Australian Broker Call

Credit Suisse rates AGL as Neutral (3) -

Credit Suisse observes the company's 90-day commitment to come up with an alternative plan to the government's preference to keeping Liddell operating beyond 2022 is no different to its prior voluntary commitment, just now more politicised. The company's preferred plan is a mix of gas peaking, storage and demand response.

The broker believes a sale to a third-party should be avoided at all costs. By 2022 there is a likelihood that the market will be oversupplied from an energy perspective and, thus, keeping Liddell in normal operation would depress prices and reduce the value of the company's other generation assets.

Target is $23.25. Neutral rating retained.

Target price is $23.25 Current Price is $24.40 Difference: minus $1.15 (current price is over target).
If AGL meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.56, suggesting upside of 9.7% (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

UBS rates AGL as Buy (1) -

AGL has committed to deliver a plan to the Australian government within 90 days to outline how it will replace the lost electricity generation of the 1680MW Liddell coal-fired power station when it is closed in 2022.

The company's existing plan is to replace the supply with a mix of renewables and firming capacity. The cost of extending the life of Liddell has not been calculated formally but UBS notes the company has previously said it would be in the hundreds of millions of dollars.

UBS notes that modelling of a proposed Clean Energy Target undertaken as part of the Finkel review has an average wholesale electricity price from 2022 of $60/MWh. At this price the broker calculates AGL would stand to lose $32m EBIT/annum.

Buy retained. Target is $29.20.

Target price is $29.20 Current Price is $24.40 Difference: $4.8
If AGL meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $26.56, suggesting upside of 9.7% (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

Deutsche Bank rates AWC as Hold (3) -

Given greater confidence for smelter curtailments in China and discipline among ex-China producers, Deutsche Bank now expects the global aluminium market to shift into material deficit in the second half of this year through to 2019.

On the back of a tighter market the broker upgrades aluminium price forecasts by 11% for the second half and by 12% for 2018. The broker also raises alumina price forecasts by 5% for the second half, to US$330/t, and by 7% for 2018, to US$320/t.

Hold retained. Target is raised to $2.15 from $1.95.

Target price is $2.15 Current Price is $2.22 Difference: minus $0.065 (current price is over target).
If AWC meets the Deutsche Bank target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.04, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: -0.2

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

Macquarie rates BOQ as Downgrade to Underperform from Outperform (5) -

Macquarie continues to expect regional banks to benefit from mortgage re-pricing and an improved funding environment. The broker believes Bank of Queensland's recent re-rating more than captures the upside.

The broker also notes that slowing credit growth and potential longer-term headwinds to mortgage profitability do not bode well for the bank in the medium term.

Macquarie downgrades to Underperform from Outperform. Target unchanged at $12.50.

Target price is $12.50 Current Price is $12.91 Difference: minus $0.405 (current price is over target).
If BOQ 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 $11.96, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Macquarie rates CBA as Upgrade to Neutral from Underperform (3) -

Macquarie observes the bank's historical premium of around 10-15% has been eroded in recent months and CBA is now on a similar multiple to its major bank peers.

While recognising the risk of near-term underperformance, the broker envisages current valuations are more appealing.

While considering it too early to have an Outperform recommendation, the broker believes it justified to upgrade to Neutral from Underperform. Target is reduced to $78.00 from $80.50.

Target price is $78.00 Current Price is $75.91 Difference: $2.09
If CBA meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $78.54, suggesting upside of 2.6% (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 CSR as Hold (3) -

Following Deutsche Bank's upgrade to aluminium forecasts net profit estimates for CSR are increased by 2% for FY18 and 7% for FY19. The upgrades for CSR are less significant because of the hedging the company has in place. CSR is 81% hedged in FY18 and 60% hedged in FY19.

The main reason for the upgrade relates to Chinese aluminium supply rationalisation, given industry scepticism around  the size and timing of any capacity closures.

