Australian Broker Call

Macquarie rates ALL as Outperform (1) -

Macquarie expects the digital business could thrive in the current crisis, while the balance sheet capacity provides support under a worst-case scenario where land-based gaming generates no revenue for 12 months.

Outperform rating maintained. Target is reduced to $32.00 from $37.50.

Target price is $32.00 Current Price is $20.89 Difference: $11.11
If ALL meets the Macquarie target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $31.06, suggesting upside of 48.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

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

Ord Minnett believes there are some important offsetting factors that will assist Alliance Aviation in the current crisis. Firstly, fly-in, fly-out and contract hours are growing as mining companies take additional measures to prevent outbreaks of the virus on site.

Charter revenue remains strong and the fleet is deployed. As the stock is trading at a -20% discount to net tangible assets Ord Minnett upgrades to Buy from Hold. Target is reduced to $1.80 from $2.60.

Target price is $1.80 Current Price is $1.15 Difference: $0.65
If AQZ meets the Ord Minnett target it will return approximately 57% (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

UBS rates AZJ as Upgrade to Buy from Neutral (1) -

In theory, UBS assesses Aurizon carries a low risk to volumes even in the event of coal mine closures.

The network generates a return on its asset base irrespective of volume and the above-rail business is also partially protected from capacity changes representing more than 50% of revenue.

In this way, the broker considers Aurizon one of the more defensive companies in the Australian market. Only one coal mine accounts for more than 5% of coal volumes.

UBS upgrades to Buy from Neutral, believing downside risks for the balance sheet liquidity and earnings are not as great as the share price suggests. Target is $5.55.

Target price is $5.55 Current Price is $4.31 Difference: $1.24
If AZJ meets the UBS target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $5.64, suggesting upside of 30.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Morgan Stanley rates BAP as Overweight (1) -

Morgan Stanley notes trading has been robust so far in 2020 but guidance has been withdrawn for FY20. No update was provided on debt.

The broker points out, while business closures imply a sharp drop in revenue, some lost demand is deferred and cost reductions should at least offset some of the impact.

Overweight rating. Target is $8.00. Industry view: In-line.

Target price is $8.00 Current Price is $3.15 Difference: $4.85
If BAP meets the Morgan Stanley target it will return approximately 154% (excluding dividends, fees and charges).

Current consensus price target is $7.79, suggesting upside of 147.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates BBN as Add (1) -

A second half update from Baby Bunting showed sales up 6.2% to date but largely from a run on essentials such as nappies and wipes. The company has nevertheless joined the crowd in withdrawing FY20 guidance.

The broker sees Baby Bunting as being more "essential" than other discretionary retailers but this won't help in the event of a full non-essential retail shutdown. The broker drops its target to $2.39 from $3.24 and retains Add, but warns of ongoing volatility.

Target price is $2.39 Current Price is $1.73 Difference: $0.66
If BBN meets the Morgans target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $2.74, suggesting upside of 58.1% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates BIN as Neutral (3) -

The company has withdrawn FY20 guidance. Lock-downs and working from home are affecting the percentage of revenue (less than 15%) generated in the commercial & industrial market.

Macquarie notes the strong balance sheet is likely to become tighter as the earnings outlook remains highly uncertain. The broker prefers to wait for an improvement in visibility, despite the stock being sold off heavily.

Neutral rating maintained. Target is reduced to $1.80 from $3.10.

Target price is $1.80 Current Price is $1.82 Difference: minus $0.02 (current price is over target).
If BIN 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 $2.90, suggesting upside of 59.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

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

Credit Suisse observes previous concerns around possible shortages of inventory have been largely forgotten and investors are now turning to the potential loss of revenue and the stability of the balance sheet.

Government-mandated temporary store closures have been an increasing feature in European markets while the situation in Australia is extremely uncertain.

The broker expects the company will have some ability to manage the inventory position and cost base over the coming months, estimating a -50% reduction in marketing and R&D expenditure in the second half could offset a -15% gross margin impact.

Medium-term opportunities remain intact and Credit Suisse considers the recent decline in the share price a buying opportunity. Rating is upgraded to Outperform from Neutral. Target is reduced to $16.16 from $23.05.

