Australian Broker Call

Morgans rates ADH as Hold (3) -

Adairs has closed all its stores, stood down 90% of staff and is not paying rent. Online growth remains strong, the broker notes, generating positive cash flow. The broker believes the company has enough liquidity to keep creditors at bay.

It is unclear when Adairs might be able to restock, and the risk is this may impact on the critical Christmas period, the broker warns, even if stores reopen in coming months. Bank support may still be needed.

Despite having been sold down to extreme levels, the stock is still subject to retail uncertainty, hence the broker retains Hold. Target falls to $1.22 from $1.60.

Target price is $1.22 Current Price is $0.91 Difference: $0.31
If ADH meets the Morgans target it will return approximately 34% (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

Macquarie rates AHY as Neutral (3) -

Macquarie expects the current economic environment and social isolation will have a mixed impact on Asaleo Care.

Increased demand in the retail segment for personal products and contracts in the health and hygiene sectors will provide a boost.

Macquarie considers the defensive exposure of the stock attractive in the current environment and retains a Neutral rating.

The main uncertainty is the extent and severity of the economic slowdown. Target is reduced to $1.02 from $1.16.

Target price is $1.02 Current Price is $1.01 Difference: $0.01
If AHY meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.19, suggesting upside of 17.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Ord Minnett rates AMC as Accumulate (2) -

Amcor flags a benefit from the surge in demand for at-home food consumption and notes limited disruption to operations from the crisis so far.

The company believes it is well-positioned to manage the current environment. Ord Minnett continues to assess Amcor as a stand-out opportunity at current share price levels.

Accumulate rating maintained. Target is $17.

Target price is $17.00 Current Price is $13.02 Difference: $3.98
If AMC meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $16.69, suggesting upside of 28.2% (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: 0.8

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

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

The company has reiterated FY20 guidance. Citi observes there is little risk on the balance sheet, given significant liquidity and positive operating cash flow. Ansell also continues to buy back shares.

While the coronavirus has increased demand for surgical gloves and protective health equipment, it has had negative impact on the demand for industrial gloves, given manufacturing shut-downs.

The broker finds the net impact impossible to predict at this stage. Citi upgrades to Buy from Neutral. Target is raised to $34.50 from $32.00.

Target price is $34.50 Current Price is $27.16 Difference: $7.34
If ANN meets the Citi target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $30.15, suggesting upside of 11.0% (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

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

There is strong demand for single use gloves, surgical gloves and chemical protection. Credit Suisse estimates these divisions account for up to 45% of group sales and are likely to offset the weakness in industrial end-user demand.

Yet, the fixed cost nature of industrial items and the increased supply costs will likely limit the benefit.

The main tailwinds are in raw materials, including the fact Brent is down -60% since February and spot butadiene prices are down -15%. Credit Suisse upgrades to Outperform from Neutral. Target is $32.

Target price is $32.00 Current Price is $27.16 Difference: $4.84
If ANN meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $30.15, suggesting upside of 11.0% (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

Morgan Stanley rates ANN as Overweight (1) -

Ansell has reiterated FY20 guidance, noting strong demand for its AlphaTec protective product as well as surgical gloves. This is offset by declining demand in some industrial products.

The company plans to provide guidance for FY21 at the FY20 result in August. Morgan Stanley welcomes the statement as it provides some confidence for the FY20 outlook, although envisages downside risk to FY21 expectations.

Overweight rating. Target is $28.90. Industry view is In-Line.

Target price is $28.90 Current Price is $27.16 Difference: $1.74
If ANN meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $30.15, suggesting upside of 11.0% (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 ANN as Upgrade to Hold from Lighten (3) -

Sales have held up better than Ord Minnett expected, as coronavirus has caused extreme shortages in the supply of protective equipment in the health and hygiene sector.

The broker expects Ansell will obtain the lower end of its guidance range, even in the face of a substantial drop in demand for industrial safety gloves.

As FY20 forecasts are already in the guidance range, the broker makes no changes. Rating is upgraded to Hold from Lighten. Target is $28.

Target price is $28.00 Current Price is $27.16 Difference: $0.84
If ANN meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $30.15, suggesting upside of 11.0% (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

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

Although Macquarie considers the luxury exposure of the business a positive, the company's earnings are not immune to the current crisis. New and used volumes are expected to decline.

The broker revises new vehicle sales estimates because of disruptions and expects a slowdown in back-end revenue under the current isolation directives.

Rating is downgraded to Neutral from Outperform and the target lowered to $1.10 from $1.75.

