Australian Broker Call

Citi rates AGL as Buy (1) -

Under pressure from the Federal Government, AGL has announced an extension of its customer loyalty program, which could see some customers receive an automatic discount of up to -10%. Citi analysts point out the incremental number of benefiting customers from the announcement is likely quite small.

All in all, Citi analysts believe the bottom line impact will be minor, and definitely smaller than investors would have feared. Citi had upgraded its rating to Buy on Friday. That rating is hereby reiterated. Target price $20.27.

Target price is $20.27 Current Price is $18.40 Difference: $1.87
If AGL meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $20.63, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Morgan Stanley rates AGL as Underweight (5) -

The analysts note AGL has announced discounts of -5-10% for customers on standing offers for a year or more. The new price structure reduces overall price transparency and, of course, has been triggered by pressure from the Federal Government.

No changes made to Underweight rating and $19.44 price target. The analysts estimate the move will have an impact on AGL's prospective FY19 EPS of less than -1%. They observe management has not changed guidance. Industry view is Cautious.

Target price is $19.44 Current Price is $18.40 Difference: $1.04
If AGL meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $20.63, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Credit Suisse rates AQG as Outperform (1) -

Following a site visit to the company's Copler project Credit Suisse notes the project was delivered -11% under budget and on schedule. The conservative ramp-up guidance appears readily achievable and likely to be exceeded the broker believes.

Cakmaktepe is now fully permitted and mining has commenced. Further upside catalysts include sulphide ramp-up performance with transition from cash consumption to strong free cash generation. The broker does not include value for Ardic but notes potential for this discovery to materially add to resources, reserves, production and value.

Outperform and $5.30 target retained.

Target price is $5.30 Current Price is $2.30 Difference: $3
If AQG meets the Credit Suisse target it will return approximately 130% (excluding dividends, fees and charges).

Current consensus price target is $3.96, suggesting upside of 72.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Credit Suisse rates BKL as Neutral (3) -

Credit Suisse notes Blackmores is making progress in China, as the business is growing sales, with the company's main challenge being brand awareness. The China regulatory system now seems more benign than originally thought and the broker expects minimal changes to Blackmores' main channel in China.

While the broker assumes healthy growth in the region, it notes investors should be cautious about group level margin expansion. The broker believes the company would be best to re-invest margin rather than over-deliver on profit and dividends. 

The Neutral rating and $115 target price are unchanged, but the broker emphasises that its earnings growth predictions are much more conservative than consensus over the medium term.

Target price is $115.00 Current Price is $132.22 Difference: minus $17.22 (current price is over target).
If BKL meets the Credit Suisse target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $113.00, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.5

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

Morgans rates CGC as Hold (3) -

Costa Group has signed a conditional agreement to acquire the farming operations of Nangiloc Colignan Farms. CK Life Sciences will acquire NCF for $50m and enter into a 20-year lease of the farm to Costa Group.

Morgans is forecasting the deal to be 3% EPS accretive in FY23. The broker's FY19/20/21 NPAT forecasts have been raised 0.1%, 2.9% and 2.7% respectively, and Morgans continues to see lower upside risk to FY19 guidance.

Hold rating maintained. Target is raised to $7.21 from $7.03.

Target price is $7.21 Current Price is $6.97 Difference: $0.24
If CGC meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.65, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Ord Minnett rates CGC as Hold (3) -

The company has agreed to acquire the farming operations of Nangiloc Colignan Farm, a grower of citrus fruit and grapes located in the Sunraysia district of north-western Victoria, and Ord Minnett analysts are taking this as more evidence Costa Group's growth strategy remains on track.

Estimates have been lifted by 2% for both FY19 and FY20, and by 3% for FY21. Target price falls to $7.05 from $7.43. Hold rating retained.

Target price is $7.05 Current Price is $6.97 Difference: $0.08
If CGC meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.65, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

UBS rates CGC as Buy (1) -

Costa Group has entered into a long term lease arrangement with Victorian citrus and table/wine grape farm Nangiloc Colignan. The broker expects the deal to be immediately accretive and offer significant upside over time through the maturation of the citrus crop, the conversion of wine grape land to citrus and the introduction of Costa's own farming IP.

The broker is yet to account for the acquisition in forecasts but already estimates 17% compound earnings growth over three years from growth opportunities here and in China. Buy and $8.20 target retained.

