Australian Broker Call

Citi rates AMC as Neutral (3) -

Amcor plans to acquire Bemis in an all-stock deal. This will be the company's largest-ever acquisitions. On completion, Amcor will become the leading player in the Americas flexibles market.

Amcor is offering a fixed exchange ratio of 5.1 shares for each Bemis share, representing a 25% premium. Citi calculates Amcor would be paying 11.1x EBITDA pre-synergies or 8.6x post synergies.

The deal is conditional on regulatory approvals and completion is expected in the first quarter of 2019. Neutral rating and $14.85 target maintained.

Target price is $14.85 Current Price is $15.28 Difference: minus $0.43 (current price is over target).
If AMC meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.27, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.5

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

Credit Suisse rates AMC as Neutral (3) -

Credit Suisse amends its analysis to model a US$60/share price for Bemis. As the bid is potentially all scrip it could mean Amcor has a listing in the US.

Such a combination would add less than 10% to EPS for Amcor and the broker identifies synergies of US$150-170m based on its scenario outline. The broker maintains a Neutral rating and $14.20 target.

Target price is $14.20 Current Price is $15.28 Difference: minus $1.08 (current price is over target).
If AMC 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 $15.27, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.5

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

Deutsche Bank rates AMC as Buy (1) -

Deutsche Bank believes an acquisition of Bemis would be strategically sound and consistent with its strategy of increasing share in the North American flexibles market.

The broker is also of the view that, should Amcor pay a 30% premium, fund the acquisition with equity and generate synergies equivalent to 2.0% of combined sales revenue, it would be 15% accretive to earnings.

However, the return on capital would be just 10.5% and short of the company's target of 20%, or 15% in the event of a strategic acquisition. Buy rating and $17 target maintained.

Target price is $17.00 Current Price is $15.28 Difference: $1.72
If AMC meets the Deutsche Bank target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $15.27, suggesting upside of 5.2% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.5

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

Macquarie rates AMC as Outperform (1) -

It is Macquarie's assessment the proposed acquisition of Bemis Company in the US will provide Amcor with a boost to EPS growth, but weaken its Return on Funds Employed (ROFE) profile.

The attraction for both sets of shareholders are synergies, the creation of a clear global market leader and a larger, more diversified business, suggest the analysts. $15.72 price target and Outperform rating retained.

Target price is $15.72 Current Price is $15.28 Difference: $0.44
If AMC meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $15.27, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.5

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

Ord Minnett rates AMC as Accumulate (2) -

Amcor will take over US rival Bemis in in all-scrip bid, valuing that company at US$57.75 a share based on the Amcor closing price on Friday. Ord Minnett considers Bemis in line with the company's acquisition strategy, given the focus on the flexibles segment in the Americas.

Amcor shareholders will own 71% of the combined entity. Amcor will move its primary listing to the NYSE and retain an ASX listing via CDIs. Ord Minnett maintains an Accumulate rating and $15.80 target.

Target price is $15.80 Current Price is $15.28 Difference: $0.52
If AMC meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $15.27, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.5

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

Morgans rates AVN as Add (1) -

FY18 guidance is for 2-3% growth and Morgans expects FY19 guidance will be provided with the results on August 10. The company's business is underpinned by leases to a diverse range of tenants with structured rental growth.

The broker believes Aventus is well placed to navigate any challenges. Add rating maintained. Target is raised to $2.49 from $2.46.

Target price is $2.49 Current Price is $2.28 Difference: $0.21
If AVN meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.35, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Ord Minnett rates BWP as Hold (3) -

According to press speculation, Kaufland is the acquirer of the company sites in Melbourne's Dandenong, Oakley South and Epping. The sales signal the appeal of these sites to new user groups seeking locations close to the consumer, Ord Minnett suggests. The four sites reportedly acquired equate to a combined $70m sale price at an average 15% premium to book value.

