Australian Broker Call

Citi rates AMP as Neutral (3) -

The core business is performing weakly and Citi analysts have identified a sharp fall in inflows as the main culprit of AMP’s -$1.8bn of 1Q19 net outflows, worsening from 4Q18. The CEO intends to outline the new strategy at the release of interim report.

Regardless of what occurs at the AGM, and including the potential new strategy, and its execution, Citi analysts emphasise it’s still a long road ahead for any potential turnaround. Neutral/High Risk retained. Price target falls to $2.30 from $2.35.

Earnings adjustments are a mix on a combination of marking-to-market and softer underlying trend for the core operations.

Target price is $2.30 Current Price is $2.24 Difference: $0.06
If AMP meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 1.7% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Credit Suisse rates AMP as Neutral (3) -

First quarter cash flow revealed similar trends to recent quarters, with a gradual increase in wealth management net outflows. The level of outflows was better than Credit Suisse expected and market movements were also more favourable.

The broker considers there may be a medium-term investment opportunity if growth and capital initiatives are delivered. Yet, as no strategy has been announced and there is risk around costs and provisions, a Neutral rating and $2.35 target are maintained.

Target price is $2.35 Current Price is $2.24 Difference: $0.11
If AMP meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

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

Despite employer contributions being stable, wealth suffered net superannuation outflows of -$896m in the March quarter. Pension outflows increased 61%. Morgan Stanley notes no details were provided about remediation or life experience.

The broker maintains an Equal-weight rating and $2.15 target. Industry view is In-Line.

Target price is $2.15 Current Price is $2.24 Difference: minus $0.09 (current price is over target).
If AMP meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.28, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Morgans rates AMP as Hold (3) -

First quarter update revealed Australian wealth net outflows of -$1.8bn. While AMP had indicated weak flows were likely to continue in 2019 the numbers were softer than Morgans expected.

On the positive side, assets under management rose 4%-7% with the benefit from recent positive investment market moves. Morgans believes the share price has largely found a bottom but righting the ship will take time.

In light of the earnings pressures and areas of uncertainty the broker maintains a Hold rating. Target is reduced to $2.30 from $2.32.

Target price is $2.30 Current Price is $2.24 Difference: $0.06
If AMP meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

UBS rates AMP as Neutral (3) -

Fund outflows for AMP are of no surprise given current challenges but March Q outflows were the worst on record, the broker notes. At least one positive was the fact there was no more negative commentary from management, after a year of profit warnings.

AMP is in the process of transforming its wealth management division, but until more clarity emerges on just how disruptive this may be, the broker does not see a compelling investment case. Neutral and $2.31 target retained.

Target price is $2.30 Current Price is $2.24 Difference: $0.06
If AMP meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

UBS rates ANZ as Neutral (3) -

ANZ Bank's result came in slightly above expectation thanks to very low impairment charges, the broker notes. ANZ is the first bank to report a fall in housing credit (-1%). Of concern is a sharp rise in mortgage delinquencies, which the bank puts down to forced switching to principal-and-interest from interest-only investment loans, along with falling house prices.

ANZ is at the "pointy end" of headwinds now facing the banks, the broker suggests. Cost-outs are encouraging but revenue is weak, and the broker no longer expects a buyback. Neutral and $26 target retained.

Target price is $26.00 Current Price is $27.46 Difference: minus $1.46 (current price is over target).
If ANZ meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.86, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Morgans rates ATL as Add (1) -

The company has downgraded FY19 net profit guidance to $17.5-19.5m. The main reason is an oversupply of new RVs in the US, which has continued to pressure the used vehicle market.

Australian new RVs sales/margins have also trailed expectations because of softer consumer conditions. On the back of material downgrades to earnings estimates, Morgans reduces the target to $0.84 from $1.41.

While it may take a sustained period for confidence to be restored, on the broker's forecast the stock is trading on 6.4x FY19 forecast PE. For this reason an Add rating is maintained.

Target price is $0.84 Current Price is $0.60 Difference: $0.24
If ATL meets the Morgans target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Ord Minnett rates ATL as Hold (3) -

The company has downgraded net profit expectations because of a downturn in pricing and volumes in the North American ex-fleet market. There is also weaker than expected results from the acquired RV dealerships in Australia.

Ord Minnett believes the outlook for Australian retail dealerships is likely to stay challenged and remains cautious about the stock. The net effect of the broker's changes is a downgrade of -23% to estimates for earnings per share in FY19 and -25% for FY20.

Hold rating maintained. Target is reduced to $0.66 from $1.14.

