Australian Broker Call

Morgan Stanley rates API as Underweight (5) -

The first half results were below Morgan Stanley's forecasts as the performance of Priceline softened. The company did not provide any guidance for the remainder of the year owing to the uncertain operating environment.

Australian Pharmaceutical has reported a 50% increase in demand for PBS medications during March, and while sales have slowed in April they remain above the same period in the previous year.

Still, Morgan Stanley assesses the impact from the Priceline and Clear Skincare closures is likely to outweigh the benefits in the near term.

The dividend is now suspended to preserve cash. Underweight rating maintained. Target is reduced to $1.10 from $1.35. Industry view is In-Line.

Target price is $1.10 Current Price is $1.17 Difference: minus $0.07 (current price is over target).
If API meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.12, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in August.

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 BKW as Upgrade to Buy from Neutral (1) -

Citi assesses sales should be well supported through to the December quarter because of solid building approvals up until February 2020. However, housing demand is slowing and this could affect construction in early 2021.

Despite the cyclical slowdown in residential demand the dividend is likely to be maintained as cash flow is stable from the property trust and investment income, the broker points out.

Rating is upgraded to Buy from Neutral and the target reduced to $14.20 from $21.00.

Target price is $14.20 Current Price is $12.93 Difference: $1.27
If BKW meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $14.81, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

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

Diamond Offshore Drilling has filed for bankruptcy. Beach Energy had previously cancelled its drilling rig from the company in the Otway Basin as it was late.

Morgan Stanley forecasts production from the Otway asset will increase in the next quarter and then decline modestly until further drilling occurs, assumed to be in 2021.

This will be dependent on Beach Energy securing a rig and further delays may impact production from the asset.

Target is $1.29. Equal-weight. Industry view is Cautious.

Target price is $1.29 Current Price is $1.38 Difference: minus $0.09 (current price is over target).
If BPT meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.75, suggesting upside of 26.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Ord Minnett rates COL as Accumulate (2) -

Ord Minnett, upon initial assessment of Coles' market update, notes the supermarket operator reported exceptionally strong growth numbers, but they still fell short of the broker's projections.

The ultimate insult is that Ord Minnett observes Metcash ((MTS)) has done a better job in selling food to hoarding Australians, also suggesting this might equally set up Woolworths ((WOW)) for market disappointment.

Target $17.50. Accumulate.

Target price is $17.50 Current Price is $15.50 Difference: $2
If COL meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $16.92, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Credit Suisse rates CRN as Outperform (1) -

Credit Suisse assesses the March quarter update highlights weak demand amid capacity closures and depressed pricing. The pain for Coronado Global is reflected in the elevated net debt as working capital movements go against the company.

The broker does not believe there are any covenant concerns at present and warns against crystallising losses at current levels, given the long-life assets and leverage to prices once markets turn.

Outperform maintained. Target is reduced to $2.80 from $3.30.

Target price is $2.80 Current Price is $1.22 Difference: $1.58
If CRN meets the Credit Suisse target it will return approximately 130% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 87.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.7

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

Morgans rates CRN as Add (1) -

The company has cut growth expenditure and abandoned 2020 guidance. Morgans is not surprised, given deteriorating steel markets.

The deferral of the Curragh expansion reduces 2020 capital expenditure by -$30m and the broker takes the news as a net positive.

Forecasts are trimmed for lower volumes and pricing. Add maintained. Target is reduced to $2.00 from $2.50.

Target price is $2.00 Current Price is $1.22 Difference: $0.78
If CRN meets the Morgans target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 87.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.7

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

Credit Suisse rates DHG as Outperform (1) -

March quarter numbers were encouraging, with growth in residential yields of 17%. To Credit Suisse this illustrates the upside in yield growth when volumes for the Sydney & Melbourne markets turn positive.

However, the impact of the pandemic is likely to be more substantial in the fourth quarter. A waiver of the covenants for the June and December 2020 testing dates is considered particularly positive as it removes any risk of an emergency equity raising.

Credit Suisse maintains an Outperform rating and raises the target to $2.80 from $2.50.

