Australian Broker Call

Morgan Stanley rates ABC as Upgrade to Equal-weight from Underweight (3) -

Morgan Stanley observes Adelaide Brighton has de-rated meaningfully and is now below its five-year average. The broker believes, at this level and still trading at a premium to peers, the stock is more attractive from a relative valuation perspective.

Given the changes to management and timeline for any updates to strategy, the broker does not envisage any urgency in owning the stock.

Rating is upgraded to Equal-weight from Underweight. Target is steady at $4.75. Industry view: Cautious.

Target price is $4.75 Current Price is $4.58 Difference: $0.17
If ABC meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.89, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates AIZ as Outperform (1) -

The airline has made cuts to second half capacity through reductions in US off-peak services, which has driven a reduction in the outlook for market capacity.

In reviewing the outlook Macquarie observes demand is strong and the market backdrop has improved around lower fuel prices and the rationalisation of competitor capacity.

Valuation remains attractive and the broker retains an Outperform rating. Target is unchanged at NZ$3.65.

Current Price is $3.05. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: -0.3

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

Credit Suisse rates AUB as Downgrade to Neutral from Outperform (3) -

As a result of the uncertainty generated by the Hayne Royal Commission and the Australian Securities & Investments Commission submission, Credit Suisse lowers the target to $13.45 from $14.50. Rating is downgraded to Neutral from Outperform.

While the issues are in relation to certain retail products, the debate in recent months highlights one of the broker's biggest concerns: that a ban on conflicted remuneration could be extended to general insurance products.

Target price is $13.45 Current Price is $12.43 Difference: $1.02
If AUB meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Credit Suisse rates AWC as Outperform (1) -

The fourth quarter report from Alcoa highlighted a strong year for the AWAC alumina business. Credit Suisse observes cost performance was solid and the cash costs of production are falling as throughput has been cranked up after the strikes.

The broker believes a second half restart of Alunorte is likely. Credit Suisse maintains an Outperform rating and $3.10 target for Alumina Ltd.

Target price is $3.10 Current Price is $2.42 Difference: $0.68
If AWC meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.6

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

Ord Minnett rates AWC as Hold (3) -

Ord Minnett observes Alcoa reported a solid result and costs were lower than expected. This lifts near-term earnings forecasts.

The broker considers Alumina Ltd relatively cheap but maintains a Hold rating because of uncertainty in the market, as a result of the pending re-start of Alunorte. Target is raised to $2.60 from $2.50.

Target price is $2.60 Current Price is $2.42 Difference: $0.18
If AWC meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.6

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

UBS rates AWC as Neutral (3) -

Alcoa's revenue was in line with expectations while operating earnings (EBITDA) beat consensus forecasts. AWAC production of alumina was 3.1mt and bauxite 11.1mt.

UBS expects Alumina Ltd to announce underlying earnings of US$692m and a final dividend of US12.9c at the 2018 result. Neutral rating maintained. Target is reduced to $2.20 from $2.70.

A sharp decline in alumina prices from a re-start at Alunorte remains the biggest risk in the broker's opinion.

Target price is $2.20 Current Price is $2.42 Difference: minus $0.22 (current price is over target).
If AWC 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 $2.76, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.6

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

Morgans rates CCP as Add (1) -

The company will report its first half result on January 29. Morgans expects a reaffirmation of full year net profit guidance of $67-69m, with the risk to the upside.

The broker believes the company's 3-5 year growth profile is attractive and maintains an Add rating.

The broker expects the stock to re-rate higher when the US earnings opportunity becomes clearer. Target is raised to $22.65 from $21.97.

Target price is $22.65 Current Price is $21.13 Difference: $1.52
If CCP meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

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

Macquarie rates DXS as Outperform (1) -

Dexus has pre-emptive rights to acquire the stake which GPT ((GPT)) intends to sell in MLC. Macquarie observes the acquisition, of the 50% stake, could be funded by debt should Dexus proceed.

The broker suspects a more likely outcome is a partial equity-funded transaction. The broker considers office markets attractive, particularly versus retail, and Dexus has the prime offering among large cap A-REITs.

Outperform rating and $11.06 target maintained.

Target price is $11.06 Current Price is $11.12 Difference: minus $0.06 (current price is over target).
If DXS meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.60, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Credit Suisse rates IAG as Outperform (1) -

With a range of regulatory reviews and updates set to affect financial services in coming months, Credit Suisse believes Insurance Australia Group is more of a safe haven and less exposed compared with many stocks in the sector.

While upside potential has reduced slightly, the broker maintains an Outperform rating. Target is reduced to $7.65 from $7.90.