Target price is $1.10 Current Price is $0.76 Difference: $0.34
If ASG meets the Macquarie target it will return approximately 45% (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

Credit Suisse rates AUB as Outperform (1) -

The company has withdrawn FY20 guidance. Credit Suisse suspects this is an act of prudence rather than an indication that guidance will not be met.

The company will defer the interim dividend payment to September to preserve cash and maintain liquidity.

The MGA Whittles transaction will not proceed and the proposal will be reviewed at a later stage. Credit Suisse lowers FY20 estimates for net profit by -2%.

The broker does not envisage a need to raise equity and considers earnings relatively protected. Outperform maintained. Target is reduced to $12.60 from $13.15.

Target price is $12.60 Current Price is $9.61 Difference: $2.99
If AUB meets the Credit Suisse target it will return approximately 31% (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

Macquarie rates AUB as Outperform (1) -

Guidance has been withdrawn, the dividend delayed and the MGA Whittles deal cancelled. Gearing is largely unchanged, Macquarie observes.

Despite increased demand, the broker suspects the boost from premium funding is unlikely.

Still, the multi-sector exposure and diversified broker network are labelled "defensive" in the current environment and an Outperform rating is maintained. Target is reduced to $11.71 from $13.09.

Target price is $11.71 Current Price is $9.61 Difference: $2.1
If AUB meets the Macquarie 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

UBS rates BAP as Buy (1) -

Despite a firm performance in the third quarter, the company has suggested that escalating business closures and ongoing uncertainty have caused it to withdraw guidance.

A material drop in demand has been experienced as self-isolation protocols are implemented across Australasia. In response, the store network will be consolidated to a group of core sites and the cost base rationalised.

While there is short-term pressure on leverage covenants, UBS believes the company's debt syndicate is likely to provide some flexibility. Buy rating maintained. Target is reduced to $6.95 from $7.70.

Target price is $6.95 Current Price is $4.08 Difference: $2.87
If BAP meets the UBS target it will return approximately 70% (excluding dividends, fees and charges).

Current consensus price target is $7.16, suggesting upside of 75.5% (ex-dividends)

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

Macquarie rates BHP as Outperform (1) -

Macquarie delays the development scenario for Scarborough by a year, in line with updated guidance from Woodside Petroleum ((WPL)).

Pushing out the likely approval timeline for core petroleum products has a modest impact on earnings estimates.

BHP Group has 10 projects within the petroleum business, the bulk of which Macquarie expects are at risk of delay.

Maintaining production in the Pilbara is critical to forecasts. Buoyant iron ore prices also underpin expected cash generation. Outperform maintained with target price reduced to $38 from $41.

Target price is $38.00 Current Price is $28.64 Difference: $9.36
If BHP meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $37.79, suggesting upside of 32.0% (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: 0.6

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) -

Morgan Stanley believes there is downside risk to forecasts as well as management's medium-term targets. Bank of Queensland has withdrawn FY20 guidance.

The broker currently forecasts FY20 cash earnings to be down -15% and the half-year dividend down at $0.22. The broker understands the medium-term targets still stand but may be reviewed.

Equal-weight. Target is $6.10. Industry view is In-Line.

Target price is $6.10 Current Price is $4.98 Difference: $1.12
If BOQ meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $6.43, suggesting upside of 29.1% (ex-dividends)

The company's fiscal year ends in August.

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

Morgans rates BOQ as Hold (3) -

Bank of Queensland has withdrawn guidance, and will no longer seek approval in relation to the 12-month profit test for the interim dividend. This signals to the broker the bank will now be more conservative with dividends, which the broker also expects for the majors.

Once RBA support has run its course, the broker suggests funding and operational risk for Bank of Queensland are greater than for the majors, and that the bank's transformation strategy may in part be put on hold. Hold rating retained, target falls to $5.00 from $7.60.

Target price is $5.00 Current Price is $4.98 Difference: $0.02
If BOQ meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $6.43, suggesting upside of 29.1% (ex-dividends)

The company's fiscal year ends in August.

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 BOQ as Hold (3) -

Bank of Queensland has withdrawn FY20 guidance. The bank will not seek approval from APRA for exemption to the 12-month profit test for its first half dividend, which Ord Minnett suggests is signalling downside risk to previous guidance.

Still, the broker considers this a sensible decision. While the bank is on a firm footing after a capital raising, Ord Minnett remains cautious, given the poor deposit franchise, exposure to wholesale funding markets and business lending. Hold rating and $7.90 target maintained.

Target price is $7.90 Current Price is $4.98 Difference: $2.92
If BOQ meets the Ord Minnett target it will return approximately 59% (excluding dividends, fees and charges).

Current consensus price target is $6.43, suggesting upside of 29.1% (ex-dividends)

The company's fiscal year ends in August.