Target price is $0.66 Current Price is $0.60 Difference: $0.06
If ATL meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Credit Suisse rates CCL as Neutral (3) -

Coca-Cola Amatil has indicated progress in building its Australian sales force. This initiative supports Credit Suisse's 2020 Australian earnings (EBIT) projection.

State-based customers, combined with restaurants/cafes, account for around 40% of volume and perhaps 50% of sales.

Price growth can come through channel shift, the broker notes, as the new sales force drives growth faster than the other, lower-value channels such as supermarkets. Credit Suisse maintains a Neutral rating and $8.90 target.

Target price is $8.90 Current Price is $8.95 Difference: minus $0.05 (current price is over target).
If CCL meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.36, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Citi rates CSL as Buy (1) -

Citi analysts have published another appraisal of the R&D pipeline at CSL. They highlight this is a company that spends circa 10% of revenue on R&D annually and this amounts to US$820m for FY19 versus EBITDA of circa US$3bn.

They have ascribed risk-adjusted valuations to four assets that are in a position to potentially contribute to earnings in a meaningful manner in the medium term, and have a good probability of getting approved.

The short term result is that the price target improves to $236.60 from $213. Of the $23.50 increase, $16.46 has been due to rolling forward the modeling and the remaining $7.15 relates to a general review of the R&D portfolio. Buy (what else?).

Target price is $236.60 Current Price is $199.93 Difference: $36.67
If CSL meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $206.53, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.4

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

Citi rates DXS as Neutral (3) -

Dexus and its managed fund Dexus Wholesale Property Fund are purchasing the 80 Collins street precinct in Melbourne's CBD for a total consideration of $1.476bn. Ownership will be 75% and 25% respectively.

Citi analysts think the funding structure chosen, including a placement of $1.107bn by Dexus, seems appropriate while the purchase itself is in line with Dexus' strategy. Forecasts have been updated for the transaction, leaving DPS forecasts unchanged.

Target price increases to $12.02 from $11.62. Neutral rating retained.

Target price is $12.02 Current Price is $12.43 Difference: minus $0.41 (current price is over target).
If DXS meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.87, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.2

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

Macquarie rates DXS as Downgrade to Underperform from Neutral (5) -

Dexus has confirmed the acquisition of 80 Collins Street, to be partly funded by a $950m equity raising. The acquisition is at a 5.0% passing yield and 5.3% capitalisation rate. Distribution guidance is for 5% growth in FY20.

While the transaction is marginally accretive, Macquarie does not believe further capital deployed in office at this point in the cycle will be taken well by equity markets and downgrades to Underperform from Neutral.

The broker considers a 5% passing yield on an 8% internal rate of return, funded with nearly $1bn of new equity, is an aggressive capital management decision. Target is steady at $11.36.

Target price is $11.36 Current Price is $12.43 Difference: minus $1.07 (current price is over target).
If DXS meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.87, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.2

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

UBS rates DXS as Neutral (3) -

The surprised Dexus has taken on a full 75% of the 80 Collins St acquisition when the REIT was supposedly assembling third party investors. The size of the equity raising is thus more than expected. The acquisition itself nevertheless makes sense to the broker.

Neutral and $11.45 target retained.

Target price is $11.45 Current Price is $12.43 Difference: minus $0.98 (current price is over target).
If DXS meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.87, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.2

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

Credit Suisse rates FAR as Outperform (1) -

The company has completed a placement to raise $45m. Proceeds will be used to fund costs ahead of the 2020 drilling program. Credit Suisse notes, all else being equal, this is more than enough of a buffer to hold until a final investment decision is made.

The broker maintains an Outperform rating and reduces the target to $0.10 from $0.12.

Target price is $0.10 Current Price is $0.06 Difference: $0.04
If FAR meets the Credit Suisse target it will return approximately 67% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Credit Suisse rates FPH as Underperform (5) -

The company has finally launched its F&P Vitera, a next-generation full face mask, with features to increase patient comfort. The mask will be available in Australia in May with Canada, New Zealand and Europe following.

Introduction to the US will follow regulatory clearance, a process expected to take up to 9 months. Credit Suisse observes full face masks are a pivotal category and central to mask growth, which has waned in recent years.

Still, the broker expects it will be FY21 before the company returns growth in masks at, or above, the wider market. Underperform maintained. Target is NZ$13.15.

Current Price is $15.04. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: -0.6

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

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

Hansen Technologies has announced the acquisition of Sigma Systems for $166.2m. The strategic rationale centres on the high-quality asset, significantly adding scope and scale in telecommunications.

It also provides cross selling opportunity into the utility vertical as well as pay-TV. Ord Minnett estimates the deal is 20% accretive and, while time will ultimately tell, Sigma Systems may represent the circuit breaker the company needs.

