Australian Broker Call

Citi rates ABC as Neutral (3) -

Judging from Citi's initial response to today's FY20 release, AdBri decisively beat expectations, at Citi as well as market consensus.

The analysts point at the mix shift towards the higher margin retail channel given the shift to DIY activity and better than expected cost out.

Management expects mining demand to hold up, but Citi continues to see a challenging environment, and management will need to work hard to compensate for the loss of the Alcoa lime contract, the analysts add.

Target price is $2.60 Current Price is $2.39 Difference: $0.21
If ABC meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.38, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates ALD as Neutral (3) -

First half results were in line with expectations. Credit Suisse found little evidence an unusually large inventory loss is pointing to a systemic issue. Of note, Ampol has made a decision to impair the carrying value of around 200 retail sites.

The broker assesses a recovery in domestic fuel volumes should mean earnings improve. While a decision to use property sale proceeds to reduce debt may disappoint some, Credit Suisse believes there remains increasing scope for capital management as earnings stabilise.

Neutral retained. Target is raised to $25.51 from $21.88.

Target price is $25.51 Current Price is $26.96 Difference: minus $1.45 (current price is over target).
If ALD meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.16, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in December.

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 ALD as Outperform (1) -

Ampol's first-half result was in-line overall, observe Macquarie analysts who are disappointed by the lower convenience retail earnings.

The broker believes fuel volume recovery and new management’s execution on rebranding the company will be key catalysts. An off-market buyback may still be an option, adds the broker.

Macquarie maintains its Outperform rating with the target price reduced to $31.80 from $32.25.

Target price is $31.80 Current Price is $26.96 Difference: $4.84
If ALD meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $28.16, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates ALD as Overweight (1) -

Ampol's first half numbers were softer than Morgan Stanley expected. There were a number of one-off items.

The key going forward is execution on the buyback which the broker suspects may take some time. This is dependent on an improved refining outlook and working capital flows.

Morgan Stanley retains an Overweight rating with a $31 target. Industry view is Cautious.

Target price is $31.00 Current Price is $26.96 Difference: $4.04
If ALD meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $28.16, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in December.

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 ALD as Accumulate (2) -

Ampol reported in line with the broker, with the dividend a slight miss. Operating cash flow was weak due to a significant loss of inventory, while convenience retail disappointed.

The company is committed to capital allocation discipline, the broker notes, in spinning off its property holdings and managing costs and capex. Valuation is undemanding, including property IPO upside of $2.45 on the broker's estimate. Accumulate and $30 target retained.

Target price is $30.00 Current Price is $26.96 Difference: $3.04
If ALD meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $28.16, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates ANN as Neutral (3) -

The FY20 result was ahead of expectations. Citi raises FY21-22 estimates by 8-12%.

Guidance, at the mid point, translates to 8.4% growth and Ansell believes this reflects uncertainties from raw material pricing, FX, along with the ability to increase the price of examination gloves as needed (higher costs).

Citi retains a Neutral rating, given the strong performance of the share price and raises the target to $41 from $35.

Target price is $41.00 Current Price is $39.52 Difference: $1.48
If ANN meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $38.65, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.1

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

Credit Suisse rates ANN as Outperform (1) -

FY20 earnings were ahead of Credit Suisse estimates. Strong sales and a better earnings margin for the industrial division drove the beat on expectations. Organic revenue growth exceeded management's target of 3-5%.

Demand for examination/single use products continues to exceed supply. Credit Suisse believes it will take years for a balance to return, as behavioural changes are considered structural and unlikely to reverse even when the pandemic subsides.

Guidance for FY21 represents 3-12% growth. The broker does not forecast any buyback in FY21. Outperform retained. Target rises to $43.00 from $42.50.

Target price is $43.00 Current Price is $39.52 Difference: $3.48
If ANN meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $38.65, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.1

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

Macquarie rates ANN as Underperform (5) -

Ansell's FY20 earnings and FY21 earnings guidance were both ahead of Macquarie's forecast.

The company is positively leveraged to the rising demand for personal protective equipment, highlights the broker but points towards offsetting factors like subdued industrial trends and margin pressure.

Noting near term uncertainty, the broker retains its Underperform rating with the target price rising to $31.80 from $30.40. 

Target price is $31.80 Current Price is $39.52 Difference: minus $7.72 (current price is over target).
If ANN meets the Macquarie target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.65, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.1

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

Morgan Stanley rates ANN as Overweight (1) -

FY20 organic growth of 7.6% was well ahead of the company's target and Morgan Stanley's estimates. Strong growth in examination/single-use gloves, chemical, surgical and life science segments is tempered by weakness in the mechanical segment.

Morgan Stanley anticipates organic growth will be substantially above the 3-5% long-term target level, driven by price and volume increases.

Overweight rating. Target is increased to $43.50 from $28.90. Industry view is In-Line.

Target price is $43.50 Current Price is $39.52 Difference: $3.98
If ANN meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $38.65, suggesting downside of -3.9% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.1

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

Morgans rates ANN as Hold (3) -

The FY20 results for Ansell were better than Morgans expected, with strong sales growth, coupled with cost saving and lower raw material, driving operating leverage and double-digit adjusted constant currency earnings growth.

Pandemic related gains drove significant upside in the Healthcare division, as expected by the broker, but was offset by more modest sales in Industrial, on the back of a softening macro backdrop.

There was a 7% dividend increase for the financial year.

FY21 management guidance is targeting EPS US$1.26-US$1.38, a wide range, notes Morgans, due to the evolving operating environment.

The Hold rating is maintained. The target price is increased to $36.06 from $29.15.

Target price is $36.06 Current Price is $39.52 Difference: minus $3.46 (current price is over target).
If ANN meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.65, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.1

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

Ord Minnett rates ANN as Hold (3) -

Ansell's profit slightly beat the broker on better revenues while the dividend was as expected. While the company was a clear beneficiary of PPE demand, the earnings boost was underwhelming, the broker notes, as the benefit was mostly passed on to third party suppliers.

Demand was weak in other core segments. FY21 guidance is for similar growth, and the broker warns the current price reflects a misunderstanding of virus benefits. Hold retained, target rises to $36.20 from $31.15.

Target price is $36.20 Current Price is $39.52 Difference: minus $3.32 (current price is over target).
If ANN meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.65, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.1

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

UBS rates ANN as Neutral (3) -

Ansell's FY20 result is considered strong by UBS led by robust healthcare performance. The Industrial division was impacted by covid-19 but was still ahead of the broker's estimate.

UBS expects modest FX tailwinds in FY21 and has upgraded its FY21 earnings forecast by 4%.

The broker expects growth in both divisions over the short-to-medium term led by demand for healthcare gloves and a rebound in manufacturing activity.

The broker says the quantum of growth is difficult to determine, especially in healthcare and the guidance range for FY21 is wide. Target increases to $39.00 from $38.75. UBS maintains its Neutral rating.

Target price is $39.00 Current Price is $39.52 Difference: minus $0.52 (current price is over target).
If ANN meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.65, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.1

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

Macquarie rates APA as Neutral (3) -

Upon initial glance, it is Macquarie's view that APA's FY20 has met market expectations but a delay to the Sole project is a (short-term) negative.

In Macquarie's opinion, APA remains a low-risk growth story and this doesn't change unless technical problems with Sole cannot be resolved, which is seen as unlikely.

