Australian Broker Call

Macquarie rates BHP as Outperform (1) -

Macquarie makes some changes to production forecasts for the US shale assets, but as the changes are largely post FY22 there is only a modest impact on near-term earnings.

US onshore assets remain a key source of negative sentiment for BHP and the broker's forecasts imply a return to cash consumption for the next two years. After factoring recent FX moves, the Australian target price is unchanged at $29. Outperform retained.

Target price is $29.00 Current Price is $24.40 Difference: $4.6
If BHP meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $27.45, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.6

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

Citi rates CAR as Buy (1) -

Carsales has shifted towards differential pricing for private sellers and while the overall impact on Citi's forecasts remains rather small, the analysts see a broader positive emerging in that the market leader is flexing its muscles and this leveraging of the strong market position might just accelerate growth.

Citi has incorporated a boost to revenues by 10%. The analysts note Carsales does not have genuine competition for higher-value cars. Target price jumps to $13.75 from $12.50. Buy rating retained.

Target price is $13.75 Current Price is $12.27 Difference: $1.48
If CAR meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $12.20, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

Macquarie rates CLQ as Outperform (1) -

Macquarie notes the work on the Syerston definitive feasibility study remains on track for completion in the second quarter of FY18. The broker incorporates a full development of the project in its valuation.

It is the broker's view securing offtake for the nickel and cobalt sulphate products and locking in debt financing remain the most significant catalysts in FY18.

Target is $1.10. Outperform retained.

Target price is $1.10 Current Price is $0.72 Difference: $0.38
If CLQ meets the Macquarie target it will return approximately 53% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

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

The company expects net operating profit to be up 10% in FY17. While this is another strong result it is slightly below Morgans forecasts.

The broker has noted a solid performance with growth in services and cloud-based business. The strong share price performance means Morgans downgrades to Hold from Add. Target is reduced to $1.87 from $1.89.

Target price is $1.87 Current Price is $1.87 Difference: $0
If DTL meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Citi rates FBU as Buy (1) -

Citi analysts like a joke, every now and then, labeling the past six months "less than ideal" for Fletcher Building. The company had to issue two profit downgrades during the period due to project failures in the Construction Division plus it announced NZ$220m of below the line impairments last week.

Now the CEO is leaving too. Citi makes the point other operating divisions continue to perform well. Also, the macro picture still shows a supportive New Zealand market and ongoing recovery in EU and US markets.

So its macro versus micro, long term versus immediate uncertainty. Lowered expectations pull down the price target to NZ$9.40, from NZ$10.20 prior. Buy rating retained.

Current Price is $7.05. Target price not assessed.

Current consensus price target is $9.00, suggesting upside of 26.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.7

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

Macquarie rates FBU as Underperform (5) -

Macquarie incorporates the lower guidance for construction in FY17 and also lowers its forecasts for Iplex Australia and Tradelink to reflect slower earnings recovery. Building products estimates from FY19 are also lowered to reflect on expected reduction in risk appetite and presence in construction business.

Macquarie needs to witness a stabilising of earnings momentum in the wash up of the losses in the construction division and clarity on the NZ cycle outlook for FY18 before moving its recommendation.

Underperform retained.Target is reduced to NZ$6.72 from NZ$7.70.

Current Price is $7.05. Target price not assessed.

Current consensus price target is $9.00, suggesting upside of 26.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.7

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

Citi rates IAG as Sell (5) -

Commercial lines pricing in Australia is seemingly on the turn, comment Citi analysts. While they are yet to be convinced this will prove a sustained phenomenon, they must have picked up that some clients are seeking exposure to the theme.

Hence why the question is being asked: which one is best, Suncorp or Insurance Australia Group? In isolation, neither looks like good value, conclude the analysts.

But if one must seek exposure, Suncorp is slightly preferred, assisted by a relatively cheaper valuation. Sell rating retained with Citi analysts acknowledging IAG's risk profile has reduced through the quota share deal with Berkshire, but the valuation is seen as too expensive. Target $6.30.

Target price is $6.30 Current Price is $6.60 Difference: minus $0.3 (current price is over target).
If IAG 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 $6.55, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Ord Minnett rates IAG as Hold (3) -

Ord Minnett considers the business a high-quality insurer, with less downside risk to insurance margins versus SunCorp ((SUN)) and potential upside from cost savings.

