Australian Broker Call

Macquarie rates A2M as Outperform (1) -

Macquarie reviews the company's market after the investor presentation, which highlighted an increase in market share in the Chinese infant formula segment over the last two months.

This share increase comes on the back of improved availability of stock and strengthening demand. Macquarie believes there is ample opportunity for the company to capture additional market share and envisages upside risks to margins.

Macquarie maintains an Outperform rating and increases the target to NZ$8.40 from NZ$6.35.

Current Price is $7.20. Target price not assessed.

Current consensus price target is $6.00, suggesting downside of -16.7% (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: 0.6

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

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

First half results were ahead of Credit Suisse estimates amid strong volumes. The broker suspects the company is lagging behind its electricity distribution peers in delivering operating efficiencies.

The broker increases net profit estimates by 16.8% and 15.8% for FY18 and FY19 respectively, based on the first half performance. Rating is downgraded to Neutral from Outperform. Target is raised to $1.85 from $1.80.

Target price is $1.85 Current Price is $1.85 Difference: $0
If AST meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.77, suggesting downside of -4.2% (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

Macquarie rates AZJ as Upgrade to Outperform from Neutral (1) -

The company is working with other investors to restructure the port and coal business around Wiggins Island, Queensland. Macquarie finds the concept interesting, albeit with numerous challenges.

The main issue in the structure, the broker believes, is the take-or-pay obligations to the port which are material for the miners. Upside for Aurizon is likely to emerge from the lifting of volumes and the lowering of operating costs.

Target is $5.33. Upgrade to Outperform from Neutral, as valuation is the core driver and the stock appears attractive against the target.

Target price is $5.33 Current Price is $5.16 Difference: $0.17
If AZJ meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.92, suggesting downside of -4.6% (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

Macquarie rates CGC as Outperform (1) -

The company has upgraded net profit guidance, as Macquarie suspected. Costa now expects a 20% lift in FY18 net profit versus the 10% lift that was previously flagged.

Macquarie expects positive momentum to continue in the next 6-12 months on the back of further joint venture potential. Outperform rating and $7 target maintained.

Target price is $7.00 Current Price is $6.60 Difference: $0.4
If CGC meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.74, 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

Ord Minnett rates CGC as Hold (3) -

The company has updated guidance, now expecting FY18 net profit growth of around 20%. Although the quantum of the increase is material, Ord Minnett suggests it was driven mainly by previously-announced corporate activity.

The broker upgrades earnings forecasts by 12% and 13% for FY18 and FY19 respectively. Of these upgrades, 4% and 5% respectively is on an organic basis.

Hold maintained. Target is raised to $6.43 from $5.01.

Target price is $6.43 Current Price is $6.60 Difference: minus $0.17 (current price is over target).
If CGC 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 $6.74, 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

UBS rates CGC as Downgrade to Neutral from Buy (3) -

The company has upgraded FY18 guidance for net profit to be up 20%, versus prior guidance of a 10% increase. UBS suggests this has already been priced in.

The company attributes the upgrade to the increased contribution from African Blue. The broker believes the near and long-term opportunities have been priced in and downgrades to Neutral from Buy. Target is raised to $6.80 from $5.70.

Target price is $6.80 Current Price is $6.60 Difference: $0.2
If CGC meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.74, 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

Macquarie rates DHG as Initiation of coverage with Underperform (5) -

Macquarie initiates coverage on Domain with a $3.40 target and Underperform rating following the separation from Fairfax ((FXJ)).

The broker considers the company well-positioned for growth because of the strong sector fundamentals as well as specific opportunities in certain market segments such as Queensland and commercial, where it is coming from a low base. Against this the current valuation appears challenging.

Target price is $3.40 Current Price is $3.70 Difference: minus $0.3 (current price is over target).
If DHG meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

UBS rates IAG as Neutral (3) -

UBS considers the implications of the company's plan to implement an additional whole-of-portfolio quota share. Several factors have also encouraged the broker to assume a more generous future pay-out ratio.

While a higher proportion of exchange commission revenues provides greater stability for margins it also introduces other challenges, UBS asserts.

A growing lack of visibility in the P&L does partly offset the attraction of reduced volatility, and is one of the reasons that holds the broker back from signing up to this "broking" thesis. Neutral retained. Target is raised to $6.80 from $6.15.