The broker retains a Hold rating. Target is upgraded to $4.51 from $4.44.

Target price is $4.51 Current Price is $4.30 Difference: $0.21
If CSR meets the Deutsche Bank target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.39, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in March.

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

Credit Suisse rates EVN as Outperform (1) -

The company is reviewing offers to acquire Edna May, its gold mine in Western Australia. Credit Suisse observes the asset has served its purpose and is now not a material part of the portfolio.

Nevertheless, Edna May attracts a disproportionate share of attention because of a history of disappointing expectations. If the asset were divested,  the broker expects proceeds would be used to strengthen the balance sheet for further improvement initiatives.

The broker retains an Outperform rating and $2.30 target.

Target price is $2.30 Current Price is $2.54 Difference: minus $0.243 (current price is over target).
If EVN meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.55, suggesting upside of 0.3% (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

Deutsche Bank rates EVN as Downgrade to Hold from Buy (3) -

Deutsche Bank considers the gold sector now fully valued. The ASX gold index is up 15% since the start of the reporting season and the Australian dollar gold price is up 4%.

The broker incorporates a proposed 3.75% WA state royalty and believes this is a marginal drag on sector valuations. Evolution Mining is downgraded to Hold from Buy on valuation. Target is $2.50.

Target price is $2.50 Current Price is $2.54 Difference: minus $0.043 (current price is over target).
If EVN meets the Deutsche Bank target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.55, suggesting upside of 0.3% (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

Macquarie rates EVN as Outperform (1) -

Macquarie suggests a sale of Edna May may be getting closer. The company has received offers for the operation and plans to progress these. This is no surprise to the broker as Edna May has been the most obvious target for divestment.

A sale is unlikely to be a major catalyst for the stock, in the broker's opinion. Evolution Mining remains one of the preferred picks in the sector.

Macquarie retains an Outperform rating. Target is $2.90.

Target price is $2.90 Current Price is $2.54 Difference: $0.357
If EVN meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.55, suggesting upside of 0.3% (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

Credit Suisse rates GNC as Outperform (1) -

The ABARES crop update was above forecasts because of a 16% upgrade to Victorian yield expectations. NSW and Queensland were below forecasts, reinforcing expectations for negligible grain exports from those regions in 2018.

Credit Suisse notes, reflecting bearish expectations, the market reacted favourably to the -6% downgrade to overall forecasts. The broker suggests, with the stock trading towards the lower end of its typical $8-10/share trading range and little structural change to earnings, a near-term seasonal downgrade probably presents some opportunity.

Outperform. Target is $9.42.

Target price is $9.42 Current Price is $8.54 Difference: $0.88
If GNC meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $9.63, suggesting upside of 17.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Morgans rates GNC as Hold (3) -

ABARES has downgraded its expected winter crop by -7%, taking it to -40% below the FY17 bumper harvest. The broker has downgraded forecast FY18 earnings for Graincorp by -25%.

While the FY17 profit result will be a good one, adding to FY18 pressure are the rising A$ and electricity costs, the broker notes. Risk is to the downside if forecast average spring rain does not materialise. Hold retained, target falls to $8.85 from $9.90.

Target price is $8.85 Current Price is $8.54 Difference: $0.31
If GNC meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $9.63, suggesting upside of 17.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Citi rates ILU as Neutral (3) -

Iluka has surprised with a sooner and higher-than-expected price increase for zircon. Citi analysts have updated their model but they have also included an update on the Aussie dollar and this erodes part of the upside.

All in all, the analysts retain the Neutral rating while lifting the price target to $10 from $9.20.

Target price is $10.00 Current Price is $9.70 Difference: $0.3
If ILU meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $9.18, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

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

The company has announced a US$130/t increase to its zircon reference price, to US$1230/t, effective October 1. Credit Suisse's view on a continued recovery in mineral sands markets is unchanged and zircon supply is notably tight.

