Australian Broker Call

Macquarie rates ALU as Outperform (1) -

Altium has withdrawn FY20 guidance. Management has retained its 100,000 subscription target for FY25 but did not confirm whether it would reach its 50,000 goal in FY20.

The company' s revenue was 59% recurring in the first half, the broker notes, which should temper the overall impact from diminishing sales momentum.

The broker expects sales could catch up on the other side, and notes the balance sheet is strong. Outperform retained, target falls to $37.00 from $37.50.

Target price is $37.00 Current Price is $30.74 Difference: $6.26
If ALU meets the Macquarie target it will return approximately 20% (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

Macquarie rates AWC as Outperform (1) -

Macquarie has marked to market for March quarter bulk commodity prices and incorporated provisional pricing adjustments. Recent strong share price moves have eroded value upside.

The broker retains a preference for iron ore miners on significant FY22 earnings upside at current spot prices. Recent declines in alumina and coal prices have increased downside risk for relevant miners.

Outperform retained for Alumina Ltd, target rises to $1.90 from $1.60.

Target price is $1.90 Current Price is $1.47 Difference: $0.43
If AWC meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $2.01, suggesting upside of 36.6% (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: 0.5

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

Citi rates BOQ as Buy (1) -

First half earnings were ahead of Citi's estimates, supported by low bad debts. The dividend has been deferred.

Citi observes loan growth is likely to slow, as there is a lull in new applications, particularly in business banking.

There are other challenges envisaged in the second half as collective provisioning is expected to rise amid greater assumptions around risk migration and property prices.

Buy rating and $6.50 target maintained.

Target price is $6.50 Current Price is $4.98 Difference: $1.52
If BOQ meets the Citi target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $5.59, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in August.

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 BOQ as Neutral (3) -

Bank of Queensland has deferred the first half dividend but Credit Suisse finds the question now centres on whether it is truly deferred, suspended or permanently cancelled. This will depend on further stress testing.

The broker lowers FY21 estimates to include a 70% pay-out ratio. Neutral rating maintained. Target is lowered to $5.50 from $8.00.

Target price is $5.50 Current Price is $4.98 Difference: $0.52
If BOQ meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.59, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in August.

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

Macquarie rates BOQ as Neutral (3) -

Bank of Queensland's result was weak, albeit largely as expected, marking the third half-year decline of pre-provision profits, the broker notes.

Management has signalled another challenging year ahead and the broker sees the dividend deferral as prudent, while warning of dividend downside risk should a worst case scenario play out.

The stock looks cheap at the price, but the broker is wary of the opaque impact of the virus on impairment levels. The balance sheet is nevertheless sound. Neutral retained, target falls to $5.00 from $5.50.

Target price is $5.00 Current Price is $4.98 Difference: $0.02
If BOQ meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.59, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in August.

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

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

Cash profit of $151m in the first half was ahead of Morgan Stanley's estimates because of better revenue and lower loan losses.

However, the interim dividend is deferred and the provisions imply a further -3-9% downgrade to the broker's FY20 estimates.

Equal-weight retained because of elevated uncertainty. Target is reduced to $5.90 from $6.10. Industry view is In-Line.

Target price is $5.90 Current Price is $4.98 Difference: $0.92
If BOQ meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $5.59, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in August.

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 BOQ as Hold (3) -

Bank of Queensland posted a first-half cash earnings outcome of $151m, slightly ahead of Ord Minnett's forecasts. There were few surprises for the broker, although dividends have been re-based following the deferral of the interim dividend.

The stock appears to be fair value yet remains one of Ord Minnett's least-preferred banks, as there are more attractive valuations elsewhere in the sector. Hold maintained. Target is reduced to $5.20 from $5.70.

Target price is $5.20 Current Price is $4.98 Difference: $0.22
If BOQ meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.59, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in August.

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

UBS rates BOQ as Neutral (3) -

First half results were broadly in line with UBS estimates. Net interest income was flat while non-interest income continues to fall, a trend the broker suspects is ingrained.