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

Morgan Stanley rates BXB as Upgrade to Overweight from Equal-weight (1) -

Morgan Stanley believes Brambles is well-positioned as it has largely defensive end markets and an ongoing buyback. The company derives 85% of its revenue from staples, which allows it to participate in the surge in supermarket traffic.

The main issue for the broker is the margin outlook, given a mix of increased volume, price momentum, increased variable operating costs and fractionalisation of overheads.

To date, FY20 guidance for mid single-digit revenue and operating profit growth remains in place.

While the stock has outperformed the market over the last three months this is not to the same extent as others that have participated in the "essentials" supply chain.

Hence, Morgan Stanley upgrades to Overweight from Equal-weight. Target is raised to $13.00 from $12.80. Industry view is In-Line.

Target price is $13.00 Current Price is $10.50 Difference: $2.5
If BXB meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $12.49, suggesting upside of 19.0% (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: 0.2

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

UBS rates CAR as Neutral (3) -

The company is waiving all dealer fees in April. UBS also factors in a worse outlook for May.

While the company's leads held up well during the GFC, this time there are additional considerations which indicate volumes could fare much worse in the short term.

As physical restrictions relax, UBS assumes used car volumes moderate to high single-digit percentage declines in FY21. Neutral rating maintained. Target is reduced to $12.50 from $15.65.

Target price is $12.50 Current Price is $11.69 Difference: $0.81
If CAR meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $16.97, suggesting upside of 45.1% (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

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

Citi observes the risks on the balance sheet have been significantly reduced as the business increases the defensiveness of its asset portfolio.

As the stock is sold off substantially, the broker envisages scope for it to rally a little and raises the rating to Buy from Neutral.

While Challenger has reiterated FY20 normalised pre-tax profit guidance of $500-550m, this is a wide range and the broker notes the changes only affect FY20 profit for 3-4 months.

The larger earnings impact is likely to be felt in FY21, but then only to the extent the cash is not been redeployed. Target is $5.45.

Target price is $5.45 Current Price is $3.99 Difference: $1.46
If CGF meets the Citi target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $5.68, suggesting upside of 42.4% (ex-dividends)

The company's fiscal year ends in June.

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 CGF as Neutral (3) -

The company has announced its capital position at the end of March amid a de-risking of its investment portfolio. Credit Suisse calculates investment experience losses, not disclosed, represent around 6.5% of the investment assets.

The broker assesses Challenger could withstand a further step down in investment markets similar to what has already been seen in March. Given the strength of its position, an equity raising is considered unlikely.

Neutral rating maintained. Target is reduced to $4.25 from $5.40.

Target price is $4.25 Current Price is $3.99 Difference: $0.26
If CGF meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.68, suggesting upside of 42.4% (ex-dividends)

The company's fiscal year ends in June.

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

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

Challenger has materially de-risked its life asset allocation, Morgan Stanley observes. If it maintains this defensive allocation in FY21, net profit is likely to be reduced by -10-15%.

However, the broker considers this unlikely and expects Challenger will take advantage of wider credit spreads and any market dislocation to improve returns on investments.

Equal-weight and $8.60 target retained. Industry view: in Line.

Target price is $8.60 Current Price is $3.99 Difference: $4.61
If CGF meets the Morgan Stanley target it will return approximately 116% (excluding dividends, fees and charges).

Current consensus price target is $5.68, suggesting upside of 42.4% (ex-dividends)

The company's fiscal year ends in June.

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 CGF as Upgrade to Hold from Sell (3) -

Challenger has updated the market on the extent of its de-risking. The capital position has improved significantly yet Ord Minnett still has reservations.

There is still downside risk on property and sub investment-grade fixed income, suggest the analysts.

The broker considers the return on equity very low for the risks the business takes, suspecting in the short term dividends on assets may be reduced.

Rating is upgraded to Hold from Sell and the target lowered to $4.00 from $4.70.

Target price is $4.00 Current Price is $3.99 Difference: $0.01
If CGF meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.68, suggesting upside of 42.4% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates CGF as Neutral (3) -

Despite significant asset mark-to-market losses, regulatory capital coverage for the life company is broadly in line with first half levels, given the actions taken to reduce asset risk. UBS believes the actions are necessary and sensible.

The company also retains additional capacity to manage ongoing balance sheet risks.

However, while FY20 net profit guidance is unchanged, reduced asset risk could mean life margins declined by more than -20% in the outer years, the broker points out. Neutral rating and $5.65 target maintained.