Target price is $7.65 Current Price is $7.19 Difference: $0.46
If IAG meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.58, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Citi rates IFL as Neutral (3) -

At face value Citi believes the company's trading multiples are undemanding and notes the high forecast dividend yield. Nevertheless, risk is elevated.

There is potential for the ANZ acquisition to be blocked and adverse outcomes from the Hayne Royal Commission, as well as ongoing remediation efforts and the action taken by APRA against executives.

Citi pushes out the ANZ P&I acquisition until FY20. The broker maintains a Neutral/High Risk rating and raises the target to $5.70 from $4.50. FY19 estimates for earnings per share are reduced by -12% and FY20 by -9%.

Target price is $5.70 Current Price is $5.52 Difference: $0.18
If IFL meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.99, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

UBS rates KGN as Buy (1) -

The first half trading update indicated momentum continues to improve. Sales growth for both exclusive brands and partner brands accelerated while global brands deteriorated, driven by Apple.

UBS downgrades estimates for earnings per share by -3% as better cost control is offset by cuts to gross margins. Buy and $5.50 target retained.

Target price is $5.50 Current Price is $4.60 Difference: $0.9
If KGN meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Macquarie rates MHJ as Outperform (1) -

Macquarie observes the new CEO, Daniel Bracken, has had an immediate impact on trading, returning the business to a top-line focus. The strategy of significantly reducing aggressive promotional activity has been abandoned.

Despite this early success, the broker believes investors will demand more in the second half in order to support a material share price re-rating. Outperform rating maintained. Target is steady at $0.85.

Target price is $0.85 Current Price is $0.58 Difference: $0.27
If MHJ meets the Macquarie target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $0.70, suggesting upside of 20.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Deutsche Bank rates MP1 as Buy (1) -

Post second half market update, Deutsche Bank analysts have retained the Buy rating while adding 25c to the price target; $5.25 from $5.

Target price is $5.25 Current Price is $3.99 Difference: $1.26
If MP1 meets the Deutsche Bank target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting upside of 21.9% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

UBS rates MP1 as Buy (1) -

UBS was impressed with the company's revenue momentum in the December quarter. Monthly recurring revenue growth was 14% quarter on quarter.

The company is expected to show the benefit of an increased sales force in the second half. UBS maintains a Buy rating and raises the target to $4.90 from $4.80.

Management is confident it is on track to meet the target of 300 data centres by the end of FY19.

Target price is $4.90 Current Price is $3.99 Difference: $0.91
If MP1 meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

UBS rates NWS as Upgrade to Buy from Neutral (1) -

UBS has data which shows that price was the main reason why consumers either left Foxtel or never subscribed. However, with around 70% of households taking at least one pay-TV/SPAD product, consumers appear willing to pay for reasonably-priced content.

Kayo Sports has a lower price point and the broker believes it can significantly grow Foxtel's household penetration. The risk of cannibalisation exists but may be less than feared.

Following the recent underperformance of the share price, UBS upgrades to Buy from Neutral and raises the target to $20.75 from $20.50, to allow for the upside potential.

Target price is $20.75 Current Price is $17.49 Difference: $3.26
If NWS meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $21.85, suggesting upside of 24.9% (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: 0.4

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

Credit Suisse rates ORE as Outperform (1) -

December quarter production has revealed the impact of the precipitous -28% decline in sales prices, compressing gross margin by -34% quarter on quarter.

No explicit price guidance was provided for 2019 as contract negotiations are still in progress. Management has discerned no change in sentiment or market conditions since December, which Credit Suisse takes to mean weaker prices have persisted.

Outperform rating maintained. The target is trimmed to $5.15 from $5.30.

Target price is $5.15 Current Price is $3.39 Difference: $1.76
If ORE meets the Credit Suisse target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $5.30, suggesting upside of 56.4% (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

UBS rates ORE as Buy (1) -

UBS observes the fall in December quarter production was largely because the company restrained production in order to build up brine depth. Softness in China also affected the broader lithium market.

Inventory levels are expected to return to normal by the end of January. The company still expects to increase production on FY18.

UBS maintains a Buy rating but lowers the target to $4.65 from $5.15. The broker lowers realised prices estimates, which means -40% reductions to FY19/20 earnings estimates.

Target price is $4.65 Current Price is $3.39 Difference: $1.26
If ORE meets the UBS target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $5.30, suggesting upside of 56.4% (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

Macquarie rates PLS as Outperform (1) -

Macquarie observes the ramp up at Pilgangoora is going well and production is in line with expectations. The broker believes the company will exit the third quarter at the full production rate for stage I and declare commercial production at the start of the fourth quarter of FY19.