Nevertheless, on a valuation basis, the stock looks very full. The broker maintains a Hold rating. Target is reduced to $6.80 from $6.90.

Target price is $6.80 Current Price is $6.60 Difference: $0.2
If IAG meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.55, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Citi rates ILU as Neutral (3) -

Iluka's June quarter achievements beat expectations at Citi. It has pushed up the broker's price target to $9.50. The outlook is a mixture of lower rutile prices (anticipated) and a strong Aussie dollar being offset by a higher Net Present Value (NPV) and Citi's modeling rolling forward.

Also, the analysts observe net debt has now fallen to $305m, driven by strong operating cash flow and $20m benefit of a strengthening AUD. The analysts expect further debt reduction ahead. Neutral.

Target price is $9.50 Current Price is $9.14 Difference: $0.36
If ILU meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $8.99, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Credit Suisse rates ILU as Outperform (1) -

June quarter production was solid and Credit Suisse believes mineral sands markets are well and truly in an upward cycle.

The broker expects the momentum to carry through in the second half and finds no negative catalysts with respect to sales volume or pricing that could change its current view.

Outperform. Target is raised to $9.90 from $9.40.

Target price is $9.90 Current Price is $9.14 Difference: $0.76
If ILU meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $8.99, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Deutsche Bank rates ILU as Sell (5) -

June quarter sales and revenue were ahead of Deutsche Bank's expectations. Despite the better quarter and commodity price momentum, the broker still believes the stock is expensive, with heavy investment requirements.

Sell rating retained. Target rises to $6.80 from $5.40.

Target price is $6.80 Current Price is $9.14 Difference: minus $2.34 (current price is over target).
If ILU meets the Deutsche Bank target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.99, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Macquarie rates ILU as Underperform (5) -

The June quarter result was better than Macquarie expected. Shipment volumes beat forecasts by 6% which translated through to revenue and realised pricing was broadly in line with estimates.

Nevertheless, the stock appears expensive versus its peer group in Macquarie's view and an Underperform rating is retained. Target is raised to $6.80 from $6.70.

Target price is $6.80 Current Price is $9.14 Difference: minus $2.34 (current price is over target).
If ILU meets the Macquarie target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.99, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Morgan Stanley rates ILU as Overweight (1) -

Production was strong in the June quarter and Morgan Stanley observes, importantly, Sierra Rutile guidance has been maintained for the year, which reduces the anxiety around the reliability of operations.

The company has flagged a 9-11% price increase for uncontracted rutile sales from July 1 2017.

Overweight rating and Attractive industry view retained. Target is $9.35.

Target price is $9.35 Current Price is $9.14 Difference: $0.21
If ILU meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $8.99, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Ord Minnett rates ILU as Accumulate (2) -

June quarter production was strong and net debt was lower than Ord Minnett expected in the quarter. Moreover, commentary around markets was positive, with the company outlining price increases for both zircon and rutile. Accumulate retained. Target is $10.

Target price is $10.00 Current Price is $9.14 Difference: $0.86
If ILU meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $8.99, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

UBS rates ILU as Buy (1) -

Iluka's June Q production of zircon and rutile came in 21% ahead of the broker's forecast. Sales also beat and subsequent cash flow, along with a stronger A$, helped reduce USD debt.

Better revenues are being driven by both stronger production and stronger prices, the broker notes. Iluka continues to manage its production levels to reflect demand. The broker does not believe the market is fully accounting for price rise potential and retains Buy with a $10.60 target.

Target price is $10.60 Current Price is $9.14 Difference: $1.46
If ILU meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $8.99, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Morgans rates IPD as Add (1) -

June quarter sales were below Morgans expectations. Management suggested that sales would be lumpy until private payers are secured and SOZO is rolled out more broadly.

Morgans downwardly revises FY18 and FY19 forecasts. Add rating retained. Target is reduced to $1.75 from $1.82.

Target price is $1.75 Current Price is $0.70 Difference: $1.05
If IPD meets the Morgans target it will return approximately 150% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Deutsche Bank rates ISD as Upgrade to Buy from Hold (1) -

Deutsche Bank finds the investment qualities that were in evidence when the company listed in 2014 remain evident, although  the last 18 months have witnessed the emergence of competitive and execution issues.