Target price is $5.65 Current Price is $3.99 Difference: $1.66
If CGF meets the UBS target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $5.68, suggesting upside of 42.4% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates CKF as Add (1) -

Collins Foods had been seeing a continuation of recent sales trends up to the beginning of March, but KFC Australia sales fell -8% last week, which is a bit more than expected, while KFC Europe is down materially as was anticipated, the broker notes. The broker nevertheless expects sales to bounce back quickly in time.

The balance sheet is strong. The stock has fallen significantly along with all consumer-facing names and the broker sees reasonable risk/reward for patient investors. Add retained, target falls to $7.06 from $8.29.

Target price is $7.06 Current Price is $5.43 Difference: $1.63
If CKF meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in May.

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 CRN as Outperform (1) -

The company has temporarily closed all US operations. As steel producers respond to softness in end markets the impact is now moving upstream to producers, Credit Suisse points out.

There is little visibility regarding how long operations will be closed. The broker considers the company fortunate to have a key contributor to production unaffected to date, with 750,000t of stockpiles in the US to assist cash flow.

Credit Suisse adjusts 2020 dividend expectations to a 60% pay-out, the lower end of the policy range, given management is likely to be conservative in the current environment. Outperform rating maintained. Target is $3.50.

Target price is $3.50 Current Price is $1.13 Difference: $2.37
If CRN meets the Credit Suisse target it will return approximately 210% (excluding dividends, fees and charges).

Current consensus price target is $2.68, suggesting upside of 137.5% (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: 0.7

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

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

UBS suggests the market is discounting the longer-term outlook for Crown Resorts. The broker estimates cash burn of -$40m per month during the period the casinos are shut down.

This provides significant flexibility against a cash balance of around $850m. Nevertheless, the broker assumes construction of Crown Sydney slows down.

Liquidity and gearing should not be an issue after the re-opening, if the company can collect on its estimated $800m of apartment sales.

The main downside risk is the NSW public casino inquiry, which has been postponed. Rating is upgraded to Buy from Neutral and the target reduced to $9.15 from $11.40.

Target price is $9.15 Current Price is $7.55 Difference: $1.6
If CWN meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $9.25, suggesting upside of 22.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Macquarie rates FCL as Outperform (1) -

Macquarie reviews the risk to services revenue in light of the current uncertainty. Despite recent contract wins and upgraded revenue guidance, there is a risk new contracts are delayed or the service business slows.

The broker retains an Outperform rating and lowers the target to $3.48 from $4.30.

Target price is $3.48 Current Price is $2.70 Difference: $0.78
If FCL meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

Macquarie rates FMG as Outperform (1) -

The company has extended rosters for fly-in, fly-out (FIFO) workers that are expected to reduce the movement of people to site by -40%.

Production guidance is unchanged and, Macquarie notes, with 95% of the workforce based in Western Australia, further travel restrictions are unlikely to affect operations.

The broker assesses upgrade momentum is strong with the spot iron ore price scenario generating an increase of 30% in FY21 earnings and 130% in FY22.

Outperform retained. Target is raised to $13.70 from $12.40.

Target price is $13.70 Current Price is $9.94 Difference: $3.76
If FMG meets the Macquarie target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $10.24, suggesting upside of 3.0% (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: 0.1

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

Morgans rates GNX as Add (1) -

Genex Power has announced a 30-year offtake agreement with Energy Australia for the Kidston Hydro project. The project now needs final approval from the Northern Australian Infrastructure Facility and the Queensland government.

Genex still needs to sell a 50% stake to a JV partner, the broker notes, to limit required equity support. Target rises to 36c from 26c, Speculative Buy retained.

Target price is $0.36 Current Price is $0.15 Difference: $0.21
If GNX meets the Morgans target it will return approximately 140% (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

Macquarie rates GTN as Neutral (3) -

The company has advised that disruptions from coronavirus mean operating earnings will be more than -10% below consensus estimates.

Macquarie finds the impact difficult to quantify because of the unknown duration and severity of restrictions and associated reductions in advertising expenditure.

The company is, however, highly leveraged to an advertising expenditure recovery. Neutral maintained. Target is reduced to $0.47 from $0.74.

Target price is $0.47 Current Price is $0.49 Difference: minus $0.02 (current price is over target).
If GTN meets the Macquarie target it will return approximately minus 4% (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: 0.0

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

Citi rates IAG as Buy (1) -

Citi reduces estimates for earnings per share in FY20 by -28%. This reflects the impact of marking to market.

Insurance Australia Group has reiterated FY20 margin guidance and Citi suspects the current environment may be more favourable than detrimental to earnings.

The broker expects both motor and home claims frequency to drop but wonders whether it will be easy for the company to continue with premium rate rises in both personal and commercial lines in the current environment.

Buy rating and $7.70 target maintained.

Target price is $7.70 Current Price is $6.09 Difference: $1.61
If IAG meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $7.06, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in June.

