Australian Broker Call

Macquarie rates AGI as Upgrade to Neutral from Underperform (3) -

Ainsworth has upgraded FY18 guidance by 8% thanks to increased sales to Churchill Downs in Kentucky. Further increases are possible in FY19, the broker notes, given Churchill Downs has the capacity to add 1100 more units and Ainsworth is sole supplier so far.

But the broker remains concerned about underperforming new game releases and in balancing out the positives and negatives, upgrades to Neutral from Underperform, despite the stock having underperformed the ASX300 by -49% since its May profit warning. Target rises to $1.10 from 95c.

Target price is $1.10 Current Price is $1.12 Difference: minus $0.02 (current price is over target).
If AGI meets the Macquarie 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 FY18:

Forecast for FY19:

Market Sentiment: -0.5

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

Citi rates AHY as Sell (5) -

Following the company's profit warning, Citi analysts have applied the chainsaw treatment to their forecasts. EPS estimates are now lower by -45% for FY18 and by -51% for FY19.

The analysts warn investors not to automatically assume the worst has been seen as management still has the option to suspend dividends. Sell rating retained. Price target drops to 70c from $1.25.

Target price is $0.70 Current Price is $0.80 Difference: minus $0.1 (current price is over target).
If AHY meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.77, suggesting downside of -3.3% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.7

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

UBS rates BGA as Buy (1) -

The company has announced a $250m acquisition of the Koroit dairy processing facility. The plant currently processes 300m litres of milk and UBS believes the capacity is for 1bn litres, with substantial operating leverage from utilisation improvements.

The broker notes debt levels will be higher post the transaction. Buy. Target is $7.90.

Target price is $7.90 Current Price is $7.82 Difference: $0.08
If BGA meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Citi rates BHP as Buy (1) -

Citi analysts spotted a strong quarterly performance, plus they have upgraded commodity prices forecasts. The combination has resulted in higher estimates for BHP, which has pushed up the price target to $36 from $33.

Buy rating retained. Strong operational cash flows plus the prospect of selling US shale assets suggest BHP will join the capital management party in 2019, say the analysts.

Target price is $36.00 Current Price is $33.44 Difference: $2.56
If BHP meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $34.98, suggesting upside of 4.6% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

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

Credit Suisse rates BHP as Neutral (3) -

Iron ore production in FY18 was slightly ahead of the March quarter guidance while both copper and metallurgical coal hit the top end of guidance. Credit Suisse believes FY19 production guidance for 273-283mt iron ore, 113-118 mmboe petroleum and 43-46mt metallurgical coal appear achievable.

The share price reaction surprised Credit Suisse, given softer iron ore price realisation, higher exploration write-offs and no commentary of note on Escondida. Nevertheless the key drivers for the near-term remained largely unchanged and the broker maintains a Neutral rating and $31 target.

Target price is $31.00 Current Price is $33.44 Difference: minus $2.44 (current price is over target).
If BHP meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $34.98, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Macquarie rates BHP as Outperform (1) -

BHP's production report impressed the broker given output beats in all key commodities. FY19 guidance was broadly in line, if not mixed. Two new offshore oil & gas discoveries are also encouraging, the broker suggests, ahead of the company's shale exit.

BHP is in a good position to deliver a strong FY18 earnings result and the broker retains Outperform and a $38 target.

Target price is $38.00 Current Price is $33.44 Difference: $4.56
If BHP meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $34.98, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Ord Minnett rates BHP as Accumulate (2) -

Output was strong and petroleum and coal ahead of Ord Minnett's forecasts in the June quarter. FY19 guidance is lower than expected for Escondida and maintenance requirements will mean a first half interruption in iron ore and coal production.

The broker considers the stock offers an attractive valuation and maintains an Accumulate rating and $39 target.

Target price is $39.00 Current Price is $33.44 Difference: $5.56
If BHP meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $34.98, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

UBS rates BHP as Buy (1) -

BHP provided an FY18 production outcome that was either in line or above guidance across all commodities. Stand-outs for UBS included iron ore and petroleum.

FY19 is expected to be broadly in line with FY18 as increased iron ore and coal volumes offset lower production from conventional oil and Escondida.

UBS maintains a Buy rating and $37 target.

Target price is $37.00 Current Price is $33.44 Difference: $3.56
If BHP meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $34.98, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

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

First half net profit was ahead of forecasts. Ord Minnett increases EPS estimates by 3% for 2018 and 2% for 2019. The broker has previously argued that 2018 should be the strongest year of growth for east coast infrastructure-related stocks. With the mining business also growing strongly revenue accelerated in the June quarter.

The broker suspects management's growth estimates are conservative and assumes 12% net profit growth in the second half. Rating is upgraded to Accumulate from Hold. Target rises to $48.90 from $42.80.

Target price is $48.90 Current Price is $45.32 Difference: $3.58
If CIM meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $44.68, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

UBS rates CIM as Neutral (3) -

CIMIC delivered first half net profit growth of 12%, ahead of UBS estimates. Earnings momentum was supported by solid construction and a very strong result from the mining division. The company has reiterated 2018 net profit guidance of $720-780m.

As a result, net cash is better than UBS estimated which suggests capacity for strategic M&A, share buybacks and infrastructure equity investments. The broker increases 2018 estimates by 2%. Neutral rating maintained. Target is reduced to $46.70 from $47.09.

Target price is $46.70 Current Price is $45.32 Difference: $1.38
If CIM meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $44.68, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

Morgans rates DTL as Hold (3) -

Despite a strong second half  FY18 pre-tax profit is expected to be down -9%. This is not a huge surprise to Morgans as the annual growth target was considered stretched.