A second problem the analysts have is that the reliable, low-risk growth at APA is also priced-in.

Target price is $11.36 Current Price is $10.86 Difference: $0.5
If APA meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.50, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Credit Suisse rates AUB as Outperform (1) -

FY20 results were ahead of forecasts. Credit Suisse notes growth has returned in the core business at a time when many have questioned the sustainability of the insurance broking model during the pandemic.

The sale of Allied Health has been confirmed, at a discounted price. Credit Suisse finds the valuation appealing and retains an Outperform rating. Target rises to $16.00 from $15.75.

Target price is $16.00 Current Price is $14.09 Difference: $1.91
If AUB meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates AUB as Outperform (1) -

AUB Group's FY20 cash profit (NPAT) was 0.7% ahead of the guidance. FY21 guidance points towards net profit growth of 9.5%-14.2%. Management outlook is optimistic and expects the firming of the premium rate cycle to continue along with opportunities to reduce costs.  

Macquarie, noting the guidance, upgrades its FY21 earnings estimates by 10%.

With the company expecting FY20 momentum to carry into FY21, Macquarie retains its Outperform rating and raises the target to $16.80 from $15.22.

Target price is $16.80 Current Price is $14.09 Difference: $2.71
If AUB meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates AWC as Outperform (1) -

First half underlying net profit was ahead of expectations. Spot alumina has risen to US$290/t on the back of recent disruptions at Alunorte. Credit Suisse believes there is a firm base under the alumina price.

The dividend was better than Credit Suisse anticipated, considered proof of the resilience of the AWAC operations amid top-line pressures. There was no update on the tax dispute. Outperform rating and $2 target retained.

Target price is $2.00 Current Price is $1.65 Difference: $0.35
If AWC meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.89, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Macquarie rates AWC as Underperform (5) -

Alumina Ltd's first-half earnings were weaker-than-expected, but the interim dividend was higher-than-anticipated due to a shift in the company's dividend payment methodology, reports Macquarie.

The company has guided to 12.8mt of alumina production with aluminium and bauxite standing at 160kt and 6.5mt in FY21. These are in-line with the broker's forecasts. 

Even though the Australian Tax Office transfer price review will present an overhang, the broker expects the tax shield to smoothen the impact on AWAC distributions. 

With the dividend yield comparatively unattractive, Macquarie retains its Underperform rating with the target price increasing to $1.40 from $1.30.

Target price is $1.40 Current Price is $1.65 Difference: minus $0.25 (current price is over target).
If AWC 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 $1.89, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Morgan Stanley rates AWC as Overweight (1) -

Following the first half result Morgan Stanley increases the target to $2.05 from $2.00. The company paid a "strong" dividend of 2.8c.

Alumina Ltd now expects the global alumina market to move into deficit while global consumption of aluminium is forecast to shrink by -6% in 2020. This stems from a contraction in the transportation sector and only modest growth in the packaging and electrical sectors.

Morgan Stanley increases estimates for 2020-22 and retains an Overweight rating. Industry view: Attractive.

Target price is $2.05 Current Price is $1.65 Difference: $0.4
If AWC meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $1.89, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Ord Minnett rates AWC as Accumulate (2) -

Alumina Ltd's underlying profit beat the broker by 20%, and AWAC joint venture profits by 18%. The dividend was in line. While any change to production guidance is negligible, capex guidance has been lowered.

Norsk Hydro’s Alunorte refinery outage provides an attractive entry point to Alumina Ltd, the broker suggests, given the recent share price weakness and improved alumina market fundamentals. Accumulate and $2.10 target retained.

Target price is $2.10 Current Price is $1.65 Difference: $0.45
If AWC meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $1.89, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

UBS rates AWC as Buy (1) -

Alumina Ltd's first-half earnings were down year on year due to weak alumina pricing, reports UBS. The first half result was 26% ahead of UBS' estimate, driven by higher alumina sales.

An interim dividend of US2.8cps was announced, ahead of the broker's US1.7cps, led by a change of period in calculating the dividend to better align cash flow with the reporting period.

The company's cost base will increase in the second half due to the new Western Australia gas contract, expects the broker. Led by a better first half, the broker has increased its 2020 earnings estimate. Also, a final dividend of US3.1c is expected for 2020.

UBS maintains its Buy rating with a target price of $2.

Target price is $2.00 Current Price is $1.65 Difference: $0.35
If AWC meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.89, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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 BIN as Buy (1) -

FY20 results were assessed as strong. Citi revises FY21 estimates down by -32% and FY22-23 down by -20%.

The majority of the earnings impact in FY21 is likely to be in the post collections business as Bingo Industries uses price to retain volumes and win incremental market share.

No quantitative guidance was provided and Citi acknowledges the forecast for operating earnings margins to contract -200-300 basis points could prove conservative if volumes stabilise. The High Risk tag is removed from the Buy rating and the target is lowered to $2.80 from $3.00.

Target price is $2.80 Current Price is $2.44 Difference: $0.36
If BIN meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.51, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates BIN as Downgrade to Neutral from Outperform (3) -

FY20 results were in line with expectations. Management has indicated pricing is stabilising at lower levels. Credit Suisse finds a path to significant growth beyond FY21 with management expecting building construction activity to recover from FY22.

The broker lowers FY21 estimates by -8% to account for lower contributions from collections and posts collections as well as lower margin assumptions.

Rating is downgraded to Neutral from Outperform, as the broker awaits more evidence of demand recovery. The target is lowered to $2.40 from $2.45.

Target price is $2.40 Current Price is $2.44 Difference: minus $0.04 (current price is over target).
If BIN meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.51, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates BIN as Neutral (3) -

FY20 net profit for Bingo Industries was above Macquarie's expectations, driven by margins.

No guidance was provided for FY21. The company will be targeting volume growth which the broker fears will come at the expense of margins.

Macquarie feels the visibility has to improve markedly and maintains its Neutral rating with a target price of $2.50.

Target price is $2.50 Current Price is $2.44 Difference: $0.06
If BIN meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.51, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates BKL as Underperform (5) -

Credit Suisse believes FY20 results are best characterised by the -4% drop in revenue and 11% increase in costs that have further eroded profit. The broker reduces FY21-22 estimates by -11-13%.

Working capital management is considered excellent and net debt was lower than modelled, which preserves the target at $65. Credit Suisse retains an Underperform rating on valuation.

Target price is $65.00 Current Price is $71.58 Difference: minus $6.58 (current price is over target).
If BKL meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $70.59, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Macquarie rates BKL as Neutral (3) -

Blackmores' FY20 result is considered a story of "mixed operational and segment performance" by Macquarie. No quantified guidance was provided for FY21 but the year is expected to be skewed towards the second half.

The broker notes FY20 has been challenging but considers the brand's strategic value remains intact. Moreover, the long term growth opportunity in the international segment looks appealing. 

Macquarie has decided to wait for more evidence of a turnaround in ANZ and China and reiterates its Neutral rating with the target price reducing to $72.50 from $73.

Target price is $72.50 Current Price is $71.58 Difference: $0.92
If BKL meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $70.59, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

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

Underlying net profit in FY20 was in line with guidance. Profit growth is expected to resume in the second half of FY21. Morgan Stanley notes Blackmores will reduce personnel by -10%.

This is deemed necessary because growth in employee numbers has not been accompanied by commensurate revenue growth.