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

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

Insurance Australia Group has reiterated FY20 guidance for low single-digit growth in gross written premium and margin of 12.5-14.5%. Morgan Stanley observes the business is well-placed for capital.

Underwriting profit is also expected to benefit from lower motor and CTP claims. The company is offering up to 6 months deferral of premium payments for small-medium enterprises in hardship and full refunds for some policy cancellations.

Equal-weight rating. Target is $7.90. Industry view: In Line.

Target price is $7.90 Current Price is $6.09 Difference: $1.81
If IAG meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $7.06, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates IAG as Neutral (3) -

The company has updated on measures being taken during the current crisis. All up, UBS assesses capacity for capital management has been reduced given the marking-to-market losses and catastrophe claims.

The measures specifically surrounding coronavirus include up to a six-month deferral of premiums for those small-medium enterprises experiencing hardship.

With the sale of SBI General now complete, the company will record a net profit on the sale of $310m in FY20, boosting regulatory capital by $450m. Neutral rating and $6.65 target maintained.

Target price is $6.65 Current Price is $6.09 Difference: $0.56
If IAG meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $7.06, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates IVC as Add (1) -

While funerals will continue to go ahead as an essential service, social gathering restrictions are limiting InvoCare's capacity to offer a full range of services, the broker notes. The broker estimates revenue per funeral to be -20-25% lower than usual.

The broker nevertheless sees a chance for longer term investors to step in to a highly defensive business offering a stable earnings stream. Add retained, target falls to $12.16 from $15.87.

Target price is $12.16 Current Price is $10.51 Difference: $1.65
If IVC meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $13.62, suggesting upside of 29.6% (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

Morgans rates MFG as Hold (3) -

The broker has marked to current equity market valuations for Magellan Financial. Magellan is proving its resilience at this time, the broker notes, with an estimated 900 basis points of outperformance in the Global Fund this quarter.

The stock is now back to reasonable valuation on a medium term view, the broker suggests. The broker has not yet made recommendation changes ahead of the potential for more volatility. Target falls to $45.32 from $65.60, Hold retained.

Target price is $45.32 Current Price is $43.12 Difference: $2.2
If MFG meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $48.58, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates MGX as Outperform (1) -

Koolan Island shipments in the third quarter were well below forecasts. Mount Gibson has withdrawn FY20 production and cost guidance as a result of increased travel restrictions.

Macquarie reduces FY20 shipment forecasts from Koolan Island by -16%. FY21 forecasts are largely unchanged. Outperform rating maintained. Target is reduced to $1.00 from $1.10.

Target price is $1.00 Current Price is $0.68 Difference: $0.32
If MGX meets the Macquarie target it will return approximately 47% (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

Morgans rates MP1 as Add (1) -

Megaport is benefiting from global disruption, as existing and new customers consume more of the company's cloud service, remote working and other activities on a dedicated link, the broker reports.

The balance sheet is strong, and in a case of fortunate timing, Megaport put half its cash in USD a month ago to cover USD costs.

60% of the company's staff is already worked from home, moving to 100% provided few issues. The broker retains Add and a $12.94 target.

Target price is $12.94 Current Price is $9.67 Difference: $3.27
If MP1 meets the Morgans target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $11.93, suggesting upside of 23.4% (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 MPL as Hold (3) -

Both Medibank Private and nib Holdings have announced they will suspend their approved 2020 premium rate increases for six months. Both will see large claims reductions, the broker notes, as elective surgery and a raft of other non-essential services are put on hold.

In terms of virus-related claims, Medibank has said these claims will be returned to customers while nib is looking forward to a resultant uplift to margins.

The broker has cut forecast earnings and lowered its Medibank target to $2.97 from $3.07. Hold retained, as while both insurers are relatively positioned better opportunities lie elsewhere in the sector, suggests the broker.

Target price is $2.97 Current Price is $2.63 Difference: $0.34
If MPL meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.87, suggesting upside of 9.3% (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

Ord Minnett rates MQG as Upgrade to Buy from Hold (1) -

Ord Minnett suggests the stock has now overshot fundamentals, pointing out the market was slow to factor in the downside risks from the coronavirus outbreak.

Ord Minnett makes further reductions to forecasts but considers the -40% drop in the share price from the February peak presents a strong buying opportunity.

While further risks cannot be dismissed the extraordinary support being offered by governments is expected to ensure the coming recession is shortened.

Rating is upgraded to Buy from Hold. Target is lowered to $112 from $132.

Target price is $112.00 Current Price is $85.73 Difference: $26.27
If MQG meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $128.48, suggesting upside of 49.9% (ex-dividends)

The company's fiscal year ends in March.