Target price is $2.80 Current Price is $2.65 Difference: $0.15
If DHG meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.06, suggesting upside of 15.5% (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

Macquarie rates FCL as Outperform (1) -

Fineos Corp's quarterly update revealed all major clients projects remain on track at this time and the FY20 revenue guidance range has been retained, currently tracking toward the higher end. The company has made a number of new products available to clients, the broker notes, including a virus paid leave calculator.

Fineos has upgraded revenue forecasts twice since its IPO but is yet to guide on profitability compared to prospectus. Outperform and $3.48 target retained.

Target price is $3.48 Current Price is $3.13 Difference: $0.35
If FCL meets the Macquarie 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:

This company reports in EUR. 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

Ord Minnett rates GOZ as Accumulate (2) -

Growthpoint Properties is working with tenants affected by the pandemic, providing rent relief in some cases. Ord Minnett expects the majority of office and industrial tenants will adhere to existing lease terms.

Non-essential projects, meanwhile, including the Broadmeadows industrial development, have been deferred. The Woolworths ((WOW)) distribution centre expansion in Gepps Cross is continuing.

The broker notes there is sufficient liquidity for the short term with no debt maturities until FY22. Accumulate rating and $3.30 target maintained.

Target price is $3.30 Current Price is $2.93 Difference: $0.37
If GOZ meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.93, suggesting upside of 34.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

UBS rates GUD as Neutral (3) -

UBS believes the company is well-positioned to withstand the disruptions from the pandemic over the course of 2020.

Easing social isolation measures across Australasia, limited air travel and ongoing declines in new car sales support an improving backdrop for aftermarket automotive parts demand.

Offsetting this is FY21 margin pressures from the weaker AUD/USD and increased competition in the filtration market. Neutral maintained. Target is reduced to $9.20 from $11.50.

UBS believes GUD Holdings has sufficient liquidity to support operational flexibility and any opportunistic acquisitions.

Target price is $9.20 Current Price is $9.03 Difference: $0.17
If GUD meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $10.06, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

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 LLC as Buy (1) -

Lendlease has announced a $950m placement and share purchase plan of up to $200m at $9.80 a share. Liquidity rises to $3.95bn following the placement.

The company has highlighted its progress in a range of urbanisation projects. Some construction sites have been shut down offshore but a number are looking at re-starting.

Citi updates forecasts to reflect the capital raising and envisages scope for a significant medium-term re-rating, given the development pipeline, particularly once the non-core business is exited.

Buy maintained. Target is reduced to $15.67 from $24.72.

Target price is $15.67 Current Price is $11.56 Difference: $4.11
If LLC meets the Citi target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $16.71, suggesting upside of 44.5% (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

Macquarie rates LLC as Neutral (3) -

Lendlease's $1.15bn raising will improve the balance sheet and ward off the ratings agencies, the broker notes. Depending on ultimate virus impact, the broker also believes it could provide for growth opportunities down the track.

In the meantime, the virus is causing delays in engineering division sales, residential settlement deferrals and elevated defaults, and construction project shutdowns. The broker has cut FY21 earnings by -21% on dilution. Target falls to $13.46 from $14.22, Neutral retained.

Target price is $13.46 Current Price is $11.56 Difference: $1.9
If LLC meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $16.71, suggesting upside of 44.5% (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

Morgans rates LVH as Add (1) -

Livehire has signed a new customer, Ian Martin Group, which provides technical labour to manufacturing, resources and technology industries in North America.

Livehire delivers a platform which will allow Ian Martin to scale the business to multiples of its current size with zero investment and, in turn, will benefit from that company's success in growing market share.

Add/High Risk retained. Target is $0.57.

Target price is $0.57 Current Price is $0.29 Difference: $0.28
If LVH meets the Morgans target it will return approximately 97% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgan Stanley rates MNF as Overweight (1) -

MNF Group has experienced increased usage of its services from the pandemic and has reaffirmed FY20 operating earnings (EBITDA) guidance of $36-39m. Usage volumes are up significantly because of remote working.

