Australian Broker Call

Credit Suisse rates AD8 as Neutral (3) -

Monthly sales have improved sequentially, observes Credit Suisse and believes the worst has passed. The broker looks favourably on the long-term opportunity for the business.

Corporate penetration is likely to see acceleration post-covid-19 and the broker considers Dante well placed to benefit.

Expecting sales stabilisation in the near term, Credit Suisse retains its Neutral recommendation. Target rises to $8 from $5.30.

Target price is $8.00 Current Price is $6.94 Difference: $1.06
If AD8 meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $7.83, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgan Stanley rates AD8 as Overweight (1) -

Audinate Group notes its first-quarter revenues are back to pre-covid levels and tracking to Morgan Stanley's FY21 estimates. The September quarter run-rate implies FY21 revenue of US$21.6m versus Morgan Stanley's estimated US$21.4m. 

The group has guided to $1.5m operating costs in FY21 versus the broker's $2.5m. In Morgan Stanley's view, video product expansion will be a key reinvestment priority.

The rating is Overweight with an unchanged target price of $7.50. Industry view: In-line.

Target price is $7.50 Current Price is $6.94 Difference: $0.56
If AD8 meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $7.83, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates AD8 as Buy (1) -

First quarter sales were a big beat versus UBS' estimates. Sales are back to pre-covid levels, which is considered to de-risk estimated revenue forecasts for FY21.

However, the broker cautions it is unclear whether the result was driven by a short term boost from education and corporate outfitting or whether the audio fit-out projects are coming back (with digital taking share).

In the analyst's view, the result was particularly strong given challenging macro conditions and new project activity returned, with the company's sales backlog tracking pre-covid levels.

Additionally, it was considered strong given the highest-value Brooklyn product revenue was significantly down year-on-year.

The Buy rating is unchanged and the target price is increased to $8.00 from $7.35.

Target price is $8.00 Current Price is $6.94 Difference: $1.06
If AD8 meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $7.83, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates AMC as Accumulate (2) -

Nielsen data for the four weeks to 3 October for North American beverage volumes, a key focal point for Amcor, saw growth moderating in beverages and weakness in sports drinks. This was offset by continued strong growth in packaged food sales.

Sales for Kraft Heinz (Bemis’s largest customer) and other packaged food companies remained strong.

Ord Minnett maintains its Accumulate rating with a target price of $17.50.

Target price is $17.50 Current Price is $16.03 Difference: $1.47
If AMC meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $16.87, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Credit Suisse rates ANN as Outperform (1) -

Ansell expects sustained long-term demand due to structural changes on account of covid-19, including better safety protocols in many industries, more use of its products in pharma and medical industries and pent up demand for elective surgeries for years.

Even so, the company maintained its organic sales growth target of 3-5% in the medium term. Credit Suisse believes the company will operate at the higher end of this target. In FY21, the broker expects Ansell to achieve organic sales growth of 10%. 

Noting the company is well placed to benefit from industry tailwinds, Credit Suisse retains its Outperform rating. Target remains unchanged at $43.00.

Target price is $43.00 Current Price is $39.86 Difference: $3.14
If ANN meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $39.77, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Macquarie rates ANN as Underperform (5) -

At its 2020 Capital Markets Day, Ansell did not update on guidance but did revise medium to longer term targets. Management believes a bulk of the virus-related surge in PPE demand will prove permanent, requiring increased capex in FY21-22 to support production capacity.

On the other hand, the broker sees reduced demand within key industrial markets, increased raw material and supply chain costs and competition as providing offsets. Underperform and $31.80 target retained.

Target price is $31.80 Current Price is $39.86 Difference: minus $8.06 (current price is over target).
If ANN meets the Macquarie target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $39.77, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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 ANN as Overweight (1) -

Ansell's FY20 healthcare sales saw organic growth of 13.8% to US$895m. Assuming the first nine months were at the lower end of the organic growth range at 3%, this implies June quarter organic growth of circa 40%, comments the broker.

Annualising the June quarter run rate suggests about 36% growth in healthcare revenue in FY21, which Morgan Stanley considers conservative.

The company highlighted covid-19 has changed behaviours which are driving increased personal protective equipment (PPE) usage with new worker categories starting to use PPE.

Morgan Stanley expects healthcare growth to outstrip industrial growth in the near-term. Overweight rating. Target is unchanged at $43.50. Industry view is In-Line.

Target price is $43.50 Current Price is $39.86 Difference: $3.64
If ANN meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $39.77, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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 ANN as Upgrade to Accumulate from Hold (2) -

Ansell is a clear beneficiary of the coronavirus pandemic to date, observes Ord Minnett. The broker also thinks this will continue given the increased demand for hygiene and personal protective equipment (PPE) products is likely to endure well into the future.

The broker highlights higher input costs have been fully passed on to customers, unlike in the past. Earnings estimates have been raised and the broker now thinks Ansell is undervalued.