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 NEC as Outperform (1) -

The company has announced a number of initiatives in response to the uncertainty generated by the coronavirus crisis.

All up, Macquarie assesses the initiatives are worth $266m by the end of the year, of which just under half relates to savings on NRL broadcast costs.

While advertising momentum has been consistent over the March quarter, the broker suspects this will change going forward and there will be a significant contraction.

Nevertheless, the broker considers the business underpinned by its key digital assets making it better positioned than free-to-air competitors.

Outperform maintained. Target is reduced to $1.60 from $2.05.

Target price is $1.60 Current Price is $1.14 Difference: $0.46
If NEC meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 75.4% (ex-dividends)

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

UBS rates NEC as Buy (1) -

The company has announced a number of cost saving measures but also indicated April will be "materially negative". Net debt was just $278m in the first half but UBS expects this to rise to over $400m by the second half.

To manage this debt load, the broker now factors in no second half dividend. Revised forecasts now indicate group operating earnings will decline -5% in FY20 and -8% in FY21.

UBS suspects an advertising market recovery is unlikely to eventuate until the second half of FY21. Buy rating maintained. Target is reduced to $1.70 from $1.85.

Target price is $1.70 Current Price is $1.14 Difference: $0.56
If NEC meets the UBS target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 75.4% (ex-dividends)

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

Morgans rates NHF as Hold (3) -

Both Medibank Private and nib Holdings have announced they will suspend their approved 2020 premium rate increases for six months. Both will see large claims reductions, the broker notes, as elective surgery and a raft of other non-essential services are put on hold.

In terms of virus-related claims, Medibank has said these claims will be returned to customers while nib is looking forward to a resultant uplift to margins.

The broker has cut forecast earnings and lowered its nib target to $4.94 from $5.35. Hold retained, as while both insurers are relatively positioned better opportunities lie elsewhere in the sector, suggests the broker.

Target price is $4.94 Current Price is $5.12 Difference: minus $0.18 (current price is over target).
If NHF meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.98, suggesting downside of -2.8% (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

Morgan Stanley rates NXT as Overweight (1) -

Morgan Stanley assesses NextDC is the best performing stock under coverage. The business is supported by demand within specific communications and business collaboration applications.

The broker suspects the magnitude of the change in behaviour is still under-appreciated by investors, as there has been a large spike in Azure services in affected regions along with remote working.

Overweight maintained. In-Line industry view. Target is $9.00.

Target price is $9.00 Current Price is $8.90 Difference: $0.1
If NXT meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $8.91, suggesting upside of 0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Macquarie rates OZL as Outperform (1) -

The company has reiterated 2020 production guidance. With around 85% of employees based in South Australia, the impact of travel restrictions appears minimal. Expenditure has been cut by -$150m for 2020.

Macquarie is encouraged by the ramp up at Carrapateena, which appears to be running ahead of schedule. Outperform rating maintained. Target is lowered to $10.80 from $11.20.

Target price is $10.80 Current Price is $7.28 Difference: $3.52
If OZL meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $10.36, suggesting upside of 42.4% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates OZL as Overweight (1) -

The company has maintained 2020 production guidance although has deferred $150m in 2020 expenditure.

Morgan Stanley believes the lower costs and the deferment of expenditure should be viewed positively.

Target is $10. Overweight retained. Industry view: In Line.

Target price is $10.00 Current Price is $7.28 Difference: $2.72
If OZL meets the Morgan Stanley target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $10.36, suggesting upside of 42.4% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates OZL as Buy (1) -

The company has reiterated 2020 production guidance. More than 85% of the Australian workforce lives in South Australia and the changes to rostering are ensuring there is limited impact on production to date.

Nevertheless, management has reduced discretionary expenditure by -$150m. UBS suspects these cuts to expenditure may delay the potential benefits from the growth options in the portfolio.

However, this is not factored into valuations. A Buy rating is maintained. Target is reduced to $10.90 from $11.00.

Target price is $10.90 Current Price is $7.28 Difference: $3.62
If OZL meets the UBS target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $10.36, suggesting upside of 42.4% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates PDL as Hold (3) -

The broker has marked to current equity market valuations for Pendal Group. While Pendal is the cheapest of the listed fund managers, trading well below historical multiples, the broker would prefer to see improvement in relative performance for some UK funds.

The broker has not yet made recommendation changes ahead of the potential for more volatility. Target falls to $5.81 from $8.83, Hold retained.

Target price is $5.81 Current Price is $4.40 Difference: $1.41
If PDL meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $7.07, suggesting upside of 60.7% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates PNI as Add (1) -

The broker has marked to current equity market valuations for Pinnacle Investment Management.