Morgan Stanley considers the valuation undemanding and an Overweight rating is retained. Target is $5.40. Industry view: In-Line.

Target price is $5.40 Current Price is $4.50 Difference: $0.9
If MNF meets the Morgan Stanley 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:

Market Sentiment: 1.0

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 suggests the market is missing the risks to asset realisations as well as impairments  And remains below consensus in terms of FY20 and FY21 earnings estimates.

Major bank loan losses are coming through faster than expected and Morgan Stanley has set its loan loss forecast for Macquarie Group for FY20-22 to be broadly in line with the banks, adjusted for the different business mix.

With regard to the banks' forward-looking adjustments, the broker assesses Macquarie Group's business is also different because it has an equity investments book where impairments are expected to be front loaded.

Overweight rating and In-Line industry view. Target is $115.

Target price is $115.00 Current Price is $99.53 Difference: $15.47
If MQG meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $117.65, suggesting upside of 18.2% (ex-dividends)

The company's fiscal year ends in March.

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 NAB as No Rating (-1) -

National Bank's profit result was largely in line with expectation, as was the dividend. For the broker the critical element was the impact of deteriorating credit quality on risk-weighted-asset inflation, worse than assumed, which will reduce the bank's capital ratio. Hence the raising.

The broker has downgraded forecasts but is clearly involved in the raising, as it is now on research restriction, meaning no target or rating.

Current Price is $16.23. Target price not assessed.

Current consensus price target is $18.49, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in September.

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 NAB as Upgrade to Add from Hold (1) -

National Australia Bank has released first half results earlier than scheduled and launched a capital raising. The placement price implies more damage than Morgans had expected.

Still, the broker considers it a positive for valuation in that the bank expects to continue paying dividends. Rating is upgraded to Add from Hold and the target is reduced to $16.50 from $17.00.

Target price is $16.50 Current Price is $16.23 Difference: $0.27
If NAB meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $18.49, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in September.

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 NAB as Neutral (3) -

First half results was slightly ahead of expectations, given a lower credit impairment charge. UBS is somewhat perplexed by the bank deciding to return $900m to shareholders via a $0.30 dividend while announcing it is raising $3.5bn.

This increases the CET1 ratio by 81 basis points to 11.2% but also increases the share count by 9%. Additionally, the broker notes the bank is already witnessing a large number of customers in financial distress.

UBS maintains a Neutral rating and reduces the target to $16.50 from $19.00.

Target price is $16.50 Current Price is $16.23 Difference: $0.27
If NAB meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $18.49, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in September.

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 NHF as Upgrade to Neutral from Underperform (3) -

The flattening of the curve of the pandemic is better than expected and suggests to Credit Suisse that its initial take on nib Holdings in this regard was too pessimistic.

The broker continues to view the lack of claims in the core insurance business while in shutdown as more of a timing change rather than a large profit uplift.

FY20 underlying operating profit estimates are increased by 7%. Following the recent underperformance of the share price the rating is upgraded to Neutral from Underperform. Target is $4.90.

Target price is $4.90 Current Price is $4.94 Difference: minus $0.04 (current price is over target).
If NHF meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.03, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

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 NST as Neutral (3) -

March quarter was soft, as expected. The main difference to Citi's estimates was that Australian operations sustained higher costs because of productivity and operating issues at Kalgoorlie and a mill shutdown at Jundee.

 Citi expects shareholders will be pleased there were no surprises at Pogo and the turnaround continues. The broker retains a Neutral rating and raises the target to $13.50 from $12.70.

Target price is $13.50 Current Price is $12.99 Difference: $0.51
If NST meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $12.66, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Credit Suisse rates NST as Neutral (3) -

While the March quarter was challenged by the disruptions from the pandemic and Jundee was uncharacteristically soft, Credit Suisse retains its investment view.

Guidance was withdrawn but the June quarter should be the strongest result of FY20 , in the broker's view, and will also be delivered into a stronger gold price.

The broker retains a Neutral rating and raises the target to $13.00 from $11.50.