Bad debt estimates appear optimistic, given the extent of the economic slowdown. Neutral rating and $6 target maintained.

Target price is $6.00 Current Price is $4.98 Difference: $1.02
If BOQ meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.59, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in August.

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 BSL as Outperform (1) -

The trading performance in March quarter was in line with expectations. Expenditure has been revised downwardly and the buyback terminated.

Credit Suisse expects the first half will be characterised by weak volumes and steel spreads before a recovery commences in the second half of FY21.

Target is reduced to $12.80 from $13.10. Outperform maintained.

Target price is $12.80 Current Price is $10.17 Difference: $2.63
If BSL meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $11.85, suggesting upside of 16.5% (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

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

Initiatives over the last decade have positioned the company to navigate difficult markets, in Morgan Stanley's view. Still, temporary shutdowns in New Zealand, India and Malaysia are having an impact.

BlueScope Steel has deferred the expansion at North Star for six months and reduced non-essential expenditure by -$40m in the second half.

Morgan Stanley captures spot spreads and a more bearish outlook in its forecasts. Equal-weight maintained. Target is reduced to $10.50 from $13.00. Industry view: Cautious.

Target price is $10.50 Current Price is $10.17 Difference: $0.33
If BSL meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $11.85, suggesting upside of 16.5% (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 CAJ as Outperform (1) -

Credit Suisse suggests the closure of the Fowler Simmons transaction just ahead of the current crisis puts the focus on the balance sheet at a time when it was showing some sign of turning around.

The broker expects fourth quarter revenues will be down -35%, given the exposure to GP referrals and musculoskeletal work.

Nevertheless, the business does operate in an industry that is growing at around 5-7% per annum and one week customer bills are paid within two days.

Going forward, Credit Suisse suggests this is the type of industry that lending syndicates will support. Outperform rating maintained. Target reduced to $0.26 from $0.34.

Target price is $0.26 Current Price is $0.19 Difference: $0.07
If CAJ meets the Credit Suisse target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates CIA as Outperform (1) -

Macquarie has marked to market for March quarter bulk commodity prices and incorporated provisional pricing adjustments. Recent strong share price moves have eroded value upside.

The broker retains a preference for iron ore miners on significant FY22 earnings upside at current spot prices. Recent declines in alumina and coal prices have increased downside risk for relevant miners.

Outperform and $2.80 target retained for Champion Iron.

Target price is $2.80 Current Price is $1.77 Difference: $1.03
If CIA meets the Macquarie target it will return approximately 58% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

This company reports in CAD. 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

Macquarie rates CMM as Outperform (1) -

Capricorn Metals' Karlawinda gold development is well underway, the broker notes, with the village nearing completion and road construction now progressing.

The project remains well funded and the company reports little virus impact. The broker now awaits an imminent reserve/resource update. Outperform and $1.40 target retained.

Target price is $1.40 Current Price is $1.09 Difference: $0.31
If CMM meets the Macquarie target it will return approximately 28% (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

Morgans rates CWP as Hold (3) -

Morgans considers the business well capitalised and does not expect assets to come under any pressure, with the market value of the development pipeline likely to be above the current holding cost.

Residential sales are expected to be difficult in the short term and conditions in 2021 will be dependent on the extent of the economic recovery and government policy.

Morgans maintains a Hold rating and reduces the target to $5.14 from $7.65.

Target price is $5.14 Current Price is $4.63 Difference: $0.51
If CWP meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Citi rates IDX as Buy (1) -

The pandemic is resulting in lower imaging volumes because of the deferral of elective surgery and the general lock-down. Citi assumes the lower level of activity will continue into the fourth quarter of FY20.

FY21 and FY22 estimates are unchanged as volumes are expected to recover in line with elective surgery and overall medical activity. Buy rating maintained. Target is reduced to $4.85 from $4.90.

