Australian Broker Call

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

Air New Zealand's outlook is now binary, UBS notes. If the virus is contained and international travel normalises by mid-year then significant upside awaits. Under a global pandemic scenario, material downside awaits.

To reflect the heightened uncertainty, the broker has adjusted its valuation model, which leads to a target price drop to NZ$2.00 from NZ$2.85. Rating is pulled back to Neutral on the same basis.

Current Price is $1.99. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Morgans rates AMX as Initiation of coverage with Add (1) -

Morgans initiates coverage of Aerometrex with a $1.99 target and Add rating. The company has a history of growth in the aerial imagery sector and the broker suspects it can double its size over the next five years.

The company has recently raised $23m to fund an expansion, having developed a unique camera system to capture 2D images at a cost that is significantly below competing product.

Target price is $1.99 Current Price is $1.63 Difference: $0.36
If AMX meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Credit Suisse rates ANZ as Neutral (3) -

Credit Suisse downgrades earnings estimates on the back of the reduction in official cash rates but also taking note of an increase in bad debt provisions derived from economic stress.

Bad debt provision estimates are increased for FY20 and FY21 because of the economic impact likely from coronavirus, with regard to small businesses linked to the supply chain in the tourism and education sectors.

Neutral rating maintained. Target is reduced to $24.50 from $26.00.

Target price is $24.50 Current Price is $22.20 Difference: $2.3
If ANZ meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $25.84, suggesting upside of 16.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Credit Suisse rates ASX as Upgrade to Neutral from Underperform (3) -

Credit Suisse upgrades to Neutral from Underperform following the fall in the share price in recent weeks. Target is $70.

The broker considers ASX the most defensive stock in the sector, with earnings somewhat insulated during risk-off events through increased velocity in equity markets, increased futures trading as interest rates are cut and the ability to re-price.

Target price is $70.00 Current Price is $74.27 Difference: minus $4.27 (current price is over target).
If ASX meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $73.86, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.6

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

Citi rates AWC as Upgrade to Buy from Neutral (1) -

Alumina Ltd has been upgraded to Buy from Neutral as part of a sector stress-test undertaken by commodity analysts at Citi. Taking guidance from global interest rates, Citi's view is that 2020 will be a disappointing year for the sector overall.

Citi considers Alumina Ltd a sector stand-out given the company's ability to pay what is described as a "reasonable dividend", even in an environment of depressed alumina prices.

Target price is $2.30 Current Price is $1.80 Difference: $0.5
If AWC meets the Citi target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $2.11, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Morgan Stanley rates AX1 as Overweight (1) -

Morgan Stanley considers the recent weakness in the share price a buying opportunity. The weakness is attributed to the potential for lower demand from a decline in consumer confidence and supply chain disruptions linked to the outbreak of coronavirus.

However, the broker assesses approximately 10% growth in earnings per share is achievable in each year over the next five years amid self-help initiatives. Overweight maintained. Target is reduced to $2.00 from $2.40. Industry view is In-Line.

Target price is $2.00 Current Price is $1.33 Difference: $0.67
If AX1 meets the Morgan Stanley target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $1.99, suggesting upside of 49.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

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

While acknowledging there is difficulty in predicting the end of the equity market volatility or the immediate outlook for commodities, Morgans considers the current sell-off has pushed the big miners into value territory.

The broker upgrades to Add from Hold. Target is $36.46. The preference shifts to Rio Tinto ((RIO)).

Uncertain conditions in China are likely to be met with heavy stimulus while BHP Group's energy exposure could become a source of a new discount if oil prices continue to weaken, in the broker's view.

Target price is $36.46 Current Price is $32.36 Difference: $4.1
If BHP meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $39.64, suggesting upside of 22.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

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

Bank of Queensland will lower standard variable rates by -25 basis points on investment property loans and -17 basis points on owner occupied loans.

Morgan Stanley estimates the reduction in the cash rate will reduce the bank's margin by -4 basis points on a full year basis. The final impact on margins will also depend on changes to pricing for higher interest rate deposits and term deposits.