The stock has significantly de-rated over the past year. Ord Minnett upgrades to Buy from Hold and raises the target to $3.95 from $3.36.

Target price is $3.95 Current Price is $3.60 Difference: $0.35
If HSN meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Citi rates IFL as Neutral (3) -

Citi has slightly lifted estimates, mainly in reflection of marking-to-market, with the analysts explaining their forecasts already assume IOOF will be successful in acquiring targeted operations from ANZ Bank.

The analysts do concede the ANZ transaction remains uncertain and keeps the outlook for IOOF inside a rather binary framework.

The shares are seen as "undemanding" from a valuation perspective, but the binary proposition is keeping the Neutral/High Risk rating unchanged. Also, Citi still expects IOOF will likely have to make significant changes to its business model post Royal Commission.

Target price is $5.70 Current Price is $6.04 Difference: minus $0.34 (current price is over target).
If IFL meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.83, suggesting downside of -3.5% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Credit Suisse rates IFL as Neutral (3) -

Funds under management increased 4.9% in the March quarter, driven by large positive market movements. The platform reported net outflows of - $25m, the first outflow in three years and in line with the pressure on institutional platforms.

Despite valuation appeal, the uncertainty around the ANZ acquisition means Credit Suisse does not envisage an appropriate risk/reward trade at current levels. Neutral rating and $5.90 target maintained.

Target price is $5.90 Current Price is $6.04 Difference: minus $0.14 (current price is over target).
If IFL meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.83, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Macquarie rates IFL as Neutral (3) -

March quarter flows were softer but Macquarie believes they were resilient, considering the backdrop. The total impact of changes in Protecting Your Super is estimated at $8m.

Outflows continue across the OnePath P&I business, which IOOF intends to acquire from ANZ Bank. Macquarie maintains a Neutral rating and raises the target to $6.00 from $5.90.

Target price is $6.00 Current Price is $6.04 Difference: minus $0.04 (current price is over target).
If IFL meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.83, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

UBS rates IFL as Neutral (3) -

IOOF's funds flows were relatively flat in the March Q, which is a darned sight better than peers and in line with the broker's expectation. It's a comforting result, the broker suggests, given brand contagion post-RC.

However funds flows are still tracking well below historical levels and fee pressure risks are rising, and uncertainty remains over the ANZ Wealth acquisition, where earnings are deteriorating. Neutral and $5.80 target retained.

Target price is $5.80 Current Price is $6.04 Difference: minus $0.24 (current price is over target).
If IFL meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.83, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Morgans rates IPD as Add (1) -

March quarter cash flow showed no growth in cash receipts. The PREVENT data will be presented at a major conference shortly and the broker expects this will maintain share price momentum. This is a rigorously conducted trial for evaluating the impact of bioimpediance spectroscopy on detecting, monitoring and treating cancer-related lymphoedema.

Morgans maintains an Add rating and $0.79 target. The broker considers the company is more than three quarters away from breaking even and does not rule out the need for additional capital.

Target price is $0.79 Current Price is $0.26 Difference: $0.53
If IPD meets the Morgans target it will return approximately 204% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Citi rates JHG as Neutral (3) -

There are no two ways about this, concede the Citi analysts; the -US$7.4bn of 1Q19 net outflows were, simply put, hard to swallow. Worse still, more sizeable outflows are on their way, they add.

In addition, note the analysts, the 1Q19 result revealed the lowest operating margin since the merger despite synergies supposedly all now realised. The company has blamed seasonal factors.

Estimates have been lowered by -3%. Target price falls to US$25.50 ($36.30). Neutral rating retained.

Target price is $36.30 Current Price is $30.87 Difference: $5.43
If JHG meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $35.70, suggesting upside of 15.6% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.2

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

Credit Suisse rates JHG as Underperform (5) -

First quarter earnings missed Credit Suisse estimates. Earnings per share fell -22% despite only a -6% reduction in average assets under management.

The result was also affected by lower net management fee margins. Credit Suisse maintains an Underperform rating and $32 target.

Target price is $32.00 Current Price is $30.87 Difference: $1.13
If JHG meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $35.70, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.2

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

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

Earnings per share in the March quarter missed Morgan Stanley's estimates. The stock does not appear expensive to the broker but, with no increase in the dividend and lower fee margins, a re-rating is considered unlikely.

Equal-weight rating is maintained. Target is $35. Industry view is In-Line.

Target price is $35.00 Current Price is $30.87 Difference: $4.13
If JHG meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $35.70, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.2

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

UBS rates JHG as Buy (1) -

Janus Henderson posted strong operating income in the March Q but still funds flew out, despite three-year investment trends rising to the strongest level in 18 months, the broker notes. The broker believes these may ebb once Emerging Market redemptions cease later in the year.