Yet, the broker believes the stock is fairly priced at current levels. Moreover, a stubbornly high Australian dollar could continue to be an impediment in 2018. Hence, a downgrade to Neutral from Outperform. Target is reduced to $9.85 from $9.90.

Target price is $9.85 Current Price is $9.70 Difference: $0.15
If ILU meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $9.18, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Macquarie rates ILU as Underperform (5) -

The company has announced a further increase to zircon prices. The US$130/t rise in the reference price to US$1230/t from October 1 was earlier and higher than Macquarie anticipated. Hence, the broker increases its outlook for zircon and the company's earnings.

Securing offtake partners for Cataby remains the key catalyst, say the analysts. The broker is concerned that the company will need to increase pricing discounts for synthetic rutile versus rutile to secure agreements.

Macquarie considers the stock one of the most expensive under coverage and an Underperform rating is retained. Target is raised to $7.50 from $7.20.

Target price is $7.50 Current Price is $9.70 Difference: minus $2.2 (current price is over target).
If ILU meets the Macquarie target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.18, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Morgan Stanley rates ILU as Overweight (1) -

The company has flagged another increased zircon reference price, up 12% to US$1230/t from October 1. Morgan Stanley calculates that, keeping rutile prices on a base case scenario, the valuation ranges for the equity are between $9.20 and $10.15.

The target price is $9.40. Industry View is attractive. Overweight rating retained. 

Target price is $9.40 Current Price is $9.70 Difference: minus $0.3 (current price is over target).
If ILU meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.18, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

UBS rates ILU as Buy (1) -

The company has increased its zircon reference price by US$130/t to US$1230/t effective October 1. The magnitude of the hike exceeds UBS expectations. The broker lifts earnings estimates by 17% for 2018.

Attention is now expected to switch to titanium dioxide pricing. UBS expects further positive news on pricing will drive the share price higher.

Buy retained. Target is $11.00.

Target price is $11.00 Current Price is $9.70 Difference: $1.3
If ILU meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $9.18, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Macquarie rates LLC as Outperform (1) -

Macquarie analyses the company's urban development projects in Malaysia and Singapore. The re-weighting of capital offshore should help fill an earnings hole in FY20.

Australia is covered currently 70% of invested capital and this is likely to trend to around 60%, the broker suggests.

With the company offering a reasonable return and the Asian tour increasing confidence for FY20 and beyond, Macquarie retains an Outperform rating. Target is raised to $18.09 from $17.24.

Target price is $18.09 Current Price is $17.35 Difference: $0.74
If LLC meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $17.40, suggesting downside of -1.3% (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

Citi rates MQG as Sell (5) -

Target price at $72 and Sell rating remain intact post Macquarie re-affirming its FY18 guidance as "broadly in-line" with FY17. Citi analysts note the Federal Government’s bank levy has been absorbed within this guidance.

The analysts complain the opacity around funds and performance fees remains, plus the strong AUD continues to represent a headwind. Citi remains of the view Macquarie still needs to find "a next wave of growth" beyond FY18.

Estimates have been lifted by 3%.

Target price is $72.00 Current Price is $87.42 Difference: minus $15.422 (current price is over target).
If MQG meets the Citi target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.09, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in March.

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

Deutsche Bank rates NCM as Downgrade to Sell from Hold (5) -

Deutsche Bank considers the gold sector now fully valued. The ASX gold index is up 15% since the start of the reporting season and the Australian dollar gold price is up 4%.

The broker incorporates a proposed 3.75% WA state royalty and believes this is a marginal drag on sector valuations. Newcrest is downgraded on valuation.

Rating is downgraded to Sell from Hold. Target is $19.

Target price is $19.00 Current Price is $22.23 Difference: minus $3.23 (current price is over target).
If NCM 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 $20.14, suggesting downside of -10.2% (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 NST as Downgrade to Sell from Hold (5) -

Deutsche Bank considers the gold sector now fully valued. The ASX gold index is up 15% since the start of the reporting season and the Australian dollar gold price is up 4%.