Ord Minnett expects earnings growth to be flat for the next two years but the portfolio generates cash and pays out all operating earnings to shareholders. The sales would de-risk half of the known Bunnings ((WES)) departures at material premium to book value. Hold rating maintained. Target is $3.25.

Target price is $3.25 Current Price is $3.30 Difference: minus $0.05 (current price is over target).
If BWP meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.89, suggesting downside of -12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.8

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

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

Morgan Stanley expects cochlear implant unit growth of 8% when the company reports FY18 results on August 14. The N7 launch drove 15% growth for US units in the first half and the broker expects a material benefit in the second half.

The broker is confident the company can sustain high growth rates and this provides upside risk to FY19 estimates. Equal-weight rating, In-Line industry view. Target is $184.

Target price is $184.00 Current Price is $202.27 Difference: minus $18.27 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $173.26, suggesting downside of -14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Ord Minnett rates CPU as Lighten (4) -

Ord Minnett believes FY18 guidance is defensible, and potentially conservative given the current interest rate environment. Nonetheless the stock is considered fully valued and the broker maintains a Lighten rating. The target is raised to $16.97 from $16.20.

The broker awaits the company's view on the cycle and contribution from corporate actions to FY19 guidance, given the strong FY18 benefits. Computershare is due to report its FY18 results on August 15.

Target price is $16.97 Current Price is $18.40 Difference: minus $1.43 (current price is over target).
If CPU 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 $17.40, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: -0.4

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

Credit Suisse rates CWN as Neutral (3) -

Crown remains the suitable operator of the Victorian casino licence, although the regulator has concluded that improved governance and responsible gambling measures be put in place.

Credit Suisse observes costs associated with the implementation of the recommendations are not expected to be material. Neutral retained. Target is $13.10.

Target price is $13.10 Current Price is $13.28 Difference: minus $0.18 (current price is over target).
If CWN 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 $13.37, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

Credit Suisse rates CYB as Outperform (1) -

Credit Suisse incorporates the Virgin Money acquisition which results in upgrades to earnings estimates of 6-12% across the forecast horizon. The broker expects the bank to announce refreshed guidance in the form of a three-year cost-to-income target.

Credit Suisse considers the Virgin Money transaction offers an improved market position. Outperform rating and target raised to $6.90 from $6.00.

Target price is $6.90 Current Price is $6.19 Difference: $0.71
If CYB meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $6.55, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.2

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

Citi rates ECX as Downgrade to Neutral from Buy (3) -

The company issued a profit warning after market yesterday and Citi analysts have responded by pulling back their recommendation to Neutral from Buy. Price target tumbles to $3.17 from $4.50 on reduced forecasts.

The company's net profit growth forecasts have been halved, with FY18 guidance reduced to 13-17% growth from 27-30%.

Not exactly helping is the fact Citi analysts continue to see downside risks in the short term from increased infrastructure spending, competition for Right2Drive, lower used car pricing and declining new vehicle sales.

Target price is $3.17 Current Price is $1.72 Difference: $1.45
If ECX meets the Citi target it will return approximately 84% (excluding dividends, fees and charges).

Current consensus price target is $4.12, suggesting upside of 139.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Morgan Stanley rates ECX as Overweight (1) -

The company has downgraded FY18 net profit guidance to the range of $77-80m, up 13-17% versus the previous guidance for 27-30% growth.

The downgrade is a result of GraysOnline and Right2Drive slowing into the second half, although Morgan Stanley also suspects the consumer division growth has slowed.

The company will report its FY18 results early in November. Target is $4.40. Overweight rating. Sector view is In-Line.

Target price is $4.40 Current Price is $1.72 Difference: $2.68
If ECX meets the Morgan Stanley target it will return approximately 156% (excluding dividends, fees and charges).