Target price is $6.80 Current Price is $7.19 Difference: minus $0.39 (current price is over target).
If IAG meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.41, suggesting downside of -10.9% (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

Credit Suisse rates JBH as Underperform (5) -

Credit Suisse observes the company has been quietly making changes to its delivery options. With the entry of Amazon to this market, competition in deliveries, with additional cost from subsidised delivery, is likely to increase.

As of November, JB Hi-Fi's standard delivery fee is between -50-75% lower than in June and a range of additional delivery options have been introduced.

A pre-Christmas launch of Amazon appears increasingly likely and suggests to the broker a very "promotional" Christmas and downside risk to profitability in the first half - earlier than previously expected.

Underperform rating and $19.89 target.

Target price is $19.89 Current Price is $22.70 Difference: minus $2.81 (current price is over target).
If JBH meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.58, suggesting upside of 8.3% (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

Deutsche Bank rates MYO as Buy (1) -

MYOB will buy Reckon's ((RKN)) Accountant Group segment, a software provider to accountants in A&NZ. The acquisition is strategically sound, the broker suggests, adding to MYOB's existing accounting client base.

The ACCC may have concerns however, so the broker is not yet adjusting its valuation. Given MYOB plans to invest earnings generated by the acquired clients back into sales & marketing, the earnings impact is less relevant. Buy and $4.40 target retained.

Target price is $4.40 Current Price is $3.71 Difference: $0.69
If MYO meets the Deutsche Bank target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.07, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Macquarie rates MYO as Neutral (3) -

The company will acquire the assets of Reckon's ((RKN)) accountant group in Australasia for $180m. MYOB will reinvest earnings in the first two years to fund increased sales and marketing.

On this basis Macquarie estimates the accretion to earnings from the transaction is in the low single digits and will be higher after 2020, while being dilutive in the early years.

Neutral rating and $3.99 target maintained. While the broker envisages strategic merits in the acquisition the balance sheet is considered stretched.

Target price is $3.99 Current Price is $3.71 Difference: $0.28
If MYO meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.07, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

UBS rates MYO as Neutral (3) -

UBS considers the potential acquisition of Reckon's ((RKN)) accountant group for $180m makes sense, as the deal could bolster MYOB's practice division. The enlarged accounting practice should accelerate SME growth, given the larger referral network.

The deal is accretive to earnings at an underlying level and whether the company has paid a full price depends on the rate of SME uptake, in the broker's opinion.

UBS maintains a Neutral rating and $3.60 target.

Target price is $3.60 Current Price is $3.71 Difference: minus $0.11 (current price is over target).
If MYO meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.07, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Deutsche Bank rates MYR as Hold (3) -

Woolworths SA provided a very weak trading update for David Jones, implying Myer has outperformed in recent months despite its own sales declining, the broker notes. DJs reduced discounting but also suffered disruption from store refurbishments and more recent sales numbers show an improving trend.

No change to the broker's Hold rating and 75c target.

Target price is $0.75 Current Price is $0.73 Difference: $0.02
If MYR meets the Deutsche Bank target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $0.68, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in July.

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

Credit Suisse rates NHC as Underperform (5) -

Credit Suisse observes the company has bumped up its net cash position to over $300m at the end of October, courtesy of strong coal prices.

This feature, along with the company's recently commissioned study on Acland stage 3, has cause the share price to rally strongly.

In the broker's calculation, the current share price reflects stage 3 and more and an Underperform rating is retained.  Target is raised to $1.85 from $1.70.

Target price is $1.85 Current Price is $2.48 Difference: minus $0.63 (current price is over target).
If NHC meets the Credit Suisse target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.18, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in July.

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

Macquarie rates NST as Neutral (3) -

From the AGM, Macquarie observes the company seems very confident in both the near and longer-term outlook. Exploration remains a strong focus, although there are other growth opportunities on the table.

Excellence in underground mining remains the core discipline. Neutral and $5.40 target retained.

Target price is $5.40 Current Price is $5.76 Difference: minus $0.36 (current price is over target).
If NST meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.87, suggesting downside of -15.4% (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

Ord Minnett rates PGH as Hold (3) -

The company has announced a 1-for-9 entitlement offer to fund its latest acquisitions of CSI Asia, GPC Guangzhou and EPC Industries.