Target price is $4.85 Current Price is $2.70 Difference: $2.15
If IDX meets the Citi target it will return approximately 80% (excluding dividends, fees and charges).

Current consensus price target is $4.04, suggesting upside of 49.5% (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

Credit Suisse rates IDX as Outperform (1) -

Credit Suisse expects fourth quarter revenue will be down -25%. The broker also assesses a high fixed cost base but suspects the business will finish the year appropriately below covenants.

If existing volume trends last another 12 months then there could be some issues, but lenders are expected to be highly supportive of a business that is leveraged to a 5-7% industry growth rate.

Outperform rating maintained. Target is reduced to $3.15 from $4.50.

Target price is $3.15 Current Price is $2.70 Difference: $0.45
If IDX meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.04, suggesting upside of 49.5% (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

Macquarie rates ILU as No Rating (-1) -

Macquarie has marked to market for March quarter bulk commodity prices and incorporated provisional pricing adjustments. Recent strong share price moves have eroded value upside.

The broker retains a preference for iron ore miners on significant FY22 earnings upside at current spot prices. Recent declines in alumina and coal prices have increased downside risk for relevant miners.

Macquarie is restricted on providing a rating and target for Iluka Resources at present.

Current Price is $7.24. Target price not assessed.

Current consensus price target is $9.98, suggesting upside of 37.8% (ex-dividends)

The company's fiscal year ends in December.

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 JBH as Upgrade to Buy from Neutral (1) -

UBS expects the current crisis to have a significant drag on the housing sector, characterised by falling house prices, a slowdown in completions and a drop in turnover.

This is likely to be a headwind to household goods sales in FY21. Nevertheless, retailers such as JB Hi-Fi are envisaged having significant capacity to withstand the downturn.

UBS upgrades to Buy from Neutral and believes the market is not factoring in the potential for market consolidation once the pandemic is over. Target is reduced to $39.70 from $43.00.

Target price is $39.70 Current Price is $33.30 Difference: $6.4
If JBH meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $34.48, suggesting upside of 3.5% (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

Macquarie rates MGX as Outperform (1) -

Macquarie has marked to market for March quarter bulk commodity prices and incorporated provisional pricing adjustments. Recent strong share price moves have eroded value upside.

The broker retains a preference for iron ore miners on significant FY22 earnings upside at current spot prices. Recent declines in alumina and coal prices have increased downside risk for relevant miners.

Outperform and $1.00 target retained for Mt Gibson Iron.

Target price is $1.00 Current Price is $0.69 Difference: $0.31
If MGX meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates MIN as Outperform (1) -

Macquarie has marked to market for March quarter bulk commodity prices and incorporated provisional pricing adjustments. Recent strong share price moves have eroded value upside.

The broker retains a preference for iron ore miners on significant FY22 earnings upside at current spot prices. Recent declines in alumina and coal prices have increased downside risk for relevant miners.

Outperform and $20.50 target retained for Mineral Resources.

Target price is $20.50 Current Price is $15.07 Difference: $5.43
If MIN meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $17.83, suggesting upside of 18.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Credit Suisse rates MMS as Neutral (3) -

While the current crisis will likely drive further declines in new car sales and negatively affect novated leasing income, Credit Suisse believes the business will be well leveraged to the upside when conditions normalise.

However, while debt is fully backed by fleet assets and gearing is within covenants, additional complexity on the balance sheet could increase the need to conserve cash, in the broker's view.

The broker reduces FY20 estimates for earnings per share by -22% and FY21 by -32%. Neutral maintained. Target is reduced to $8.30 from $12.80.

Target price is $8.30 Current Price is $7.32 Difference: $0.98
If MMS meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $10.39, suggesting upside of 42.0% (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 MMS as Neutral (3) -

Novated leases continue to see declining inquiry levels for McMillan Shakespeare despite health, public and emergency service customers, the broker notes. Salary packaging activity remains unchanged. But the upfront and end of lease revenue stream is materially impacting on FY20 earnings.