Recommendation upgraded to Accumulate from Hold with the target price increasing to $44.00 from $36.20.

Target price is $44.00 Current Price is $39.86 Difference: $4.14
If ANN meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $39.77, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Macquarie rates APE as Neutral (3) -

Eagers Automotive's trading update to September year to date revealed sales have rebounded strongly since the bottom in May. Orders ex-Victoria are either in line or only slightly down on a year ago. Victoria is expected to respond similarly as restrictions ease.

The supply side remains problematic due to shuttered factories, leading to slower delivery times and delayed revenue recognition, the broker notes. The easing of constraints, along with strong demand, would support revenue into next year.

Despite a recent re-rating the broker believes the stock is not trading at an unreasonable multiple. Neutral retained, target rises to $12.50 from $8.50.

Target price is $12.50 Current Price is $11.88 Difference: $0.62
If APE meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.80, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Morgan Stanley rates APE as Overweight (1) -

Eagers Automotive's nine-month trading update materially beat Morgan Stanley's expectations with $96.6m as profit before tax to September versus $92.4m predicted by the broker for the entire year. The broker believes there is further upside potential from a cyclical recovery.

Morgan Stanley believes Eagers Automotive looks prepared to execute on some key initiatives over the medium term including capturing a larger share of used vehicles, optimisation of its network and finance penetration.

Overweight maintained with a target price of $10. Industry view: In-Line.

Target price is $10.00 Current Price is $11.88 Difference: minus $1.88 (current price is over target).
If APE meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.80, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Morgans rates APE as Add (1) -

The third quarter trading update for Eagers Automotive showed profitability well ahead of consensus expectations, due to bumper margins and the cost-out program, according to Morgans.

The broker highlights the significant cost-out program has de-risked this investment case considerably. As a result, the company is considered likely to exit FY20 in a negligible net debt position.

The company’s property and used car strategies provide a further (potentially material) kicker over the medium to long term, predicts the analyst.

Morgans upgrades EPS forecasts by around 40%, which sees the target price increasing to $13.89 from $9.99.

The Add rating is unchanged.

Target price is $13.89 Current Price is $11.88 Difference: $2.01
If APE meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $11.80, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

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

Eagers Automotive's third-quarter trading update was strong, notes Ord Minnett, with the company delivering a profit of $56.3m versus $40.3m in the first half.

Ord Minnett is positive on the medium-term prospects for Eagers, especially considering the strong order bank and the government’s recent decision on responsible lending that could further help the new vehicle sales market.

Looking at the recent uplift in the share price, Ord Minnett downgrades its rating to Hold from Accumulate. The target price rises to $12 from $9.50.

Target price is $12.00 Current Price is $11.88 Difference: $0.12
If APE meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $11.80, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

UBS rates APE as Buy (1) -

According to UBS, Eagers Automotive delivered a strong trading update. Key drivers were considered to include supply constraints resulting in lower domestic inventory levels and continued execution of cost-out initiatives.

The broker expects momentum to improve through fourth quarter 2020 underpinned by order book growth flowing through to deliveries and fiscal policies becoming more supportive. Additionally, the analyst expects pent-up demand in a (potentially) normalising Victorian market.

UBS lifts EPS forecasts for FY20, FY21 and FY22 by 43%, 39% and 17%, respectively.

The Buy rating is unchanged and the target price is increased to $13 from $10.

Target price is $13.00 Current Price is $11.88 Difference: $1.12
If APE meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $11.80, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Citi rates AWC as Buy (1) -

Alcoa reported strong profits in the September quarter. Local JV partner Alumina Ltd saw operating income of US$119m driven by higher alumina price realisation. 

For the December quarter, Alcoa expects operating income in the bauxite segment to be flat due to steady volume and pricing. For alumina, the company expects circa -$10m impact due to energy costs and the mix of customer shipments.

Alcoa also sees global aluminium demand improving with a major inflection from transportation customers in the third quarter versus the second.

Buy rating is retained with a target price of $1.80.

Target price is $1.80 Current Price is $1.44 Difference: $0.36
If AWC meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 30.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Credit Suisse rates AWC as Outperform (1) -

Alumina Ltd's net distributions for the September quarter were US$38.3m. Unit costs rose but margins were unchanged due to a rise in alumina pricing as well. While Credit Suisse struggles to find a catalyst, the broker notes the company offers strong operational performance and a healthy yield.  

The threat of another worldwide wave of covid-19 doesn't deter Credit Suisse from seeing plenty of upside for Alumina Ltd. At the least, the broker expects core operations will continue to perform very well. 

Outperform rating and $2 target retained.

Target price is $2.00 Current Price is $1.44 Difference: $0.56
If AWC meets the Credit Suisse target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 30.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Macquarie rates AWC as Underperform (5) -

Alumina Ltd's performance was strong in the September quarter, featuring record alumina production from the AWAC joint venture with Alcoa. The dividends due to Alumina Ltd have nonetheless been impacted by a dispute with the ATO.