Target price is $13.00 Current Price is $12.99 Difference: $0.01
If NST meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $12.66, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

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

Northern Star's March quarter result fell short of Macquarie, with gold production -9% lower and costs 10% higher. Pogo was impacted by virus protocols, although grades improved. Mill shutdowns at Jundee and Super Pit compounded the issue.

The company is expecting improvement in the June quarter, but on a weaker production and earnings outlook for FY21-22, the broker downgrades to Neutral from Outperform. Target falls to $14.00 from $15.00.

Target price is $14.00 Current Price is $12.99 Difference: $1.01
If NST meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $12.66, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Morgan Stanley rates NST as Underweight (5) -

Northern Star had indicated the March quarter would be weak because of the early adoption of precautions for the pandemic. Morgan Stanley found the production miss was largely driven by grade declines at Kalgoorlie and Jundee.

March quarter production of 237,000 ounces was -16% below the broker's estimates. Costs remain high at Pogo and Kalgoorlie.

Target is $11.15. Underweight. Industry view: In Line.

Target price is $11.15 Current Price is $12.99 Difference: minus $1.84 (current price is over target).
If NST meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.66, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Ord Minnett rates NST as Lighten (4) -

Northern Star produced 239,000 ounces of gold in the March quarter, in line with Ord Minnett's expectations. Costs were higher than expected because of the lower grades at Jundee and Kalgoorlie.

The broker remodels the newly-deferred hedge book and lowers medium-term Jundee grade forecasts.

Lighten. Target is reduced to $10.60 from $11.20.

Target price is $10.60 Current Price is $12.99 Difference: minus $2.39 (current price is over target).
If NST meets the Ord Minnett target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.66, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

UBS rates NST as Neutral (3) -

UBS notes a strong March quarter at Pogo despite heavy disruption. The broker had feared this asset would be weak but production, grade and stoped ore was ahead of expectations.

This is considered important to maintaining the management premium embedded in the share price. Elsewhere, there were lower grades at Jundee and Kalgoorlie but grades are expected to improve in the June quarter.

Neutral rating maintained. Target is raised to $13.70 from $12.50.

Target price is $13.70 Current Price is $12.99 Difference: $0.71
If NST meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $12.66, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Ord Minnett rates OGC as Hold (3) -

New Zealand has eased its lock-down to level 3 from level 4, allowing businesses to assume operating provided they can demonstrate safe working practices.

This will have the following impact on OceanaGold: the Martha project can resume development and exploration and the Macraes mine can return to normal operations.

The company has reiterated 2020 production guidance of 360-380,000 ounces. Ord Minnett maintains a Hold rating. Target is $2.20.

Target price is $2.20 Current Price is $2.39 Difference: minus $0.19 (current price is over target).
If OGC meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.00, suggesting upside of 25.7% (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: 0.4

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

Macquarie rates OML as Outperform (1) -

With oOh!media's capital raising now completed, the broker is back from restriction to retain an Outperform rating and set a $1.25 target, down from a prior $2.80. With no one out and about, the company has been one of the worst hit by the virus, and the impact is ongoing. The broker has cut its revenue contraction forecast to -19.4% for 2020 from an earlier -5%.

However the raising has shored up the balance sheet and the broker continues to see longer term structural growth on the other side.

Target price is $1.25 Current Price is $0.90 Difference: $0.35
If OML meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $1.23, suggesting upside of 36.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.9

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

Citi rates PLS as Neutral (3) -

Pilbara Minerals has indicated it continued to meet payment obligations in the March quarter. The company is exploring a number of options, including restructuring the terms of the existing bond or refinancing it with a different instrument.

Spodumene shipments were up 2% in the quarter despite a -38% drop in production. Technical studies and phased expansion of Pilgangoora are ongoing.

Neutral/High Risk retained for Pilbara Minerals. Target is $0.24.

Target price is $0.24 Current Price is $0.21 Difference: $0.03
If PLS meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $0.29, suggesting upside of 38.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Macquarie rates PMV as Neutral (3) -

The broker has updated its view on Premier Investments to account for the benefits of JobKeeper on the cost base, as well as wage subsidy schemes globally. Uncertainty remains with regard the rent situation, with negotiations still underway, but evidence to date suggests a favourable outcome for tenants. The broker does expects lower rents post-virus.