The broker notes plenty of longer-term margin potential amid cost reductions, with the reduction in personnel a start. Morgan Stanley retains an Equal-weight rating. Target is $67. Industry view is Cautious.

Target price is $67.00 Current Price is $71.58 Difference: minus $4.58 (current price is over target).
If BKL meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $70.59, suggesting upside of 4.1% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Morgans rates BKL as Hold (3) -

Blackmores reported underlying profit (NPAT) of $18.7m, which was in-line with the Morgans forecast, but a weak result overall.

The broker highlights the cashflow performance and notes the balance sheet is strong following the recent equity raise. Importantly, profit growth is forecast by management from FY21 onwards (second half weighted).

However, outlook comments were weaker than expected and Morgans reduces profit (NPAT) forecasts for FY21-FY23 by -13.8%, -10.9% and -8.7%, respectively.

The analyst warns that forecasting accuracy remains low.

The Hold rating is maintained. The target price is decreased to $66.75 from $75.

Target price is $66.75 Current Price is $71.58 Difference: minus $4.83 (current price is over target).
If BKL meets the Morgans target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $70.59, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Ord Minnett rates BKL as Hold (3) -

Underlying net profit in FY20 was in line with Ord Minnett's forecasts. No final dividend was declared. While the broker believes the business has great brands there are significant operating risks in the near term.

In particular this pertains to the Braeside acquisition and integration of manufacturing into Blackmores. Ord Minnett is also mindful of the re-setting of the company's China strategy. Hold retained. Target is reduced to $72.50 from $75.00.

Target price is $72.50 Current Price is $71.58 Difference: $0.92
If BKL meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $70.59, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Ord Minnett rates CDP as Hold (3) -

Carindale Property Trust's -20% drop in funds from operations was -6% below the broker's forecast. No guidance was provided.

The REIT trades at a -55% discount to net tangible asset value which the broker puts down to assumptions property values will fall further, along with limited liquidity and a complex ownership structure.

While the current price suggests valuation support, the broker does not see a re-rating until the clouds clear. Hold retained, target falls to $3.40 from $3.50.

Target price is $3.40 Current Price is $2.87 Difference: $0.53
If CDP meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates CWY as Accumulate (2) -

Upon initial assessment of today's FY20 release, it appears all key numbers fall short of Ord Minnett's forecasts but the broker is prepared to call it broadly in-line.

Declared dividend of 2.1c (fully franked) beats the 2c forecast. Guidance shall be provided at the AGM later in the year.

Ord Minnett suspects no guidance may be considered a negative by investors, but highlights "medium term margins" have been revised up marginally on a post AASB16 basis.

Target price is $2.40 Current Price is $2.24 Difference: $0.16
If CWY meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.33, suggesting downside of -3.8% (ex-dividends)

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

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

FY20 results were broadly in line with Morgan Stanley's estimates. Operations remain strong, with the broker noting the iron ore price is elevating returns.

The dividend equates to a pay-out ratio of 77% against Morgan Stanley's expectation of 75%. Equal-weight rating retained. Target is increased to $12.70 from $12.65. Industry view is Attractive.

Target price is $12.70 Current Price is $18.50 Difference: minus $5.8 (current price is over target).
If FMG 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 $16.44, suggesting downside of -12.2% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.1

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

Morgans rates FMG as Hold (3) -

Fortescue Metals Group posted a bumper FY20 result, while surprising with a $1.00 per share dividend, which was 4% ahead of Morgans estimate.

A 27% increase in revenue was driven by strong shipments and iron ore prices, along with a suppression of cash costs below consensus levels.

As highlighted by the broker, this saw earnings (EBITDA) margins expand to 65% (from 61%) in FY20, with net debt reduced to near zero. Underlying earnings (EBITDA) and profit (NPAT) were in-line with consensus.

After the result, and mark-to-market on iron ore prices, the broker’s EPS estimate for FY21 has increased 25%. The Hold rating is maintained. The target price is increased to $13.60 from $13.

Target price is $13.60 Current Price is $18.50 Difference: minus $4.9 (current price is over target).
If FMG meets the Morgans target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.44, suggesting downside of -12.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.1

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

Morgans rates GEM as Hold (3) -

The G8 Education result was impacted by covid-19 and non-cash impairments, but supported by government subsidies during the period, notes Morgans.

The broker highlights occupancy is currently higher than expected, but is likely to remain under pressure in the second half, however, the removal of free childcare has only had a subdued impact so far.

The Board has temporarily suspended dividends in-line with expectations. No 2020 guidance was provided by the company.

The Hold rating is maintained. The target price remains at $1.12.

Target price is $1.12 Current Price is $1.02 Difference: $0.1
If GEM meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.12, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

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 HUB as Buy (1) -

The near-term outlook is uncertain yet Citi retains a Buy rating, expecting the structural shift to specialist platforms will result in strong earnings.

The broker considers the valuation attractive, although the stock trades at a discount to Netwealth ((NWL)) because of its smaller scale, margins and balance sheet.

Citi upgrades FY21-22 estimates by 7-11% to reflect lower costs growth and operating leverage from higher revenue. Target is raised to $17.55 from $14.40.

Target price is $17.55 Current Price is $15.33 Difference: $2.22
If HUB meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $15.91, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates HUB as Neutral (3) -

FY20 results were below expectations although Credit Suisse points out forecast errors for companies at this stage of the growth cycle are high.

HUB24 has issued an FY22 target for funds under administration of $28-32bn. Credit Suisse infers the company is confident it can repeat the record FY20 flows.

The broker considers the revenue margin pressure is manageable and retains a Neutral rating. Target is raised to $16.30 from $12.40.

Target price is $16.30 Current Price is $15.33 Difference: $0.97
If HUB meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $15.91, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates HUB as Underperform (5) -

Macquarie forecasts funds under administration (FuA) for Hub24 to grow to $31.8bn in FY22, at the upper-end of Hub24's guidance. The broker expects to see the company win market share with FuA expected to grow 3.2x  by FY25. 

Noting FY20 incurred one-off benefits leading to higher margins, the broker will have an eye on cash balances and trading volumes in FY21. 

On valuation grounds, the broker retains its Underperform rating with the target price increasing to $9.60 from $8.40.

Target price is $9.60 Current Price is $15.33 Difference: minus $5.73 (current price is over target).
If HUB meets the Macquarie target it will return approximately minus 37% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.91, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgans rates HUB as Add (1) -

The headline profit (NPAT) of Hub24 missed expectations primarily due to elevated one-off share based payments (SBP) and slightly higher cost growth versus expectations, explains Morgans. However, the core Platform segment delivered largely in-line with expectations.

Management moved its funds under administration (FUA) guidance to $28-32bn by the end of FY22, which implies to the analyst an around 75% uplift over two years.

Morgans believes the company can scale successfully long-term with a strong level of embedded FUA growth in the business (based on adviser growth).

The Add rating is maintained. The target price is increased to $16.60 from $13.30.

Target price is $16.60 Current Price is $15.33 Difference: $1.27
If HUB meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $15.91, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates HUB as Buy (1) -

FY20 results were in line with Ord Minnett's forecasts. Relative to its growth rate and closest peer, the broker considers HUB24 is compelling value.

FY22 funds under administration guidance of $28-32bn compares with the broker's forecast of $33bn. Buy rating retained. Target rises to $19.49 from $17.00.