Production might be strong but alumina prices remain depressed, the broker notes, suppressing dividend yields. The ATO dispute is impacting cash generation. Current spot pricing suggests downside risk to earnings. The broker retains Underperform and a $1.40 target.

Target price is $1.40 Current Price is $1.44 Difference: minus $0.04 (current price is over target).
If AWC meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.88, suggesting upside of 30.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Morgan Stanley rates AWC as Overweight (1) -

Alumina Ltd's third-quarter net distributions were in-line with Morgan Stanley's forecast.

Production and costs in the refining business were also in-line with the broker. Cash costs increased by 9% reflecting higher-priced gas contracts in Western Australia while the mining business was circa -2% weaker.

Morgan Stanley retains its Overweight rating with the target price unchanged at $2.05. Industry view: Attractive.

Target price is $2.05 Current Price is $1.44 Difference: $0.61
If AWC meets the Morgan Stanley target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 30.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Ord Minnett rates AWC as Accumulate (2) -

Alcoa Inc, the majority partner in Alumina Ltd’s 40% owned Alcoa World Alumina and Chemicals (AWAC) joint venture, reported its third-quarter production report.

Alcoa reported combined bauxite and alumina operating income of US$243m, well above Ord Minnett's US$184m forecast. Alumina Ltd's unit costs at US$204/t were below the broker's US$207/t forecast and up from US$188/t quarter-on-quarter (QoQ) due to the Western Australia (WA) gas price increase.

The achieved price at US$269/t was also better than Ord Minnett's estimated US$260/t. Dividend yield forecasts have been pegged at 6% in 2020 and 7% in 2021.

Accumulate and $2.00 target retained.

Target price is $2.00 Current Price is $1.44 Difference: $0.56
If AWC meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 30.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

UBS rates AWC as Buy (1) -

Alcoa reported third quarter earnings ahead of market expectations, according to UBS. Alumina Ltd's net distributions for the September quarter were US$38.3m. Costs and volumes for Alumina Ltd were better than forecast by UBS.

Given record alumina production for both the second and third quarters, the broker lifts production forecasts above the guidance provided by Alumina Ltd.

As a result, UBS lifts earnings estimates for FY20 and FY21 by 11% and 9%, respectively. The analyst assumes higher production rates hold into future years.

The Buy rating is unchanged and the target price is increased to $2.00 from $1.95.

Target price is $2.00 Current Price is $1.44 Difference: $0.56
If AWC meets the UBS target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 30.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Macquarie rates BEN as Underperform (5) -

Within an improving economic environment, Bendigo and Adelaide Bank's overweight SME exposure to the essential agricultural sector makes the bank arguably less exposed than peers to ongoing impairments and default deferrals, Macquarie suggests. Conditions remain challenging, but this appears priced in.

To that end the broker reduces its impairment assumptions and upgrades the stock to Neutral from Underperform. Target rises to $6.75 from $6.00. Bendalaide is trading at a -9% five-year discount relative to peers and Bank of Queensland ((BOQ)) a 25% premium, hence Bendalaide preferred.

Target price is $6.75 Current Price is $6.69 Difference: $0.06
If BEN meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.49, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Ord Minnett rates BLD as Lighten (4) -

Boral’s new CEO will provide an update later this month. Ord Minnett believes it hardly likely any significant divestments in the US will be announced but notes management may give an idea of what is core versus non-core.

The broker's analysis of Boral’s position in the industry concludes while Boral’s quarry assets should continue to deliver shareholder value, the quarry and concrete industry is likely to remain highly competitive at the local market level.

In the long term, however, returns are expected to improve as the proximity of demand moves closer to production.

Considering Boral is fully valued, Ord Minnett maintains its Lighten rating with a target price of $4.10.

Target price is $4.10 Current Price is $4.89 Difference: minus $0.79 (current price is over target).
If BLD 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 $4.45, suggesting downside of -7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

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

Bank of Queensland's second-half operating trends were better than Morgan Stanley expected. A final dividend of 12c equates to a full-year payout ratio of circa 47%.

FY21 guidance was optimistic and provides for broadly flat jaws with circa 2% cost growth, says the broker.

With revenue increasing by circa 2.5% in the second half, management believes momentum is building and expects "above system" loan growth. Margin decline is expected to be circa 2-4bps. 

To achieve a loan growth of circa 6%, Morgan Stanley thinks the bank's retail net run-off will need to end in the second half of FY21. Specialist home loan growth and commercial loan growth will need to return to pre-covid levels.

The broker also thinks it will be challenging to achieve margin guidance. Earnings growth forecasts for FY21-22 have been upgraded.

Considering the stock fairly valued, the Equal-weight rating has been retained. Target rises to $6.20 from $5.70. Industry view: In-line.

Target price is $6.20 Current Price is $6.88 Difference: minus $0.68 (current price is over target).
If BOQ meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.85, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates BSL as Outperform (1) -

Credit Suisse has increased its earnings forecasts for BlueScope Steel after taking into account improved trading conditions, including a strengthening of the US steel spreads which have effectively doubled since their July lows.