Target price is $8.20 Current Price is $6.97 Difference: $1.23
If CGC meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $7.65, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

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

Ahead of the company's investor day on 22 November, Credit Suisse upgrades to Outperform from Neutral and raises the target price to $2.05 from $1.90. The broker expects an upbeat presentation on the growth potential, operational gearing and Toxfree integration progress.

The broker has trimmed its FY19 earnings estimate by -2% on a higher D&A forecast and raised FY21 forecast by 13% on higher medium-term revenue growth and the benefit of operational gearing.

Target price is $2.05 Current Price is $1.86 Difference: $0.19
If CWY meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.01, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.7

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

Morgan Stanley rates FLT as Overweight (1) -

Morgan Stanley has conducted additional research which seems to confirm Flight Centre is making significant progress in fending off online competition. This is sufficient for the broker to retain its Overweight rating. Target is $59. Industry view: Cautious.

Target price is $59.00 Current Price is $45.89 Difference: $13.11
If FLT meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $54.47, suggesting upside of 18.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

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

Macquarie found the trading update slightly behind prior guidance, but the good news came through via improving occupancy trends. The analysts believe industry conditions are to remain tough, predominantly because of surplus supply, but they fully acknowledge there appears now mounting evidence of stabilising occupancy.

The latter suggests earnings may have bottomed across the industry. Macquarie upgrades to Outperform from Neutral, seeing further re-rating potential. Price target jumps to $3.15 from $2.08.

Target price is $3.15 Current Price is $2.93 Difference: $0.22
If GEM meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.86, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Morgan Stanley rates GEM as Upgrade to Overweight from Equal-weight (1) -

It increasingly appears occupancy across the sector has bottomed sooner than anticipated. This, argue the analysts at Morgan Stanley, means earnings are picking up quicker. This, again, diminishes the risk of a further leg down.

Morgan Stanley upgrades to Overweight from Equal-weight. Price target jumps to $3.25 from $2.30. Industry view is In-Line. Earnings estimates have been slightly reduced for 2018, but increased for 2019.

Target price is $3.25 Current Price is $2.93 Difference: $0.32
If GEM meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.86, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

UBS rates GEM as Buy (1) -

Supply will remain an issue for G8 in 2019, the broker believes, but the company's self-help initiatives are beginning to gain traction and this should more than offset a challenging operating environment. Updated 2018 earnings guidance is a little short of the broker's prior forecast but G8 has announced a target return on capital employed of 18.5% by 2022 compared to 12% in 2018 on the broker's estimate.

Increasing comfort around longer term earnings leads the broker to switch from a 75/25% price/earnings to discounted cash flow valuation model from a prior 100% price/earnings. This results in a target price increase to $3.20 from $2.55. Buy retained.

Target price is $3.20 Current Price is $2.93 Difference: $0.27
If GEM meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.86, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

UBS rates KGN as Buy (1) -

Kogan's AGM update was incrementally positive, the broker suggests, noting better revenues and margins. Costs are growing faster than revenues but this is as expected.

An acceleration in private label and partner brands in October is encouraging and suggests issues are not structural, the broker believes, but risks remain elevated and Christmas will be the key test. Buy and $5.50 target retained.

Target price is $5.50 Current Price is $2.91 Difference: $2.59
If KGN meets the UBS target it will return approximately 89% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Credit Suisse rates LLC as Outperform (1) -

At the AGM, outgoing chairman David Crawford noted the provision for the underperforming Engineering Construction projects announced last week is "conservative". Credit Suisse was disappointed there was not more detail on the nature of the engineering challenges.

The broker views an exit from Engineering via a sale or de-merger to be the best option as shares are still discounting an additional $2bn cost over-run on engineering projects.

Outperform and $16.20 target retained.

Target price is $16.20 Current Price is $13.27 Difference: $2.93
If LLC meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $15.75, suggesting upside of 18.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Morgan Stanley rates LLC as Overweight (1) -

Morgan Stanley found the AGM update was a net positive with additional disclosure on underperforming Engineering projects, reconfirmation of projected sale proceeds and capacity to complete buyback all cited. But the analysts also acknowledge provisions for new engineering projects could temper re-rate with some investors fearing further losses from that one troubled division.

The analysts remain of the view share price weakness post the Engineering disappointment has been overdone. They note the balance sheet remains intact. The current share price is seen as an attractive entry point, ahead of a re-rating for the share price sometime over the next twelve months.