Target price is $16.16 Current Price is $13.16 Difference: $3
If BRG meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $18.72, suggesting upside of 42.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

UBS rates CLV as Neutral (3) -

First half earnings missed UBS estimates. Coronavirus has not affected forward orders for the second half and the company expects demand patterns will continue, subject to the stability of the Chinese market.

Uncertainty about draft regulation in China means manufacturers are cautious about building up inventory. Neutral rating and $2.75 target maintained.

Target price is $2.75 Current Price is $1.35 Difference: $1.4
If CLV meets the UBS target it will return approximately 104% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

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

Morgans rates COH as Hold (3) -

Cochlear has lost an appeal of -US$268m in patent infringement damages, while a decision for an additional -US$138m in damages remains outstanding. The loss comes at a bad time, putting the dividend payout ratio at risk, given the deferral or cancellation of elective implant surgery across the globe has led management to withdraw guidance.

The broker states the obvious in suggesting the impact is difficult to model given recovery timing is uncertain and not all adults/seniors are likely to come back. The broker has significantly lowered FY20-22 forecasts and dropped its target to $169.30 from $216.40, Hold retained.

Target price is $169.30 Current Price is $168.00 Difference: $1.3
If COH meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $187.90, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates CSL as Neutral (3) -

Macquarie reviews the implications of lower plasma collections and believes the risks to FY21 forecasts are skewed to the downside.

The broker envisages the volume of plasma collected in the US is potentially affected by fewer donors and social distancing measures adopted by collection centres.

Given the lag between collections and the manufacture of finished product, the broker envisages any coronavirus impacts over the next 3-6 months will affect earnings in FY21.

Neutral maintained. Target is reduced to $304 from $324.

Target price is $304.00 Current Price is $284.36 Difference: $19.64
If CSL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $313.73, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

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 CWY as Outperform (1) -

Macquarie points out that, although the business is an essential service, customers in small-medium enterprises are at greatest risk of a shut-down and possible slow recovery.

The advantage is there are strong structural market dynamics, while the company has a defensive position and a strong balance sheet. FY20 guidance has been suspended, nevertheless.

Target is reduced to $2.30 from $2.60. Outperform retained.

Target price is $2.30 Current Price is $1.63 Difference: $0.67
If CWY meets the Macquarie target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $2.32, suggesting upside of 42.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Macquarie rates DHG as Outperform (1) -

Macquarie estimates new property listings will decline by -50-60% in April-July. This estimate is based on analysis of SARS & GFC listing behaviours and industry feedback.

The broker notes significant operating leverage for Domain Holdings and the balance sheet appears reasonable, other than for dire scenarios. The target is reduced to $2.90 from $3.80. Outperform maintained.

Target price is $2.90 Current Price is $1.77 Difference: $1.13
If DHG meets the Macquarie target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $3.16, suggesting upside of 78.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

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

Healius has withdrawn FY20 guidance. The company has indicated that trading in the year to date is in line with guidance but current conditions are now unpredictable.

Citi assumes revenue declines by -10% in the fourth quarter and that costs decline by -5%.

While demand for coronavirus testing is increasing, relative to the normal volume of tests, this is small. As the community isolates, Citi suggests the decline in the underlying business will be greater than any positive impact from virus testing.

The broker reduces the target to $2.80 from $3.40, given the private equity bid was rejected last week. As the share price has declined materially, the rating is upgraded to Buy from Neutral.

Target price is $2.80 Current Price is $2.38 Difference: $0.42
If HLS meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $3.01, suggesting upside of 26.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Credit Suisse rates HLS as Neutral (3) -

Healius has withdrawn FY20 guidance. The company is currently completing around 2500 tests for coronavirus per day but this is not enough to offset the volume drop from fewer GP attendances and the deferral of elective pathology & radiology work.

The company is also experiencing rising consumable costs associated with increased demand for personal protective equipment. Credit Suisse estimates a -15% decline in pathology sales in the fourth quarter.

The broker retains a Neutral rating and lowers the target to $2.47 from $3.35.

Credit Suisse suggests the potential divestment of the medical centres would provide flexibility for the capital position but the company is unlikely to complete a transaction in the next six months. No dividend is assumed in the second half or first half of FY21.