The broker also considers the downside risk and extreme uncertainty to the broader business due to covid-19 to have moderated. In the near term, consensus forecasts may be revised upwards, suggests the broker.

Credit Suisse retains an Outperform rating and raises the target to $15.55 from $13.60.

Target price is $15.55 Current Price is $14.60 Difference: $0.95
If BSL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Citi rates CIA as Initiation of coverage with Neutral (3) -

Citi initiates coverage on Champion Iron with a Neutral rating and a target price of $3.35.

Champion Iron is a circa 7.5mtpa producer of 66% iron concentrate. The company is looking to complete a phase II expansion to double its capacity to 15Mtpa.

Citi expects production expanding during FY23 and full production in FY24. The company is also expected to deliver peak operating income of $523m in FY21 led by high iron ore prices before falling to $319m in FY22.

No dividend is expected until FY24 post the completion of phase II capex.

Target price is $3.35 Current Price is $3.13 Difference: $0.22
If CIA meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Morgans rates CIP as Hold (3) -

A first quarter update by Centuria Industrial REIT revealed rent collections of 97% over April-September. Lease terms have been agreed equal to 4.5% of the portfolio gross leasable area (GLA).

FY21 guidance is unchanged and the DPS of 17 cents equates to a yield of around 5% paid quarterly, calculates the broker.

The acquisition of a cold storage facility now makes six assets added to the portfolio after the recent capital raising, notes the analyst.

Morgans reiterates the REIT remains one of the few listed REITs offering investors pure exposure to Australian industrial property which is leveraged to the growing e-commerce/logistics thematic.

The Hold rating is unchanged and the target price is increased to $3.13 from $3.12.

Target price is $3.13 Current Price is $3.26 Difference: minus $0.13 (current price is over target).
If CIP meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.29, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates COF as Add (1) -

Centuria Office REIT has provided a first quarter FY21 update noting rent collection for July – September averaged 94%.

Leasing equivalent to around 4% of the portfolio was agreed during the period. This is around half the net lettable area (NLA) related to new tenants versus renewals, according to Morgans.

The broker highlights the portfolio is valued at $2.1bn across 23 assets with a weighted average capitalisation rate of 5.93% and a weighted average lease expiry (WALE) of 4.5 years.

FY21 DPS guidance of 16.5 cents has been reconfirmed which equates to a yield of approximately 8% paid quarterly, calculates the analyst.

The Add rating and target price of $2.29 are unchanged.

Target price is $2.29 Current Price is $2.10 Difference: $0.19
If COF meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.31, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates ELD as Outperform (1) -

While not changing earnings forecasts, target or rating (Outperform; $12.83), the broker ackowledges upside risk to Elders' Rural Products earnings now the BoM has officially declared a La Nina event.

While a strong recent share price run has stretched the stock's multiples, the broker notes Elders is still at a -3% PE discount to global peers and -23% enterprise value to earnings discount, while believing the company's greater diversification and better through-the-cycle earnings should provide for a premium to peers.

Target price is $12.83 Current Price is $11.99 Difference: $0.84
If ELD meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates FBU as Neutral (3) -

It is the broker's view steel and residential division margins are influential when it comes to earnings swings year to year but are unrelated to construction activity, being more tied to international steel prices and land holding periods. The broker has upgraded its Fletcher Building FY21 earnings by 11% on increased margins.

This brings the broker in line with consensus for FY21, albeit unchanged FY22 forecasts remain below consensus. The broker awaits the November AGM for initial FY21 guidance. Neutral retained, target rises to NZ$4.00 from NZ$3.67.

Current Price is $3.96. Target price not assessed.

Current consensus price target is $3.66, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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

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

Citi upgrades GUD Holdings to Buy from Neutral with the target price rising to $14.30 from $12.75.

GUD Holdings' medium term outlook appears better placed than previously expected due to changes in consumer mobility behaviour.

The company is trading at a -21% discount to Bapcor ((BAP)), considered excessive by Citi given the strong demand for aftermarket auto parts is likely to offset a risk of customers pursuing private label strategies.

Earnings estimates upgrade for FY21-22 due to better than expected first-quarter sales in Auto and Davey.

Target price is $14.30 Current Price is $12.61 Difference: $1.69
If GUD meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $12.68, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Credit Suisse rates GUD as Neutral (3) -

GUD Holdings' (unscheduled) trading update for the first quarter shows automotive sales up 16% despite the headwinds from Victoria and New Zealand. Credit Suisse observes this reflects strong end markets and restocking by key customers.

Davey sales were up 10% due to buoyant domestic markets which more than offset offshore headwinds. The update beats Credit Suisse's previous forecasts and leads the broker to upgrade its auto sales assumption to 11% growth in the first half.