Overweight rating retained. Industry view is Cautious. Price target remains $17.95.

Target price is $17.95 Current Price is $13.27 Difference: $4.68
If LLC meets the Morgan Stanley target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $15.75, suggesting upside of 18.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Ord Minnett rates LLC as Accumulate (2) -

Ord Minnett has taken the view Lendlease shares might benefit from firm comments provided at the AGM. The broker believes the shares are trading at an attractive level. Accumulate rating retained. Price target $15.

Target price is $15.00 Current Price is $13.27 Difference: $1.73
If LLC meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $15.75, suggesting upside of 18.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Credit Suisse rates LNK as Neutral (3) -

The company provided a trading update at its AGM showing operating trends were mixed. Credit Suisse viewed the update as generally negative for short-term earnings but positive over the longer term.

The key negative takeaways for the broker were lower project activity impacting Fund Administration non-recurring revenues in 1H19, REST contract renegotiation still not finalised and LAS trading conditions remain challenging given Brexit uncertainty.

Credit Suisse has downgraded FY19 earnings by -3% and upgraded FY20 by 1% and FY21 by 5%.

Neutral rating and $8.30 target maintained.

Target price is $8.30 Current Price is $7.21 Difference: $1.09
If LNK meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $8.47, suggesting upside of 17.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Macquarie rates LNK as No Rating (-1) -

The company's AGM update offered some negatives, including Brexit-related impact on LAS, but all-in-all, Macquarie argues the drivers in the domestic business appear to be broadly offsetting the few negatives. No changes have been made, but the analysts do acknowledge their forecast for 5% top line growth for FY19 might now carry a downward risk bias.

Macquarie rated Link Outperform, but is now under research restriction as it is also a shareholder and beneficiary of pending ownership changes at Pexa. This means it currently cannot provide a valuation either.

Current Price is $7.21. Target price not assessed.

Current consensus price target is $8.47, suggesting upside of 17.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Morgans rates LNK as Add (1) -

At its AGM, Link Administration provided outlook commentary which guided to a mild 1H19 performance, with the drivers of this being lower non-recurring revenue in Funds Administration offsetting continuing member growth.

Management also noted Brexit uncertainty has led to delays in on-boarding clients and continues to impact market related income. Morgans has downgraded FY19 EPS forecast by -4% and FY20 forecast by -7%.

Morgans maintains an Add rating and reduces the target to $8.86 from $9.29.

Target price is $8.86 Current Price is $7.21 Difference: $1.65
If LNK meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $8.47, suggesting upside of 17.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

UBS rates LNK as Buy (1) -

At its AGM, Link suggests headwinds being faced in the first half driven by lower project-related activity in funds and slower transactions/revenues for LAS given Brexit uncertainty are temporary, and medium term growth drivers remain intact. Strong member growth in funds admin is persisting and client retention has improved.

LAS' financial performance remains on track and the PEXA stake has been increased to 44%, which the broker suggests offers further value upside. Brexit risks aside, the broker believes Link offers compelling value. Buy and $8.90 target retained.

Target price is $8.90 Current Price is $7.21 Difference: $1.69
If LNK meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $8.47, suggesting upside of 17.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Deutsche Bank rates MQG as Hold (3) -

Macquarie has upgraded guidance for the year and Deutsche Bank points out it's because of one transaction, which is seen as a one-off. The analysts do acknowledge this is part of the business model.

Earnings estimates have been lifted by 3%, while Hold rating and $115 price target have been left untouched.

Target price is $115.00 Current Price is $116.23 Difference: minus $1.23 (current price is over target).
If MQG meets the Deutsche Bank target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $128.17, suggesting upside of 10.3% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Morgan Stanley rates MQG as Overweight (1) -

Morgan Stanley continues to believe Macquarie is in an upgrade cycle amid a favourable operating environment and unrealised gains across several businesses. Friday's upgrade to guidance, following ACCC approval for the sale of Quadrant Energy to Santos ((STO)) is yet another example supporting the thesis.

Despite more challenging conditions for equity market-facing businesses, the analysts continue to hold the view there is limited risk to consensus estimates in the near-term. The broker's forecast is for 14% growth in FY19 versus upgraded guidance for 15% growth.

Overweight rating retained. In-Line sector view; $133 price target. No changes made to forecasts.

