Mining.

Coming to the FY19 performance, it missed expectations by quite a large margin, underlying. At the operational level (EBITDA), however, it turns out market consensus has been beaten by 5%. Lower exploration expenses and higher D&A made the difference.

Citi's bull case valuation is $1.20 while the bear case puts valuation at $0.40. Price target rises 5c to $0.90. Earnings estimates fall as Citi incorporates updated FX assumptions (AU$/US$0.72 instead of 0.68 for 2020).

Target price is $0.90 Current Price is $0.75 Difference: $0.15
If PRU meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $0.77, suggesting upside of 3.1% (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

Credit Suisse rates PRU as Neutral (3) -

FY19 net profit beat estimates. This was driven by a write-back of inventory reducing the cost of sales. There was no dividend, as expected, as cash is being preserved to reduce debt at Sissingue and support the Yaoure development.

Credit Suisse notes the company retains its growth aspirations to sustain 500,000 ounces per annum but unreasonable asset prices puts the focus back on organic growth via exploration.

The potential reassessment of pit extensions is made viable by higher gold prices. Neutral rating and $0.62 target maintained.

Target price is $0.62 Current Price is $0.75 Difference: minus $0.13 (current price is over target).
If PRU meets the Credit Suisse target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.77, suggesting upside of 3.1% (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 PRU as Neutral (3) -

Perseus Mining's profit result fell short but the broker shrugs this off as it is in cash terms. Importantly, deleveraging has led to the balance sheet switching from $54m net debt to $80m net cash over the period.

With a reserve/resource update showing depletions outpacing additions, the broker expects the miner to ramp up development spending at Yaoure, with the underground project showing high grade potential.

Rolling forward forecasts sees the broker's target rise to 80c from 70c. Neutral retained.

Target price is $0.80 Current Price is $0.75 Difference: $0.05
If PRU meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $0.77, suggesting upside of 3.1% (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 RAP as Add (1) -

An FY19 net loss of -$5.4m was recorded. R&D costs increased to $6.5m as a result of trial costs, regulatory submissions and product development.

The company has also received CE Mark certification as a class IIa medical device for the diagnosis of acute paediatric respiratory disease.

Morgans continues to look for more detail on the commercialisation before becoming more aggressive with forecasts.

Cash burn was in line with forecasts. Speculative Buy (Add) maintained. Target is raised to $0.28 from $0.23.

Target price is $0.28 Current Price is $0.22 Difference: $0.06
If RAP meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates RDC as Buy (1) -

FY19 operating earnings (EBITDA) missed estimates. In spite of this, distributable earnings were in line with expectations. Ord Minnett notes the miss on earnings was largely driven by downward pressure on gaming margins and delayed integration at two recently-opened venues.

The cash generating nature of the stock, combined with distribution guidance of over 9c per security leads the broker to maintain a Buy rating. Target is reduced to $1.17 from $1.18.

Target price is $1.17 Current Price is $1.08 Difference: $0.09
If RDC meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

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

Reece Australia's FY19 numbers revealed significantly slower growth in Australia & New Zealand in H2, as well as the fact that Morsco's contribution only makes up for 26% of the group's total. Both elements combined have triggered a downgrade to Neutral from Buy from Citi.

Core EPS estimates have been scaled back by -15%-16%, exaggerated by the inclusion of an incremental -$33m in amortisation, the analysts explain. Price target loses -11% to $11.21.

The FY19 performance slightly missed Citi's forecasts at face value but the analysts acknowledge there were a number of non-core elements such as FX and amortisation that had to be taken out, before concluding the result was broadly in-line.

Target price is $11.21 Current Price is $9.99 Difference: $1.22
If REH meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Ord Minnett rates RHC as Hold (3) -

Ord Minnett, upon initial assessment, labels today's FY19 result as in-line (though most financial numbers, in particular the dividend, are better than its own forecasts), but also that guidance for FY20 implies market consensus needs to reset lower.

Ord Minnett's forecast for FY20 is currently for 7% core EPS growth. This compares with Ramsay Health Care management now guiding for 2-4% core EPS growth, excluding any impact from adopting AASB 16.

The broker also points out company management anticipates stronger volume growth in FY20, enhanced by Ramsay's brownfield investment program in Australia, combined with a turnaround in NHS volumes in the UK.