The second half auto-growth is pegged at 8%. Neutral rating is retained. Target rises to $13 from $11.80.

Target price is $13.00 Current Price is $12.61 Difference: $0.39
If GUD meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $12.68, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates GUD as Hold (3) -

GUD Holdings' first-quarter FY21 was strong, observes Ord Minnett, with group sales up 14% versus last year. The positive trends seen in June and July continued through August and September.

Ord Minnett expects gross margin to be supported through FY21 by stable cost of goods sold with the company hedging much of its forward exposure.

Given the recent rerating of the share price, the broker reaffirms its Hold recommendation. The target price increases to $12.00 from $10.60.

Target price is $12.00 Current Price is $12.61 Difference: minus $0.61 (current price is over target).
If GUD meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.68, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

UBS rates GUD as Neutral (3) -

According to UBS, GUD Holdings delivered a strong top-line trading update with first quarter sales growth around 9% above the broker's estimates.

The analyst's key takeaways were a 16% year-on-year (yoy) increase in auto sales, driven by a recovery in end-user demand and reseller stocking.

There were also pandemic related disruptions that have continued to elevate costs. Additionally, Davey sales were up 10% yoy, and were considered buoyed by favourable agricultural conditions, offset by weaker tourism-dependent export markets.

UBS lifts EPS estimates for FY21 and FY22 by 13% and 10%, respectively. The Neutral rating is unchanged and the target price is increased to $12.50 from $11.50.

Target price is $12.50 Current Price is $12.61 Difference: minus $0.11 (current price is over target).
If GUD meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.68, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates HLS as No Rating (-1) -

Ord Minnett has updated Healius's financial model to reflect Sonic Healthcare’s ((SHL)) trading update along with the news that Healius’s legal win against the Australian Tax Office (ATO) has been overturned on appeal.

The broker is currently research restricted and cannot provide a recommendation or target price.

Current Price is $3.48. Target price not assessed.

Current consensus price target is $3.52, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates HT1 as Outperform (1) -

HT&E's trading update shows Australian Radio Network's revenue declined by -22.5% in the third quarter. This is circa 570bps better than the metro radio ad market and shows the network has maintained its position as the market leader.

The company won't be eligible for the second round of JobKeeper, already anticipated by Credit Suisse. Management expects December quarter to be better in line with improving market trends. 

 Outperform rating is retained with a target price of $1.60.

Target price is $1.60 Current Price is $1.53 Difference: $0.07
If HT1 meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.32, suggesting downside of -14.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgan Stanley rates IEL as Overweight (1) -

IDP Education announced Education Australia (EA) is undertaking a consultation process with its members which may lead to a further sell-down of IDP Education's stock.

Morgan Stanley is not surprised with universities (especially smaller institutions) under significant financial pressure.

No material change is expected to the commercial relationships with universities as a result of this sell down.

Morgan Stanley maintains its Overweight rating with a target price of $24. Industry view: In-line.

Target price is $24.00 Current Price is $18.93 Difference: $5.07
If IEL meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $21.51, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates IPL as Outperform (1) -

The BoM's recent declaration of a La Nina event in Australia and rising soft commodity prices on strong Chinese demand and lower US stock levels add up to an improving outlook for Incitec Pivot's fertiliser business, the broker suggests.

Dyno (explosive) earnings are currently constrained by ammonium nitrate contract repricing and weak US coal production, but this is well known.

The broker believes Incitec Pivot's current share price is ascribing limited value to the company's fertiliser business amidst bottom of the cycle fertiliser prices and improving seasonal conditions. Outperform retained. Target slips to $2.63 from $2.65.

Target price is $2.63 Current Price is $2.12 Difference: $0.51
If IPL meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.56, suggesting upside of 20.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.9

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

Macquarie rates JHX as Outperform (1) -

James Hardie has increased its FY21 profit guidance range to US$380-420m from a prior US$330-390m. The broker is on US$419.4m.

The broker's forecast reflects signs of the ongoing systemic strengthening of the business. The company is delivering to customer expectations in a volatile market, EU margins are improving markedly and the benefits of plant rationalisation in NZ are clearly evident, comments the analyst.

Outperform retained, target rises to $40.90 from $36.00.

Target price is $40.90 Current Price is $36.98 Difference: $3.92
If JHX meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $37.79, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.8

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

Morgan Stanley rates JHX as Overweight (1) -

James Hardie flagged an exceptionally strong second quarter with sales and margin momentum seen across all businesses.

The company has upgraded its guidance, indicating the strong performance is expected to continue. Morgan Stanley has increased its margin forecasts across all segments and expects an operating income margin of 21% in FY21. 

Morgan Stanley considers the business to be executing well and sees further upside with underlying markets improving. The broker considers James Hardie to be a quality name with competitive advantages and structural growth opportunities.

Overweight rating. Target rises to $40.50 from $35.90. Industry view is Cautious.