Equal-weight. Target is $7.60. Industry view is In-Line.

Target price is $7.60 Current Price is $6.94 Difference: $0.66
If BOQ meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $7.73, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

Credit Suisse downgrades earnings estimates on the back of the reduction in official cash rates but also taking note of an increase in bad debt provisions derived from economic stress.

Bad debt provision estimates are increased for FY20 and FY21 because of the economic impact likely from coronavirus, with regard to small businesses linked to the supply chain in the tourism and education sectors.

Rating is upgraded to Neutral from Underperform, given the bank's capital strength. Target is reduced to $77.00 from $77.60.

Target price is $77.00 Current Price is $74.25 Difference: $2.75
If CBA meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $74.17, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.9

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

Ord Minnett rates CLV as Buy (1) -

Ahead of the first half result Ord Minnett reviews the drivers, and risk posed by coronavirus.

While the share price has faced significant volatility there is underlying momentum observed in the business, supported by Chinese infant formula demand that is holding up thanks to the online channel.

There is also EU sales strength, with a number of brands adopting new regulations early. The broker's conviction has increased and a Buy rating is reiterated. Target is raised to $3.47 from $3.31.

Target price is $3.47 Current Price is $2.62 Difference: $0.85
If CLV meets the Ord Minnett target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

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

Credit Suisse downgrades to Neutral from Outperform, reversing its call from some weeks ago when it did not assume such a rapid and large decline in global cash rates. Target is reduced to $15.25 from $19.40.

In addition, equity market volatility and weaker activity levels could reduce employee share plan trading revenue, corporate actions and loan volumes in the mortgage servicing business.

Target price is $15.25 Current Price is $13.05 Difference: $2.2
If CPU meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $16.53, suggesting upside of 26.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

UBS rates CSL as Buy (1) -

Strong plasma industry data out of the US comes are no surprise to the broker given the numbers run on a three month lag and CSL's first half result has already told the story. The broker believes the data likely reflect ongoing movement of product from the rest of the world into the US, where prices are higher, rather than being a proxy for plasma supply growth.

CSL's ability to grow plasma volume at 15% in the first half is due to the company's relatively higher contribution to plasma centre expansion. Buy and $365 target retained.

Target price is $365.00 Current Price is $316.01 Difference: $48.99
If CSL meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $326.44, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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 CTD as Downgrade to Accumulate from Buy (2) -

Ord Minnett suggests the current concerns regarding the impact of coronavirus are well-founded given its ability to spread quickly and the high mortality rate. This presents a toxic combination for travel agencies.

A number have suggested the virus could materially affect earnings for the remainder of 2020.

While analysis suggests the stock offers value at current levels, Ord Minnett downgrades Corporate Travel to Accumulate from Buy and reduces the target to $13.55 from $20.42.

Target price is $13.55 Current Price is $10.82 Difference: $2.73
If CTD meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $21.50, suggesting upside of 98.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

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

Since January 17, Macquarie notes the market has wiped around -21% of the company's market capitalisation. This is based on a mix of coronavirus-related concerns and the public hearing.

The broker continues to believe that, while impacts on VIP visitors will be material in the near term, coronavirus is temporary and the domestic business should be more resilient.

There is also material room for capital management following the opening of Crown Sydney in early 2021. Hence, Macquarie upgrades to Outperform from Neutral. Target is $11.95.

Target price is $11.95 Current Price is $9.69 Difference: $2.26
If CWN meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $11.74, suggesting upside of 21.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Macquarie rates DCN as Underperform (5) -

The revised reserve & resource statement for Mount Morgans and an updated mine plan reveal a substantial reduction to previous expectations, although the company believes it will support a recapitalisation.

Reserves are cut by almost -50%, primarily at the Westralia underground. Macquarie retains an Underperform rating and reduces the target to $0.68 from $1.15.