The company should come out of this positively, but for now the broker remains cautious on the consumer. Target rises to $12.62 from $11.71, Neutral retained.

Target price is $12.62 Current Price is $15.37 Difference: minus $2.75 (current price is over target).
If PMV 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 $14.08, suggesting downside of -8.4% (ex-dividends)

The company's fiscal year ends in July.

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

Citi rates PRU as Neutral (3) -

The March quarter result at Edikan was disappointing for Citi, overshadowing a recent positive update. March quarter production of 58,000 ounces was -21% below estimates while costs were 24% higher.

Apart from the March quarter result, the broker updates forecasts for the life-of-mine plan, which envisages a longer mine life following the February reserve upgrade. Neutral/High Risk rating. Target is $1.30.

Target price is $1.30 Current Price is $1.02 Difference: $0.28
If PRU meets the Citi target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $1.20, suggesting upside of 17.3% (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 PRU as Downgrade to Neutral from Outperform (3) -

Perseus Mining's March quarter was weak, with production -20% and costs 20% higher than forecast. Recoveries of only 61% at Edikan was the prime source of softness, Macquarie notes. The company has withdrawn second half guidance.

Recoveries at Edikan and virus management are the key risks in the near term, the broker suggests. Yaoure nevertheless remains on track, but the broker has cut its target to $1.20 from $1.30 and downgraded to Neutral from Outperform.

Target price is $1.20 Current Price is $1.02 Difference: $0.18
If PRU meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.20, suggesting upside of 17.3% (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 RBL as Reduce (5) -

Redbubble maintained solid revenue throughout the March quarter without giving up too much margin, Morgans observes.

The broker remains cautious about the outlook for the short term, believing the real impact of the recession on the US consumer is yet to hit.

Reduce rating maintained. Target is raised to $0.54 from $0.50.

Target price is $0.54 Current Price is $0.80 Difference: minus $0.26 (current price is over target).
If RBL meets the Morgans target it will return approximately minus 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

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

ResMed is a beneficiary of increased demand for ventilators and demand has been pulled forward in the US, ahead of any June quarter social distancing issues.

Morgan Stanley suggests a premium valuation could remain as long as the market continues to believe there is upside in ventilator sales related to the pandemic that may offset any potential erosion of the sleep apnoea business.

Equal-weight. Target is raised to $23.00 from $20.50. Industry view: In-Line.

Target price is $23.00 Current Price is $24.18 Difference: minus $1.18 (current price is over target).
If RMD meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.17, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.0

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

Ord Minnett rates RMD as Hold (3) -

Although the global scramble for ventilators is becoming more orderly, Ord Minnett expects ResMed will experience a US$100m earnings boost, or more.

This should be helpful, as channel checks confirm a precipitous drop in sleep apnoea patients in recent weeks because of the global shutdown.

The broker is confident the company will retain its leading sleep treatments but remains cautious, suspecting investors are projecting a too rosy future. Hold maintained. Target is raised to $22.60 from $22.00.

Target price is $22.60 Current Price is $24.18 Difference: minus $1.58 (current price is over target).
If RMD meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.17, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.0

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

Macquarie rates SAR as Outperform (1) -

Saracen's March quarter was solid thanks to another record production result at Thunderbox, helping to bolster the net debt position, the broker notes. The company will choose to process higher grade stockpiles in the June quarter to pull forward cash flow.

A strong financial position and solid production growth means Saracen remains one of the broker's key picks in the sector. Outperform retained, target rises to $5.00 from $4.90.

Target price is $5.00 Current Price is $4.49 Difference: $0.51
If SAR meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.74, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

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

Project developments are on track in the March quarter production was strong, supported by higher grade stockpiles being pulled into FY20 from FY21. Morgan Stanley considers this a prudent decision.

The broker expects FY20 and FY21 guidance will be achieved. Equal-weight rating maintained. Target is $4.15. Industry view is In-Line.

