Australian Broker Call

Morgan Stanley rates A2M as Underweight (5) -

Morgan Stanley has recently discussed the outlook for China's infant formula market and prospects with a number of daigou, distributors and industry experts. The broker believes competition from local brands is set to increase, also noting Mead Johnson is likely to launch in organic product in Australia.

Understanding inventory levels in China is difficult, the broker points out, as even daigou is selling to distributors. The broker assesses it is difficult for companies to grow the level of inventory in the system. FY19 is expected to be a banner year for a2 Milk and many tailwinds are not likely to continue in FY20.

Underweight rating. The broker raises the target to $12.40 from $10.50. Industry view is Cautious.

Target price is $10.50 Current Price is $14.83 Difference: minus $4.33 (current price is over target).
If A2M meets the Morgan Stanley target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.93, suggesting downside of -6.1% (ex-dividends)

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: 0.1

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

Citi rates AGL as Downgrade to Sell from Neutral (5) -

Citi revamps its model, largely because of updates to consumer market electricity and gas discounts and revenue rates. The broker also marks to market the wholesale electricity prices to reflect the continued rally.

Citi suspects FY20 core net profit will more likely be down and flat. The company has called out specific headwinds for FY20, such as lower electricity prices, higher input fuel costs for thermal generation and the regulated default offers in retail electricity.

Citi considers FY19 is the peak in earnings for AGL and the share price does not reflect this. Rating is downgraded to Sell from Neutral. Target is reduced to $20.87 from $22.48.

Target price is $20.87 Current Price is $22.54 Difference: minus $1.67 (current price is over target).
If AGL meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.72, suggesting downside of -8.1% (ex-dividends)

The company's fiscal year ends in June.

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 AZJ as Neutral (3) -

The broker does not believe a separation of Aurizon's above-rail and below-rail businesses has financial merit. It does believe, however, that a restructuring such that both have similar corporate structures would be a positive. Any initiative is still 6-9 months away as the company awaits the QCA decision on the Network agreement.

Capital management potential can provide support, but this is not a near term catalyst either. Neutral retained, target rises to $4.81 from $4.71.

Target price is $4.81 Current Price is $4.99 Difference: minus $0.18 (current price is over target).
If AZJ meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.74, suggesting downside of -5.0% (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

Deutsche Bank rates BHP as Sell (5) -

Deutsche Bank observes BHP is currently investing the lowest amount among the four majors and, along with elevated iron ore prices, this is maintaining cash flows at healthy levels.

Nevertheless, there is a trade-off, BHP will likely deliver the lowest structural operating earnings (EBITDA) growth over the next 3-4 years. The broker anticipates the strategy briefing on May 22 may provide further insights on growth and project priorities.

The company has options in potash, copper and petroleum, although major projects are long dated and will require a step up in investment above the current $8bn ceiling. The broker envisages limited upside for the shares and maintains a Sell rating. Target is $28.

Target price is $28.00 Current Price is $36.90 Difference: minus $8.9 (current price is over target).
If BHP meets the Deutsche Bank target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.32, suggesting upside of 1.1% (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: 0.0

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

Ord Minnett rates BHP as Hold (3) -

Ord Minnett  suspects the company may face an investment decision on Jansen over the next 6-18 months. The broker estimates phase 1 needs a US$335/t potash price to generate 15% internal rate of return, around 24% ahead of the spot price.

A move into potash look strategically sound because of long-term demand and it also improves the diversity of cash flow. The market is well supplied with potash over the medium term, nevertheless, and the broker suspects this could weigh on prices.

Hold rating and $40 target maintained.

Target price is $40.00 Current Price is $36.90 Difference: $3.1
If BHP meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $37.32, suggesting upside of 1.1% (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: 0.0

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

Ord Minnett rates CLW as Hold (3) -

Ord Minnett notes the A-REIT has been buying assets in Brisbane with future redevelopment or re-positioning potential but with a robust residual income stream. Rental growth is expected to remain subdued, although the broker envisages some scope for incentives to decline, albeit unlikely to fall below 30%.

The assets at 40 Tank Street and 85 George Street are expected to benefit from the Queens Wharf development and the state government's $5.4bn cross river rail project. The main near-term leasing challenge for the Brisbane market is the mixed use development at 300 George Street. Ord Minnett maintains a Hold rating and $4.25 target.