Target price is $2.47 Current Price is $2.38 Difference: $0.09
If HLS meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.01, suggesting upside of 26.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Citi rates MFG as Upgrade to Buy from Sell (1) -

Following the share price decline, Citi upgrades to Buy from Sell. The risk to earnings is likely to be skewed to the downside for the sector, given elevated market volatility.

However, there is minimal balance sheet risk, given zero debt. Global asset managers are considered better placed than domestic peers, in part because of natural offsets from a lower Australian dollar. Target is reduced to $40 from $55.

Target price is $40.00 Current Price is $40.80 Difference: minus $0.8 (current price is over target).
If MFG meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $51.48, suggesting upside of 26.2% (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

Ord Minnett rates MFG as Upgrade to Buy from Sell (1) -

Ord Minnett observes the sell-off in 2020 has been broad-based and indiscriminate. The broker believes Magellan Financial has de-rated beyond a reasonable point and upgrades to Buy from Sell.

The stock is now trading on 16x headline FY21 price/earnings and 14x excluding cash and investments. Target is reduced to $44.25 from $60.18.

Target price is $44.25 Current Price is $40.80 Difference: $3.45
If MFG meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $51.48, suggesting upside of 26.2% (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

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

Citi observes Newcrest Mining is one of the few companies that can deliver organic growth and this should help the stock return to its valuation premium. The newest projects highlight the opportunity for asset diversification and value.

If the company can successfully deliver growth by the development of Wafi Golpu or Red Chris this should dilute concentration risk, in the broker's view. There is also exposure to the longer-dated Cascabel.

While not calling the bottom and acknowledging the risk to operating expenditure from the disruptions stemming from coronavirus, the broker believes there is value emerging. Rating is upgraded to Buy from Neutral. Target is steady at $30.40.

Target price is $30.40 Current Price is $25.88 Difference: $4.52
If NCM meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $28.55, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

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: 0.1

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

Morgan Stanley rates NEC as Overweight (1) -

Morgan Stanley suspects a sharp fall in advertising expenditure will occur over the next few weeks and months. The company has indicated March quarter free-to-air TV revenue is flat. Guidance has been withdrawn for FY20.

Still, the broker maintains a positive view and retains an Overweight rating on a 12-month view. The broker considers Nine Entertainment one of the few traditional media stocks to own for the eventual recovery. Target is $2.30. Industry view: Attractive.

Target price is $2.30 Current Price is $0.95 Difference: $1.35
If NEC meets the Morgan Stanley target it will return approximately 142% (excluding dividends, fees and charges).

Current consensus price target is $2.12, suggesting upside of 123.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates NGI as Upgrade to Outperform from Neutral (1) -

Macquarie observes the company's US-dollar denominated assets provide protection for Australian investors. Using the GFC experience to account for the risks to 2020 drives a material downgrade to the broker's forecasts for FY21.

However, FY20 guidance is yet to be withdrawn or revised. Rating is upgraded to Outperform from Neutral and the target is steady at $3.36.

Target price is $3.36 Current Price is $2.17 Difference: $1.19
If NGI meets the Macquarie target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Credit Suisse rates NHC as Outperform (1) -

The interim result was in line with expectations. While highlighting the difficulty in predicting the short-term outlook, Credit Suisse believes the stock screens well at current levels, noting a resilient cost base and strong Australian dollar coal price.

That said, the broker's target, reduced to $2.00 from $2.30, is almost entirely underpinned by Bengalla. Outperform maintained.

Target price is $2.00 Current Price is $1.26 Difference: $0.74
If NHC meets the Credit Suisse target it will return approximately 59% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 48.8% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates NHC as Outperform (1) -

New Hope's interim results were weaker than Macquarie expected. The company has guided towards a weaker second half as a result of mine scheduling at Bengalla amid lower realised price expectations.

Macquarie observes near-term headwinds persist, as the company ramps down operations at New Acland. Outperform rating maintained. Target is reduced by -12% to $1.50.

Target price is $1.50 Current Price is $1.26 Difference: $0.24
If NHC meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 48.8% (ex-dividends)

The company's fiscal year ends in July.