Incorporating preliminary production and shipment figures means FY19 estimates for earnings per share are lowered by -60%, with less than 1% in changes thereafter. Outperform rating and $1.20 target maintained.

Target price is $1.20 Current Price is $0.71 Difference: $0.49
If PLS meets the Macquarie target it will return approximately 69% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 51.4% (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

Citi rates S32 as Buy (1) -

Citi found December quarter production mixed, with manganese, nickel, silver and metallurgical coal above estimates but thermal coal, manganese alloy and alumina below.

The company has maintained production guidance, except for Illawarra coal which was raised by 7%, given the improved performance from the longwall.

The broker expects the company to generate cumulative US$3.3bn of free cash flow over the next three years, which would pave the way for further capital management/dividends.

Buy rating maintained. Target is reduced to $4.30 from $4.50.

Target price is $4.30 Current Price is $3.41 Difference: $0.89
If S32 meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $3.88, suggesting upside of 13.8% (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: 0.7

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

Credit Suisse rates S32 as Outperform (1) -

Production guidance is unchanged, besides Illawarra, where guidance has moved to 6.5mt from 6.1mt on the back of a stronger performance in the longwall.

Credit Suisse believes guidance is not without risk, most notably Worsley and Brazil alumina. Yet, the broker finds nothing to materially change the outlook and maintains an Outperform rating and $4 target.

Target price is $4.00 Current Price is $3.41 Difference: $0.59
If S32 meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.88, suggesting upside of 13.8% (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: 0.7

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

Macquarie rates S32 as Outperform (1) -

Macquarie found December quarter production solid and cash-generating assets are performing well. The broker envisages potential for upside to capital management initiatives in the form of a US$80m special dividend, given the speed of the buyback.

Macquarie also finds progress on the disposal of SA Coal a positive development. The broker believes any weakness as the market adjusts to the short-term downside in spot prices is a buying opportunity, and maintains an Outperform rating and $3.80 target.

Target price is $3.80 Current Price is $3.41 Difference: $0.39
If S32 meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.88, suggesting upside of 13.8% (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: 0.7

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

Morgans rates S32 as Hold (3) -

Morgans found the December quarter operating result reasonable, although fears its forecasts are too optimistic for Cannington and Illawarra.

As the focus on obtaining new growth increases the broker believes the potential for capital management will be reduced, although the overall value proposition will strengthen.

Morgans maintains a Hold rating and believes commodity prices are the key risk to the call. Target is raised to $3.47 from $3.28.

Target price is $3.47 Current Price is $3.41 Difference: $0.06
If S32 meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.88, suggesting upside of 13.8% (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: 0.7

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

Ord Minnett rates S32 as Hold (3) -

The company performed solidly over the first half, Ord Minnett observes. The broker recognises the strength in the balance sheet, attractive near-term multiples and potential for further capital management.

However, a Hold rating is maintained on valuation and the broker is cautious about the sector as a whole, believing macro economic data will deteriorate as the year gets underway. Target is $3.30.

Target price is $3.30 Current Price is $3.41 Difference: minus $0.11 (current price is over target).
If S32 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 $3.88, suggesting upside of 13.8% (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: 0.7

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

UBS rates S32 as Buy (1) -

Coal production was -8% below UBS forecasts in the December quarter, despite the strong volumes at Illawarra. Australian manganese alloy production also under-delivered against expectations, given an unplanned outage at the furnace.

UBS expects the company to return the remainder of the on-market buyback to the market at the first half result in the form of a special dividend. First half underlying earnings of US$597m are expected. Buy rating and $4.10 target maintained.

Target price is $4.10 Current Price is $3.41 Difference: $0.69
If S32 meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.88, suggesting upside of 13.8% (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: 0.7

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

Credit Suisse rates SDF as Downgrade to Neutral from Outperform (3) -

The ASIC submission to the Hayne Royal Commission has indicated the regulator believes a ban on conflicted remuneration should be extended to general insurance products.

While the response was in relation to retail products, Credit Suisse believes this will create uncertainty and it could take some time before there is clarity on the issue.

Rating is downgraded to Neutral from Outperform and target reduced to $3.00 from $3.15.

Target price is $3.00 Current Price is $2.70 Difference: $0.3
If SDF meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.26, suggesting upside of 20.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Citi rates SYD as Downgrade to Sell from Buy (5) -

Citi has a weaker organic growth outlook, resulting in reductions of -7% and -12% for distributions in 2019 and 2020, respectively.

The broker also believes regulatory uncertainty is likely to drive underperformance. The broker downgrades to Sell from Buy, believing headwinds are gathering pace.