Target price is $0.68 Current Price is $1.40 Difference: minus $0.72 (current price is over target).
If DCN meets the Macquarie target it will return approximately minus 51% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.5

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

Ord Minnett rates FLT as Downgrade to Lighten from Hold (4) -

Ord Minnett suggests the current concerns regarding the impact of coronavirus are well-founded given its ability to spread quickly and the high mortality rate. This presents a toxic combination for travel agencies.

A number have suggested the virus could materially affect earnings for the remainder of 2020.

Ord Minnett assesses Flight Centre has potential for further downside and downgrades to Lighten from Hold. Target is reduced to $25.49 from $35.52. 

Target price is $25.49 Current Price is $26.64 Difference: minus $1.15 (current price is over target).
If FLT meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.52, suggesting upside of 44.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Morgans rates FMG as Reduce (5) -

Morgans wishes it was more bullish on iron ore six months ago but the share price of Fortescue Metals already reflects elevated pricing.

As a result, despite having a positive view on the business, a Reduce rating is maintained. Target is raised to $7.19 from $6.96.

Target price is $7.19 Current Price is $9.60 Difference: minus $2.41 (current price is over target).
If FMG meets the Morgans target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.04, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

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

Asia represents 33% of Goodman Group's assets under management earnings, 23% of capital invested and 43% of development work in progress, UBS notes. Projects underway in Hong Kong are fully committed but in Japan it's 65% and China 25%. None of the projects are scheduled for completion in FY20 hence no risk to FY20 guidance.

Development sites in China are not yet operating but are anticipated to be operational in coming weeks. In FY20 to date, major tenants continue to implement long term supply chain initiatives. Virus-related risk is therefore a story for FY21-22, and on that risk UBS pulls back to Neutral. Target rises to $16.00 from $15.60 after updating for forex and net tangible asset valuation.

Target price is $16.00 Current Price is $15.26 Difference: $0.74
If GMG meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $16.68, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates GTN as Neutral (3) -

First half results were affected by challenging advertising markets. Macquarie observes the company is exposed to any recovery in advertising expenditure and offers growth from its Brazilian operations.

Nevertheless, a Neutral rating is maintained amid low visibility on a turnaround. Coverage is also transferred to another analyst. Target is reduced to $0.74 from $0.86.

Target price is $0.74 Current Price is $0.72 Difference: $0.02
If GTN meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates HLO as Buy (1) -

Ord Minnett suggests the current concerns regarding the impact of coronavirus are well-founded given its ability to spread quickly and the high mortality rate. This presents a toxic combination for travel agencies.

A number have suggested the virus could materially affect earnings for the remainder of 2020.

The broker's analysis suggests Helloworld is materially oversold. Hence, a Buy rating is maintained. Target is reduced to $3.79 from $5.98.

Target price is $3.79 Current Price is $2.70 Difference: $1.09
If HLO meets the Ord Minnett target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Citi rates HUB as Buy (1) -

In a general update on wealth platforms in Australia, Citi analysts make it clear they anticipate ongoing downward pressure for the sector in general terms. Two factors dominate that view: shaky equity markets and further cash rate cuts from the RBA.

The house view at Citi is that the RBA will cut again by -25bp in April. Earnings estimates have been reduced by double digits. Also, the analysts point out risk still exists that ANZ Bank ((ANZ)) could potentially lower the rate offered to Netwealth and HUB24 as the Big Four banks look to offset the decline in deposit margins.

Citi analysts believe the sector will try to compensate as much as possible through stringent cost control. Buy rating remains in place, but the price target for Hub24 declines to $13.10 from $15.15.

Target price is $13.10 Current Price is $8.05 Difference: $5.05
If HUB meets the Citi target it will return approximately 63% (excluding dividends, fees and charges).

Current consensus price target is $12.69, suggesting upside of 57.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Citi rates ILU as Upgrade to Buy from Neutral (1) -

Iluka Resources has been upgraded to Buy from Neutral as part of a sector stress-test undertaken by commodity analysts at Citi. Taking guidance from global interest rates, Citi's view is that 2020 will be a disappointing year for the sector overall.

