Australian Broker Call

Citi rates AST as Downgrade to Sell from Neutral (5) -

Citi believes the stock is expensive relative to its peer Spark Infrastructure ((SKI)). The dividend yield  is 5.2% versus 6.5% and dividend growth is limited.

The broker downgrades to Sell from Neutral given the recent share price performance. Target is $1.44.

Target price is $1.44 Current Price is $1.69 Difference: minus $0.25 (current price is over target).
If AST meets the Citi target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.61, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in March.

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

Deutsche Bank rates BSL as Hold (3) -

Deutsche Bank observes the company has transformed itself into an internationally competitive, higher margin and higher returning steel company over the past five years. Over 50% of the steel sales are value-add painted or galvanised product.

The broker suspects the benefits of US steel protectionism, improving global demand and further growth opportunities are likely to support a beat of FY17 earnings guidance.

Nevertheless, a Hold rating is retained on valuation. The price target is reduced to $10.50 from $11.73. The broker observes the company is cycling peak margins and benefiting from steel spreads that are above long-term averages.

Target price is $10.50 Current Price is $12.39 Difference: minus $1.89 (current price is over target).
If BSL meets the Deutsche Bank target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.69, suggesting upside of 10.5% (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

Credit Suisse rates MGR as Outperform (1) -

Credit Suisse believes Mirvac is in an enviable position. The stock appears well-positioned to sustain strong development returns from both residential and commercial.

The broker suspects consensus earnings forecasts are overly conservative for the medium term. Outperform retained. Target rises to $2.44 from $2.30. Credit Suisse upwardly revises FY18-20 estimates by around 4.5% on average.

Target price is $2.44 Current Price is $2.15 Difference: $0.29
If MGR meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.31, suggesting upside of 7.5% (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

Credit Suisse rates NUF as Outperform (1) -

First half results were ahead of Credit Suisse estimates. The outlook commentary appears weaker, as the broker notes the word "solid" was removed from FY17 EBIT growth guidance.

The company believes its cost-saving program can still deliver around $20m in incremental benefits. On that basis Credit Suisse believes EBIT of $308m appears achievable and implies only very minor organic growth.

The broker retains an Outperform rating and increases the target to $10.60 from $9.70.

Target price is $10.60 Current Price is $9.67 Difference: $0.93
If NUF meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $9.64, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in July.

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

Deutsche Bank rates NUF as Sell (5) -

Deutsche Bank considers the above-market first half result is mixed. The company appears to have softened its full year guidance to "improved" from "solid", in the broker's assessment.

Market conditions are expected to remain competitive with relatively weak soft commodity prices, given high inventories and strong global crop harvests.

Deutsche Bank increases FY17 forecasts by 1% but reduces FY18 by -3%, to reflect the net impact of higher earnings in North America & seeds and lower net interest expense. This is largely offset by lower earnings in Latin America and Europe, higher corporate costs and higher tax expense.

Sell rating retained.  Target is $6.60.

Target price is $6.60 Current Price is $9.67 Difference: minus $3.07 (current price is over target).
If NUF meets the Deutsche Bank target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.64, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in July.

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

Macquarie rates NUF as Outperform (1) -

First half results impressed Macquarie  and a seasonally bigger second half is expected. The improvement in North America was particular pleasing to the broker and highlights the benefits of diversification.

Acquisitions are the next catalyst, in Macquarie's opinion, although the company is expected to be disciplined in this regard.

The broker  increases FY18 and FY19 forecasts for earnings per share by 1% and 3% respectively, to account for stronger contributions from North America and Europe, partly offset by a higher tax rate.

Target is lifted to $10.30 from $9.50. Outperform rating retained.

Target price is $10.30 Current Price is $9.67 Difference: $0.63
If NUF meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $9.64, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in July.

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

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

The first half result was materially stronger than Morgans expected. This reflected strong results in North America, Europe and Asia. Seed technologies also witnessed a material improvement.

The broker was pleased that, for the first time in a while, the company reported no material one-off items and believes the company is on track to deliver solid earnings growth in FY17.

After strong share price appreciation, Morgans downgrades to Hold from Add. The broker will revisit its view on any material weakness in the stock, believing that accretive M&A is the next catalyst. Target is raised to $10.15 from $9.65.

Target price is $10.15 Current Price is $9.67 Difference: $0.48
If NUF meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $9.64, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in July.

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

Ord Minnett rates NUF as Hold (3) -

First-half results  were ahead of Ord Minnett's estimates. Management has guided to benefits of $20m for the FY17 performance improvement program and reiterated a target for at least an increase of $116m in EBIT by FY18.

The company took a cautious view of the outlook, noting the global crop protection market is set to remain competitive. The company continues to express interest in acquiring forced divestments that may come to market.

The broker envisages a FY16-19 EBIT compound annual growth rate of 9.3%. A  Hold rating is retained, given minimal upside to the new target price, which is raised to $10.10 from $9.10.

Target price is $10.10 Current Price is $9.67 Difference: $0.43
If NUF meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $9.64, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in July.

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 NUF as Buy (1) -

First half operating performance was in line with UBS expectations. Of importance, the broker notes the results demonstrated leverage to the internal initiatives that have been underway for the last 1-2 years.

North America stood out, with EBIT up by around $10m and ahead of forecasts. This was offset by a weaker performance in Latin America which was severely affected by economic instability and adverse weather conditions.

The Australian business also disappointed the broker because of margin contraction, which is likely to remain a headwind in the second half because of increased competition and ongoing efforts to regain market share.

UBS retains a Buy rating and raises the target to $10.75 from $10.00.

Target price is $10.75 Current Price is $9.67 Difference: $1.08
If NUF meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $9.64, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in July.

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