This has led to a material de-rating of the stock but it remains the leading media monitoring business in Australia and dominates market share.

The broker envisages near-term earnings momentum and news flow is supportive and upgrades to Buy from Hold. Target is raised to $2.55 from $2.10.

Target price is $2.55 Current Price is $2.13 Difference: $0.42
If ISD meets the Deutsche Bank target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $2.18, suggesting downside of -3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.7

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

Macquarie rates MGX as Outperform (1) -

June quarter production was weak, with shipments and revenue both well below Macquarie's estimates. Revenue of $28m was -25% below the broker's estimates.

Incorporating the weaker production drives an -18% reduction to the broker's FY17 earnings forecasts. The broker notes the stock continues to trade below its cash backing. Outperform and $0.46 target retained.

Target price is $0.46 Current Price is $0.40 Difference: $0.06
If MGX meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $0.41, suggesting upside of 0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

UBS rates MGX as Neutral (3) -

Mt Gibson is transitioning from drawing on lower grade stockpiles to higher grade Iron Hill ore but the transition has affected lower sales in the June Q, with shipment delays also impacting. Low grade price discounting is continuing to have a significant impact, the broker notes.

Iron Hill and Koolan Island should improve price realisation but meanwhile Mt Gibson continues to sit on a pile of cash with no indication of any return to shareholders. The broker retains Neutral and a 37c target.

Target price is $0.37 Current Price is $0.40 Difference: minus $0.03 (current price is over target).
If MGX meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.41, suggesting upside of 0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Citi rates NCM as Neutral (3) -

Citi saw a soft June quarter performance, which was expected. The analysts anticipate the September quarter will be better. Estimates have received a haircut on the back of lower production at Cadia.

Another contributor to lowered estimates is Telfer, where head grades are falling. Target price tumbles to $22.50 from $24. Neutral rating retained.

Target price is $22.50 Current Price is $19.76 Difference: $2.74
If NCM meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $19.71, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.4

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

Credit Suisse rates NCM as Underperform (5) -

June quarter production came in on expectations. Credit Suisse notes the expansion decision on Cadia to 35mtpa has been confirmed and FY18 guidance at the results should add clarity post the seismic event.

Underperform and $18.20 target retained.

Target price is $18.20 Current Price is $19.76 Difference: minus $1.56 (current price is over target).
If NCM meets the Credit Suisse target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.71, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.4

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

Deutsche Bank rates NCM as Upgrade to Hold from Sell (3) -

June quarter production was ahead of Deutsche Bank's estimates because of a strong performance at Lihir. Cadia output was as expected.

Deutsche Bank notes the stock has de-rated because of recent operating issues and gold price sentiment but still generates solid free cash flow.

The broker considers the valuation undemanding relative to global peers and upgrades to Hold from Sell. Target is raised to $19 from $18.

Target price is $19.00 Current Price is $19.76 Difference: minus $0.76 (current price is over target).
If NCM meets the Deutsche Bank target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.71, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.4

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

Macquarie rates NCM as Neutral (3) -

June quarter production was strong, at 552,000 ounces and beat Macquarie's estimates. Costs also beat estimates. The broker continues to be impressed with the performance at Lihir and notes the panel cave 2 at Cadia is now back in production.

Neutral rating and $22 target retained.

Target price is $22.00 Current Price is $19.76 Difference: $2.24
If NCM meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $19.71, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.4

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

Morgans rates NCM as Hold (3) -

June quarter production results were reasonable, Morgans suggests.

The company has maintained guidance for forecasts and remains confident on the recovery progress at Cadia. Morgans still expects FY18 margins will be affected, as work on recovering production continues.

The broker retains a Hold rating. Target is raised to $21.75 from $21.48.

Target price is $21.75 Current Price is $19.76 Difference: $1.99
If NCM meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $19.71, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.4

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

Ord Minnett rates NCM as Upgrade to Hold from Lighten (3) -

June quarter production was a solid result and Ord Minnett observes the share price has fallen -10% over the past month, leading to its recommendation being raised to Hold from Lighten. Target is raised to $20.50 from $19.00.

Regardless, the broker maintains a preference for bulk and base metal stocks versus precious metals exposure, as there are more attractive cash flow yields and valuations in the former.