Cost controls and the buyback are supporting earnings and a 6.1% dividend and 8.9x PE are attractive, providing for the broker's Buy rating, but investors may lose patience if funds flows don't improve, the broker suggests. Target falls to US$28.90 from US$30.90.

Current Price is $30.87. Target price not assessed.

Current consensus price target is $35.70, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.2

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

Ord Minnett rates KDR as Buy (1) -

Ord Minnett suggests the offer from Wesfarmers ((WES)) at $1.90 a share fundamentally undervalues the company's 50% interest in the Covalent lithium JV with SQM.

The timing is also opportunistic as Kidman is months from completing definitive feasibility studies and making a final investment decision.

Still, there is now timeline in place for other parties interested in the company to act. Ord Minnett believes this is a real prospect and presents potential upside to the offer price.

The broker maintains a Speculative Buy rating and $3 target.

Target price is $3.00 Current Price is $1.87 Difference: $1.13
If KDR meets the Ord Minnett target it will return approximately 60% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

UBS rates MQG as Neutral (3) -

Macquarie Group reported slightly ahead of market consensus, but foward guidance -for the first time in ten years- was for a slightly lower level of profit.

In an initial response to the release, UBS analysts observe the result was more driven by volatile items, plus Macquarie guidance is usually conservative.

The analysts note guidance implies some -7% downgrade to consensus forecasts. The analysts suggest they intend to retain the Neutral rating, as well as the $125 price target.

Target price is $125.00 Current Price is $128.71 Difference: minus $3.71 (current price is over target).
If MQG meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $129.31, suggesting upside of 0.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Citi rates NAB as Buy (1) -

Citi analysts spotted how a weaker than expected NIM was offset by better volumes in the H1 financial update, but bad debts surprised in a negative sense. In addition, NAB's 1H19 dividend has been reset to 83cps, with a partially underwritten DRP to raise up to $1bn, note the analysts.

Underlying, the analysts believe NAB's performance met expectations, while also averting any lingering concerns about balance sheet and capital requirements. Renewed concerns around asset quality, however, might negatively impact on the share price, the analysts muse.

Target price $29.50. Buy. Maybe the key sentence in today's report is the following: "NAB may offer an attractive entry point at these levels if the current Board executes well".

Target price is $29.50 Current Price is $25.70 Difference: $3.8
If NAB meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $26.53, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Credit Suisse rates NAB as Neutral (3) -

Following the first half result Credit Suisse downgrades earnings estimates by -1-2% across the forecast period. The dividend reduction was larger than the broker expected and the timing of a capital raising, via a dividend reinvestment plan, was a surprise, although this ultimately removes two main uncertainties surrounding the stock.

There will also be continued uncertainty around the strategy of a new CEO and whether any benefits of the transformation will drop to the bottom line. Neutral rating and $26.50 target maintained.

Target price is $26.50 Current Price is $25.70 Difference: $0.8
If NAB meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $26.53, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Deutsche Bank rates NAB as Buy (1) -

Deutsche Bank expects the bank will eventually attain its IT edge and be a "better bank for customers". The broker suggests the current mortgage difficulties just need to be negotiated, and looks forward to a new CEO.

The current strategy is considered neither complex nor radical and therefore not vulnerable to change. Buy rating and $29 target maintained.

Target price is $29.00 Current Price is $25.70 Difference: $3.3
If NAB meets the Deutsche Bank target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $26.53, suggesting upside of 3.2% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Macquarie rates NAB as Neutral (3) -

Macquarie believes National Australia Bank is in a better position than peers, because of an underweight position in Australian retail banking.

The first half result was broadly in line with expectations and the broker notes management has taken action to reduce the elevated payout-out ratio to a more sustainable level.

With ongoing uncertainty around management and the future direction, the broker finds it difficult to have a more constructive view at this stage and maintains a Neutral rating. Target is reduced to $26.00 from $26.50.

Target price is $26.00 Current Price is $25.70 Difference: $0.3
If NAB meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $26.53, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

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

Cash profit in the first half was below Morgan Stanley's forecasts. The interim dividend is being reduced by around -16% to $0.83 and the bank is partially underwriting the dividend reinvestment plan to raise around $1.8bn.

Revenue growth is expected to slow in FY20 and the result confirms for the broker the difficulty for Australian banks to increase volume and maintain margin.

Morgan Stanley considers the result satisfactory and the capital plan sensible. Equal-weight. Target is reduced to $25.10 from $25.60. Industry view: In-line.