Credit and asset risk heightened which presents working capital challenges, the broker warns, with reduced used car transactions. Despite a big fall in share price the broker remains cautious. Earnings forecasts slashed, target falls to $7.47 from $12.60. Neutral retained.

Target price is $7.47 Current Price is $7.32 Difference: $0.15
If MMS meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $10.39, suggesting upside of 42.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

McMillan Shakespeare's novated inquiries continue to decline, while salary packaging is unchanged amid potential for an increase from the government health workforce.

Morgan Stanley assesses over-the-life revenues provide some stability. Target is $14. In-Line sector view. Equal-weight.

Target price is $14.00 Current Price is $7.32 Difference: $6.68
If MMS meets the Morgan Stanley target it will return approximately 91% (excluding dividends, fees and charges).

Current consensus price target is $10.39, suggesting upside of 42.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates MP1 as Hold (3) -

The company has announced a $65m capital raising which will increase cash on hand to $174m. Ord Minnett assesses this is rather opportunistic, although there has been a strong increase in demand for Megaport's services because of the pandemic.

Funds will be used to accelerate sales & marketing, product development and network upgrades. Hold rating maintained. Target is reduced to $10.90 from $11.10.

Target price is $10.90 Current Price is $10.46 Difference: $0.44
If MP1 meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $11.91, suggesting upside of 13.9% (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

Morgans rates MTO as Hold (3) -

While the company is yet to experience a significant impact from the coronavirus crisis, Morgans can't help but believe it is only a matter of time, as is the case with most consumer-facing businesses.

Forecasts are reduced further. The broker believes the stock offers compelling value at current levels, which reflects the discretionary nature of the product, FX headwinds for Cassons and a tight balance sheet.

Hold rating maintained. Target is reduced to $1.24 from $1.83.

Target price is $1.24 Current Price is $0.67 Difference: $0.57
If MTO meets the Morgans target it will return approximately 85% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates MX1 as Add (1) -

Micro-X has received orders totalling $3.6m, including the first major orders for Australia, and flagged higher inventory to handle this. While Morgans finds the outlook positive it is difficult to forecast.

The company has benefited from a major shift in the global market for mobile x-ray in response to the coronavirus pandemic.

The company's military version "Rover" is scheduled to commence formal safety testing next week.

Speculative Buy (Add) maintained. Target is reduced to $0.37 from $0.41.

Target price is $0.37 Current Price is $0.17 Difference: $0.2
If MX1 meets the Morgans target it will return approximately 118% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

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

Given underperformance in the March quarter, Navigator Global Investments is unable to accurately predict how this might impact assets under management flows and revenues and as such has withdrawn FY20 guidance.

Until the level of outflows is clear, the outlook for the fund manager is uncertain, Macquarie warns. Downgrade to Neutral from Outperform. Target falls to $1.72 from $3.36.

Target price is $1.72 Current Price is $1.30 Difference: $0.42
If NGI meets the Macquarie target it will return approximately 32% (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: 0.0

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

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

The quarterly performance was below Ord Minnett's expectations. Multi-strategy funds were the main source of disappointment, down -18% in the March quarter.

Navigator Global has withdrawn FY20 operating earnings (EBITDA) guidance.

Ord Minnett downgrades to Hold from Buy and lowers the target to $1.70 from $3.90. The broker prefers to sit on the sidelines to observe how Lighthouse Partners weathers the current crisis.

Target price is $1.70 Current Price is $1.30 Difference: $0.4
If NGI meets the Ord Minnett target it will return approximately 31% (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: 0.0

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

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

Macquarie has marked to market for March quarter bulk commodity prices and incorporated provisional pricing adjustments. Recent strong share price moves have eroded value upside.

The broker retains a preference for iron ore miners on significant FY22 earnings upside at current spot prices. Recent declines in alumina and coal prices have increased downside risk for relevant miners.

New Hope Corp downgraded to Neutral from Outperform, target unchanged at $1.50.