Target price is $20.50 Current Price is $19.76 Difference: $0.74
If NCM meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $19.71, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.4

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

UBS rates NCM as Sell (5) -

Newcrest's Cadia mine is on track to return to full production later this year following the seismic event. Cadia accounts for a third of all Newcrest production but two thirds of the broker's valuation. The broker is cautious over the speed of the ramp-back-up and the pace of mine expansion planned for FY19 given both are priced in.

Meanwhile, a better than expected production result from Lihir helped offset the Cadia reduction in the June Q. Lihir looks set to achieve guidance and overall, costs are lower than the broker's forecast if Cadia ramp-up costs are extracted.

Overvaluation underpins the broker's Sell rating. Target unchanged at $13.00.

Target price is $13.00 Current Price is $19.76 Difference: minus $6.76 (current price is over target).
If NCM meets the UBS target it will return approximately minus 34% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.71, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.4

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

Credit Suisse rates ORG as Neutral (3) -

Using updated oil prices, Credit Suisse estimates that even after the sale of Lattice, the company will remain highly leveraged.

While the company is unlikely to be under serious ratings pressure, at the very least the broker believes it leaves equity holders bearing excessive risk and remains constrained from pursuing opportunities.

The broker reduces Brent forecasts to US$52.50/bbl for the second half and US$53/bbl for 2018. The broker drops its long run estimate to US$60/bbl from US$65/bbl.

Target price drops to $7.20 from $7.70. Neutral rating retained.

Target price is $7.20 Current Price is $6.87 Difference: $0.33
If ORG meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $7.48, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Credit Suisse rates OSH as Outperform (1) -

On the back of oil price changes Credit Suisse downgrades 2017 forecasts for earnings per share by -24%, in 2018 by -37%.

The broker reduces Brent forecasts to US$52.50/bbl for the second half and US$53/bbl for 2018. The broker drops its long run estimate to US$60/bbl from US$65/bbl.

The broker ultimately believes Oil Search is a target, logically for Total. Outperform rating is retained. Target is reduced to $6.80 from $7.25.

Target price is $6.80 Current Price is $6.51 Difference: $0.29
If OSH meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.44, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Credit Suisse rates QBE as Underperform (5) -

Credit Suisse observes the US corn and soybean crop conditions continue to weaken as hot and dry weather continues. While a lot can change in the coming months, the broker observes the current corn crop rating is worse than it was at this point in time in 2013.

The broker notes US crop is excluded from the company's large risk and catastrophe cover. Hence, earnings volatility flows directly through to earnings.

While this does not change the broker's valuation, crop is considered a potential earnings risk in FY17 and, therefore, a dividend risk. Underperform rating. Target is $12.

Target price is $12.00 Current Price is $11.85 Difference: $0.15
If QBE meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $12.75, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Morgans rates RBL as Add (1) -

The company reports it has reached full year guidance for FY17, but continues to battle currency headwinds and discounting by Amazon.

As the Australian dollar has continue to strengthen, Morgans downgrades forecasts to reflect lower average order values in Australian dollar terms. The broker observes the business continues to grow at rates that far exceed those of its competitors and displays positive operating leverage despite the tough environment.

Add rating retained. Target is reduced to $1.21 from $1.29.

Target price is $1.21 Current Price is $0.89 Difference: $0.32
If RBL meets the Morgans target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Morgans rates RHP as Add (1) -

The trading update signals FY17 guidance has been achieved. Morgans suspects the challenges of the first half have been largely overcome as revenue has accelerated and there is no great pressure on gross profit margins.

The broker continues to believe the stock offers a healthy risk/reward proposition, given its relatively low valuation and high growth outlook.

Add rating retained. Target is raised to $0.82 from $0.63.

Target price is $0.82 Current Price is $0.66 Difference: $0.16
If RHP meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Macquarie rates SDA as Outperform (1) -

The company has acquired UltiSat for a maximum consideration of US$100m. This is a satellite provider to the military, government and  NGO sectors with coverage of 130 countries. The company has also advised that the integration of Harris CapRock is running ahead of schedule.

Macquarie believes the underlying demand for remote communications and bandwidth will continue to grow strongly in the medium term. Along with further industry consolidation, this underpins the broker's confidence in the stock.

Outperform retained. Target is $4.83.