Target price is $25.10 Current Price is $25.70 Difference: minus $0.6 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.53, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Morgans rates NAB as Hold (3) -

First half earnings were broadly in line with Morgans' estimates. The interim dividend has been reduced to $0.83, fully franked, slightly less than the broker's forecast.

The risk of a dividend reduction has now played out. Morgans remains mindful of the loss of operating momentum following the departure of Andrew Thorburn as well as more significant remediation charges.

Morgans maintains a Hold rating and $24.50 target.

Target price is $24.50 Current Price is $25.70 Difference: minus $1.2 (current price is over target).
If NAB meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.53, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Ord Minnett rates NAB as Accumulate (2) -

First half results were in line with Ord Minnett's expectations. Stronger income from markets helped offset the challenging conditions in retail banking and wealth management, the broker observes.

The broker prefers National Australia Bank because of its good growth and margin outcomes in small-medium-sized enterprise lending, NZ business as well as corporate and institutional banking.

While reducing net profit forecasts by around -3% the broker maintains an Accumulate rating. Target is reduced to $28.60 from $29.80.

Target price is $28.60 Current Price is $25.70 Difference: $2.9
If NAB meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $26.53, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Morgans rates NAM as Hold (3) -

FY19 results disappointed Morgans as the company should have benefited from one of the largest cotton crops in many years. This poor result stemmed from investee/JV companies, as losses worsened.

The 2019 cotton crop is expected to halve, given the drought, and the broker revises forecasts. Morgans also notes downside risk for the next season (FY21) as dam levels are low.

As the short-term outlook is extremely challenging the share price is expected to remain under pressure. Importantly, the company's bank is supportive and facilities were recently renewed for a further two years.

Hold rating maintained. Target is reduced to $0.37 from $0.39.

Target price is $0.37 Current Price is $0.36 Difference: $0.01
If NAM meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in February.

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 NTD as Downgrade to Hold from Add (3) -

Sluggish demand and heightened competition has meant the company has downgraded FY19 revenue guidance to $165-167m and operating earnings (EBITDA) guidance to $11.5-12.5m.

Morgans is relieved the balance sheet is net cash. The company has reiterated strategies to deal with current conditions including improved price, changes to source of manufacture and a more aggressive push into the SUV segment.

Morgans believes this poses both opportunity and risk. Rating is donwgraded to Hold from Add and the target lowered to 48c from 67c.

Target price is $0.48 Current Price is $0.38 Difference: $0.1
If NTD meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Citi rates PDL as Neutral (3) -

Citi analysts have reduced estimates on taking a more cautious stance on future performance fees post the release of interim financials. They retain the view this fund manager should perform well through the cycle and as such a beaten down share price should provide an excellent entry point for investors with a longer term horizon.

The interim result showed costs are well managed, suggest the analysts. They do concede in financial performance terms it was a weak result. Fund flows are expected to remain weak for quite some time. Neutral rating retained. Target price has dropped to $8.75 from $9.50.

Target price is $8.75 Current Price is $8.05 Difference: $0.7
If PDL meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $8.66, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

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

First half cash net profit was down -26% and below Credit Suisse forecasts. The miss was largely caused by unexpected revenue margin compression. The broker expects management fee compression to continue in most of the product lines.

Earnings estimates are downgraded by -7% for FY19 and -4-5% for FY20-21. The recent fall in the share price now provides more insulation from the risks and the broker upgrades to Neutral from Underperform. Target is reduced to $7.65 from $7.80.

Target price is $7.65 Current Price is $8.05 Difference: minus $0.4 (current price is over target).
If PDL meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.66, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Macquarie rates PDL as Outperform (1) -

First half results disappointed Macquarie at the headline. The main driver were weaker-than-expected fee margins. The broker considers persisting margin pressure will be a cause for concern.

Nevertheless, Macquarie was surprised by the extent of the reaction in the share price. Value is still envisaged in the stock at current levels although there is some near-term risk to flows.

Outperform rating maintained. Target is reduced to $9.00 from $9.50.

Target price is $9.00 Current Price is $8.05 Difference: $0.95
If PDL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $8.66, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Morgan Stanley rates PDL as Overweight (1) -

Morgan Stanley believes a greater focus on the US will differentiate the company's growth options versus its peers and stabilise base fee margins. A new strategy to drive growth has been announced with the appointment of regional CEOs for the US and EU, UK & Asia, creating three divisions.

This creates some execution risk, in the broker's view, but should enhance growth options. Given a longer recovery in EU flows and lower first half base fee margins, the broker reduces cash earnings estimates and the target.

Overweight rating. Target is reduced to $9.60 from $10.00. Industry view: In-Line.