The broker incorporates a proposed 3.75% WA state royalty and believes this is a marginal drag on sector valuations. Northern Star is downgraded to Sell from Hold on valuation. Target is reduced to $4.40 from $4.50.

Target price is $4.40 Current Price is $5.29 Difference: minus $0.89 (current price is over target).
If NST meets the Deutsche Bank target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.87, suggesting downside of -7.6% (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

Morgan Stanley rates ORA as Overweight (1) -

Morgan Stanley observes the company strategy is simple and well executed. Execution on growth capital initiatives and strong cash flow conversion continue to mean that the company achieves margin expansion, increased dividends and higher returns. This comes despite the headwinds in the Australian market.

Morgan Stanley also notes the under geared balance sheet and, as such, expects earnings will continue to be subject to consensus upgrades over the medium term.

Overweight rating retained. Target is raised to $3.38 from $3.27. Industry view is Cautious.

Target price is $3.38 Current Price is $3.11 Difference: $0.27
If ORA meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.21, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Credit Suisse rates QBE as Underperform (5) -

Group CEO John Neal will step down and be succeeded by the current CEO of Australasia, Patrick Regan, on January 1, 2018.

Credit Suisse believes the market will interpret the change as a new beginning but urges cautious about expecting any quick turnaround in the company's earnings.

 Underperform retained. Target is $11.

Target price is $11.00 Current Price is $10.50 Difference: $0.5
If QBE meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.64, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.1

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

Macquarie rates QBE as Outperform (1) -

Macquarie believes the market is overestimating the potential downside from hurricanes Harvey and Irma. The broker's base case for QBE is an impact of US$200m. Hence, Macquarie believes QBE is unlikely to exceed its US$900m aggregate reinsurance program.

The broker recommends investors look through these events to a US market which may now be heading into a hardening cycle. Outperform retained. Target is $12.50.

Target price is $12.50 Current Price is $10.50 Difference: $2
If QBE meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $11.64, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.1

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

Morgans rates RRL as Reduce (5) -

Regis has released a maiden reserve and pre-feasibility study for McPhillamy's, which outlines a robust project consistent with Duketon. A high strip ratio and low grades will increase costs in early years, the broker notes.

The broker is confident in management's expertise and awaits the definitive feasibility study due in December. The PFS and reserve release lead to a target increase to $3.65 from $3.28. Reduce retained on valuation.

Target price is $3.65 Current Price is $3.97 Difference: minus $0.32 (current price is over target).
If RRL meets the Morgans target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.62, suggesting downside of -9.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.6

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

Morgans rates SEK as Hold (3) -

Invest now or risk missing out. That's the current mantra at Seek, as the company yesterday provided more detail on why FY18 guidance for 20-25% revenue growth will only result in 10% earnings growth. There are many opportunities to be exploited.

The broker estimates that earnings growth achieved over five years due to investment will need to be at least 1.5x that of the initial FY18 cost. The broker makes no changes to forecasts and retains Hold and a $17.39 target.

Target price is $17.39 Current Price is $16.69 Difference: $0.7
If SEK meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $16.84, suggesting downside of -0.6% (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

Citi rates SIQ as Buy (1) -

Post the recently announced acquisitions, Citi analysts note Smartgroup is now the largest novated leasing company in Australia. Plus the company is closing the gap with McMillan Shakespeare ((MMS)) for salary packaging.

The acquisitions combined are believed to be 10% accretive. Citi still sees plenty of reasons to jump on board this stock. Incorporating higher longer term growth assumptions has pushed up the price target by 17% to $10.15.

The analysts observe the stock trades at a -12% discount to the Small Industrials PE of 17.2x. Buy rating retained.