Price target has shifted to $9.80 from $9.70 on slightly higher forecasts for 2021.

Target price is $9.80 Current Price is $8.21 Difference: $1.59
If ILU meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $9.86, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Citi rates MYR as Buy/High Risk (1) -

For Citi's initial response, see yesterday's Report. Today, the following sentence stands out: "We see pressure building for Myer, as covenants do not provide room for meaningful investment in service and traffic remains poor."

Citi reduces the price target to $0.50 from $0.57 but since the share price is trading well below, the view remains that investors are all too aware of the problems, the risks and the limitations, and it's all in the share price already.

Hence, while reducing forecasts by a further -3%, Citi also retains it Buy/High Risk rating. Online growth is there, the analysts acknowledge, but it cannot compensate for steady decline in the bricks and mortar side of the business.

Target price is $0.50 Current Price is $0.28 Difference: $0.22
If MYR meets the Citi target it will return approximately 79% (excluding dividends, fees and charges).

Current consensus price target is $0.54, suggesting upside of 94.3% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Credit Suisse rates MYR as Neutral (3) -

First half results were weaker than Credit Suisse expected. Comparable store sales declined -3.6%. The cash position improved to $103m.

Credit Suisse suggests any near-term pay-out is unlikely, which limits the investment appeal.

Neutral maintained. Target is reduced to $0.36 from $0.61.

Target price is $0.36 Current Price is $0.28 Difference: $0.08
If MYR meets the Credit Suisse target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $0.54, suggesting upside of 94.3% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Ord Minnett rates MYR as Accumulate (2) -

First half net profit was in line with Ord Minnett's forecasts while operating earnings were slightly below. No interim dividend was declared, as expected.

The broker retains confidence in the broader turnaround for Myer. Nevertheless, earnings estimates are reduced because of the risk to consumer confidence in the second half of FY20 and the first half of FY21 (and prior estimates were proving too optimistic).

Ord Minnett retains an Accumulate rating and reduces the target to $0.50 from $0.75.

Target price is $0.50 Current Price is $0.28 Difference: $0.22
If MYR meets the Ord Minnett target it will return approximately 79% (excluding dividends, fees and charges).

Current consensus price target is $0.54, suggesting upside of 94.3% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Credit Suisse rates NAB as Downgrade to Underperform from Neutral (5) -

Credit Suisse downgrades earnings estimates on the back of the reduction in official cash rates but also taking note of an increase in bad debt provisions derived from economic stress.

Bad debt provision estimates are increased for FY20 and FY21 because of the economic impact likely from coronavirus, with regard to small businesses linked to the supply chain in the tourism and education sectors.

Rating is downgraded to Underperform from Neutral and the target lowered to $22.90 from $27.90, because of the bank's large exposure to the small-medium enterprise segment and lower relative capital position.

Target price is $22.90 Current Price is $22.07 Difference: $0.83
If NAB meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $26.63, suggesting upside of 20.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Citi rates NWL as Buy (1) -

In a general update on wealth platforms in Australia, Citi analysts make it clear they anticipate ongoing downward pressure for the sector in general terms. Two factors dominate that view: shaky equity markets and further cash rate cuts from the RBA.

The house view at Citi is that the RBA will cut again by -25bp in April. Earnings estimates have been reduced by double digits. Also, the analysts point out risk still exists that ANZ Bank ((ANZ)) could potentially lower the rate offered to Netwealth and HUB24 as the Big Four banks look to offset the decline in deposit margins.

Citi analysts believe the sector will try to compensate as much as possible through stringent cost control. Buy rating remains in place, but the price target for Netwealth Group declines to $8.80 from $9.60.