Target price is $40.50 Current Price is $36.98 Difference: $3.52
If JHX meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $37.79, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.8

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

Morgans rates MOZ as Hold (3) -

Given the past uncertainty and the number of scenarios that could have played out, Morgans had previously placed the company under review, warning the stock was high risk. Now the broker reinstates the rating back to Hold and a target price of $0.89.

Mosaic Brands reported its FY20 result in late August. As expected by the broker, FY20 was materially impacted by covid-19 (stores closed for 9.5 weeks) and Australian bushfires over the key Christmas trading period. The company reported an underlying earnings (EBITDA) loss of -$45.8m.

Online sales of $93.7m now comprise around 15% of sales. No final dividend was declared.

In response to the continued impacts of covid-19, management outlined a number of operational programs to improve profitability and optimise the business. The company has flagged it expects to close 300-500 stores over the next 12-24 months, unless suitable terms can be agreed with landlords.

While the top-line outlook remains uncertain, notes the broker, management’s self-help initiatives should drive increased gross margins and further cost-base reductions.

Morgans has a hold rating on the company due to the recent Melbourne lock downs and the potential for continued weak trading conditions (as shopping centre foot traffic remains impacted).

Target price is $0.89 Current Price is $0.54 Difference: $0.35
If MOZ meets the Morgans target it will return approximately 65% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

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

Medibank Private's policy-holders grew 0.6% in FY20 amid the pandemic. Morgan Stanley considers this a good performance and believes the insurer's target for 1% growth in FY21 is achievable.

FY21 guidance expects claims to be broadly in line with FY20's circa 2.9% growth. Morgan Stanley lowers its claims growth forecast by -0.5-2.4% leading to upgrades in earning growth forecasts in FY21-22.

Morgan Stanley upgrades its rating to Overweight from Equal-weight with the target price increasing to $3.10 from $2.70. Industry view: In-line.

Target price is $3.10 Current Price is $2.65 Difference: $0.45
If MPL meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.84, suggesting upside of 4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgan Stanley rates MQG as Overweight (1) -

Performance fees are a key swing factor for Macquarie Group, observes Morgan Stanley, representing more than 5% of revenues and north of 10% of earnings.

The group, like its peers, has guided to lower FY21 performance fees and asset realisations. The broker expects a better second half with about 60% recovery in FY22 on account of the stronger market conditions and record low interest rates that would provide the group with more asset sale options.

The broker also has a better outlook for gains on sale from the second half of FY21 onwards. Macquarie Infrastructure and Real Assets' (MIRA) maturing fund ladder and peak harvesting season will support the group's FY22-23 earnings recovery.

Overweight rating and In-Line industry view. Target is raised to $152 from $133.

Target price is $152.00 Current Price is $132.57 Difference: $19.43
If MQG meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $128.32, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates NGI as Buy (1) -

Navigator Global Investments' update for the September quarter was ahead of Ord Minnett's expectations, with assets under management increasing 1.9% over the last three months.

Operating income guidance for FY21 has been provided for the first time, and the broker's forecast of US$22.4m is within the guidance range of US$22-24m.

Ord Minnett considers the stock cheap from a valuation standpoint and sees merit in its investment case.

Buy rating retained with the target price revised down to $2.20 from $2.30.

Target price is $2.20 Current Price is $1.52 Difference: $0.68
If NGI meets the Ord Minnett target it will return approximately 45% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Macquarie rates NIC as Outperform (1) -

Nickel Mines has signed a Memorandum of Understanding (MoU) with Shanghai Decent Investment Group (SDI) to acquire a 70% interest on a staged basis in four new rotary kiln electric furnaces (RKEF) located at the Weda Bay Industrial Park on Halmahera Island in North Maluku, Indonesia.

Macquarie, in an initial response to the announcement, seems very positive, pointing out this deal will double the company's RKEF production capacity, and lift group contained nickel production to over 60ktpa.

No changes made to Outperform rating or 80c price target.

Target price is $0.80 Current Price is $0.77 Difference: $0.03
If NIC meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

Morgans rates OPC as Hold (3) -

Uniti Group ((UWL)) returns with a $6.67 cash and scrip offer for OptiComm.

Morgans retains a Hold recommendation and sets the price target at the implied $6.67 offer price.

Uniti Group has exercised its rights and is now offering $6.67 per OptiComm share (in cash and shares) vs Aware Super’s (formerly named First State Super) $6.50, all cash offer.

Uniti Group’s $6.67 offer consists of $5.20 in cash (including a 10cps fully franked dividend) plus 1.07 Uniti Group shares ($1.47 worth of Uniti Group shares priced at the company's 14 October 2020 close price).

Morgans advises shareholders the short-term price outlook is all about whether, or not, a higher takeover offer eventuates. 

The Hold rating is unchanged and the target price is increased to $6.67 from $6.50. 

Target price is $6.67 Current Price is $6.66 Difference: $0.01
If OPC meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates OPC as Hold (3) -

Uniti Group ((UWL)) has exercised its matching right under the scheme of arrangement and raised the cash and scrip components to an implied price of $6.57 for OptiComm ((OPC)). This is marginally above Aware Super's all cash offer of $6.50.