Target price is $4.15 Current Price is $4.49 Difference: minus $0.34 (current price is over target).
If SAR meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.74, suggesting upside of 5.6% (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

Ord Minnett rates SAR as Accumulate (2) -

The pandemic has had minimal impact on Saracen Mineral and the highlight of the March quarter was record output at Thunderbox. FY20 guidance of 500,000 ounces appears comfortable to Ord Minnett, given current run rates.

The broker continues to like the growth, coupled with the lower-risk business model and asset suite. Accumulate rating and $4.90 target maintained.

Target price is $4.90 Current Price is $4.49 Difference: $0.41
If SAR meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.74, suggesting upside of 5.6% (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

UBS rates SAR as Buy (1) -

The March quarter production was ahead of expectations. UBS notes a record high production result delivered into a record high Australian dollar gold price.

The result is a step change in free cash flow after years of heavy investment in the acquisition of the Super Pit.

The broker maintains a Buy rating, assessing the valuation as reasonable. Target is raised to $5.35 from $4.90.

Target price is $5.35 Current Price is $4.49 Difference: $0.86
If SAR meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.74, suggesting upside of 5.6% (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

Citi rates SBM as Neutral (3) -

St Barbara shares have underperformed in recent months, Citi observes, and another delay to the Gwalia extension project has dented confidence.

FY20 guidance is maintained but both Simberi and Gwalia are expected to meet the lower end of production guidance and the higher end of cost guidance.

With valuation risks at Moose River and hurdles at Simberi, Citi retains a Neutral rating for now. Target is $2.80.

Target price is $2.80 Current Price is $2.52 Difference: $0.28
If SBM meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.16, suggesting upside of 25.4% (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 SBM as Outperform (1) -

March quarter production reflected soft outcomes at Gwalia with a solid performance at Atlantic.

Credit Suisse considers the issues surrounding Gwalia should be isolated to FY20 and have little bearing on future value.

Outperform rating and $3.30 target are maintained.

Target price is $3.30 Current Price is $2.52 Difference: $0.78
If SBM meets the Credit Suisse target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $3.16, suggesting upside of 25.4% (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

Macquarie rates SBM as Neutral (3) -

St Barbara's March quarter production and costs were in line with forecasts and net cash was better than expected. However further delays to the Gwalia vent upgrade means FY production is set to come in at the low end of the target range, the broker notes.

Neutral and $2.60 target retained.

Target price is $2.60 Current Price is $2.52 Difference: $0.08
If SBM meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.16, suggesting upside of 25.4% (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 SBM as Overweight (1) -

March quarter production was slightly softer than Morgan Stanley anticipated, because of Gwalia stope sequencing and ventilation construction delays.

St Barbara anticipates the lower end of FY20 guidance will be achieved. The broker believes the focus should be on the long-term benefits from the ventilation shaft completion at Gwalia.

Overweight rating and $3.30 target. Industry view is In-Line.

Target price is $3.30 Current Price is $2.52 Difference: $0.78
If SBM meets the Morgan Stanley target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $3.16, suggesting upside of 25.4% (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

UBS rates SHV as Buy (1) -

The company has updated on its FY20 crop, noting volumes are likely to be similar in size to the prior year.

Strong yields in a negative biennial year are a key positive, UBS believes, and stem from a combination of ideal growing conditions and investment in horticultural processes.

FY20 estimates for earnings per share are raised by 17%. The broker remains positive about the stock and retains a Buy rating and $9 target.

Target price is $9.00 Current Price is $7.23 Difference: $1.77
If SHV meets the UBS target it will return approximately 24% (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 TNE as Outperform (1) -

Macquarie upgraded TechnologyOne to Outperform in mid-March as the stock was swept down the drain with everything else, but a 36% rally since then has the broker now pulling back to Neutral once more on valuation. The company looks well placed to extend its leadership position in A&NZ core products, but the virus may cause some near term shift in sales out in time.

That said, a high percentage of recurring revenue and growth from existing customers tempers the impact, Macquarie notes. Target unchanged at $9.75.

Target price is $9.75 Current Price is $9.19 Difference: $0.56
If TNE meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.14, suggesting downside of -11.4% (ex-dividends)

The company's fiscal year ends in September.