Target price is $8.80 Current Price is $6.63 Difference: $2.17
If NWL meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $7.83, suggesting upside of 18.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

Macquarie upgrades to Outperform from Neutral, given the recent fall in the share price. Despite the impasse on P'nyang, the broker highlights the stability of the current PNG LNG operations and the growth prospects in Alaska.

Target is reduced -3% to $6.20. Earnings estimates are also decreased amid a lower near-term Brent forecast.

Target price is $6.20 Current Price is $5.09 Difference: $1.11
If OSH meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $6.77, suggesting upside of 33.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.5

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

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

While acknowledging there is difficulty in predicting the end of the equity market volatility or the immediate outlook for commodities, Morgans considers the current sell-off has pushed the big miners into value territory.

The broker upgrades to Add from Hold, shifting its preference to Rio Tinto among the large caps. Target is $97.25.

Uncertain conditions in China are likely to be met with heavy stimulus while BHP Group's ((BHP)) energy exposure could become a source of a new discount if oil prices continue to weaken, in the broker's view.

Target price is $97.25 Current Price is $86.39 Difference: $10.86
If RIO meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $99.89, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Citi rates SHL as Upgrade to Buy from Neutral (1) -

Citi healthcare sector analysts have used a general re-assessment post the February reporting season to upgrade Sonic Healthcare to Buy from Neutral. There is always potential for upside through acquisitions, though Citi isn't forecasting any for the time being.

Outside further acquisitions, the analysts view Sonic Healthcare as a stable and well managed business. They remind investors organic revenue growth normally ranges from 3-6%, depending on the geography. In addition, it is rare for regulatory changes in multiple geographies in any given year.

Price target lifts to $33.75 from $33.50.

Target price is $33.75 Current Price is $30.80 Difference: $2.95
If SHL meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $32.52, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates SYD as Outperform (1) -

Macquarie reduces estimates for net profit by -7-9% for 2020-22 on the back of the coronavirus outbreak and lower base growth.

The dividend is expected to be re-based to $0.39 in 2020 and thereafter 1.5c per annum until tax is paid. The attraction in the stock remains a fourth terminal, which provides the capital expenditure path across the airport over multiple years.

Outperform retained, as recent share price movements still mean the stock represents value. Target is reduced to $8.23 from $8.61.

Target price is $8.23 Current Price is $7.33 Difference: $0.9
If SYD meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $8.01, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Ord Minnett rates TCL as Upgrade to Accumulate from Hold (2) -

Ord Minnett increases earnings estimates and lifts free cash flow forecasts materially. This is based on tax stabilising at half previously assumed levels and lower capitalised interest for select developments.

Improved returns from WestConnex are also expected. Rating is upgraded to Accumulate from Hold and the target raised to $17.00 from $15.65.

Target price is $17.00 Current Price is $15.24 Difference: $1.76
If TCL meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $14.89, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Credit Suisse rates TPM as Neutral (3) -

First half earnings were ahead of forecasts. Performance at the consumer level drove the beat on earnings. Guidance for FY20 has been upgraded.

While management has indicated any incremental benefit from reduced NBN access costs is already factored in, Credit Suisse envisages scope for some of the pricing changes to provide more meaningful benefits.

The ACCC has also confirmed that it won't appeal the Federal Court decision in relation to the merger with Vodafone Australia, which has effectively cleared a major regulatory hurdle.

Neutral maintained. Target is raised to $7.80 from $6.70.

Target price is $7.80 Current Price is $8.31 Difference: minus $0.51 (current price is over target).
If TPM meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.93, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates TPM as No Rating (-1) -

First half results were solid, in Macquarie's view. Guidance is upgraded to an earnings range of $775-785m.

The broker observes the company is working its way through NBN headwinds and will only have 13% of its base on copper by the end of the year.

The focus has now shifted to the pending merger with Vodafone Australia. Macquarie is restricted on research and cannot provide a rating and target at present.

Current Price is $8.31. Target price not assessed.

Current consensus price target is $7.93, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

First half results beat expectations and Morgan Stanley expects the shares will now trade towards its bull case of $8.70 after the ACCC decided not to challenge the proposed merger with Vodafone Australia.