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

Morgans rates NHC as Add (1) -

New Hope Corp's underlying first half earnings beat the broker by 5% thanks to a reduction of costs at Bengalla. The 6c dividend was a strong endorsement in the company's outlook and the broker believes a modest dividend can be sustained as New Hope steadily de-gears.

The stock offers 50% upside to the broker's valuation on Bengalla cash flows alone, meaning investors are getting hard assets and growth options for free. Add retained. Compelling value is on offer, the broker suggests, for patient, through-the-cycle investors. Target rises to $1.80 from $1.75.

Target price is $1.80 Current Price is $1.26 Difference: $0.54
If NHC meets the Morgans target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 48.8% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates OGC as Accumulate (2) -

New Zealand has ordered the temporary closure of all non-essential business, directly affecting the company's Waihi and Macraes assets.

Ord Minnett notes the company has around US$140m in cash and US$50m in undrawn facilities. As Didipio is still suspended, the broker assesses there is now a lot of pressure on the Haile operation. Haile continues to operate at full capacity.

Accumulate rating and $3.10 target maintained.

Target price is $3.10 Current Price is $1.53 Difference: $1.57
If OGC meets the Ord Minnett target it will return approximately 103% (excluding dividends, fees and charges).

Current consensus price target is $3.80, suggesting upside of 148.4% (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: 0.9

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

Morgans rates ORG as Hold (3) -

Origin Energy's share price has fallen dramatically on the oil price plunge, with oil now close to APLNG's breakeven level. This could mean a significant drop in free cash flow in FY21, the broker notes, and if weak oil prices persist, APLNG may be restricted in paying dividends to Origin.

The broker has cut its valuation by -14% but dropped its target price further, to $6.12 fom $8.15, due to APLNG uncertainty. Energy markets should be more resilient but the broker assumes -5% lower sales from here and into FY21. Hold retained.

Target price is $6.12 Current Price is $4.30 Difference: $1.82
If ORG meets the Morgans target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $6.97, suggesting upside of 62.0% (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

UBS rates ORG as Buy (1) -

UBS reduces Brent oil forecasts by -15-40% for 2020-25 to reflect the effects of demand & supply shocks from the spread of coronavirus and the breakdown of the OPEC agreement.

The broker now expects oil prices will remain under US$60/bbl until 2024. Earnings for Origin Energy in FY20 are boosted by favourable hedging and FX gains while the FY21 exposure is partially hedged.

The broker also highlights the free cash flow likely to be generated in FY21 and the resilience of the balance sheet. Buy rating maintained. Target is reduced to $7.80 from $9.25.

Target price is $7.80 Current Price is $4.30 Difference: $3.5
If ORG meets the UBS target it will return approximately 81% (excluding dividends, fees and charges).

Current consensus price target is $6.97, suggesting upside of 62.0% (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 ORI as Equal-weight (3) -

Morgan Stanley notes shutting down some mines, including several in Peru, Argentina and South Africa, will provide short-term challenges to the company's traditional defensive end-market exposure. Still, the balance sheet is robust.

The broker considers the risks "reasonably balanced". Equal-weight maintained. Target is reduced to $18 from $22. Industry view is Cautious.

Target price is $18.00 Current Price is $15.64 Difference: $2.36
If ORI meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $21.67, suggesting upside of 38.6% (ex-dividends)

The company's fiscal year ends in September.

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

Citi rates PDL as Neutral (3) -

The risk to earnings is likely to be skewed to the downside for the asset management sector, given elevated market volatility. However, there is minimal balance sheet risk, in Citi's view, given zero debt.

Global asset managers are considered better placed than domestic peers, in part because of natural offsets from a lower Australian dollar.

While Pendal Group offers valuation appeal, Citi notes ongoing negative fund flows, particularly in JO Hambro. A High Risk is added to the Neutral rating. Target is reduced to $3.80 from $8.20.

Target price is $3.80 Current Price is $4.00 Difference: minus $0.2 (current price is over target).
If PDL 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 $7.50, suggesting upside of 87.6% (ex-dividends)

The company's fiscal year ends in September.

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 PSQ as Overweight (1) -

Guidance has been withdrawn, including the dividend paid-out ratio.

The company has also pointed out it has net debt of $11.3m and will be cutting back on all business travel, discretionary expenditure and most uncommitted capital expenditure.