Current consensus price target is $4.12, suggesting upside of 139.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Credit Suisse rates FBU as Downgrade to Underperform from Outperform (5) -

Following a change in analyst, Credit Suisse reviews forecasts, noting the company is emerging from a major re-setting of the business. The broker remains well disposed towards the new CEO, the strategy and the Australian turnaround but factors in a reversion to mid-cycle activity levels in New Zealand.

Rating is downgraded to Underperform from Outperform. Target is reduced to NZ$6.08 from NZ$8.40. Potential for more confidence to emerge in the next 12 months exists, Credit Suisse asserts, if Fletcher can get early traction in Australia and successfully exit Formica and the B&I business.

Current Price is $6.33. Target price not assessed.

Current consensus price target is $6.60, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: -0.2

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

Morgans rates IFN as Reduce (5) -

Morgans updates modelling for realised second half revenues and movement in forward wholesale power prices. This has resulted in a -15-38% decline in operating earnings forecasts across FY20-23.

Whether the stock price drops to valuation partly depends on the actions of Brookfield, which has purchased 9% of the stock, although Morgans notes the stake is considered strategic and the company has no intention of making a takeover bid. Reduce retained. Target is lowered to $0.35 from $0.51.

Target price is $0.35 Current Price is $0.60 Difference: minus $0.25 (current price is over target).
If IFN meets the Morgans target it will return approximately minus 42% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.61, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Deutsche Bank rates JHX as Buy (1) -

Deutsche Bank expects margins to remain at the top of the 20-25% guidance range in the first quarter but considers there is a risk new US residential volumes are softer.

Despite this, the US renovation market remains strong and primary demand growth should continue to recover. The stock is the broker's sector pick. Target is $25.35. Buy rating.

Target price is $25.35 Current Price is $23.17 Difference: $2.18
If JHX meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $25.08, suggesting upside of 8.2% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

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

Morgans rates MWY as Add (1) -

Morgans suggests the company is on track for a strong second half. The stock remains a key pick in the agricultural sector offering leverage to positive industry dynamics at an undemanding valuation.

The broker also notes strong free cash flow underpins an attractive dividend yield of 6.8%. Morgans reiterates an Add rating and raises the target to $3.35 from $3.00. The company reports FY18 results on August 30.

Target price is $3.35 Current Price is $3.04 Difference: $0.31
If MWY meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Macquarie rates NHF as Neutral (3) -

Nib continues to diversify away from private health insurance, announcing the acquisition of QBE's ((QBE)) travel insurance business, noting major partnerships will be maintained.

The company has flagged the potential for as much as 50% of its earnings to come from outside Australian health over time, the broker notes, via travel, students, workers and NZ. The QBE acquisition will have no material impact on earnings.

Neutral retained, target falls to $6.00 from $6.05.

Target price is $6.00 Current Price is $5.72 Difference: $0.28
If NHF meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.88, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Citi rates PLS as Buy (1) -

The company has updated the market with study results for stage 2 DFS at Pilgangoora and Citi analysts believe the study re-validates the expansion project economies. Buy/High Risk rating retained, alongside a price target of $1.05.

Target price is $1.05 Current Price is $0.88 Difference: $0.17
If PLS meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.10, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Macquarie rates PNL as Outperform (1) -

Paringa's reported cash balance at the end of the June Q was in line with the broker's expectation. The construction of major infrastructure at Poplar Grove remains on track.

Executing on new sales contracts to provide project funding will be a key upcoming catalyst, the broker suggests. Outperform and 30c target retained.

Target price is $0.30 Current Price is $0.22 Difference: $0.08
If PNL meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 1.0

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

Morgans rates RCW as Add (1) -

Morgans increases the target to $0.46 from $0.39 following the fourth quarter result. Sales momentum is expected to continue in FY19 and revenue growth exceed FY18 rates. Given the company is in a relatively early growth stage, the broker opts not to publish short term forecasts. Add maintained.

Target price is $0.46 Current Price is $0.44 Difference: $0.02
If RCW meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Macquarie rates RMD as Underperform (5) -

ResMed's result fell slightly short of the broker due to a weaker than expected rest-of-world contribution.