On the broker's estimates, the uplift is more than offset by a tepid outlook for the underlying business.

Hold rating retained. Target is lowered to $5.80 from $5.90.

Target price is $5.80 Current Price is $5.73 Difference: $0.07
If PGH meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.77, suggesting upside of 0.6% (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 PTM as Underweight (5) -

Morgan Stanley analysts suggest there could be upside risk to the tune of 2% if net inflows in H2 match the $600m reported for H1. The analysts note $143m of these inflows have come from two newly launched ASX listed funds.

In addition, performance fees of $18m are well above the $10m Morgan Stanley had penciled in. The analysts point out the obvious: performance fees can be very volatile.

Underweight rating and $4.40 price target left unchanged. Industry view In-Line. No changes made to estimates.

Target price is $4.40 Current Price is $7.52 Difference: minus $3.12 (current price is over target).
If PTM meets the Morgan Stanley target it will return approximately minus 41% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.09, suggesting downside of -32.3% (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

Ord Minnett rates QUB as Buy (1) -

Competitor DP World has raised its port infrastructure charges, suggesting to Ord Minnett that the stevedoring industry could become more rational. The broker believes this should allay investor concerns about the industry.

The broker believes it makes more financial sense for competitors to DP World to raise their charges, rather than hope to gain market share. Buy rating and $3 target maintained.

Target price is $3.00 Current Price is $2.61 Difference: $0.39
If QUB meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.78, suggesting upside of 6.7% (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

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

Morgan Stanley thinks shareholders will embrace the deal negotiated with MYOB ((MYO)) to sell Reckon's Accountant Group operations to the latter for $180m. The asset is valued at $38m on the balance sheet.

On the analysts' calculations, the remaining businesses are likely to deliver $15m in EBITDA and $8m in cash EBIT in FY17. Part of the capital gain will be realised in New Zealand where there is no capital gains tax, point out the analysts.

Equal-weight rating and In-Line sector view retained. Target left untouched at $1.42.

Target price is $1.42 Current Price is $1.56 Difference: minus $0.14 (current price is over target).
If RKN 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 $1.44, suggesting downside of -7.5% (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

Citi rates S32 as Neutral (3) -

Citi upgrades manganese ore price forecasts, given stronger-than-expected Chinese demand. The higher prices have driven 8-12% upgrades to earnings per share over the next three years.

Target rises to $3.50 from $3.30. Neutral retained.

Target price is $3.50 Current Price is $3.30 Difference: $0.2
If S32 meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.23, suggesting downside of -2.2% (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: 0.0

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

Morgans rates SDA as Hold (3) -

The company has completed the acquisition of UltiSat ahead of expectations and indicated the energy sector has experienced its third quarter of stable revenue and the pipeline is growing. Harris CapRock is almost fully integrated and Morgans suggests the downside is dwindling.

The broker removes a -20% discount to valuation, given the integration is progressing and the outlook is improving. Hold rating retained and target raised to $4.77 from $3.87.

Target price is $4.77 Current Price is $4.82 Difference: minus $0.05 (current price is over target).
If SDA meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.53, suggesting downside of -6.1% (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: 0.5

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

Macquarie rates SEK as Outperform (1) -

Macquarie upgrades earnings forecasts on the back of stronger domestic job advertising. Further acceleration of growth trends comes against a backdrop of unemployment falling to 5.4%.

With significant opportunities both locally and in international markets Macquarie believes the company is well-positioned across the short and long-term horizon.

Outperform. Target is raised to $18.70 from $17.20.

Target price is $18.70 Current Price is $19.07 Difference: minus $0.37 (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 $17.04, suggesting downside of -10.7% (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

Citi rates SFH as Neutral (3) -

After a long time at the helm CEO Gary Perlstein will step down. Citi observes this comes at a time of a shrinking store portfolio and suspects the company may explore alternatives to realise value.

The broker believes his departure is poorly timed, given the patchy trading environment, but could signal a change in direction, in which the company accelerates store closures and places even more emphasis on better performing brands.

Neutral/High Risk. Target price is 25c.