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 VEA as Hold (3) -

The company has indicated a reduction in crude intake at the Geelong refinery to 2.5mmbbl per month following a shutdown of the residual catalytic cracking unit.

The financial impact is expected to be immaterial and there should be no disruption to fuel supply. The company will update on plans for the turnaround and inspection of the unit by the end of June.

Viva Energy has indicated it is monitoring the longer-term refining margin outlook, which Ord Minnett suggests raises questions on the future of Geelong. Hold maintained. Target is $1.40.

Target price is $1.40 Current Price is $1.40 Difference: $0
If VEA meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.71, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Credit Suisse rates WBC as Outperform (1) -

Westpac has announced an impairment charge in the first half of $2.24bn, including $1.6bn of additional impairments related predominantly to the pandemic impact.

Credit Suisse believes this charge is more realistic and lowers the risk of further significant build in reserves at later dates.

Given the size of the provision, the forecast CET1 ratio of 10.8% is better than Credit Suisse expected. Outperform rating and $17.90 target maintained.

Target price is $17.90 Current Price is $15.61 Difference: $2.29
If WBC meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $18.66, suggesting upside of 19.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Macquarie rates WBC as Neutral (3) -

Westpac's $2.2bn first half impairment has only a limited impact on tier one capital, thus on 10.8% the broker suggests the bank will not be announcing a capital raise next week, but will likely announce a fully underwritten DRP.

The broker remains cautious on the outlook but notes the stock is trading at a relative -10% discount to peers compared to an historical 1% premium, hence Neutral retained. Target unchanged at $17.

Target price is $17.00 Current Price is $15.61 Difference: $1.39
If WBC meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $18.66, suggesting upside of 19.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Morgan Stanley rates WBC as Underweight (5) -

Westpac has pre-announced a first half impairment charge of $2.24bn, including a pandemic provision of $1.6bn. Morgan Stanley was not surprised about the larger forward-looking adjustment.

All else being equal, the broker suggests higher loan losses would reduce first half cash profit estimates to $878m, implying the dividend would need to be less than $0.25.

Underweight. Target is $15.70. Industry view: In Line.

Target price is $15.70 Current Price is $15.61 Difference: $0.09
If WBC meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $18.66, suggesting upside of 19.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Morgans rates WBC as Add (1) -

The first half credit impairment charge is slightly lower than Morgans expected. The broker believes the announcement aligns with its base case that Westpac will not raise capital.

Estimates of cash earnings per share for FY20 are increased by 1.9%. Add rating and $19.50 target maintained.

Target price is $19.50 Current Price is $15.61 Difference: $3.89
If WBC meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $18.66, suggesting upside of 19.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates WBC as Hold (3) -

Westpac has announced a $2.24bn impairment the first half of FY20, well ahead of Ord Minnett's expectations. The CET1 ratio remains below peers, which the broker considers is less of a buffer to deal with pro-cyclical impact from credit risk migration.

Ord Minnett now expects a full dividend reinvestment plan underwriting, on a much reduced dividend of $0.25 and lower dividends across the forecast period. The broker maintains a Hold rating and $16 target.

Target price is $16.00 Current Price is $15.61 Difference: $0.39
If WBC meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $18.66, suggesting upside of 19.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates WBC as Neutral (3) -

Westpac will take total credit impairment charges of $2.4bn in its first half result on May 4. UBS believes, in noting this is roughly double National Australia Bank's ((NAB)) charges, that this is because of a more cautious base-case scenario.

This implies charges going forward will probably be lower or provision releases will occur in the event of a favourable V-shaped recovery. Neutral rating retained. Target is $18.50.

Target price is $18.50 Current Price is $15.61 Difference: $2.89
If WBC meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $18.66, suggesting upside of 19.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Citi rates WES as Sell (5) -

Earnings at Target have deteriorated further, prompting Wesfarmers to accelerate its review of the business. Citi suspects closure is most likely, given the capital required to sustainably turn it around and a $1.6bn lease liability.