Target price is $1.50 Current Price is $1.47 Difference: $0.03
If NHC meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.75, suggesting upside of 19.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

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

Morgans does not find the capital raising surprising, given the pressure on some of the company's debt, where a key interest covenant would be tested by the end of the year.

This should now be a significant liquidity buffer for the next couple of years, even if oil prices are depressed. However, what this does not do is supply the company with adequate capital resources to support the development of its growth projects in Alaska and PNG.

Nevertheless, given the improvement in the risk profile and the extent of recent weakness in the share price, the broker upgrades to Add from Hold. Target is raised to $3.53 from $3.16.

Target price is $3.53 Current Price is $2.73 Difference: $0.8
If OSH meets the Morgans target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $3.08, suggesting upside of 12.7% (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: 0.3

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

UBS rates OSH as Buy (1) -

Oil Search has announced a US$700m capital raising at $2.10 a share as well as a nine-month extension to its US$300m facility. Production and capital guidance have been maintained.

UBS estimates now reflect the extra shares on issue and an oil price forecast of US$35/bbl in 2020. Easing of concerns over the balance sheet should enable a market to focus on internal options, the broker suggests.

Buy rating maintained. Target is raised to $3.10 from $2.70.

Target price is $3.10 Current Price is $2.73 Difference: $0.37
If OSH meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.08, suggesting upside of 12.7% (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: 0.3

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

Morgan Stanley rates PDL as Overweight (1) -

Pendal Group offers compelling value, in Morgan Stanley's view. The broker believes the risk of near-term outflows is priced in and the market is overlooking the clean balance sheet and FX tailwinds as well as the longer-term growth options.

The broker expects net outflows of -$1.6bn in the March quarter and notes the largest outflows globally have been in high yield and emerging market debt, where the company does not participate.

Overweight rating. Target is reduced to $6.30 from $9.00. Industry view: In-Line.

Target price is $6.30 Current Price is $4.93 Difference: $1.37
If PDL meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $5.97, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in September.

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 SCP as Sell (5) -

The company has announced a $250m institutional placement and a unit purchase plan of up to $50m. The price of $2.16 represents a -8.5% discount to the last close.

Management has strengthened the balance sheet and also indicated that the pandemic could provide a unique opportunity to secure quality assets at competitive prices over the next 6-12 months.

Citi suggests the company's enhanced ability to execute quickly could be appealing to vendors. Given the valuation and a challenging retail outlook, a Sell rating is maintained. Target is reduced to $2.07 from $2.27.

Target price is $2.07 Current Price is $2.24 Difference: minus $0.17 (current price is over target).
If SCP meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.39, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

Credit Suisse suggests SmartGroup is the type of stock where equity market dislocation provides an opportunity.

There is a material revenue stream that is very defensive - salary packaging - and the business is light on capital requirements.

The broker assesses the valuation is compelling on a 12-month view and upgrades to Outperform from Neutral. Target is reduced to $5.90 from $7.25.

Target price is $5.90 Current Price is $4.90 Difference: $1
If SIQ meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.90, suggesting upside of 40.7% (ex-dividends)

The company's fiscal year ends in December.

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 SKO as Initiation of coverage with Outperform (1) -

Credit Suisse initiates coverage of Serko with an Outperform rating and NZ$4.45 target. The company provides corporate travel booking software and has a dominant position in Australasia.

Third-party distribution provides a powerful platform to pursue offshore markets, the broker notes. Significant upside is envisaged if the company is successful offshore.

Current Price is $2.31. Target price not assessed.

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

Citi rates SUN as Neutral (3) -

Citi lowers estimates for earnings per share in FY20 by -31% and FY21 and FY22 by -4%. The broker suspects the underperformance in the near term may continue.

The credit portfolio appears a lot safer than it was in the GFC but the 12% of loans to small-medium enterprises appear most vulnerable to a prolonged economic downturn.

Bad debt forecasts increase and Citi reduces loan growth assumptions, trimming net interest margin expectations.