Target price is $19.49 Current Price is $15.33 Difference: $4.16
If HUB meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $15.91, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates IDX as Upgrade to Outperform from Neutral (1) -

Credit Suisse is confident of a sharp recovery in both Victoria and New Zealand after restrictions are eased in the next 4-6 weeks. Industry growth of 5-7% appears increasingly bankable.

However, the broker does not believe the relative valuation appeal will last for long and upgrades to Outperform from Neutral. Target is raised to $4.50 from $4.30. FY20 results were broadly in line and the broker notes cash conversion was excellent.

Target price is $4.50 Current Price is $4.08 Difference: $0.42
If IDX meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.56, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates IDX as Outperform (1) -

FY20 results for Integral Diagnostics showed operating income and net profit ahead of Macquarie's estimates. 

With pandemic related restrictions in Victoria and New Zealand, the broker expects growth to come from other regions. The broker assesses the company is well placed for growth over medium-longer term, driven by industry fundamentals and internal initiatives.

Macquarie retains its Outperform rating with the target price increased slightly to $4.95 from $4.90.

Target price is $4.95 Current Price is $4.08 Difference: $0.87
If IDX meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $4.56, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates IDX as Buy (1) -

FY20 operating earnings were ahead of Ord Minnett estimates. The broker is attracted to the specialist concentration as well as a dominant regional focus.

Momentum has returned across most areas and the speed at which volumes bounced back have underscored the defensive qualities of the industry, in the broker's view. Buy rating retained. Target rises to $4.63 from $4.61.

Target price is $4.63 Current Price is $4.08 Difference: $0.55
If IDX meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.56, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgans rates LAU as Hold (3) -

Lindsay Australia delivered FY20 underlying earnings (EBITDA) pre-AASB16 of $40.4m, slightly ahead of Morgans forecast.

The broker notes key highlights were the performance of Rural and continued strong organic growth in Rail.

A fully franked final dividend of 0.5cps was declared.

While no FY21 guidance was provided, the broker understands fourth quarter 2020 operating headwinds have eased and expects further growth is targeted in FY21.

Morgans lifts earnings (EBITDA) forecasts for FY21-FY23 by 5.6%, 5% and 4.8%, respectively. The Hold rating is maintained. The target price is increased to $0.39 from $0.38.

Target price is $0.39 Current Price is $0.35 Difference: $0.04
If LAU meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates MME as Buy (1) -

Upon first glance, Ord Minnett likes what MoneyMe disclosed in today's release of FY20 financials. As far as the profit goes, that's better than forecast in the IPO prospectus.

The broker does highlight impairment expenses were higher than forecast and gross receivables lower. The launch of a new merchant distributed funding option is considered timely, and another positive.

Target price is $1.53 Current Price is $1.44 Difference: $0.09
If MME meets the Ord Minnett target it will return approximately 6% (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

Morgan Stanley rates MNF as Overweight (1) -

FY20 results were in line. Morgan Stanley found the composition of the results better quality with recurring revenue up 27%.

Guidance is usually provided at the AGM. Overweight rating. Target price is increased to $6.30 from $6.20 Industry view: In-Line.

Target price is $6.30 Current Price is $5.41 Difference: $0.89
If MNF meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates NAN as Add (1) -

The FY20 result for Nanosonics was broadly in-line with Morgans expectations.

The highlights for the broker included revenue now represented by 70% of consumables, installed base up 13%, lower selling, general and administrative expenses (SG&A) and a growing cash balance.

Sales were $100m consisting of capital revenue of $30m and consumables of $70.1m, and reflected a growing installed base of 23,720 units; up 13%, explains Morgans.

The commercial launch of the next generation product has been delayed until FY22 (was FY21), however, additional positive enhancements may assist the launch and market entry, notes the analyst.

The company provided no FY21 guidance, but looking beyond FY21 management expects Japan to become an important market and also expects further products to be launched.

The Add rating is maintained. The target price is decreased to $6.86 from $6.92.

Target price is $6.86 Current Price is $6.21 Difference: $0.65
If NAN meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $6.12, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates NAN as Buy (1) -

Nanosonics' FY20 report included material covid-19 related impacts on both capital sales and consumables, points out UBS.

The company's FY21 year to date commentary guides towards a reduction in market access and a slower consumables recovery. This has prompted the broker to defer revenue expectations back by 12 months, leading to material medium-term downgrades.

Long term, UBS's view remains unchanged and it continues to view Nanosonics as a high-quality, structural growth story.

UBS maintains its Buy rating and lowers the target to $7.20 from $7.50.

Target price is $7.20 Current Price is $6.21 Difference: $0.99
If NAN meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.12, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgan Stanley rates NTO as Overweight (1) -

Nitro Software's first-half annual recurring revenue (ARR) was more than Morgan Stanley expected. The broker highlights to hit prospectus ARR of $24.4m for 2020, the company needs US$4.2m in the second half. 

The broker has lifted ARR estimates for 2020-21 and lowered its operating loss forecast for 2021.

The broker maintains its Overweight rating with the target price increasing to $2.60 from $1.80. Industry view: In-line.

Target price is $2.60 Current Price is $2.31 Difference: $0.29
If NTO meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

UBS rates NWS as Buy (1) -

News Corp fourth-quarter results noted a -22% revenue decline due to covid-19, less than feared by UBS (-26%). Good cost control measures led to a material operating income beat versus the broker ($195m versus UBS' $90m).

UBS forecasts an operating income of $916m in FY21 although highlighted the prediction depends a lot on the duration and severity of the pandemic's impact.

Buy rating retained. Target is increased to $25 from $22.20.

Target price is $25.00 Current Price is $20.57 Difference: $4.43
If NWS meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $24.14, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Citi rates OSH as Upgrade to Buy from Neutral (1) -

Citi believes a value argument is developing for Oil Search and upgrades to Buy/High Risk from Neutral/High Risk. The High Risk tag is retained because of the potential for oil prices to be volatile.

Unless there is another sharp contraction in the oil price, however, Citi believes Oil Search has raised enough equity, although a top up may be required for the final investment decision on Alaska to keep the non-escrowed cash balance above US$50m. Target is raised to $3.87 from $3.76.

Target price is $3.87 Current Price is $3.02 Difference: $0.85
If OSH meets the Citi target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.66, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Credit Suisse rates OSH as Neutral (3) -

First half results beat estimates. After over promising and under delivering for some time, Credit Suisse welcomes the company's signalling a reversal of this tendency. PNG LNG expansion is on the back burner.

Catalysts over the next 18 months focus on Alaska and Credit Suisse believes the proof will be in the sell-down that is targeted for 2021. Neutral rating retained. Target rises to $3.23 from $3.20.

Target price is $3.23 Current Price is $3.02 Difference: $0.21
If OSH meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.66, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Macquarie rates OSH as Outperform (1) -

The 1H20 result for Oil Search was just a little ahead at underlying earnings (EBITDAX), however cashflow was a little weaker, and no dividend was declared.

The company's  “Project Bootstrap” seeks to lower the breakeven of the Alaska oil project and envisages a smaller, yet higher IRR, development, notes the broker.

Macquarie raises FY21 and FY22 EPS by 4% and 7%, respectively. The Outperform rating is maintained. The target price is decreased to $3.80 from $3.90.