Target price is $9.60 Current Price is $8.05 Difference: $1.55
If PDL meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $8.66, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Morgans rates PDL as Hold (3) -

First half net profit was down -26% and below expectations. The decline was primarily driven by lower JO Hambro performance fees and slightly more margin pressure than Morgans had expected.

The broker considers the outlook for the next 6-12 months mixed. The valuation is considered reasonable but Morgans envisages some risk of accelerated outflows and would prefer the company's growth path was less reliant on market direction.

Hold rating maintained. Target is reduced to $8.90 from $9.39.

Target price is $8.90 Current Price is $8.05 Difference: $0.85
If PDL meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $8.66, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

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

First half net profit was down -26.2% and below Ord Minnett's forecasts. The interim dividend of $0.20 a share was slightly above expectations.

The broker believes the business will face near-term headwinds and negative news around fund flows.

However, the de-rating on re-based earnings is providing an attractive opportunity over the medium term and the broker's rating is upgraded to Accumulate from Hold. Ord Minnett raises the target to $8.90 from $8.50.

Target price is $8.90 Current Price is $8.05 Difference: $0.85
If PDL meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $8.66, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

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

Pendal's -26% fall in March Q profit was -13% below UBS. With lower performance fees, flows and FUM all preannounced, it was lower base fees that made the difference, the broker notes. Weakness across the JOHCM funds appear to be a key factor, and the impetus for -9-10% cuts to UBS' forecast earnings.

Target falls to $7.85 from $8.70, but a 15.6x FY20 multiple and a 7% yield warrant an upgrade to Neutral, with further downside appearing more limited.

Target price is $7.85 Current Price is $8.05 Difference: minus $0.2 (current price is over target).
If PDL 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 $8.66, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Credit Suisse rates PLS as Outperform (1) -

Credit Suisse believes the company's Pilgangoora is the 'golden goose' as there is a clear re-rating catalyst on the outcome of the current sale process for up to 49% of the asset.

Pilgangoora is one of a select group of large high-grade lithium deposits. Whilst the equity market appears to have limited appetite for lithium equities, the broker notes operators are clearly taking longer-term views and ascribing higher values.

Outperform rating and $1.15 target maintained.

Target price is $1.15 Current Price is $0.73 Difference: $0.42
If PLS meets the Credit Suisse target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $0.90, suggesting upside of 23.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.7

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

Deutsche Bank rates S32 as Buy (1) -

Deutsche Bank believes Cerro Matoso could be the next asset divested by South32.

The broker runs several valuation scenarios and its base case is a negotiated solution that extends the mine beyond the current 2029 end date and provides a path to exit.

Buy rating and $4.30 target maintained.

Target price is $4.30 Current Price is $3.31 Difference: $0.99
If S32 meets the Deutsche Bank target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $3.90, suggesting upside of 17.8% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

UBS rates SHV as Neutral (3) -

Select Harvests has upgraded its FY19 crop estimate, expecting yields 10% above industry average having already processed 48%. Pricing guidance remains unchanged but the broker sees upside risk on quality.

The broker would nevertheless like to gain more clarity on FY20 conditions before shifting off Neutral. Target rises to $6.65 from $6.40.

Target price is $6.65 Current Price is $6.63 Difference: $0.02
If SHV meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Credit Suisse rates SPK as Underperform (5) -

Credit Suisse believes one of the attractive aspects of the company's investment case has been a relatively benign competitive environment.

The broker considers a potential entry of the pay-TV operator into broadband with a customer base that rivals Spark New Zealand could be interesting, particularly as Sky TV's motives are likely to include taking a leadership role.

Underperform rating and target of NZ$3.39.

Current Price is $3.46. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: -0.3

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

Citi rates WES as Sell (5) -

At face value, argue analysts at Citi, the $776m proposed acquisition of Kidman Resources ((KDR)) is small beer for a $40bn conglomerate, but it does signal Wesfarmers' push into rare earths and lithium assets, otherwise known as "new world resources".

Citi states the obvious in that future value from this transaction is 100% dependent on future prices for lithium. Giveaway insight: Citi's price forecasts are below those used by Wesfarmers, as implied by the takeover price.

Target price is $29.00 Current Price is $36.38 Difference: minus $7.38 (current price is over target).
If WES meets the Citi target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.25, suggesting downside of -11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Credit Suisse rates WES as Neutral (3) -

Credit Suisse disagrees with what it considers a lukewarm market response to the proposed acquisition of Kidman Resources ((KDR)). Wesfarmers would be buying an exceptionally long duration mine with high-quality ore, supporting a low-cost position and the potential for significant expansion downstream.

Assuming the acquisition goes ahead, pro forma net debt would increase to $3.0bn for FY19 and to $3.6bn in FY21 following project funding, the broker calculates. Neutral rating and $33.12 target maintained.