The broker has not yet made recommendation changes ahead of the potential for more volatility. Target falls to $4.03 from $5.96, Add retained.

Target price is $4.03 Current Price is $2.86 Difference: $1.17
If PNI meets the Morgans target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $4.14, suggesting upside of 44.6% (ex-dividends)

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

Macquarie rates PRU as Outperform (1) -

The company has updated on the life-of-mine plan at Edikan. Incorporating the plan reduces Macquarie's production estimates for FY21 and FY22 while FY23-25 estimates are lifted.

The broker now expects Edikan production will peak near 270,000 ounces in FY24. A meaningful reduction in costs over the end half of the mine life is expected. Outperform maintained. Target is raised to $1.30 from $1.20.

Target price is $1.30 Current Price is $0.92 Difference: $0.38
If PRU meets the Macquarie target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $1.10, suggesting upside of 19.2% (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

Morgan Stanley rates QBE as Overweight (1) -

QBE Insurance has withdrawn FY20 guidance for the combined operating ratio and net investment return. A further update will be delivered at the May 7 AGM. The company has indicated capital and liquidity are strong.

Morgan Stanley still expects a negative one-off impact of -15-20% on net profit from current equity markets and wider credit spreads.

While the company reports the premium rate momentum is strong, a softer economy is expected to present a challenge in maintaining rate increases at current levels.

Overweight rating maintained. Target is $15.50. Industry view is In-Line.

Target price is $15.50 Current Price is $8.46 Difference: $7.04
If QBE meets the Morgan Stanley target it will return approximately 83% (excluding dividends, fees and charges).

Current consensus price target is $14.28, suggesting upside of 68.7% (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: 0.8

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

Morgans rates RAP as Upgrade to Spec Buy from Hold (1) -

ResApp Health has announced it has completed initial integration with its first major commercial partner, Coviu, and signed binding commercial terms for the non-exclusive two-year license for the technology, which Morgans sees as a significant step.

The broker has reduced its discount to valuation due to a view that the recently announced Medicare rebate for telehealth consultations will likely drive increased demand for remote diagnostics.

Target rises to 24c from 8.6c. Rating upgraded to Speculative Buy from Hold.

Target price is $0.24 Current Price is $0.19 Difference: $0.05
If RAP meets the Morgans target it will return approximately 26% (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

Macquarie rates RSG as Outperform (1) -

Audited 2019 accounts revealed the loss was larger than the preliminary results indicated. Macquarie points out the main variance was a disputed $58m tax expense and provision in relation to claims from the Mali tax authority.

The continued ramp up of Syama sulphides remains critical for de-leveraging, the broker suggests, given expectations of a softer performance from the oxide operation.

Importantly, the company has executed a US$300m facility to refinance the US$63m project loan facility secured against the Mako mine as well as US$195m in senior bank debt. Outperform maintained. Target is $1.

Target price is $1.00 Current Price is $0.81 Difference: $0.19
If RSG meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

UBS rates SCG as Upgrade to Neutral from Sell (3) -

The viability of retail tenant businesses is being undermined worldwide. Longer-term, UBS anticipates a re-basing of specialty retail rents -20% lower.

In the current period of uncertainty, the broker expects Scentre Group will resort to capital preservation to ensure a flexible balance sheet.

While gearing is elevated, the broker believes the capital position is sound. To preserve long-term gearing UBS lowers distribution forecasts by -35%.

Rating is upgraded to Neutral from Sell as the current share price implies a -40% decline in asset prices. Target is reduced to $1.53 from $3.70.

Target price is $1.53 Current Price is $1.56 Difference: minus $0.03 (current price is over target).
If SCG meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.74, suggesting upside of 75.4% (ex-dividends)

The company's fiscal year ends in December.

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

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

The company has withdrawn guidance. Macquarie reassesses earnings estimates and adjusts for the anticipated economic impacts. Upfront and end-of-life lease fees are considered the major drivers of reduced earnings.

Working capital risk also increases because of the potential for delayed credit collection, asset value risk and reduced revenue. Rating is downgraded to Neutral from Outperform and the target lowered to $1.85 from $2.60.

Target price is $1.85 Current Price is $1.20 Difference: $0.65
If SGF meets the Macquarie target it will return approximately 54% (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

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

UBS assumes debt covenants will be relaxed by lenders over the next year. The broker also assumes the company will undertake a range of measures to ensure gearing remains under 3x thereafter.

These include a deferral of dividends, a -15% reduction in labour costs and a slowdown in construction at Queens Wharf as well as deferral of the second Gold Coast tower.