Target price is $3.80 Current Price is $3.02 Difference: $0.78
If OSH meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $3.66, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

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

Oil Search delivered a first-half underlying net profit below Morgan Stanley's estimate while operating income was in-line with estimates. No dividend was declared.

The company has revised down its 2020 cost guidance while leaving production and capex guidance unchanged. 

The broker uses conservative long-term oil price assumptions and notes at US$45/bbl, there is no value in Oil Search's operated oil position in PNG. Also, cost reduction in its Alaskan project is critical in order to move forward.

Oil Search will see material upside if oil prices start to recover, highlights the broker. 

Morgan Stanley remains Equal-weight on Oil Search with the target price increasing to $3.30 from $3.20. Industry view: Cautious.

Target price is $3.30 Current Price is $3.02 Difference: $0.28
If OSH meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.66, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Morgans rates OSH as Upgrade to Add from Hold (1) -

Morgans reports Oil Search delivered an in-line first half result, while adapting its growth plans to lower medium-term and long-term energy demand conditions.

The main news in the result for the broker was the company working on a new development plan in Alaska, with plans evolving materially as it seeks to optimise capital efficiency.

The key question for Morgans is how the company funds its future growth in Alaska and PNG (where risks remain a key hurdle).

The rating is upgraded to Add from Hold as Morgans suggests shares are trading at a -20% discount to valuation. The target price is increased to $3.65 from $2.80.

Target price is $3.65 Current Price is $3.02 Difference: $0.63
If OSH meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.66, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Ord Minnett rates OSH as Accumulate (2) -

Oil Search's result fell short of the broker, largely due to wasted exploration costs for the dusty Gobe Footwall wells. No dividend declared.

Production guidance has been reiterated but for forecast lower costs. More details on the Alaska revamp are expected soon following a strategic review. The broker cuts its target to $3.50 from $3.70, retaining Accumulate on valuation.

Target price is $3.50 Current Price is $3.02 Difference: $0.48
If OSH meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.66, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Morgans rates OTW as Hold (3) -

Over the Wire Holdings’ FY20 result was about 3% ahead of consensus forecasts, according to Morgans.

The broker highlights the 4% half on half revenue growth flowing to 21% half on half recurring earnings (EBITDA).

The company declared a 2.25cps fully franked final dividend.

There was around 10% year on year organic growth in the recurring business and this has continued into the start of FY21, points out the analyst.

No guidance was provided.

Morgans upgrades the profit (NPAT) forecast for FY21 by around 8%.

The Hold rating is maintained. The target price is increased to $4.38 from $4.33.

Target price is $4.38 Current Price is $4.31 Difference: $0.07
If OTW meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgans rates PPE as Add (1) -

The FY20 earnings (EBITDA) result for People Infrastructure came in ahead of Morgans forecast.

Net cash of $10m was significantly better than the broker had expected as the company benefited from the deferral of $5.9m in GST payments, while revenue was assisted by a combination of acquisitive and organic growth

The company is in a strong cash position and reported a fully franked final dividend of 4.5cps, in-line with the broker’s forecast.

Morgans lifts earnings (EBITDA) estimates for FY21 and FY22 by 8.4% and 7.1%, respectively.

The Add rating is maintained. The target price is increased to $3.30 from $2.80.

Target price is $3.30 Current Price is $2.65 Difference: $0.65
If PPE meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates PPE as Buy (1) -

Underlying operating earnings (EBITDA) were ahead of Ord Minnett forecasts in FY20. At the peak of the first wave of the pandemic there were concerns around the impact on employment and this appears to in well-founded in some areas.

However, Ord Minnett observes the company's sector focus has proven highly valuable. More than 50% of profit is accounted for by the disability and nursing segments. Ord Minnett reiterates a Buy rating. Target is raised to $3.25 from $2.84.

Target price is $3.25 Current Price is $2.65 Difference: $0.6
If PPE meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates PRN as Buy (1) -

Perenti Global delivered a solid result, observes UBS, with a stronger second half underground and surface mining performance.

The broker highlights the company has already secured $1.7bn of revenues for FY21 and expects another circa $250m from expected contract rollovers. The company expects FY21 revenue and operating margins to be similar to FY20. FY22 is expected to see solid growth.

While earnings forecasts have been reduced for FY21-23, the broker sees risks skewed to the upside if the pandemic dissipates faster than expected.

UBS retains its Buy rating with the target price reduced to $1.90 from $2.00.

Target price is $1.90 Current Price is $1.25 Difference: $0.65
If PRN meets the UBS target it will return approximately 52% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates QUB as Neutral (3) -

FY20 results were broadly in line. The outlook for Qube Industries is challenging, Citi asserts, and there has been no quantitative guidance for FY21. Forecasts are revised down by -41% to reflect lower earnings in the operating, Patrick and property divisions.

The broker is comforted by the well capitalised balance sheet and the ability to realise value among the investment property assets.

Patrick reported break even in the second half following a -12% contraction in revenue because of the pandemic. Citi suspects this is a likely low point. Buy rating and $3.40 target retained.

Target price is $3.40 Current Price is $2.85 Difference: $0.55
If QUB meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.03, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Credit Suisse rates QUB as Outperform (1) -

FY20 results were weaker than expected. The most significant impact of the pandemic was across container volumes while there was minimal impact on bulk exports.

There was no update on Moorebank although railing volumes were below expectations because of higher competition from trucking.

Net profit estimates for FY21 are lowered -5%. Credit Suisse retains an Outperform rating and reduces the target to $3.20 from $3.50.

Target price is $3.20 Current Price is $2.85 Difference: $0.35
If QUB meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.03, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Ord Minnett rates QUB as Accumulate (2) -

Qube Holdings delivered a solid result under the circumstances, the broker suggests, given variability in trade volumes over the half.

Conditions have stabilised somewhat from June and many customer categories, such as soft commodities and bulk resources, are experiencing solid demand.

Management's outlook remains cautious, but the broker notes diversification does provide some "insulation".

Moorebank is expected to be sold by the end of the year, which would crystalise value and turn focus to freight market share and growth in port-rail.  Target falls to $3.03 from $3.09, Accumulate retained.

Target price is $3.03 Current Price is $2.85 Difference: $0.18
If QUB meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.03, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

UBS rates QUB as Neutral (3) -

Led by lower volumes, Qube Holdings' reported operating income (EBITA) in the second half was in line with UBS' forecast.

The impact of covid-19 is estimated to be around -$20m with the container, bulk cargo and automotive volumes falling sharply. While noting the peak disruption has passed, the company expects pressure on business activity to continue across the group.

The broker expects performance to improve from the second half of FY21.

UBS retains its Neutral rating with a target price of $2.80.

Target price is $2.80 Current Price is $2.85 Difference: minus $0.05 (current price is over target).
If QUB meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.03, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Ord Minnett rates RHP as Accumulate (2) -

Solid cost control led Rhipe to a beat of the broker's forecast, and a 2c dividend was declared.

The company saw a sharp reduction in its licensing margins over FY20 as a result of lower Microsoft incentives and the changing product mix.

The broker expects current margins to stabilise in the short term, and maintains a positive outlook on the growth in the business, particularly across the Cloud Solution Provider program and the Japan joint venture.

Accumulate retained, target falls to $2.35 from $2.45.