Target price is $75.00 Current Price is $67.09 Difference: $7.91
If RHC meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $68.16, suggesting upside of 1.6% (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 SGF as Downgrade to Neutral from Outperform (3) -

SG Fleet's profit was ahead of Macquarie on a reduction in operating expenses and success in increasing additional products & services in a competitive environment.

The company has quantified previously flagged strategic initiatives which, to cut a long story short, mean accounting changes that impact materially on earnings per share calculation but only lead the broker to drop its target to $2.92 from $2.95 given the earnings change is transitional.

However given the time it will take to build earnings from the strategic shift, the broker downgrades to Neutral from Outperform.

Target price is $2.92 Current Price is $2.55 Difference: $0.37
If SGF meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.88, suggesting upside of 12.8% (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 SHJ as Add (1) -

FY19 results were weaker than expected. During the year the company acquired a majority interest in Carr & Co, a Perth-based law practice. It also acquired NSW-based ACA Lawyers, which operate in the class action segment.

Morgans continues to believe investors will remain on the sidelines until the Mesh class action settles but envisages value in the business at current prices. Add rating maintained. Target is raised to $1.18 from $1.14.

Target price is $1.18 Current Price is $0.79 Difference: $0.39
If SHJ meets the Morgans target it will return approximately 49% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates SLK as Buy (1) -

FY19 net profit was slightly ahead of forecasts. The company appears to have made a major change in its strategic direction to address the underperformance of the Sydney business, that has dragged on earnings for many years.

Ord Minnett notes the loss-making Manly to Barangaroo fast ferry service has ceased. At the same time the company has secured a new contract for four Rocket vessels on Sydney Harbour and won subsidies for the Lane Cove route with a combined estimated benefit in FY20 of around $2.0m.

Ord Minnett updates assumptions to allow for a lower contribution from the Gladstone business, allocation of overheads to Fraser Island and a lower effective tax rate. Buy rating maintained. Target is reduced to $4.38 from $4.62.

Target price is $4.38 Current Price is $3.80 Difference: $0.58
If SLK meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates SPL as Outperform (1) -

Starpharma's profit fell -27% below the broker's forecast but this was due to a delay with a drug milestone payment. A decision with regard the US FDA's Complete Response Letter is expected in the first half.

The broker sees the market as ascribing limited valuation to the company's pipeline and estimates a total shareholder return of 82%. Given sufficient funding, the risk/reward profile remains attractive. Outperform and $2.00 target retained.

Target price is $2.00 Current Price is $1.10 Difference: $0.9
If SPL meets the Macquarie target it will return approximately 82% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Credit Suisse rates VAH as Downgrade to Underperform from Neutral (5) -

FY19 results were weaker than expected. Credit Suisse notes the aggressive initiatives to cut costs amid reviews of fleet capacity and network.

While the initiatives are likely to deliver a sustainable improvement, the broker suggests this may take 2-3 years.

Credit Suisse believes the new CEO is taking the right action and downgrades to Underperform from Neutral on valuation grounds. Target is reduced to $0.10 from $0.18.

Target price is $0.10 Current Price is $0.16 Difference: minus $0.06 (current price is over target).
If VAH meets the Credit Suisse target it will return approximately minus 38% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.14, suggesting downside of -10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

UBS rates VAH as Sell (5) -

There was a sharp deterioration in the second half, with an underlying loss of -$184m recorded compared with the decade-high profit reported in the first half.

Management suggests weaker trends have continued into the first half of FY20, resulting in a decision to restructure the cost base and reduce capacity.

UBS assumes an underlying loss of -$73m in FY20. Sell rating maintained. Target is reduced to $0.15 from $0.17.

Target price is $0.15 Current Price is $0.16 Difference: minus $0.01 (current price is over target).
If VAH meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.14, suggesting downside of -10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

Ord Minnett rates VVA as Buy (1) -

The company beat prospectus guidance in FY19. Member numbers rose 8% organically, and 52% overall thanks to greenfield sites and acquisitions. Management has outlined an acquisition pipeline of 24 sites, all on the eastern seaboard.

Ord Minnett believes the company is well-placed to roll out business in the highly fragmented fitness industry. Buy rating maintained. Target rises to $2.00 from $1.50.

Target price is $2.00 Current Price is $1.31 Difference: $0.69
If VVA meets the Ord Minnett target it will return approximately 53% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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