Neutral rating maintained. Target is reduced to $9.50 from $13.40.

Target price is $9.50 Current Price is $9.06 Difference: $0.44
If SUN meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.97, suggesting upside of 21.1% (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 SVW as Hold (3) -

Seven Group has withdrawn FY20 guidance. Key operating segment, WesTrac, has performed strongly, although this is offset by weaker guidance for Coates Hire's events revenue.

Ord Minnett is encouraged by the performance of WesTrac and believes the impact of the pandemic and falling commodity prices could be supportive for the maintenance revenue as customers shift their focus to capital and production management.

However, given the operating leverage in Coates, softer revenue growth is likely to have an outsized impact on earnings.

The broker maintains a Hold rating and reduces the target to $13.50 from $23.00.

Target price is $13.50 Current Price is $14.04 Difference: minus $0.54 (current price is over target).
If SVW 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 $18.53, suggesting upside of 31.9% (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 SVW as Buy (1) -

Seven Group has withdrawn FY20 earnings guidance because of uncertainty over the current crisis. The trading update was broadly in line with UBS estimates, with WesTrac revenues in the year to date up 15%.

While WesTrac has sustained limited impact from the pandemic so far, event revenues for Coates have been curtailed. Still, UBS estimates that events represent less than 5% of Coates' sales.

Buy rating maintained. Target is raised to $14.35 from $14.19.

Target price is $14.35 Current Price is $14.04 Difference: $0.31
If SVW meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $18.53, suggesting upside of 31.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

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

Qantas ((QAN)) is seeking rent forgiveness from February 1 2020 until a date to be determined and an aeronautical charge payment deferral to April 10, 2020.

With the unprecedented reduction in air travel, Morgan Stanley envisages incremental pressure on Sydney Airport's liquidity and debt covenants and anticipates incremental balance sheet measures.

Equal-weight. Target is $7.47. Industry view is Cautious.

Target price is $7.47 Current Price is $5.70 Difference: $1.77
If SYD meets the Morgan Stanley target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $6.70, suggesting upside of 17.5% (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 TWE as Neutral (3) -

Treasury Wine is considering a de-merger of Penfolds. While Penfolds could be appealing as a separate entity it needs to prove up the French and US sourced product, in Citi's view.

Moreover, the operating costs appear too lean to the broker and marketing costs may need to rise to support its premium price position.

Citi retains a Neutral rating and reduces the target to $11.05 from $12.30.

Target price is $11.05 Current Price is $10.61 Difference: $0.44
If TWE meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $11.81, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Credit Suisse rates TWE as Neutral (3) -

Treasury Wine intends to de-merge Penfolds and create two listed entities. Credit Suisse does not believe this will create value for shareholders.

Penfolds has priority access to manufacturing and viticultural resources, which means that a de-merger would benefit the residual business, likely at the expense of Penfolds.

The de-merger is also likely to add costs and capital expenditure. The broker asserts that the business should stay the course instead, given a strong balance sheet.

Neutral maintained. Target is raised to $10.85 from $10.20.

Target price is $10.85 Current Price is $10.61 Difference: $0.24
If TWE meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $11.81, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates TWE as Downgrade to Underperform from Neutral (5) -

Treasury Wine Estates has warned of difficult trading conditions in the US and China and proposed the spin-off its jewel in the crown, Penfolds.

Macquarie notes diversified alcohol brands tend to trade at a premium to individual brands. Penfolds has strong appeal but value in the rump of Treasury Wines would be diminished, the broker suggests.

A spin-off would result in negative cost synergies and a likely rise in the cost of debt. Macquarie downgrades to Underperform from Neutral, with risks to the downside. Target falls to $9.50 from $9.90.

Target price is $9.50 Current Price is $10.61 Difference: minus $1.11 (current price is over target).
If TWE meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.81, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

The company is considering the de-merger of Penfolds by the end of 2021. The decision remains subject to a cost/benefit evaluation and regulatory approvals.