Target price is $33.12 Current Price is $36.38 Difference: minus $3.26 (current price is over target).
If WES meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.25, suggesting downside of -11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Deutsche Bank rates WES as Hold (3) -

It is clear the company is attracted to the long-dated structural demand surrounding rare earths and batteries, Deutsche Bank asserts.

With the latest being a bid for Kidman Resources ((KDR)) the company appears to have a preference for a portfolio of smaller acquisitions rather than a large one, the broker notes.

Still, Deutsche Bank points out the sector comes with a different time horizon and risk profile to the areas where Wesfarmers has historically operated. Hold. Price target $32.

Target price is $32.00 Current Price is $36.38 Difference: minus $4.38 (current price is over target).
If WES meets the Deutsche Bank target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.25, suggesting downside of -11.4% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Morgan Stanley rates WES as Underweight (5) -

Wesfarmers has entered into an exclusive arrangement to acquire Kidman Resources ((KDR)) for $1.90 a share, equating to $776m. Kidman has a 50% ownership stake in the Mount Holland lithium project.

The acquisition appears long dated to Morgan Stanley, given a number of years before turning a profit. While the company notes strong demand for lithium in the electric vehicle market, this investment is not considered strategic but rather to generate stand-alone returns.

Underweight rating. Target is $29. Cautious industry view.

Target price is $29.00 Current Price is $36.38 Difference: minus $7.38 (current price is over target).
If WES meets the Morgan Stanley target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.25, suggesting downside of -11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Morgans rates WES as Hold (3) -

The company has proposed the acquisition of Kidman Resources ((KDR)) for $776m. If successful, the acquisition would provide exposure to demand for electric vehicles, as production of lithium hydroxide is a key part of the value chain.

Morgans believes the acquisition could provide Wesfarmers with good growth opportunities in the long term. Hold rating maintained. Target is raised to $35.49 from $34.50.

The $1.90 offer price for Kidman resources represents a 47% premium to the stock's last close and is supported by the board and management as well as a number of major shareholders.

Target price is $35.49 Current Price is $36.38 Difference: minus $0.89 (current price is over target).
If WES meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.25, suggesting downside of -11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Ord Minnett rates WES as Lighten (4) -

Wesfarmers has made a proposal to acquire Kidman Resources ((KDR)) for $776m. Ord Minnett believes this is an attractive target because of vertical integration, the partnership with SQM and signed offtake contracts.

However, the proposed price is below Ord Minnett's valuation, while SQM support has not been assured.

Ord Minnett acknowledges this approach may not sit comfortably with all the investment community but notes the company is focused on the long-term, and willing to use its balance sheet to pursue investments in attractive new energy assets.

Ord Minnett maintains a Lighten rating and $30 target.

Target price is $30.00 Current Price is $36.38 Difference: minus $6.38 (current price is over target).
If WES meets the Ord Minnett target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.25, suggesting downside of -11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

UBS rates WES as No Rating (-1) -

Wesfarmers insists its takeover bid for Kidman Resources ((KDR)) is not a "thematic play" but the broker's long term view is heavily linked to EV growth. The strategic asset in the deal, the broker suggests, is the underdeveloped Early Grey lithium deposit in which Kidman has a 50/50 JV.

The broker sees this as an attractive asset, but when it comes to lithium production and pricing there are a lot of uncertainties. The sector is nevertheless ripe for consolidation.

The broker is advising and thus is now restricted in making a recommendation.

Current Price is $36.38. Target price not assessed.

Current consensus price target is $32.25, suggesting downside of -11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Citi rates WOW as Neutral (3) -

It is Citi's view the quarterly update has revealed strong performances across all businesses inside the Woolworths umbrella. The acceleration in supermarket sales puts Woolworths in a clear lead over Coles, point out the analysts.

Citi thinks Woolworths will retain its sizeable lead over Coles in the next six months, with the peak in diverging performances between the two projected for Q1 2020. Price target retained at $29 as regardless of the relatively superior execution, overall the growth in EPS is expected to remain rather low at around 2.5% per annum. Neutral.

Target price is $29.00 Current Price is $32.83 Difference: minus $3.83 (current price is over target).
If WOW meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.59, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Citi rates WOW as Neutral (3) -

It is Citi's view the quarterly update has revealed strong performances across all businesses inside the Woolworths umbrella. The acceleration in supermarket sales puts Woolworths in a clear lead over Coles, point out the analysts.

Citi thinks Woolworths will retain its sizeable lead over Coles in the next six months, with the peak in diverging performances between the two projected for Q1 2020. Price target retained at $29 as regardless of the relatively superior execution, overall the growth in EPS is expected to remain rather low at around 2.5% per annum. Neutral.