The broker balances out the upside from increased mask penetration and consumables resupply with an accelerating downward trend in ASPs. Upside could also come from cloud-based M&A but accretion would be limited on the assumption of high acquisition multiples, the broker warns.

Underperform retained. Target rises to $12.40 from $12.10.

Target price is $12.40 Current Price is $14.41 Difference: minus $2.01 (current price is over target).
If RMD meets the Macquarie target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.28, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.3

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

Morgan Stanley rates RMD as Overweight (1) -

Morgan Stanley observes double-digit US mask growth has been restored, after relative softness, and outpaced the market's expectations. The broker envisages scope for operating leverage to improve further with expenses potentially growing at half the rate of the top line.

Overweight rating. Target is US$112. Industry view: In Line.

Current Price is $14.41. Target price not assessed.

Current consensus price target is $14.28, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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 RRL as Upgrade to Hold from Reduce (3) -

Gold production for the June quarter was up 7.8%, only marginally below the record in the December quarter. Guidance is for production of 340-370,000 ounces at AISC in the range of $985-1055/oz for FY19.

Morgans increases valuation, raising the target to $4.40 from $3.65 on the back of the updated resource and reserve base, approval of the Rosemont development and advances at McPhillamys.

Rating is upgraded to Hold from Reduce, using the spot gold price and a zero discount rate.

Target price is $4.40 Current Price is $4.26 Difference: $0.14
If RRL meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.29, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.5

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

Citi rates SEK as Sell (5) -

Seek is spending more next year and Citi analysts point out management's updated guidance for FY19 effectively translates into a -13% downgrade for consensus forecasts.

Citi analysts believe investor expectations for growth from this company should remain low in the years ahead, while the opportunity remains longer term. They also see risk of a cyclical downturn affecting one or more of the company's core markets.

Estimates have been reduced with the analysts highlighting Seek's capex has grown at a 38% CAGR over the past five years. This spending compares to 16% revenue growth over the period. Target is reduced to $15.00 from $15.90. Sell maintained.

Target price is $15.00 Current Price is $20.24 Difference: minus $5.24 (current price is over target).
If SEK meets the Citi target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.41, suggesting downside of -4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Macquarie rates SEK as Neutral (3) -

For Macquarie's initial assessment following Seek's market update: see yesterday's Broker Call Report. Today, the analysts have sliced -2.2% off their price target to $19.90. Neutral rating retained.

The analysts maintain top-line momentum suggests underlying fundamentals for the business remain strong, but yet another year of strong investment looms. Any meaningful growth in earnings has now been pushed out to 2020, at a minimum.

The analysts believe the largest risk for the company's valuation resides with the Chinese operations. They intend to re-assess once the FY18 financials have been released (next week).

Target price is $19.90 Current Price is $20.24 Difference: minus $0.34 (current price is over target).
If SEK meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.41, suggesting downside of -4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Morgan Stanley rates SEK as Overweight (1) -

FY18 earnings are in line with expectations. FY19 guidance indicates revenue growth of 16-20% with strength in Australia to continue. However, the company is lifting costs in order to expand into new products in Australia, China and Southeast Asia.

Morgan Stanley expects the shares to trade weaker in response to the news, and the absence of a flow through from strong revenue growth to higher earnings is disappointing.

Still, the broker considers the potential for creating shareholder value is significant and retains an Overweight rating. Target is $23. Industry view is Attractive.

Target price is $23.00 Current Price is $20.24 Difference: $2.76
If SEK meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $19.41, suggesting downside of -4.1% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Morgans rates SEK as Upgrade to Hold from Reduce (3) -

Morgans observes Seek has pushed out a lift off in profit, committing to another increase in operating and capital expenditure to grow market share in China, Southeast Asia and Australia. The company intends to pursue market dominance and more durable long-term growth.