Target price is $4.25 Current Price is $4.55 Difference: minus $0.3 (current price is over target).
If CLW 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 $4.12, suggesting downside of -9.5% (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 COH as Downgrade to Neutral from Buy (3) -

The share price has rebounded significantly since the company announced the launch of the new MRI compatible implant, Citi observes. The broker downgrades to Neutral From Buy on valuation. Target is steady at $198.

The company's investor briefing has focused on growing the adult market in developed countries where the penetration rate is only 3% and the children's market in developing countries where the penetration rate is around 10%.

Target price is $198.00 Current Price is $193.31 Difference: $4.69
If COH meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $170.30, suggesting downside of -11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.6

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

Credit Suisse rates COH as Underperform (5) -

Cochlear has outlined its strategic priorities, intending to grow the under-penetrated adult and senior markets. This will be done by building a referral path for adults to move from the hearing aid channel to cochlear implants.

Cochlear is also undertaking a feasibility study for a totally implantable cochlear implant. Credit Suisse suspects that Cochlear will have some challenges in penetrating the hearing aid channel as it does not have a hearing aid offering.

The broker notes there was no update on the FY19 outlook. Underperform rating and $168 target maintained.

Target price is $168.00 Current Price is $193.31 Difference: minus $25.31 (current price is over target).
If COH meets the Credit Suisse target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $170.30, suggesting downside of -11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.6

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

Deutsche Bank rates COH as Sell (5) -

Deutsche Bank notes a number of new features and products characterised the investor briefing. In particular, the changing market landscape is encouraging hearing aid clinics to join the Cochlear provider network, while studies to examine hearing should help in adopting cochlear implants. Sell rating maintained. Target is $151.50.

Target price is $151.50 Current Price is $193.31 Difference: minus $41.81 (current price is over target).
If COH meets the Deutsche Bank target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $170.30, suggesting downside of -11.9% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.6

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

Macquarie rates COH as Underperform (5) -

Cochlear hosted an investor day on Friday at which no financial updates were provided. The company highlighted the opportunity presented by growth in adult uptake in developed markets along with new initiatives.

The broker sees a focus on increasing adult penetration as positive but sees the benefits as long-dated. In the nearer term to broker highlights risk to earnings from new competitor product launches. Combined with an elevated multiple, this leads to an Underperform rating being retained. Target unchanged at $170.

Target price is $170.00 Current Price is $193.31 Difference: minus $23.31 (current price is over target).
If COH meets the Macquarie target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $170.30, suggesting downside of -11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.6

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

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

The company continues to take back lost market share and Morgan Stanley is now more confident the losses are temporary, as the Nucleus Profile Plus puts Cochlear on an equal footing for MRI compatibility.

The company also has a new app enabled feature to block sound from behind in challenging hearing environments and the new Remote Check program facilitates remote follow-up appointments. Developed market growth has shifted to adults and seniors where awareness and penetration are low.

While the broker likes the business for the long term because of the under-penetrated market the rich valuation keeps the stock on an Equal -weight rating. Target is $179. In-Line industry view.

Target price is $179.00 Current Price is $193.31 Difference: minus $14.31 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $170.30, suggesting downside of -11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.6

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

Ord Minnett rates COH as Lighten (4) -

Cochlear's capital markets briefing provided some product updates and more detail on its efforts to open up the hearing aid channel. The company also reiterated estimates regarding the scale of the opportunity in the seniors segment.

The company has noted that MRI compatible implants are now no longer a point of differentiation between competitors and it should be able to return to promoting the superior hearing outcomes offered by its devices.

Ord Minnett maintains a Lighten rating and $162 target.

Target price is $162.00 Current Price is $193.31 Difference: minus $31.31 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $170.30, suggesting downside of -11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.6

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

Deutsche Bank rates DXS as Hold (3) -

The company has acquired 80 Collins Street Melbourne for around $1.5bn, representing a yield of 5.3%. Dexus acquired a 75% interest with the remaining interest acquired by the Dexus Wholesale Property Fund.