Target price is $2.35 Current Price is $1.87 Difference: $0.48
If RHP meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

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

FY20 underlying operating earnings (EBITDA) were ahead of Morgan Stanley's estimates, driven by an outperformance in the Americas. Asia-Pacific and Europe were broadly in line.

No guidance was provided, although management indicated trading in July and August revealed conditions were improving. Morgan Stanley envisages upside risk to consensus expectations for FY21.

Equal-weight rating. Target is increased to $3.50 from $3.20. Industry view is Cautious.

Target price is $3.50 Current Price is $3.62 Difference: minus $0.12 (current price is over target).
If RWC meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.77, suggesting upside of 4.8% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgan Stanley rates SBM as Overweight (1) -

FY20 net profit was below Morgan Stanley's estimate although cash flow was stronger. The final dividend brought the total to 8c, which provides an underlying pay-out ratio of 52%.

The broker notes all sites are being optimised, with particular focus on the Atlantic gold project and Simberi sulphide project.

Overweight rating is maintained. Target price is increased to $3.85 from $3.65. Industry view is Attractive.

Target price is $3.85 Current Price is $3.35 Difference: $0.5
If SBM meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.67, suggesting upside of 10.9% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates SCG as Sell (5) -

First half free funds from operations were down -45% and below expectations. Rent collection was 70% and Citi estimates around 32% of uncollected rent was recognised in earnings.

The two issues for investors, in the broker's view, are sustainable levels of rental income post the pandemic and whether Scentre Group needs to undertake asset sales or an equity raising.

Nevertheless, the results do not change Citi's view and a Sell rating is reiterated. Target is reduced to $1.98 from $2.06.

Target price is $1.98 Current Price is $2.11 Difference: minus $0.13 (current price is over target).
If SCG meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.34, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates SCG as Outperform (1) -

First half results were weaker than expected largely because of credit loss provisions related to the pandemic. 2020 guidance remains withdrawn and the company has not provided an indicative pay-out ratio.

Credit Suisse revises 2020 estimates down by -25.6% and 2021 by -5.8%. Target is reduced to $2.81 from $3.02.

The broker retains an Outperform rating, believing the company can reposition its portfolio to adapt to changing consumer preferences/market conditions.

Target price is $2.81 Current Price is $2.11 Difference: $0.7
If SCG meets the Credit Suisse target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $2.34, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates SCG as Neutral (3) -

The first half result of Scentre Group was broadly in-line with Macquarie's expectations, after adjusting for accounting treatment of covid-19 rent relief. The funds from operations (FFO) were -32% below the broker's expectations due to accounting treatment and slightly more rent relief than expected.

Rent collection for the second quarter was 48%, which outperformed most of the company's listed peers, notes the broker.

Guidance for FY20 remains withdrawn.

The analyst notes gearing was at 38.4% as a June 30 and remains cautious on the ability of the company to access debt markets.

Neutral retained. Target is reduced to $2.08 from $2.28.

Target price is $2.08 Current Price is $2.11 Difference: minus $0.03 (current price is over target).
If SCG meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.34, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in December.

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 SCG as Overweight (1) -

Scentre Group's first-half result was broadly in line with Morgan Stanley's estimate. Rent collection in the June quarter was 48%, much stronger than Vicinity Centres ((VCX)) and GPT Group ((GPT)), reports the broker.

Morgan Stanley is positive on the REIT despite gearing being a concern for some investors. The broker believes Scentre Group's asset locations, exposure to the population and long term value potential indicates the REIT will offer the most upside.

Overweight rating. Target rises to $2.70 from $2.66. Industry view: In-line.

Target price is $2.70 Current Price is $2.11 Difference: $0.59
If SCG meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $2.34, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in December.

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 SCG as Hold (3) -

Scentre Group's -45% drop in funds from operations is worse than the broker feared, due to higher than expected rent waivers and provisions, although the broker does suggest it was a difficult one to forecast. No dividend declared, no guidance offered.

Rent collections have materially improved in the month of June from the quarter as a whole, and in July, which is labeled "encouraging".  The broker assumes Scentre Group will sell assets to counter falling retail valuations. Target rises to $2.20 from $2.10, Hold retained.

Target price is $2.20 Current Price is $2.11 Difference: $0.09
If SCG meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.34, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in December.

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 SCG as Neutral (3) -

Scentre Group's first-half funds from operations (FFO) was down -45% versus last year and -22% lower than UBS's estimate. The miss reflects tenant support/credit charge, reports the broker.

Cash rent collected for the REIT outperformed peers with June quarter collections at 48%, reports the broker.

The focus remains on the balance sheet and while the REIT does not have any immediate need to de-lever, the broker feels further de-valuations are likely and the REIT should consider its options. 

FFO forecast has been downgraded for 2020-21 driven by ongoing waivers/provisions. UBS reaffirms its Neutral rating with a target price of $2.25.

Target price is $2.25 Current Price is $2.11 Difference: $0.14
If SCG meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.34, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates SDF as Buy (1) -

FY20 earnings were slightly below Citi's forecast. FY21 guidance for earnings growth of 5-10% is in line with expectations. The company has guided to underlying EBITA of $235-245m and underlying net profit of $115-122m.

This assumes modest premium price increases and trade conditions that mirror the impact of the pandemic in the June quarter. Citi welcomes a return to providing guidance and believes this should be enough to drive outperformance in the stock. Buy rating and $4 target retained.

Target price is $4.00 Current Price is $3.52 Difference: $0.48
If SDF meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.94, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Macquarie rates SDF as Outperform (1) -

The FY20 result for Steadfast Group was at the top end of guidance, and the outlook is for 5%-10% EPS growth in FY21, supported by premium rates and inorganic activity, notes Macquarie.

The broker's forecasts are largely unchanged after the company's FY21 guidance was released.

The Outperform rating is maintained. The target price is increased to $3.90 from $3.80.

Target price is $3.90 Current Price is $3.52 Difference: $0.38
If SDF meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.94, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Citi rates SGP as Neutral (3) -

Citi observes the FY20 results highlight the impact of recent stimulus in terms of the new housing market. Residential, particularly master-planned communities, appears to be an area of strength within the real estate sector.

The broker believes this could support the share price against the difficulties in retail. While FY20 earnings were down -7% the result was above Citi's estimates.

No guidance was provided, although management noted the importance of yield to investors. Citi retains a Neutral rating and raises the target to $3.65 from $3.16.

Target price is $3.65 Current Price is $3.86 Difference: minus $0.21 (current price is over target).
If SGP meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.93, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Credit Suisse rates SGP as Downgrade to Neutral from Outperform (3) -

FY20 results were better than Credit Suisse expected. While there are some hurdles to overcome in FY21 these have been well flagged.

Upside potential stems from the commercial pipeline and the broker assesses Stockland Group has capacity to fund incremental expenditure on new developments via debt.

While acknowledging the leverage to a recovery in residential and the long-term upside from developments, Credit Suisse downgrades to Neutral from Outperform as the stock is considered fairly valued. Target rises to $3.96 from $3.56.

Target price is $3.96 Current Price is $3.86 Difference: $0.1
If SGP meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.93, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates SGP as Neutral (3) -

The FY20 funds from operations (FFO) for Stockland were below Macquarie's expectations, with greater expensing of rental assistance partially offset by residential and retirement earnings.

Fourth quarter retail cash collection of 51% was better than the company's peers, highlights the analyst.