Target price is $10.15 Current Price is $9.10 Difference: $1.05
If SIQ meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $9.28, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Morgans rates SLC as Upgrade to Add from Hold (1) -

In July 2016 Morgans downgraded Superloop to Hold on the belief investors were getting ahead of themselves in valuing the growth of a business that will take some time, leading to the possibility of disappointment. But investors have now weathered that "trough of disillusionment" (sic) and the broker believes operational risk is skewed to the upside.

The last twelve months have seen strong sales in Singapore, completion of the Hong Kong network, expansion of the Australian network, a strengthened sales team and a track record that is starting to deliver solid sales growth. Morgans upgrades to Add. Target rises to $2.81 from $2.15.

Target price is $2.81 Current Price is $2.47 Difference: $0.34
If SLC meets the Morgans target it will return approximately 14% (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

Morgan Stanley rates STO as Overweight (1) -

Morgan Stanley observes sentiment has improved significantly over the last couple of months given the cost reductions in progress, combined with stabilising oil prices.

Breaking even for free cash flow has been lowered, making the business much more defensive in terms of lower oil prices, while retaining significant upside should oil prices continue to move higher. The broker also notes longer-term assets like Darwin LNG and PNG are becoming incrementally more valuable.

Overweight. Target is raised to $4.50 from $3.99. Industry View: In Line.

Target price is $4.50 Current Price is $3.92 Difference: $0.58
If STO meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.04, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.6

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

Credit Suisse rates TAH as Outperform (1) -

Credit Suisse suspects organic revenue growth may be needed in order to exceed the $130m of synergy related to the merger with Tatts ((TTS)).

The company has said it expects pari-mutuel betting to decline but the broker suggests now might be the time for a strategy to revive it. Tabcorp may soon operate all the Australian pari-mutuel pools, if and when the merger is completed.

Outperform retained. Target is $4.80.

Target price is $4.80 Current Price is $4.32 Difference: $0.48
If TAH meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.51, suggesting upside of 6.1% (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 TLS as Sell (5) -

Citi analysts are making some bold projections in today's update. First up: reported net profit is expected to peak in FY18 at $4bn. By FY22 this will have halved to $2bn only.

Citi's conclusion from the above is that Telstra's sustainable dividend is 12c-15c only (versus a promised 22c at present). In reflection of a faster NBN roll-out, estimates have been reduced by between -4% and -19%, including higher D&A.

Target price declines to $3.35 from $3.60. Sell rating retained.

Target price is $3.35 Current Price is $3.70 Difference: minus $0.352 (current price is over target).
If TLS meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.88, suggesting upside of 6.6% (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

UBS rates TOX as Buy (1) -

FY18 will conclude the majority of the transition from lower-quality resource construction earnings and be replaced by health waste business.

Not only does this materially increase the quality of earnings but UBS suggests it brings cross-selling opportunities. The broker calculates that flat net profit growth is now factored into FY18 multiples.

Buy retained. Target is raised to $2.95 from $2.50.

Target price is $2.95 Current Price is $2.61 Difference: $0.34
If TOX meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.40, suggesting downside of -6.8% (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

Citi rates WFD as Neutral (3) -

Westfield shares have attracted attention from investors recently, report Citi analysts. The reason stems from a -30% fall in share price. At present the discount to Net Asset Value (NAV)  is -18%, note the analysts.

Citi analysts also point out, when using a discounted cashflow (DCF) approach, the current valuation still implies a 17% premium (not discount) and on simple Price-Earnings (PE) approach, the shares are trading on the highest multiple in the sector.

It is the analysts view that pressure on earnings is the key to understanding share price performance. They remain positioned below market consensus and observe the market has consistently over-estimated earnings potential in recent years.

Westfield remains Citi's least preferred retail large cap in Australia. Neutral rating retained. Target $8.32 (unchanged).

Target price is $8.32 Current Price is $7.96 Difference: $0.365
If WFD meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $9.10, suggesting upside of 15.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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