Deutsche Bank favours the Melbourne office market over the Sydney office market but suspects the acquisition will be neutral to FY19 and FY20 earnings. The acquisition increases the company's office exposure in Melbourne to 17% from 9%. Hold rating and $11.63 target maintained.

Target price is $11.63 Current Price is $12.68 Difference: minus $1.05 (current price is over target).
If DXS meets the Deutsche Bank target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.01, suggesting downside of -5.3% (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

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

Morgans upgrades to Add from Hold, given recent share price weakness, with macro events implying further global economic uncertainty and, hence, an increased probability the gold price will appreciate.

The broker notes the company's costs and production guidance have been met for the past seven years and costs are among the lowest in the industry. Target is reduced to $3.55 from $3.85.

A consistent history, along with well-run operations and conservative assumptions provides long-term investors with a lower risk/value proposition, in the broker's view.

Target price is $3.55 Current Price is $3.33 Difference: $0.22
If EVN meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.34, suggesting upside of 0.4% (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 FXL as Upgrade to Outperform from Neutral (1) -

The highlight of FlexiGroup's update on the progress of its "humm" retail rollout, Macquarie suggests, is that there was no downgrade to FY guidance. This led to a positive market reaction.

From here it will all be about the "humm journey", which is still in its early stages and will result in a multi-year strategic reset. With the rollout supported by existing market stabilisation, Macquarie believes the stock can trade strongly ahead of execution and financial benefit. Upgrade to Outperform, target rises to $2.04 from $1.34.

Target price is $2.04 Current Price is $1.79 Difference: $0.25
If FXL meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.77, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Deutsche Bank rates GNC as Buy (1) -

Deutsche Bank was not impressed with the first half results in terms of the malt and oils division, although expected it to be extremely challenging for grains. The broker expects growth in malt will resume in FY20, while crush margin pressure should ease in FY20 in the oils business.

Significant upside potential exists and the focus now shifts to the finalisation of the grain derivative. Deutsche Bank retains a Buy rating and $10.96 target.

Target price is $10.96 Current Price is $7.44 Difference: $3.52
If GNC meets the Deutsche Bank target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $9.31, suggesting upside of 25.1% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Citi rates LOV as Buy (1) -

Citi's analysis indicates the roll-out of stores in the second half is on track, with upside risk in the US and downside risk in France. The French roll-out has slowed, with Lovisa opening only one new store so far in the second half, below the broker's estimate of five.

The Spanish roll-out is on hold, with a focus on store profitability as this region has been adversely affected by weak macroeconomic conditions and unfavourable locations. Target price is steady at $10.75. Buy rating retained.

Target price is $10.75 Current Price is $9.90 Difference: $0.85
If LOV meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $10.33, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Morgans rates MMI as Add (1) -

Bauxite production and export shipments were shut for the wet season. Production for 2019 is now projected between 3.4mt and 3.6mt, an increase of 75%. Morgans notes the risk in achieving projected sales as well as counterparty risk from contracted sales.

The move to owner/operator also carries some risk as does the scaling up of production. Add rating maintained and the target is lowered to $0.26 from $0.29.

Target price is $0.26 Current Price is $0.14 Difference: $0.12
If MMI meets the Morgans target it will return approximately 86% (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

Credit Suisse rates NWS as Neutral (3) -

March quarter earnings were ahead of Credit Suisse estimates. This was attributable to lower costs in news and information services, although the broker would like to observe greater stability in revenue before becoming more positive on the prospects for the division.

Trends for Foxtel Now and Kayo Sport were encouraging. Credit Suisse maintains a Neutral rating and reduces the target to $18.90 from $19.80.

Target price is $18.90 Current Price is $16.81 Difference: $2.09
If NWS meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $21.11, suggesting upside of 25.6% (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

Macquarie rates NWS as Outperform (1) -

News Corp's quarterly result slightly beat expectations on revenue and earnings. Challenges remain evident, the broker suggests, but while the fourth quarter will also be challenging, prospects for FY20 look better.

Weighing on the result was a weaker contribution from REA Group ((REA)) but the broker sees a turnaround ahead in FY20. Target rises to $24.79 from $24.42, Outperform retained.