Treasury Wine has also announced initiatives to reduce the size and scale of its commercial business, particularly in the US.

Meanwhile, shipments have been significantly affected by the shutdown in China and consumption remains at subdued levels.

Equal-weight rating and Cautious industry view maintained. Target is $15.

Target price is $15.00 Current Price is $10.61 Difference: $4.39
If TWE meets the Morgan Stanley target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $11.81, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates TWE as Hold (3) -

Morgans believes a de-merger of Penfolds would release material value for shareholders over the medium to longer term although in the short term there is significant earnings uncertainty.

The broker revises forecasts further to reflect the oversupplied US wine market and because the coronavirus crisis is affecting Masstige and Luxury wine sales, particularly in the high-margin Asian business.

Still, plenty of liquidity is assessed to be available, although gearing may exceed targets in the short term. Hold rating maintained. Target is reduced to $10.50 from $11.80.

Target price is $10.50 Current Price is $10.61 Difference: minus $0.11 (current price is over target).
If TWE meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.81, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates TWE as Hold (3) -

Treasury Wine is experiencing weak volumes in China and Ord Minnett reduces forecasts by -14% for FY20 and -12% for FY21, also incorporating a reduction in the luxury segment in the Americas.

The company is considering a spin-off of Penfolds. Regardless of how its plans for the Penfolds unit eventuate, the company will also reduce the size of its commercial portfolio, particularly in the US.

Ord Minnett expects aggregate demand will remain weak because of reduced socialisation and exacerbate the challenges in the already-oversupplied US wine industry. Target is reduced to $11 from $13. Hold maintained.

Target price is $11.00 Current Price is $10.61 Difference: $0.39
If TWE meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $11.81, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates TWE as Buy (1) -

UBS considers the company's decision to explore a de-merger of Penfolds is positive but was surprised by the timing, given the challenges during the current crisis.

Nevertheless, a de-merger is expected to be value accretive, assuming no adverse impact to maintaining points of distribution and customer demand.

No formal guidance was provided and estimates are unchanged, with UBS retaining a Buy rating and $14.80 target.

Target price is $14.80 Current Price is $10.61 Difference: $4.19
If TWE meets the UBS target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $11.81, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates WHC as Downgrade to Neutral (3) -

Macquarie has marked to market for March quarter bulk commodity prices and incorporated provisional pricing adjustments. Recent strong share price moves have eroded value upside.

The broker retains a preference for iron ore miners on significant FY22 earnings upside at current spot prices. Recent declines in alumina and coal prices have increased downside risk for relevant miners.

Whitehaven Coal downgraded to Neutral from Outperform, target rises to $2.10 from $1.90.

Target price is $2.10 Current Price is $2.00 Difference: $0.1
If WHC meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.80, suggesting upside of 40.1% (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

Morgans rates Z1P as Add (1) -

Morgans assesses growth in most metrics is robust, despite a more difficult operating environment.

The broker takes a more conservative view on sales and bad debt assumptions, downgrading FY21 and FY22 estimates by -5% and -35% respectively.

Still, Morgans considers the sell-off in the stock has been overdone and maintains an Add rating. Target is reduced to $2.57 from $3.23.

Target price is $2.57 Current Price is $2.24 Difference: $0.33
If Z1P meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.06, suggesting upside of 36.5% (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 Z1P as Buy (1) -

The third quarter trading was solid, UBS assesses. Transaction volumes grew 89%. The company has announced a range of cost initiatives and tightened its risk profile in response to the crisis, delaying the UK launch.

UBS lowers FY20 sales forecasts by -5% as a result. While Zip Co has drawn down the bulk of its facilities, UBS believes it could receive further funding if arrears remain in check.

Buy rating maintained. Target is reduced to $3.30 from $3.90.

Target price is $3.30 Current Price is $2.24 Difference: $1.06
If Z1P meets the UBS target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $3.06, suggesting upside of 36.5% (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