Target price is $29.00 Current Price is $32.83 Difference: minus $3.83 (current price is over target).
If WOW meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.59, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Credit Suisse rates WOW as Neutral (3) -

Credit Suisse reiterates a preference for Woolworths following the March quarter update. The company is more advanced in its supply chain initiatives and its digital structure.

The broker upgrades comparable sales forecasts for Australian food and liquor and increases the target to $29.82 from $28.53.

While acceleration in sales growth is encouraging, Credit Suisse notes challenges with stock loss and slower recovery in higher margin categories continue to weigh on profitability for Big W. Neutral maintained.

Target price is $29.82 Current Price is $32.83 Difference: minus $3.01 (current price is over target).
If WOW meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.59, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Deutsche Bank rates WOW as Hold (3) -

Sales in the March quarter were solid, Deutsche Bank observes, with market share gains in every business. The broker was impressed with the turnaround in the drinks business, which had been a concern at the first half result.

The stock is not cheap but in an expensive market Deutsche Bank considers it a good holding, given inflation is likely to continue building. Hold rating and $31 target maintained.

Target price is $31.00 Current Price is $32.83 Difference: minus $1.83 (current price is over target).
If WOW meets the Deutsche Bank target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.59, suggesting downside of -9.9% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Macquarie rates WOW as Underperform (5) -

March quarter sales revealed strength across food, liquor and Big W. All divisions were slightly ahead of Macquarie's expectations.

While commendable, the broker does not believe the sales result will translate into significant profit growth. The group has again flagged significant cost pressures from suppliers, wages and energy.

Macquarie maintains an Underperform rating and $26.84 target.

Target price is $26.84 Current Price is $32.83 Difference: minus $5.99 (current price is over target).
If WOW meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.59, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Morgan Stanley rates WOW as Underweight (5) -

Morgan Stanley observes Woolworths has passed a difficult first half and improved operations in the March quarter. Digital initiatives are gaining traction and supermarket competitive intensity remains low.

Yet profit growth expectations embedded in a rich valuation keeps the broker on an Underweight rating. Target is raised to $28 from $26 to reflect earnings upgrades of 2-5% across FY19-22. Industry view: Cautious.

Target price is $28.00 Current Price is $32.83 Difference: minus $4.83 (current price is over target).
If WOW meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.59, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Morgans rates WOW as Hold (3) -

March quarter sales were strong and all business divisions performed better than Morgans expected. The broker increases FY19 earnings estimates (EBIT) slightly. Core Australian food business delivered 4.2% like-for-like sales growth.

Sales at Big W rose 5.6%, or 7.4% on a like-for-like basis, which the broker notes is its best performance in over 10 years. Morgans maintains a Hold rating and raises the target to $31.24 from $27.92.

Target price is $31.24 Current Price is $32.83 Difference: minus $1.59 (current price is over target).
If WOW meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.59, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Ord Minnett rates WOW as Hold (3) -

March quarter sales growth was led by the Australian food division up 4.2% on a like-for-like basis. Endeavour Drinks like-for-like sales growth of 4.3% revealed a strong recovery after a very weak December quarter.

Big W like-for-like sales growth of 7.4% was strong, although guidance of an EBIT loss of -$80-100m was reiterated. Ord Minnett notes limited valuation support and maintains a Hold rating and $30 target.

Target price is $30.00 Current Price is $32.83 Difference: minus $2.83 (current price is over target).
If WOW meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.59, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

UBS rates WOW as Buy (1) -

The highlight of Woolworths' quarterly sales numbers was a 4.2% increase in food sales, Easter adjusted, versus Coles ((COL)) at 2.4%. Overall sales growth beat the broker by 1%. Other businesses performed well, even Big W, but Big W guidance is unchanged, which disappoints the broker given the restructuring underway.

That restructure, and capital management, had underpinned the broker's Buy call. That call is now "under review", with the stock now trading at a 22x FY20 multiple. Target unchanged at $30.80.

Target price is $30.80 Current Price is $32.83 Difference: minus $2.03 (current price is over target).
If WOW meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.59, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Deutsche Bank rates WPL as Hold (3) -

Deutsche Bank estimates 13.5mtpa of LNG contracts have been signed this year, up 67%.

These offtake agreements precede what the broker envisages is a record 120mtpa of new capacity to be sanctioned over 2019-20, more than double any other two-year stretch.

Hold rating and $37.10 target.

Target price is $37.10 Current Price is $34.91 Difference: $2.19
If WPL meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $36.15, suggesting upside of 3.6% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.3

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