The broker upgrades to Buy from Neutral on the basis the value is backed by hard assets with long-dated casino licenses that are currently being discounted by over -50% versus historical averages. Target is to reduce to $3.00 from $4.40.

Target price is $3.00 Current Price is $2.14 Difference: $0.86
If SGR meets the UBS target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $3.38, suggesting upside of 57.7% (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

Macquarie rates TAH as Outperform (1) -

Macquarie assesses liquidity leverage seems manageable on a six-month shut-down basis. Wagering and lotteries are expected to experience a material step-up in digital volume.

Macquarie envisages longer-term break-up appeal in the stock, supporting a positive view at the current share price. Target is reduced to $4.00 from $4.75.

Target price is $4.00 Current Price is $2.51 Difference: $1.49
If TAH meets the Macquarie target it will return approximately 59% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting upside of 50.4% (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

Morgan Stanley rates TYR as Overweight (1) -

Tyro Payments has officially withdrawn its prospectus guidance for FY20. Morgan Stanley is not surprised and had already factored this into estimates. The main issue now is the depth and duration of the contraction.

The broker expects transaction value reductions will worsen before they get better but remains positive on the stock on a 12-month view.

The company has indicated for the month of March total transaction value (TTV) processed for customers was up 11% with 2020 to date up 27%. The broker calculates this implies that in the last seven days TTV fell -15%.

Overweight rating and $3.60 target. Industry view is Attractive.

Target price is $3.60 Current Price is $1.88 Difference: $1.72
If TYR meets the Morgan Stanley target it will return approximately 91% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Ord Minnett rates TYR as Accumulate (2) -

Tyro Payments has withdrawn FY20 prospectus financials given the deterioration in trading over the past week.

There has been a sharp deceleration in transaction volumes, attributed to the escalation of social distancing measures in Australia.

Ord Minnett expects continued pressure on short-term trading but notes the business remains well capitalised. Accumulate rating and $2.90 target maintained.

Target price is $2.90 Current Price is $1.88 Difference: $1.02
If TYR meets the Ord Minnett target it will return approximately 54% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Credit Suisse rates WES as Neutral (3) -

Wesfarmers intends to sell a 5.2% interest in Coles ((COL)). Credit Suisse suspects investors will speculate about an acquisition but notes Wesfarmers has considerable financial obligations and building a cash flow buffer is the more likely rationale.

One issue facing all retailers where demand has been significantly reduced is creditor payments.

Using the first half balance as an indication, Credit Suisse calculates the potential cash outflow associated with creditors and employee entitlements is in excess of -$5bn.

Operating earnings in the second half would fall significantly if retail closures were in force for a period of time.

While Wesfarmers has not stated this is the issue, the broker is simply making a point that cash can dry up very quickly. Neutral rating and $30.07 target maintained.

Target price is $30.07 Current Price is $33.96 Difference: minus $3.89 (current price is over target).
If WES meets the Credit Suisse target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.02, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

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

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

Wesfarmers intends to sell 5.2% of Coles ((COL)). Morgan Stanley calculates, at the last closing price, the sale would generate pre-tax proceeds of around $1.1bn.

This would be on top of the similar amount of proceeds from the first sell-down in February. The company has highlighted the importance of maintaining a flexible balance sheet in current economic circumstances.

Wesfarmers will retain its remaining share, around 5%, for at least 60 days from completion of the sale and will no longer have the right to nominate a director to the Coles ((COL)) board.

Morgan Stanley retains an Equal-weight rating and $41.50 target. Cautious industry view.

Target price is $41.50 Current Price is $33.96 Difference: $7.54
If WES meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $35.02, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

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 WES as Lighten (4) -

Wesfarmers has announced a sale of a further 5.2% stake in Coles. Ord Minnett notes already strong liquidity has been strengthened further and suspects the company will divest its entire stake in Coles after the 60-day restriction.

The fall in asset prices also presents the company with an increasing number of opportunities, in the broker's view. The broker maintains a Lighten rating and $31.50 target.

Target price is $31.50 Current Price is $33.96 Difference: minus $2.46 (current price is over target).
If WES meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.02, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

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

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

UBS cuts oil price forecasts by -15-30% for the next five years. Brent is now expected to remain below US$60/bbl until 2024. This will mean a material impact on earnings.

The broker lowers assumptions for oil stocks to reflect the value of the base business, as investors are not expected to pay for growth in this environment.

Woodside Petroleum is upgraded to Buy from Neutral as it is trading at a -21% discount to valuation and has the strongest balance sheet. Target is reduced to $22.60 from $34.60.

Target price is $22.60 Current Price is $18.07 Difference: $4.53
If WPL meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $24.68, suggesting upside of 36.6% (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: 0.7

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