The broker prefers property and utility companies which have more appealing distribution growth rates and lower leverage. Target is reduced to $6.00 from $7.74.

Target price is $6.00 Current Price is $6.42 Difference: minus $0.42 (current price is over target).
If SYD meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.22, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates TCL as Sell (5) -

While the regulatory risks have passed, Citi is cautious on the stock given the potential for an increase in volumes that are sensitive to economic conditions. Leverage, expenditure and the credit cycle are also placing downside pressure on the pay-out ratio.

Sell rating maintained. Target is reduced to $10.18 from $10.23.

Target price is $10.18 Current Price is $11.85 Difference: minus $1.67 (current price is over target).
If TCL meets the Citi target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.27, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Morgan Stanley rates VEA as Initiation of coverage with Equal-weight (3) -

Morgan Stanley observes 2018 was a difficult time for the company and a change to the pricing strategy at Coles ((COL)) could offer hope for 2019. The broker finds the company is not alone in terms of petrol retailers and refining companies in being under pressure.

Lower margins have plagued refiners. Competition is rising and independents are steadily winning market share in retailing. The Coles relationship remains key to the retail performance.

Morgan Stanley initiates coverage with an Equal-weight rating and $2.10 target. Industry view is Attractive.

Target price is $2.10 Current Price is $1.84 Difference: $0.26
If VEA meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.44, suggesting upside of 32.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Citi rates WHC as Buy (1) -

After a weak September quarter Citi notes an improvement in both December quarter production and sales volumes. Higher cost guidance has led to a -4% downgrade to earnings estimates for FY19.

Coal inventory at the end of the quarter was higher than normal and lead to stronger saleable production in the second half, hence no change to guidance. Citi maintains a Buy rating and $5.90 target.

Target price is $5.90 Current Price is $4.85 Difference: $1.05
If WHC meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $5.65, suggesting upside of 16.4% (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

Credit Suisse rates WHC as Outperform (1) -

December quarter production was strong with a record at Maules Creek. While costs are higher, Credit Suisse notes a stronger second half is expected.

The broker is happy with the move up in the stock but does not believe the quarterly report, albeit fair, justified the reaction. Capital management is considered the next catalyst, consuming a loft of the speculation.

The broker maintains an Outperform rating and $5.50 target.

Target price is $5.50 Current Price is $4.85 Difference: $0.65
If WHC meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.65, suggesting upside of 16.4% (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

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

December quarter operations were strong, with record production at Maules Creek. The company has guided to cost increases and this results in large reductions to Macquarie's estimates for earnings per share.

As a result the broker cuts the target to $4.70 from $5.60 and downgrades to Neutral from Outperform.

The saving grace is that the company could pay an above-average dividend but Macquarie suspects the surprise increase to costs will outweigh this.

Target price is $4.70 Current Price is $4.85 Difference: minus $0.15 (current price is over target).
If WHC meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.65, suggesting upside of 16.4% (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 WHC as Overweight (1) -

Saleable coal production was below Morgan Stanley's expectations in the December quarter while there was record run-of-mine production at Maules Creek.

Cost guidance may have increased but the broker considers the stock good value. Overweight rating maintained. Target is $6.35. Industry view: In-Line.

Target price is $6.35 Current Price is $4.85 Difference: $1.5
If WHC meets the Morgan Stanley target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $5.65, suggesting upside of 16.4% (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

Morgans rates WHC as Add (1) -

Narrabri has successfully ramped back up to full production while the company pushed Maules Creek hard during the December quarter.

Renewal of the Tarrawonga fleet will draw on $100m of new operating leases before the September quarter, while Morgans notes abnormally high coal stocks will delay the release of that portion of operating cash flow into the second half.

The broker believes the stock is a compelling exposure to stronger-than-expected thermal coal dynamics amid potential for capital management. Morgans maintains an Add rating and reduces the target to $5.82 from $6.00.

Target price is $5.82 Current Price is $4.85 Difference: $0.97
If WHC meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.65, suggesting upside of 16.4% (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

Ord Minnett rates WHC as Accumulate (2) -

The December quarter report was slightly ahead of Ord Minnett's forecasts, mostly because of better prices. The broker believes the price outlook more than offsets the higher costs.

Ord Minnett considers the stock cheap and maintains an Accumulate rating and $5.40 target. The outlook for coal, particularly thermal coal, appears strong.

Target price is $5.40 Current Price is $4.85 Difference: $0.55
If WHC meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.65, suggesting upside of 16.4% (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

UBS rates WHC as Buy (1) -

Coal production in the December quarter beat UBS estimates. However, sales came in -16% below forecasts. Production guidance of 22-23mt of saleable coal remains unchanged for FY19 while cost guidance has been lifted by $3/t in FY19.