Ord Minnett expects a counter bid from Aware, to the extent Uniti’s 19.5% beneficial interest in OptiComm and intended hard ball stance, does not deter Aware.

Ord Minnett recommends a Hold rating recommendation on OptiComm waiting for the bidding process to play out. Target remains at $6.50.

Target price is $6.50 Current Price is $6.66 Difference: minus $0.16 (current price is over target).
If OPC meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgans rates PME as Add (1) -

Pro Medicus has signed a $10m contract over seven years with a major teaching hospital in Germany.

It is one of the largest university hospitals in Europe and the contract will see the company’s Visage 7 technology implemented across radiology and other sub specialties imaging departments (like cardiology).

Morgans believes this contract win speaks to the quality of the company’s software as Pro Medicus was competing against the IT platform from a large multinational which provides both hardware and software.

The broker expects FDA clearance for the company’s breast density software before the end of 2020. This is considered a major catalyst.

Morgans makes no changes to forecasts, but believes companies like Pro Medicus with leading edge software are well placed to keep winning contracts. This is because the enterprise imaging sector is poised to grow well above GDP.

The Hold rating is unchanged and the price target is increased to $33.32 from $30.43.

Target price is $33.32 Current Price is $31.23 Difference: $2.09
If PME meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates PSQ as Overweight (1) -

Even amid heightened uncertainty in August, Pacific Smiles Group guided to FY21 operating income growth of 15%. The start of FY21 has been strong in terms of roll-out and comps, notes Morgan Stanley suggesting upside to its initially cautious expectations for the first half.

Morgan Stanley lifts its FY21 earnings forecast given the 8.7% comps delivered in August and 10% comps in September.

The broker also takes into consideration the drag that Victoria has been on the group's performance, likely to rebound as restrictions ease. The JobKeeper support in the first quarter added a net $5.7m benefit in the second half of FY20. 

Target rises to $2.40 from $2.25. Overweight rating. Industry view: In-line.

Target price is $2.40 Current Price is $1.75 Difference: $0.65
If PSQ meets the Morgan Stanley target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates RBL as Add (1) -

According to Morgans, Redbubble has reported an impressive first quarter result, punctuated by continuing topline momentum and strong margin improvement. Marketplace revenue of 147.5m was up 116% on the previous corresponding period.

Operating leverage was a highlight for the broker with a combination of improving gross margins and constrained opex growth. This has seen actual operating earnings (EBITDA) margins increase around 15% in the quarter.

The broker highlights quarterly costs were only up 2% as compared to a 43% increase in revenue. It's considered the current cost base is sustainable and is not harming the company’s ability to invest for future growth.

The Add rating is unchanged and the target price is increased to $6.31 from $4.33.

Target price is $6.31 Current Price is $5.35 Difference: $0.96
If RBL meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates REA as Overweight (1) -

News Corp is exploring options to simplify its corporate structure and asset holdings, with the aim to reduce and eliminate its holding company discount. This will include ways to better reflect the value of its stake in REA Group.

Morgan Stanley thinks the potential upside could be material and REA Group's investors need to pay attention as News Corp is the group's largest (and controlling) shareholder with a 61% stake.

The broker comes up with a range of outcomes. These are potentially positive like opening up the REA share register if News Corp were to exit, increased liquidity and improved capital allocation. Some of the negative outcomes are if a re-organisation leads REA to lift its stake in assets such as Move Inc/Prop Tiger at unattractive prices.

Apart from this, Morgan Stanley remains positive expecting a period of higher activity in residential real estate with easing covid restrictions.

Overweight rating maintained with the target price rising to $140 from $120. Industry view: Attractive.

Target price is $140.00 Current Price is $122.61 Difference: $17.39
If REA meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $111.97, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgan Stanley rates URW as Underweight (5) -

Unibail Rodamco Westfield's proposed recapitalisation plan, including a EUR3.5 billion equity raise, is facing opposition from a consortium of investors including former CEO Leon Bressler. The consortium calls for a refocus rather than a reset plan.

A key concern of the broker is a meaningful portion of investors may still consider the group's disposal targets ambitious and could question whether EUR3.5bn would be sufficient.

Morgan Stanley remains Underweight and expects a potential material asset repricing that may lead to balance sheet concerns. Price target is EUR35. Industry view In-Line.

Current Price is $2.98. Target price not assessed.

Current consensus price target is $3.88, suggesting upside of 16.2% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: -0.3

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

Ord Minnett rates UWL as Buy (1) -

Uniti Group has increased its cash/scrip offer for OptiComm ((OPC)). The increased offer equates to an extra $38m in cash and 27.6m additional shares.

In Ord Minnett's view, the increased price still clears the earnings accretion, synergy and qualitative hurdles to justify paying up for this transaction.