Equal-weight. Target is $6.85. Industry view is In-Line. (Within this framework, it seems kind of weird the broker has not lifted its price target, but such is the case).

Target price is $6.85 Current Price is $8.31 Difference: minus $1.46 (current price is over target).
If TPM meets the Morgan Stanley target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.93, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates TPM as Hold (3) -

First half results were strong and supported by cost controls. Morgans observes the result was overshadowed by an announcement that the ACCC will not appeal the Federal Court decision on the merger with Vodafone Australia.

The broker now upgrades the target to $8.37 from $5.89 to reflect the combined entity. Hold rating maintained. Operating earnings (EBITDA) forecasts are also upgraded on higher cost reductions.

Target price is $8.37 Current Price is $8.31 Difference: $0.06
If TPM meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.93, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates TPM as Downgrade to Hold from Accumulate (3) -

First half net profit was below Ord Minnett's forecasts. The consumer business was better than expected because of recent NBN wholesale pricing changes.

TPG Telecom shares have also received a boost as the ACCC announced it would not appeal the court decision allowing the merger with Vodafone Australia. The broker updates its modelling to reflect the merger.

The stock is assessed as trading at fair value and the rating is downgraded to Hold from Accumulate. Target is raised to $8.25 from $7.25.

Target price is $8.25 Current Price is $8.31 Difference: minus $0.06 (current price is over target).
If TPM meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.93, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates TPM as Neutral (3) -

TPG Telecom got the trifecta yesterday in posting an earnings beat, raising guidance, and learning the ACCC will not challenge the merger with Vodafone Australia. The broker suggests fresh second half guidance may look challenging yet is not only achievable but perhaps conservative.

The merger still has to get past the FIRB, and US regulatory approval relating to the Guam cable, and the Federal Court has to sign off on the ultimate scheme. The broker assumes a completed deal by July, providing for a special dividend of 60c, albeit the quantum is dependent on how much the company needs for the TPG Singapore mobile business.

Neutral and $8.40 target retained.

Target price is $8.40 Current Price is $8.31 Difference: $0.09
If TPM meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.93, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Credit Suisse rates WBC as Outperform (1) -

Credit Suisse downgrades earnings estimates on the back of the reduction in official cash rates but also taking note of an increase in bad debt provisions derived from economic stress.

Bad debt provision estimates are increased for FY20 and FY21 because of the economic impact likely from coronavirus, with regard to small businesses linked to the supply chain in the tourism and education sectors.

Outperform rating maintained. Target is reduced to $26.00 from $27.80.

Target price is $26.00 Current Price is $21.41 Difference: $4.59
If WBC meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $25.52, suggesting upside of 19.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Ord Minnett rates WEB as Buy (1) -

Ord Minnett suggests the current concerns regarding the impact of coronavirus are well-founded given its ability to spread quickly and the high mortality rate. This presents a toxic combination for travel agencies.

A number have suggested the virus could materially affect earnings for the remainder of 2020.

The broker's analysis suggests Webjet is materially oversold and a Buy rating is maintained. Target is reduced to $11.04 from $20.20.

Target price is $11.04 Current Price is $8.15 Difference: $2.89
If WEB meets the Ord Minnett target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $13.75, suggesting upside of 68.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Citi rates WHC as Neutral (3) -

Stress-testing the miners has only delivered minor changes for Citi's modeling of Whitehaven Coal's outlook. Neutral rating retained, while the price target lost -30c to $2.20.

Earnings estimates have been reduced. Citi analysts hold a lot of questions about the real impact of central banks' easing this time around, also given official interest rates are already so low.

Citi believes a greater discount to Net Present value (NPV) is required to account for bearish market conditions and macro uncertainty around coal markets, which explains the fall in price target.

Target price is $2.20 Current Price is $1.86 Difference: $0.34
If WHC meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.96, suggesting upside of 59.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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