Target price is $4.83 Current Price is $3.72 Difference: $1.11
If SDA meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

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

The company will acquire UltiSat, a provider of satellite services to the military, government and NGOs. Consideration payable over three years and assuming earn-outs is up to US$100m.

Morgans believes the acquisition makes sense as it is accretive to both earnings and valuation. Nevertheless, the broker applies a discount to valuation to reflect a view that management needs to deliver on prior acquisitions to de-gear and prove these have created equity value.

Rating is downgraded to Hold from Add. Target is reduced to $3.87 from $4.72.

Target price is $3.87 Current Price is $3.72 Difference: $0.15
If SDA meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

UBS rates SDA as Buy (1) -

Speedcast will acquire Ultisat, a US satellite provider of services to government, at what the broker considers an attractive multiple with strong earnings accretion on offer.

The broker does nevertheless worry about how many acquisitions the company is trying to incorporate (8 since 2015) and about the growing debt position.

UBS retains Buy and a $4.30 target, suggesting a re-rate depends on M&A execution and a return to organic growth.

Target price is $4.30 Current Price is $3.72 Difference: $0.58
If SDA meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Macquarie rates SEH as Outperform (1) -

The company has signed two gas sales agreements for production from Linxing and Sanjiaobei. The pricing is below Macquarie's expectations but the fact the company has fixed it over the next year provides some certainty.

The broker acknowledges the deal delivers on promises made by management to execute these agreements with domestic users.

Macquarie remains positive on the company's ability to deliver on its 18-23mmscf/d guidance over 2017. Outperform rating and $0.20 target retained.

Target price is $0.20 Current Price is $0.09 Difference: $0.113
If SEH meets the Macquarie target it will return approximately 130% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Credit Suisse rates STO as Outperform (1) -

Credit Suisse lowers its cost inflation outlook but remains keen to get more clarity on the details of cost reductions at the first half results in August 24.

Drilling efficiencies in the Cooper Basin, if sustainable, the broker suspects may have scope to change the outlook more materially.

The broker reduces Brent forecasts to US$52.50/bbl for the second half and US$53/bbl for 2018. The broker drops its long run estimate to US$60/bbl from US$65/bbl.

Outperform retained. Target is lowered to $3.60 from $4.00.

Target price is $3.60 Current Price is $3.19 Difference: $0.41
If STO meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.70, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.6

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

Citi rates SUN as Neutral (3) -

Commercial lines pricing in Australia is seemingly on the turn, comment Citi analysts. While they are yet to be convinced this will prove a sustained phenomenon, they must have picked up that some clients are seeking exposure to the theme.

Hence why the question is being asked: which one is best, Suncorp or Insurance Australia Group? In isolation, neither looks like good value, conclude the analysts.

But if one must seek exposure, Suncorp is slightly preferred, assisted by a relatively cheaper valuation. Neutral. No changes made. Target $13.50.

Target price is $13.50 Current Price is $14.27 Difference: minus $0.77 (current price is over target).
If SUN 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 $14.25, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

Macquarie rates VRL as Neutral (3) -

It appears the sale of 50% in Village Roadshows JV in Singapore has hit a roadblock and the parties are now discussing options. Citi analysts suggest this probably implies the deal can still go through, possibly in a different format or structure.

They also point out, should the deal fall over, Village’s balance sheet would become an issue again (too much debt). The analysts think it is too early yet to start thinking about jumping on board.

The company is scheduled to report on Aug 24. Neutral. Target $3.45.

Target price is $3.45 Current Price is $4.20 Difference: minus $0.75 (current price is over target).
If VRL meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.74, suggesting downside of -10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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 Underperform (5) -

Credit Suisse believes new LNG capacity will become somewhat disconnected from the oil price from an economic perspective as, if the gas is needed, the pricing mechanism will need to adjust to incentivise. Nevertheless, the company's challenges to both funding and crystallising new projects is not getting any easier.

The broker reduces Brent forecasts to US$52.50/bbl for the second half and US$53/bbl for 2018. The broker drops its long run estimate to US$60/bbl from US$65/bbl.

Underperform rating retained. Target is reduced to $25.50 from $26.80.

Target price is $25.50 Current Price is $28.57 Difference: minus $3.07 (current price is over target).
If WPL meets the Credit Suisse target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.02, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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