Target price is $24.79 Current Price is $16.81 Difference: $7.98
If NWS meets the Macquarie target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $21.11, suggesting upside of 25.6% (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

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

Deutsche Bank downgrades to Hold from Buy, believing the positive catalysts are factored into the stock and there are growing risks around geopolitics, Alaska and strain on the balance sheet.

Target is reduced to $8.00 from $9.50.

Target price is $8.00 Current Price is $7.53 Difference: $0.47
If OSH meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.49, suggesting upside of 12.7% (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: 0.1

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

Credit Suisse rates REA as Neutral (3) -

March quarter results tracked below Credit Suisse expectations and higher associate losses were the key contributor. Guidance for the fourth quarter also reflected weak listings.

Management is guiding to lower revenue and expenses growth in the fourth quarter. Credit Suisse maintains a Neutral rating and lowers the target to $77.60 from $78.30.

Target price is $77.60 Current Price is $82.84 Difference: minus $5.24 (current price is over target).
If REA meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $86.29, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

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 REA as Outperform (1) -

REA's March Q result was very good, the broker suggests, in a weak market, highlighting the quality of the business. Revenues increased 7% and earnings 6% despite volumes declining -9%.

The broker expects conditions in the June Q to remain weak but REA is well positioned to re-accelerate earnings if volumes begin to improve in FY20. Outperform and $93.50 target retained.

Target price is $93.50 Current Price is $82.84 Difference: $10.66
If REA meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $86.29, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

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 REA as Add (1) -

Morgans believes REA Group is defying the odds, delivering revenue and earnings growth despite the worst residential listings environment in decades.

The continued switch of residential agents to Premiere All subscription plans more than offsets the sharp fall in volumes in the March quarter, the broker observes.

Add rating maintained. Target is lifted to $91.94 from $89.57.

Target price is $91.94 Current Price is $82.84 Difference: $9.1
If REA meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $86.29, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

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 REA as Lighten (4) -

Revenue in the March quarter was below Ord Minnett's forecasts while operating earnings and free cash flow were higher. New listings fell -9% in the quarter and another -22% in April.

Ord Minnett increases the decline expected for listings volumes in the second half and lowers depth penetration estimates based on channel checks.

The broker now forecasts FY19 revenue of $895.5m. FY20 price growth forecasts are reduced to 8% from 10%. Lighten rating maintained. Target is reduced to $71 from $74.

Target price is $71.00 Current Price is $82.84 Difference: minus $11.84 (current price is over target).
If REA meets the Ord Minnett target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $86.29, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

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 SIQ as Hold (3) -

The company's update on novated leasing reveals volumes and yields are relatively flat. Two small acquisitions have been made, expected to contribute around $3m in operating earnings (EBITDA) in FY20.

The main upside, Morgans envisages, is further growth from acquisitions. The broker retains a Hold rating, preferring to gain more comfort in the operating outlook. Target is reduced to $9.50 from $10.20.

Target price is $9.50 Current Price is $8.54 Difference: $0.96
If SIQ meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $10.46, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in December.

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 SXY as Downgrade to Neutral from Outperform (3) -

Credit Suisse believes Senex Energy is well positioned to benefit from higher domestic gas prices, as Project Atlas ramps up over the next two years. Yet, while the company has been touted as a takeover target, no bid has emerged.

This is of concern to the broker, signalling there may be technical "skeletons" at the flagship Western Surat Gas Project in particular. Rating is downgraded to Neutral from Outperform and the target is reduced to $0.36 from $0.50.

The broker asserts the upside is offset by risks to production/cost metrics and sustainability, particularly at WSGP.

Target price is $0.36 Current Price is $0.32 Difference: $0.04
If SXY meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $0.44, suggesting upside of 35.9% (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

Macquarie rates URW as Underperform (5) -

Ahead of this week's investor day the broker has reviewed its underlying adjusted recurring earnings (AREPS) assumptions for UR-Westfield. The broker sees a medium term growth rate that will likely disappoint, a dividend that will grow below dividend per share and a large balance sheet.

Target rises to $10.65 from $10.62, Underperform retained.

Target price is $10.65 Current Price is $11.66 Difference: minus $1.01 (current price is over target).
If URW 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 $11.63, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

This company reports in EUR. 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