The broker notes strong first quarter 2021 net deposits and 3,300 contracts on hand for FY21 settlements, to underpin around 5,700 settlements in FY21.

The Outperform rating is maintained. The target price is increased to $4.02 from $3.97.

Target price is $4.02 Current Price is $3.86 Difference: $0.16
If SGP meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.93, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgan Stanley rates SGP as Overweight (1) -

Stockland's FY20 funds from operation (FFO) was 2% ahead of Morgan Stanley's estimate. The beat was led by higher than expected settlements.

No guidance was given for FY21, but the broker forecasts FFO of 35.2c. Near term, the broker assesses the residential outlook to be strong, expecting the REIT could theoretically complete 7,000 settlements in FY21.

In terms of valuation, the broker prefers Stockland over Mirvac Group ((MGR)). Driven by Stockland's residential business, Morgan Stanley reiterates its Overweight rating with the target price increasing to $4.45 from $4.35. Industry view: In-line.

Target price is $4.45 Current Price is $3.86 Difference: $0.59
If SGP meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.93, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates SGP as Hold (3) -

Stockland's -8% drop in funds from operations is not as bad as the broker feared, due to stronger numbers in residential and retirement. No guidance offered.

The improving residential outlook is encouraging, the broker suggests, and Stockland's retail portfolio has been less affected than some peers.

The balance sheet is in good shape, but earnings will re-base in FY21. While the stock is trading at a small premium to net tangible asset value, further retail devaluations are expected.

Target rises to $3.70 from $3.50, Hold retained.

Target price is $3.70 Current Price is $3.86 Difference: minus $0.16 (current price is over target).
If SGP meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.93, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

UBS rates SGP as Neutral (3) -

Stockland's FY20 result was strong, observes UBS, with funds from operations (FFO) ahead of the broker's estimate. Going forward, trading is expected to moderate with defaults doubling versus the first half of FY20.

Gearing levels were helped by residential strength and asset sales and the broker expects this to fall more. This will ensure distributions return to the 75- 85% payout range, believes the broker. 

The broker's earnings forecasts are 2% higher in FY21 led by an increase in residential forecasts.

Neutral rating maintained with the target price increasing to 3.80 from $3.55.

Target price is $3.80 Current Price is $3.86 Difference: minus $0.06 (current price is over target).
If SGP meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.93, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates SKI as Outperform (1) -

The first half result for Spark Infrastructure was in-line with Macquarie's expectations, while cashflow ex tax charges was also consistent.

The broker states the growth outlook is strong with Transgrid pipeline and Victoria Power Network's capital expenditure.

Dividend guidance of 13.5cps was maintained.

Macquarie concludes current momentum offsets the risk associated with the company moving into renewables.

The Outperform rating is maintained. The target is decreased to $2.28 from $2.33.

Target price is $2.28 Current Price is $2.23 Difference: $0.05
If SKI meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.25, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in December.

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

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

The proportional first half results for Spark Infrastructure were in-line with Morgan Stanley's expectations.

Contracted and Regulated Asset Base (CRAB) of $6,601m was up 3.5% versus the previous corresponding period, according to the analyst, and look-through cashflow of 9.9cps is up 5.5% versus the previous corresponding period.

The company reaffirmed DPS guidance of 13.5cps this year, to be fully covered by look-through operating cashflow per share.

The company expects organic CRAB growth of 4% per annum for the next five years.

Equal-weight is maintained. Target is increased to $2.18 from $2.10. Industry view is Cautious.

Target price is $2.18 Current Price is $2.23 Difference: minus $0.05 (current price is over target).
If SKI 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 $2.25, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in December.

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 SKI as Hold (3) -

The first half result for Spark Infrastructure delivered earnings growth slightly better than Morgans had expected, albeit cashflow weakened partly due to the ramp-up of tax paid. The first half DPS of 7cps was in-line with guidance.

The company says it has a potential growth investment pipeline across 2020-2024 of around $2.6bn on a proportional ownership basis, notes the broker.

However, the analyst expects balance sheet metrics to deteriorate substantially as a result of the regulatory revenue resets applicable to SA Power Networks and Victoria Power Networks, on top of CPI headwinds.

FY20 DPS guidance was reaffirmed as at least 13.5cps, while Morgans forecast a declining DPS in FY21 largely due to regulatory earnings pressures.

The Hold rating is maintained. The target price is increased to $2.16 from $2.03.

Target price is $2.16 Current Price is $2.23 Difference: minus $0.07 (current price is over target).
If SKI meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.25, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in December.

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 SKI as Hold (3) -

Spark Infrastructure's underlying earnings beat the broker by 4%. The dividend was lower but in line with expectation.

The positive earnings result was somewhat overshadowed by a high one-off cash tax bill, but full year guidance implies a yield of 6.1% which appears attractive to the broker.

Ord Minnett observes dividends have continued to fall as lower interest rates affect regulated returns. Despite a strong growth outlook, Spark Infrastructure has to balance capital returns with debt management.

Hold retained, target rises to $2.25 from $2.15.

Target price is $2.25 Current Price is $2.23 Difference: $0.02
If SKI meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.25, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates SKI as Neutral (3) -

Spark Infrastructure reported its first-half proportional operating income (EBITDA) of $435m which was 6% ahead of UBS's forecast, driven by SA Power Network's lower operating expenses and higher margins.

The main takeaway from the result, notes the broker, is the group can fund its equity share of capex over 2021-24 with its operating cash flow.  

In general, the broker forecasts higher capex over a shorter timeframe, expecting the group's dividend profile to decline year on year to 11cps in 2023 from 13.5cps in 2020.

UBS retains its Neutral rating with the target price increasing to $2.20 from $2.10.

Target price is $2.20 Current Price is $2.23 Difference: minus $0.03 (current price is over target).
If SKI meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.25, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates SRV as Buy (1) -

Servcorp declared a better-than-expected result and outlook, observes UBS, despite a challenging market backdrop.

The broker expects FY21 will also be a challenging year and expects profit (PBT) of $10m, down -72% year on year, before a recovery in FY22.

Noting the stock looks cheap, UBS retains its Buy rating with the target price increasing to $4 from $3.80.

Target price is $4.00 Current Price is $2.31 Difference: $1.69
If SRV meets the UBS target it will return approximately 73% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates SUL as Overweight (1) -

FY20 results were in line with guidance. Strong May/June trading has continued into July with Rebel re-accelerating, the broker notes.

While the outlook is uncertain because of a resurgence in Melbourne/Sydney coronavirus cases, the broker considers the update confirms Super Retail will benefit from the re-opening of Australia.

Overweight rating maintained. Target is increased to $11.66 from $10. Industry View: Cautious.

Target price is $11.66 Current Price is $10.75 Difference: $0.91
If SUL meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $11.37, suggesting upside of 4.8% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Credit Suisse rates SWM as Neutral (3) -

FY20 results were below forecasts. Management has stepped up efforts to reduce costs, with -$90m of permanent cost reductions expected between FY20-21.

Credit Suisse expects net debt will increase in FY21 and cash flow remains challenging. Neutral rating retained. Target rises to $0.125 from $0.10.

Target price is $0.13 Current Price is $0.13 Difference: minus $0.005 (current price is over target).
If SWM meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.16, suggesting upside of 34.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates SWM as Outperform (1) -

Seven West Media's FY20 earnings (EBIT) fell by -54% in a difficult TV advertising environment, notes Macquarie.