Also, Uniti’s 19.5% interest in OptiComm creates a block to another party obtaining full control and can create a stalemate situation. The broker believes Uniti intends to stay the course in this process.

The broker retains a Buy rating, reducing the target to $1.82 from $1.84.

Target price is $1.82 Current Price is $1.29 Difference: $0.53
If UWL meets the Ord Minnett target it will return approximately 41% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates WHC as Buy (1) -

Whitehaven Coal's September quarter production was solid, observes Citi, with saleable coal production of 4.9mt. This is down from the June quarter but ahead of the broker's forecast.

Realised thermal coal pricing for the quarter was -$5/t lower than expected. Whitehaven notes sales to India have recommenced and are expected to ramp up in the quarter ahead. 

Going ahead, FY21 cost guidance range has been revised downwards to $69-$72/t from $69-$74/t and coal sales guidance remains unchanged. 

Buy rating is maintained with the target reducing to $1.35 from $1.60.

Target price is $1.35 Current Price is $1.06 Difference: $0.29
If WHC meets the Citi target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $1.47, suggesting upside of 43.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates WHC as Outperform (1) -

Whitehaven Coal delivered a strong operational September quarter, observes Credit Suisse. However, the broker believes cash flow generation looks tough at spot prices.

Coal markets have been very volatile over the last month, notes the broker. The near term outlook is clouded by China's ban on Australian coal that is expected to impact sentiment for some more time.

Not without risk, Credit Suisse maintains its Outperform rating with a $1.95 target price.

Target price is $1.95 Current Price is $1.06 Difference: $0.89
If WHC meets the Credit Suisse target it will return approximately 84% (excluding dividends, fees and charges).

Current consensus price target is $1.47, suggesting upside of 43.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates WHC as Underperform (5) -

Whitehaven Coal's September quarter production & sales result was strong, the broker suggests, leaving the miner well positioned to achieve FY21 guidance. As Whitehaven does not sell thermal coal to China it will not be impacted by current bans, but the seaborne price could be, the broker warns.

Weak coking coal prices materially impacted on earnings in the quarter. Weak coking and thermal coal prices underpin material downside risk to the broker's forecasts, and profit would shift to a loss under current spot prices. Underperform retained, target falls to 80c from 90c.

Target price is $0.80 Current Price is $1.06 Difference: minus $0.26 (current price is over target).
If WHC meets the Macquarie target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.47, suggesting upside of 43.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates WHC as Overweight (1) -

Whitehaven Coal's FY20 results were in-line with Morgan Stanley's estimates. The company reported strong sales and lower production allowing it to draw down stocks. The broker notes this bodes well for free cash flow generation and alleviates balance sheet pressure to some extent.

Morgan Stanley expects improved first half FY21 cash flows due to better than expected sales.

Cost guidance has been lowered to $69-72/t on better sales and cost out implementation. The thermal premium and met sales split are both expected to recover in the December quarter. 

Morgan Stanley maintains its Overweight rating with a target price of $1.30. Industry view: Attractive.

Target price is $1.30 Current Price is $1.06 Difference: $0.24
If WHC meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.47, suggesting upside of 43.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgans rates WHC as Add (1) -

Morgans considers the first quarter production report for Whitehaven Coal was solid and the first step toward alleviating market concerns around the balance sheet.

The company confirmed it will shortly secure debt covenant relaxations from its lenders through to June 2021. This confirms to the broker good support from the banks and provides greater than 12 months of relief from any forced balance sheet intervention.

The broker thinks the China news (import restrictions) is damaging to market sentiment and short term coal prices, but doesn’t signal a longer term structural change due to the quality and cost advantages of Australian coal.

Morgans' confidence is building on the ability of the balance sheet to withstand the current downturn. The current risk-reward opportunity is considered compelling for assertive investors with the company still trading at a -40% discount to fair value.

The Add rating is unchanged and the target price is reduced to $1.86 from $1.90.

Target price is $1.86 Current Price is $1.06 Difference: $0.8
If WHC meets the Morgans target it will return approximately 75% (excluding dividends, fees and charges).

Current consensus price target is $1.47, suggesting upside of 43.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

UBS rates WHC as Buy (1) -

Saleable coal production was in-line with UBS estimates while sales were 13% ahead, supported by a draw down in inventory.

Pricing was mixed, according to the broker, with met coal price realisation ahead of expectations, while thermal price realisation was in-line.

The dividend has been suspended until debt covenants are met as the company has been granted amendments to financial covenant ratio tests by financiers.

Despite the company not directly selling thermal coal to China (import quotas), the broker believes displaced cargoes may be directed to the company's traditional markets in North and South East Asia.

UBS reiterates its Buy rating with a target price of $2.

Target price is $2.00 Current Price is $1.06 Difference: $0.94
If WHC meets the UBS target it will return approximately 89% (excluding dividends, fees and charges).

Current consensus price target is $1.47, suggesting upside of 43.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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