Meanwhile, the balance sheet capacity has increased to allow for further acquisitions, the company adding a further $2bn of undrawn debt at attractive pricing.

Sell rating and $30.90 target maintained.

Target price is $30.90 Current Price is $37.30 Difference: minus $6.4 (current price is over target).
If WES meets the Citi target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.48, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Credit Suisse rates WES as Neutral (3) -

Credit Suisse observes Target, and to a lesser extent Kmart, have been negatively affected by consumer expenditure elsewhere, as sales growth at Bunnings and Officeworks has accelerated.

With the announcement of a strategic review, Wesfarmers appears to be signalling a need to address the underperformance at Target. Credit Suisse suspects the market will continue to price the stock on the basis of Bunnings.

The business is in a strong financial position which enhances strategic options. Neutral maintained. Target is raised to $34.65 from $30.07.

Target price is $34.65 Current Price is $37.30 Difference: minus $2.65 (current price is over target).
If WES meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.48, suggesting downside of -4.9% (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

Macquarie rates WES as Outperform (1) -

Bunnings surprised with strong sales growth in the March quarter despite the current environment. Work-at-home provided an unsurprising boost for Officeworks. K-Mart is struggling but Target remains the basket case, falling back into loss-making.

The acceleration of the Target review can only be positive but the broker remains bearish on the outlook. As a group, Wesfarmers is nevertheless well equipped to ride it out and outperform peers, the broker suggests. Target rises to $40.90 from $40.20. Outperform retained.

Target price is $40.90 Current Price is $37.30 Difference: $3.6
If WES meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $35.48, suggesting downside of -4.9% (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

Morgans rates WES as Hold (3) -

While Bunnings and Officeworks experienced significant growth in sales because more time is being spent at home, Kmart and Target sales growth in the March quarter was softer, affected by reduced foot traffic in shopping centres.

Morgans observes the company has plenty of capacity to ride out any impact from the pandemic. Hold maintained, given a 12-month forecasts shareholder return of just 1%. Target is raised to $36.60 from $34.00.

Target price is $36.60 Current Price is $37.30 Difference: minus $0.7 (current price is over target).
If WES meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.48, suggesting downside of -4.9% (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 WES as Lighten (4) -

March quarter trading was ahead of Ord Minnett's forecasts, particularly at Bunnings and Officeworks. The broker expects a review of Target will result in more conversions to Kmart, store closures and focus on online operations.

The broker notes, over the past 20 years, Kmart and Target have rarely performed well at the same time. The strong balance sheet is expected to support dividends, yet also requires evaluation of future M&A options.

Lighten rating. Target is raised to $35 and $32.

Target price is $35.00 Current Price is $37.30 Difference: minus $2.3 (current price is over target).
If WES meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.48, suggesting downside of -4.9% (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

UBS rates WES as Neutral (3) -

Wesfarmers has reported strong sales at Bunnings and Officeworks while Kmart and Target was softer in the third quarter. UBS assesses Target is loss-making and notes a strategic review is being completed.

The broker upgrades estimates for Bunnings and Officeworks, offset by cuts for the department stores.

While there is risk around forecasts given uncertainty regarding the pace of an economic recovery the broker remains confident that Wesfarmers has a strong balance sheet and will be able to pay a dividend. Neutral and $33.80 target.

Target price is $33.80 Current Price is $37.30 Difference: minus $3.5 (current price is over target).
If WES meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.48, suggesting downside of -4.9% (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

UBS rates WOR as Buy (1) -

The outlook for the company's end markets has been negatively affected by the shock to the oil price and the likely lowering of expenditure. Worley has noticed some contraction in business as customers delay or defer.

However, to date, this has been limited to lower-margin construction services. Chargeable hours for engineering services have only declined -2% in March compared with the prior month.

UBS maintains a Buy rating and $10.82 target and suspects expenditure reductions will have a more pronounced impact on sales in FY21 and FY22, given lower order book replenishment rates.

Target price is $10.82 Current Price is $7.67 Difference: $3.15
If WOR meets the UBS target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $12.74, suggesting upside of 66.1% (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