This has prompted a downgrade in the broker's forecasts to reflect both the FY18 result and the guidance for FY19. Morgans notes, to date, the company has shown the ability to respond to competitive threats and, as the stock is now in line with the target, upgrades its rating to Hold from Reduce. Target is raised to $20.24 from $19.06.

Target price is $20.24 Current Price is $20.24 Difference: $0
If SEK meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $19.41, suggesting downside of -4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Ord Minnett rates SHL as Hold (3) -

Ord Minnett updates its model to include the JV in the US with ProMedica. Profit from the joint venture will be equity accounted income, given 49% ownership.

The broker notes PathLabs, Sonic's portion of the JV, has long been sub-scale since it was acquired in 2005 and should help provide scale in addition to an opportunity to do more deals with ProMedica in other locations. Hold rating. Target is raised to $25.30 from $25.20.

Target price is $25.30 Current Price is $26.08 Difference: minus $0.78 (current price is over target).
If SHL meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.03, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Morgan Stanley rates STO as Resume Coverage with Overweight (1) -

Morgan Stanley suspects cost reductions are nearing a trough, although there could be some minor improvements. Meanwhile, the trends in the Cooper Basin appear encouraging and the broker expects Santos will follow Beach Energy ((BPT)) and examine reserve and resource trends over the past five years.

Oil production may also stabilise after many years of decline. The broker resumes coverage after a short absence with an Overweight rating and target of $7. Industry view is Attractive.

Target price is $7.00 Current Price is $6.43 Difference: $0.57
If STO meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.98, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.0

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

Macquarie rates TCL as Outperform (1) -

It appears Transurban's FY18 financial performance has been slightly better than what Macquarie analysts had been expecting. In an initial assessment, they label the release a "good result".

Except for the 59c in FY19 distribution guidance, which seems to have missed expectations at Macquarie and the broader market in general. This leads the analysts to conclude Transurban seems confident it can secure WestConnex.

Macquarie does not disagree. Strength of the economy and numerous projects in the pipeline to support the cashflow momentum keep the rating on Outperform. Target $12.44.

Target price is $12.44 Current Price is $11.88 Difference: $0.56
If TCL meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $12.77, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Citi rates VCX as Neutral (3) -

There goes another $1bn in less desirable assets, with the analysts pointing out it represents circa 6% of the company's portfolio. This time the end station is a JV with Keppel Capital.

Vicinity Centres and Keppel will each own circa 10% equity, and the former will earn fees for providing property services, with both sharing fees for fund management services, the analysts explain.

It is Citi's understanding no other major asset sales are expected near-term. Neutral. Target is $2.73.

Target price is $2.73 Current Price is $2.76 Difference: minus $0.03 (current price is over target).
If VCX meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.81, suggesting upside of 1.7% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

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

The company has an MoU with Keppel Capital to establish and manage a wholesale property fund via a 50/50 JV. Vicinity proposes to seed the fund with $1bn in shopping centres from its balance sheet.

The fund is expected to contain eight real assets across five Australian states, offering a yield in the mid 6% range. Credit Suisse suggests the next hurdle will be securing additional investor interest in the vehicle.

Rating is upgraded to Outperform from Neutral, given more certainty regarding the outlook for asset sales. $2.79 target maintained.

Target price is $2.79 Current Price is $2.76 Difference: $0.03
If VCX meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.81, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Ord Minnett rates VCX as Accumulate (2) -

The company is planning to sell $1bn in assets to a new wholesale fund in a joint venture with Keppel Capital. This is in addition to the $1bn portfolio sale the company is currently pursuing and expected to be the final step in the asset recycling strategy.

Ord Minnett is positive about the plan, believing the pathway to material improvement in the portfolio is becoming clearer. The assets have been identified but not yet named and comprise eight locations across five states. Accumulate rating and $2.95 target maintained.

Target price is $2.95 Current Price is $2.76 Difference: $0.19
If VCX meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.81, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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