Although the covid-19 situation has exacerbated ad market headwinds, Macquarie states there are offsets and the company has executed on a number of asset sales to reduce the debt burden.

The Outperform rating is maintained. The target price is increased to $0.18 from $0.17.

Target price is $0.18 Current Price is $0.13 Difference: $0.05
If SWM meets the Macquarie target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $0.16, suggesting upside of 34.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgan Stanley rates SWM as No Rating (-1) -

Seven West Media's FY20 results missed Morgan Stanley's expectations.

The broker continues to see cyclical challenges (eg sharply lower TV advertising market) and structural challenges (eg falling print and TV audiences) and amplified risk from debt leverage.

The analyst views the company as largely a traditional media company with less than 10% of FY20 revenues being digital. No dividend was declared and no specific guidance was given for FY21.

Morgan Stanley doesn't set a rating or price target. Industry view: Attractive.

Current Price is $0.13. Target price not assessed.

Current consensus price target is $0.16, suggesting upside of 34.4% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates SWM as Buy (1) -

Seven West Media's result is labeled "weak", and the broker has taken the axe to earnings forecasts on lower expected FTA TV revenues, but also the sale of Pacific Magazines.

That said, the broker suggests Seven West Media has done a "remarkable" job with its video-on-demand strategy, although much still needs to be done.

The broker feels investors will shy away on the weak outlook for traditional media, but sees value and retains Buy. Target falls to 20c from 45c.

Target price is $0.20 Current Price is $0.13 Difference: $0.07
If SWM meets the Ord Minnett target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $0.16, suggesting upside of 34.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates SWM as Neutral (3) -

Seven West Media pre-reported its market growth outcomes for both metro TV which fell -22% year on year in the second half and broadcast video on demand (BVOD) which grew by 23%.

The second half was impacted by disruptions to programming but the market share which had dropped to 35.6% during the period was back to 39% in July, highlights UBS.

The broker has lifted its FY21 earnings forecasts by circa 19% and notes the biggest catalyst for the company, apart from a turnaround in the ad market, remains potential asset sales to de-gear. 

UBS maintains its Neutral rating with the target price increasing to $0.14 from $0.12.

Target price is $0.14 Current Price is $0.13 Difference: $0.01
If SWM meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $0.16, suggesting upside of 34.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

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

FY20 underlying earnings were at the top of revised guidance & production and the capital expenditure outlook for FY21 is slightly better than Morgan Stanley anticipated.

Morgan Stanley continues to use conservative long-term oil price assumptions. The broker envisages further upside at Project Atlas. Equal-weight retained. Target rises to $0.31 from $0.30. Industry view is Cautious.

Target price is $0.31 Current Price is $0.29 Difference: $0.02
If SXY meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $0.38, suggesting upside of 29.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates WGN as Upgrade to Neutral from Underperform (3) -

The FY20 result for Wagners Holding was largely in-line with Macquarie's estimates, segment margins were better, but offset by corporate costs.

Management is depending on an infrastructure-driven activity boost to offset the softer residential market and anticipates stable concrete demand. Unfortunately, Macquarie believes margins have now reset at structurally lower levels.

The broker lifts FY21-FY23 EPS estimates by 26%, 5% and 2%, respectively, driven by marginally increased sales expectations and better margins from improved cost control.

The rating is upgraded to Neutral from Underperform. The target price is increased to $1.20 from $1.05.

Target price is $1.20 Current Price is $1.12 Difference: $0.08
If WGN meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.18, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates WGN as Add (1) -

The FY20 underlying earnings (EBIT) result for Wagners was in-line with Morgans expectations, and second half trends clearly illustrated that an earnings recovery is underway, according to the broker.

Indicators of this are the resumption of cement supply to Boral ((BLD)) and the start of the Carmichael mine and rail contract.

Morgans views debt levels as elevated, but can be managed (no dividends and moderating capital expenditure needs) and notes outlook comments point to a better year ahead, although as expected by the analyst, no formal outlook guidance was provided.

The Add rating is maintained. The target price is increased to $1.35 from $1.20.

Target price is $1.35 Current Price is $1.12 Difference: $0.23
If WGN meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.18, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates WSA as Upgrade to Outperform from Neutral (1) -

FY20 earnings missed forecasts largely because of depreciation & amortisation. Beyond this the results were in line. There are a number of emerging options for Forrestania, Credit Suisse observes.

The balance sheet remains solid and finances are considered prudently managed. Rating is upgraded to Outperform from Neutral on valuation. Target rises to $2.50 from $2.40.

Target price is $2.50 Current Price is $2.32 Difference: $0.18
If WSA meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.75, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates WSA as Outperform (1) -

Western Area's FY20 earnings result was solid, however guidance for FY21 was weaker than Macquarie expected.

Buoyant nickel prices underpin upgrade momentum with spot prices generating over 100% higher earnings for FY21 and FY22, explains the broker.

The analyst notes updates on the Cosmos development project, including the AM5/6 deposits, present a key near-term catalyst.

The Outperform rating is maintained. The target price is decreased to $2.70 from $2.80.

Target price is $2.70 Current Price is $2.32 Difference: $0.38
If WSA meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.75, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgan Stanley rates WSA as Overweight (1) -

Morgan Stanley describes the FY20 result for Western Areas as mixed, with profit (NPAT) under the broker's estimate by -$10m, but offset by better free cashflow of $5m.

A dividend of 2cps was below the 2.5cps expected by the broker.

FY21 guidance was slightly weak, with costs 11% greater than Morgan Stanley and nickel production 3% ahead.

The Odysseus project is advancing well with new underground development commencing, according to the analyst.

Morgan Stanley reaffirms its Overweight rating with the target price falling to $2.55 from $2.65.  Industry view: Attractive.

Target price is $2.55 Current Price is $2.32 Difference: $0.23
If WSA meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.75, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates WSA as Neutral (3) -

Western Areas’ FY20 result was in-line with UBS' expectations but the FY21 guidance disappointed, with lower than expected production (-4%) and higher costs.

While the guidance is only slightly below the broker's forecasts, net profit estimates have been reduced by -30%, highlighting the high cost / high leverage nature of Western Areas earnings.

UBS retains its Neutral rating with the target price reducing to $2.35 from $2.60.

Target price is $2.35 Current Price is $2.32 Difference: $0.03
If WSA meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.75, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates WSP as Hold (3) -

Post today's release of FY20 financials, Ord Minnett expects to temper its forecasts somewhat, indicating the numbers were mostly a tad below expectations.

And that includes guidance for FY21 as well.

Target price is $2.80 Current Price is $4.78 Difference: minus $1.98 (current price is over target).
If WSP meets the Ord Minnett target it will return approximately minus 41% (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

UBS rates XRO as Sell (5) -

Xero will be acquiring the cloud-based SMB lender Waddle for $31m upfront with additional earnout payments. UBS expects the deal to have a minimal impact on the company's FY21 operating income.

The broker notes the acquisition gives Xero the opportunity to generate income from non-SMB customers via its platform.

UBS retains its Sell rating with a target price of $58.50.

Target price is $58.50 Current Price is $98.50 Difference: minus $40 (current price is over target).
If XRO meets the UBS target it will return approximately minus 41% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $77.25, suggesting downside of -22.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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