Overweight rating, In-Line industry view. Target is $2.15.

Target price is $2.15 Current Price is $0.76 Difference: $1.39
If PSQ meets the Morgan Stanley target it will return approximately 183% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates PTM as Sell (5) -

The risk to earnings is likely to be skewed to the downside for the asset management sector, given elevated market volatility. However, there is minimal balance sheet risk, Citi observes, given zero debt.

Global asset managers are considered better placed than domestic peers, in part because of natural offsets from a lower Australian dollar.

The broker reduces estimates for earnings per share in FY20 by -6% and FY21 by -25% to reflect the sharp falls in global markets in the year to date as well as revising down assumptions for net fund outflows.

Sell rating maintained. Target is reduced to $2.60 from $3.90.

Target price is $2.60 Current Price is $3.12 Difference: minus $0.52 (current price is over target).
If PTM meets the Citi target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.24, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.8

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

Ord Minnett rates PTM as Upgrade to Hold from Sell (3) -

Ord Minnett observes the sell-off in 2020 has been broad-based and indiscriminate. The broker takes the opportunity to neutralise its view on Platinum Asset, upgrading to Hold from Sell. Target is reduced to $2.74 from $3.83.

Target price is $2.74 Current Price is $3.12 Difference: minus $0.38 (current price is over target).
If PTM meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.24, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.8

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

Macquarie rates REA as Upgrade to Outperform from Neutral (1) -

Macquarie revises estimates as new property listings are expected to decline by -50-60% in April-July. Against the difficult backdrop, the broker believes the business is well-positioned and can recover profitability as activity returns.

Rating is upgraded to Outperform from Neutral. Target price reduced to $90 from $110.

Target price is $90.00 Current Price is $69.00 Difference: $21
If REA meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $98.46, suggesting upside of 42.7% (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 RIO as Equal-weight (3) -

South Africa has announced a nationwide lock-down of 21 days. Rio Tinto will shut down RBM mining activities and put furnaces on care and maintenance. Construction activities at Zulti South will also be delayed.

The company is monitoring the situation in Quebec where activities are required to scale down.

Equal-weight rating retained. Industry view is In-Line. Target is $94.50.

Target price is $94.50 Current Price is $83.82 Difference: $10.68
If RIO meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $99.04, suggesting upside of 18.2% (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: 0.2

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

Credit Suisse rates S32 as Outperform (1) -

South Africa will close mining operations for 21 days. Essential national power generation will be exempt. Credit Suisse, therefore, expects SAEC and Hillside will be exempt.

Manganese operations are likely to be curtailed. The broker does not change its view on the stock but believes the announcement by South Africa signals a risk other countries may follow.

Outperform rating and $3.10 target maintained.

Target price is $3.10 Current Price is $1.87 Difference: $1.23
If S32 meets the Credit Suisse target it will return approximately 66% (excluding dividends, fees and charges).

Current consensus price target is $2.87, suggesting upside of 53.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.8

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

Macquarie rates S32 as Outperform (1) -

South32 will curtail manganese production in South Africa, in line with the government lock-down for 21 days.

Macquarie observes the Hillside smelter and domestic energy coal business are likely to be unaffected but export thermal coal is likely to be restricted.

Other operations are unaffected by production interruptions to date. Outperform rating maintained. Target is $2.40.

Target price is $2.40 Current Price is $1.87 Difference: $0.53
If S32 meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $2.87, suggesting upside of 53.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.8

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

Morgan Stanley rates S32 as Overweight (1) -

The South African government has announced a lock-down of 21 days. Morgan Stanley assesses the total impact potential, assuming one month of disruptions, for South32 is around -3% of FY20 revenue.

Overweight retained. Industry view: In-Line. Target is $2.85.

Target price is $2.85 Current Price is $1.87 Difference: $0.98
If S32 meets the Morgan Stanley target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $2.87, suggesting upside of 53.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.8

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

Ord Minnett rates S32 as Accumulate (2) -

South Africa has ordered a 21-day lock-down across the country in order to contain the coronavirus outbreak.

While the company has made no formal announcement, Ord Minnett assesses that the positive impact on manganese prices at the South32 Australian operations will be largely offset by the negative impact on South African earnings.