Run of mine production will cease at Sunnyside and Rocglen at the end of FY19. UBS notes the short-term outlook for quality thermal coal is positive and the company is likely to continue increasing its product in this market. Buy rating maintained. Target is $6.00.

Target price is $6.00 Current Price is $4.85 Difference: $1.15
If WHC meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.65, suggesting upside of 16.4% (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

Citi rates WPL as Neutral (3) -

2019 expenditure guidance in the December quarter report missed expectations, although Citi suspects expenditure from future periods was pulled into 2019 and the market may have overlooked this.

Citi disagrees with conjecture in the market that strong commodity prices in the second half could lead to a 100% pay-out ratio or special dividend. The broker forecasts a significant bill for growth expenditure in order to deliver LNG and oil projects.

Neutral maintained. Target is raised to $33.94 from $33.08.

Target price is $33.94 Current Price is $33.91 Difference: $0.03
If WPL meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $36.41, suggesting upside of 7.4% (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: 0.6

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

Credit Suisse rates WPL as Outperform (1) -

Revenue was up 23% and production up 4% in the December quarter. Credit Suisse revises oil price assumptions and takes a more conservative view on Pluto reserves.

The broker believes the Outperform rating is supported by progress on Wheatstone and catalysts from Scarborough.

The stock is considered to represent quality and relative resilience on the downside in a volatile oil price environment. Target is reduced to $37.75 from $43.42.

Target price is $37.75 Current Price is $33.91 Difference: $3.84
If WPL meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $36.41, suggesting upside of 7.4% (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: 0.6

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

Macquarie rates WPL as Neutral (3) -

December quarter results were largely in line. Macquarie was surprised by the flat expectations for production in 2019 of 88-94 mmboe.

The broker suspects this could be beaten if Greater Enfield and Vincent are online early and/or Wheatstone runs above nameplate.

The broker believes the company is well placed for higher capital expenditure on future growth projects and maintains a Neutral rating, reducing the target to $33.20 from $33.30.

Target price is $33.20 Current Price is $33.91 Difference: minus $0.71 (current price is over target).
If WPL 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 $36.41, suggesting upside of 7.4% (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: 0.6

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

Morgan Stanley rates WPL as Overweight (1) -

Woodside has finished 2018 strongly, beating Morgan Stanley's forecast for production, sales and sales revenue. However, production guidance for 2019 is lower than expected.

This appears to be stemming from turnaround stages at LNG plants, with no change to the underlying growth thesis.

The broker wonders whether Woodside will make a capital management announcement at the February results, given strong franking credits and operating cash flow.

Overweight rating retained. Industry view: Attractive. Price target is $40.00.

Target price is $40.00 Current Price is $33.91 Difference: $6.09
If WPL meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $36.41, suggesting upside of 7.4% (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: 0.6

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

Morgans rates WPL as Add (1) -

Morgans was pleased with the December quarter result, which meant the company finished 2018 within full year guidance. The result was buoyed by higher oil-linked LNG prices and solid production from the North West Shelf, Pluto and Wheatstone.

Morgans also notes Browse and Scarborough are making progress. The broker maintains an Add rating and raises the target to $38.17 from $37.83.

Target price is $38.17 Current Price is $33.91 Difference: $4.26
If WPL meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $36.41, suggesting upside of 7.4% (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: 0.6

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

Ord Minnett rates WPL as Accumulate (2) -

December quarter production was strong and sales revenue was ahead of Ord Minnett's estimates. The broker notes a number of milestones were passed in relation to key developments.

In particular, this concerns the now-binding agreement between the North West Shelf JV and the Browse JV to process gas at Karratha.

Ord Minnett maintains an Accumulate rating with a $34.50 target.

Target price is $34.50 Current Price is $33.91 Difference: $0.59
If WPL meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $36.41, suggesting upside of 7.4% (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: 0.6

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

UBS rates WPL as Buy (1) -

The December quarter production result was slightly ahead of UBS estimates, driven by higher output from North West Shelf and Pluto. Capital expenditure guidance of $1.6bn was higher than the broker previously estimated and the increase is attributed to timing.

UBS is increasingly confident Woodside will deliver on its FID timetable for both Scarborough and Browse in 2020. Buy rating maintained. Target is reduced to $37.30 from $40.70.

Target price is $37.30 Current Price is $33.91 Difference: $3.39
If WPL meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $36.41, suggesting upside of 7.4% (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: 0.6

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