Target price is $133.00 Current Price is $116.23 Difference: $16.77
If MQG meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $128.17, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Morgans rates MQG as Add (1) -

The ACCC has approved the sale of Quadrant Energy to Santos ((STO)) and as a result Macquarie Group has revised its FY19 guidance of 10% NPAT growth up to 15% NPAT growth.

Morgans has made minor changes to its EPS forecasts, lifting FY19/20 forecasts by 1-2%.

The broker continues to like the stock given its exposure to long-term growth areas such as infrastructure and renewables, and although the valuation is becoming stretched retains an Add rating. Target price raised to $132.20 from $131.80.

Target price is $132.20 Current Price is $116.23 Difference: $15.97
If MQG meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $128.17, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Ord Minnett rates MQG as Accumulate (2) -

Macquarie has upgraded its guidance for FY19 now the sale of Quadrant Energy to Santos ((STO) has received ACCC approval, and Ord Minnett analysts note they already were positioned for 13% growth instead of the previously guided 10% (Macquarie has now guided for 15% EPS growth).

While pointing out there is potential for consensus forecasts rising on the back of the announcement, Ord Minnett retains an Accumulate rating and $132 price target.

Target price is $132.00 Current Price is $116.23 Difference: $15.77
If MQG meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $128.17, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Deutsche Bank rates MYR as Sell (5) -

Sell rating and $0.36 price target retained as Myer had to fess up to badly leaked sales numbers for its Q1. According to the ASX-enforced update, 1Q19 sales declined -4.8% on a total basis or -4.3% on a LFL basis. Online sales grew 3.6%. On the broker's estimates, online sales represented 7.5% of group sales compared with circa 6.9% in the pcp.

Target price is $0.36 Current Price is $0.41 Difference: minus $0.05 (current price is over target).
If MYR meets the Deutsche Bank target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.38, suggesting downside of -6.9% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.7

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

Ord Minnett rates MYR as Lighten (4) -

Myer's ASX-enforced market update has revealed a Q1 sales decline of -4.8%. The analysts highlight the loss for the quarter was actually lower than in previous years.

Ord Minnett continues to believe operating risks are rising. Lighten rating retained. Target price drops to 40c from 43c.

Target price is $0.40 Current Price is $0.41 Difference: minus $0.01 (current price is over target).
If MYR meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.38, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.7

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

Macquarie rates MYX as Initiation of coverage with Underperform (5) -

Macquarie has initiated coverage with an Underperform rating and $1.05 price target, as fresh forecasts sit below market consensus, making current multiples look elevated.

The analysts do think there are opportunities for growth over the medium-longer term, but near term they believe risks for the generics business appear skewed to the downside.

Target price is $1.05 Current Price is $1.05 Difference: $0
If MYX meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.20, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Macquarie rates OSH as Outperform (1) -

Macquarie has updated (and upgraded) its findings post an Alaskan site tour, where conversations with US industry contacts have reinforced the positive picture for Oil Search.

The analysts also suggest PNG de-risking looks imminent with key partners Exxon and Total reportedly close to finalising a deal on further expansion and development.

Price target increases to $9.60 (up 20c). Estimates have been lifted. Outperform rating retained.

Target price is $9.60 Current Price is $7.46 Difference: $2.14
If OSH meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $9.10, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Ord Minnett rates OSH as Hold (3) -

Oil Search has signed a memorandum of understanding for the development of the Papua LNG Expansion Project and Ord Minnett points out, short term, there is now increased risk of (say) a six-month delay, but the analysts also believe such a delay would not have a material impact on valuation for the project given its long-dated nature.

Hold rating retained, alongside an unchanged $9.10 price target. Ord Minnett also notes the expansion project represents about 27% of its Oil Search valuation.

Target price is $9.10 Current Price is $7.46 Difference: $1.64
If OSH meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $9.10, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Credit Suisse rates WPL as Outperform (1) -

Credit Suisse has revised its Petroleum Resource Rent Tax assumptions for the company's assets and is of the view that it may have overestimated the long-term liability at existing assets. The broker believes Pluto, Wheatstone and NWS are unlikely to ever pay any PRRT over their lives under the broker's base-case valuation assumptions.

The broker now wonders if there will be a re-rate of WPL on the basis that many external valuations have been overestimating PRRT for some time.

Target price is raised to $43.42 from $40.50 and Outperform retained.

Target price is $43.42 Current Price is $32.49 Difference: $10.93
If WPL meets the Credit Suisse target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $37.92, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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