South Africa Energy Coal is estimated to be loss-making in FY20 and closing operation for 21 days would have a negative impact. Ord Minnett retains an Accumulate rating and $2.55 target.

Target price is $2.55 Current Price is $1.87 Difference: $0.68
If S32 meets the Ord Minnett target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $2.87, suggesting upside of 53.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.8

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

Macquarie rates SLK as Outperform (1) -

Macquarie observes there are no material constraints on the company's services to date in terms of buses. Meanwhile, decisive action on costs is being undertaken in tourism and marine transport.

The broker reiterates a conviction on the business, given its exposure to essential services. Outperform rating maintained. Target is reduced to $3.97 from $4.48.

Target price is $3.97 Current Price is $2.68 Difference: $1.29
If SLK meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Credit Suisse rates SWM as Neutral (3) -

Seven West has withdrawn FY20 guidance. Credit Suisse expects metro free-to-air TV advertising markets will decline -11% in FY20 and -4% in FY21, recovering in FY22.

While the postponement of the AFL season and the Olympics create an opportunity for near-term savings from the cost of these rights, it also creates uncertainty around advertising bookings for these events.

While the broker expects the business will remain within its covenants the risk is elevated with any further downside. Neutral maintained. Target is reduced to $0.08 from $0.23.

Target price is $0.08 Current Price is $0.07 Difference: $0.01
If SWM meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $0.22, suggesting upside of 214.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

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

Seven West has withdrawn earnings guidance for FY20 because of "escalating uncertainty".

In addition to a weak TV advertising market the company has also indicated the suspension or postponement of key exclusive content, such as the AFL, is a contributing factor.

The company has stated that its priority is to reduce debt ahead of the scheduled maturities in November 2021 and 2022.

Morgan Stanley does not have a rating or target at present. Industry view is Attractive.

Current Price is $0.07. Target price not assessed.

Current consensus price target is $0.22, suggesting upside of 214.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Morgans rates VRT as Hold (3) -

The first 8 months of Virtus Health's full year had been solid, but the virus has led to uncertainty across both domestic and international operations.

The balance sheet is strong, the broker notes, but cash conversion still remains key. To that end the broker has slashed dividend assumptions.

Target falls to $2.72 from $4.76, Hold retained.

Target price is $2.72 Current Price is $1.92 Difference: $0.8
If VRT meets the Morgans target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Macquarie rates WOW as Outperform (1) -

Woolworths has experienced elevated demand in Australasia for its food business over the past two months. This has resulted in some supply shortages but consumer shopping behaviour appears to be moderating.

Macquarie assesses the behaviour has shifted from stockpiling to sustained elevated demand as restaurants close. Meanwhile, the Endeavour spin-off is delayed.

The hotels business, around 11% of earnings (EBIT), will temporarily close although Big W is staying open. Outperform rating maintained. Target is reduced to $41.30 from $42.10.

Target price is $41.30 Current Price is $36.42 Difference: $4.88
If WOW meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $38.81, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Morgans rates WOW as Hold (3) -

Woolworths has declared it cannot accurately forecast the impact of the virus on its full-year result. A trading update revealed strong recent sales growth on consumer hoarding, nonetheless leading to strain on supply chains to keep up with demand. Management noted, however, mayhem seemed to be easing last weekend.

On the other hand, the closure of pubs means the Hotels business faces uncertainty, to the extent the company has postponed its planned Endeavour Group spin-off until 2021. Combining strength in supermarkets and weakness in hotels the broker reduces FY21 forecast earnings by -8%. Target falls to $34.83 from $34.18, Hold retained.

Target price is $34.83 Current Price is $36.42 Difference: minus $1.59 (current price is over target).
If WOW meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.81, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

UBS rates WOW as Buy (1) -

Woolworths has indicated that sales across its retailing businesses have been very strong in recent weeks. Hotels are the exception. The proposed Endeavour de-merger is deferred until 2021.

UBS updates forecasts to reflect the net impact of the closure of hotels and the further strength in the grocery & liquor division. Buy rating and $39.70 target maintained.

Target price is $39.70 Current Price is $36.42 Difference: $3.28
If WOW meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $38.81, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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