Target price is $0.25 Current Price is $0.20 Difference: $0.05
If SFH meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

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

Morgan Stanley rates SHL as Overweight (1) -

Ahead of the company's AGM, Morgan Stanley retains its Overweight rating, while lifting the price target to $27.30 from $26.70. In-Line industry view retained.

The analysts see potential upside from stabilising collection centres in Australia while investors' concern about fee cuts should be "managed" by the company through restructuring and M&A, suggest the analysts.

Irrespective of shorter term risks, Morgan Stanley remains of the view the shares are too cheaply priced given long term growth and balance sheet flexibility.

Target price is $27.30 Current Price is $21.65 Difference: $5.65
If SHL meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $23.39, suggesting upside of 8.0% (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 STO as Neutral (3) -

Citi remains cautious about a prospective bid from Harbour Energy, reportedly expected to offer $5.30 a share.The broker is cautious about a bid proceeding as this is not the first be to speculated on.

Despite a Neutral rating, the broker considers the outlook for the underlying business the strongest it has been, as LNG growth assets deliver and new management demonstrates strong capital discipline. Target is $4.71.

Target price is $4.71 Current Price is $5.02 Difference: minus $0.31 (current price is over target).
If STO meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.55, suggesting downside of -9.4% (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: 0.3

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

Credit Suisse rates STO as Outperform (1) -

Harbour Energy is reportedly preparing a $5.30 bid for Santos. Credit Suisse suggests, if nothing else, this consortium of global energy investors is a credible entity.

The broker also suspects the Santos board is not likely to accept the bid at that level. Outperform retained. Target is $5.00.

Target price is $5.00 Current Price is $5.02 Difference: minus $0.02 (current price is over target).
If STO meets the Credit Suisse target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.55, suggesting downside of -9.4% (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: 0.3

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

Deutsche Bank rates STO as Buy (1) -

Santos has revealed it received a bid from US private equity firm Harbour Energy back in August at $4.55, which was rejected, and press reports suggest the firm is preparing to come back with $5.30. While this represents a 21% premium to the current trading price, the broker calculates only a 2% control premium.

A typical 20-30% premium would put valuation at $6.24 to $6.76. Santos also rejected a bid at $6.88 back in 2015, and given local sensitivity to the company's gas assets, FIRB would likely be a hurdle.

The broker retains Buy and a $4.95 target in isolation, but acknowledges increasing corporate upside risk.

Target price is $4.95 Current Price is $5.02 Difference: minus $0.07 (current price is over target).
If STO meets the Deutsche Bank target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.55, suggesting downside of -9.4% (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: 0.3

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

Morgan Stanley rates STO as Overweight (1) -

Santos is Morgan Stanley's favourite pick in the oil and gas sector, and the analysts continue to see upside from higher oil prices, as well as from management's cost reduction initiatives and reserve upgrades over time.

The reported approach by the Harbour Energy consortium is seen as "opportunistic".

Overweight rating retained. Target is $5.20. Industry View: In Line.

Target price is $5.20 Current Price is $5.02 Difference: $0.18
If STO meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.55, suggesting downside of -9.4% (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: 0.3

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

UBS rates STO as Sell (5) -

Media speculation suggests Harbour Energy is preparing an all-cash takeover bid. This follows an earlier approach in August which was rejected by the Santos board.

The company has stated it is not currently engaged with Harbour Energy relating to a change of control transaction. UBS suggests it may make it more difficult for the consortium to move ahead with a formal offer, given the  press speculation and share price reaction.

Sell rating and $4.05 target retained.

Target price is $4.05 Current Price is $5.02 Difference: minus $0.97 (current price is over target).
If STO meets the UBS target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.55, suggesting downside of -9.4% (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: 0.3

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

Ord Minnett rates WES as Hold (3) -

The company's update at its AGM has led Ord Minnett to modestly reduce earnings estimates. Bunnings is expected to continue to perform well following industry consolidation and a strong position in Australasia.

How Coles responds to ceding market leadership in sales growth to Woolworths ((WOW)) is of great interest to the broker.

Ord Minnett retains a Hold rating and $44 target.

Target price is $44.00 Current Price is $42.15 Difference: $1.85
If WES meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $41.08, suggesting downside 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