The broker trims EPS forecast by -13% in FY18 and FY19. Target is marginally reduced to $1.67 from $1.68. The broker expects the company will return to EPS growth in FY19. Hold rating maintained.

Target price is $1.67 Current Price is $1.65 Difference: $0.02
If DTL meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Credit Suisse rates EVN as Underperform (5) -

The company has terminated Norton's right to mine and process ore from Evolution Mining's Castle Hill, 25km from Mungari mill. This provides an immediate life extension for Mungari mill. The cost of terminating the agreement is $12m cash upfront then $3m cash six months after completion of the transaction.

Upscaling the mill will reduce unit costs to offset declining grades, and is being used as a strategy to sustain economic performance if a replacement high-grade ore source for the fast-depleting Frogs Legs is not identified.

Credit Suisse maintains an Underperform rating and $2.65 target.

Target price is $2.65 Current Price is $3.08 Difference: minus $0.43 (current price is over target).
If EVN meets the Credit Suisse target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.97, suggesting downside of -3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Macquarie rates FXJ as Outperform (1) -

A deal to share each other's printing networks is a win-win for both Fairfax and New Corp ((NWS)), the broker suggests, reducing costs for the increasingly challenged print media business. The companies are exploring "other opportunities", which the broker notes may refer to Victoria printing, where neither company has sufficient capacity to share.

With the key Domain ((DHG)) asset well positioned for growth despite housing market headwinds, the broker retains Outperform. Target rises to 84c from 81c.

Target price is $0.84 Current Price is $0.78 Difference: $0.06
If FXJ meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $0.83, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Morgan Stanley rates FXJ as Overweight (1) -

Fairfax has announced an agreement with rival publisher News Corp ((NWS)) to share printing infrastructure across Australia. This is expected to reduce duplication and take capacity out of the system, facilitating plant closures and ultimately deliver cost reductions for both parties.

Morgan Stanley estimates annualised savings of around 5% of FY19 EBITDA forecasts and expects this to grow over time, suggesting, ultimately, this is another step in re-shaping perceptions of the company's metro media unit as a digital business.

Overweight rating and Attractive industry view maintained. Target is $1.00.

Target price is $1.00 Current Price is $0.78 Difference: $0.22
If FXJ meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $0.83, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

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

Fairfax has finalised agreements with News Corp ((NWS)) to share printing networks. Fairfax estimates this will result in annualised cost savings of around $15m. UBS suggests upside from further deals still exists but this is less straightforward and may involve additional capital expenditure considerations.

On an annualised basis, ex one-offs, the broker expects the deal to be around 8% accretive to EPS. With the stock price up 21% since February, the broker downgrades to Neutral from Buy on valuation grounds. Target is raised to $0.80 from $0.75.

Target price is $0.80 Current Price is $0.78 Difference: $0.02
If FXJ meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $0.83, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Ord Minnett rates GOZ as Hold (3) -

Ord Minnett updates its model to account for the acquisition of 836 Wellington Street West Perth and FY19 guidance, including the proposed $110m of asset sales. Growthpoint has provided guidance for FY19 funds from operations of at least 24.6c per share and a dividend of 23.0c.

Ord Minnett maintains a Hold rating and $3.40 target.

Target price is $3.40 Current Price is $3.61 Difference: minus $0.21 (current price is over target).
If GOZ meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.20, suggesting downside of -11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.7

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

Citi rates IFL as Buy (1) -

The share price has hardly moved, on a net basis, since April and Citi analysts ascribe most impact to uncertainty created by the Royal Commission. They continue to hold the view the ultimate impact will be rather limited.

On this basis they believe that as uncertainty will abate, this should allow the share price to move higher. Buy rating retained, in combination with price target of $10.90.

Target price is $10.90 Current Price is $9.32 Difference: $1.58
If IFL meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $11.48, suggesting upside of 23.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Citi rates JHG as Buy (1) -

Citi has retained its Buy call with a price target of US$37 which now translates into $50.35 from $49.75 prior (weaker AUD). Estimates have been slightly lowered, but the analysts point out they are still positioned above market consensus.

The analysts fully acknowledge the retail flow outlook continues to look difficult. However, there are plenty of positives for investors to consider also, including a likely imminent share buyback, upside leverage to performance fees and an attractive EPS growth profile supported by merger synergies.

Target price is $50.35 Current Price is $42.50 Difference: $7.85
If JHG meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $50.34, suggesting upside of 18.4% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

Citi rates NST as Neutral (3) -

Citi, and others, had been anticipating a strong June quarter production report and the company came out with record gold production for the period. FY19 guidance has now been set at +600kozpa.

Citi analysts still see plenty of room to outperform at Kalgoorlie. Price target lifted to $7.20 (was $6.80). Neutral rating retained as the share price has already rallied.

Target price is $7.20 Current Price is $6.97 Difference: $0.23
If NST meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.24, suggesting downside of -10.5% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Credit Suisse rates NST as Underperform (5) -

The June quarter gold production was very strong but FY19 guidance has materially disappointed Credit Suisse. Guidance is for 600-640,000 ounces, with the Jubilee addition delivering only an implied 0-40,000 ounces. The broker requires an explanation.

Credit Suisse suggests the June quarter grade, production and cash generation was exceptional rather than sustainable for the near term. Underperform rating and $5.20 target maintained.

Target price is $5.20 Current Price is $6.97 Difference: minus $1.77 (current price is over target).
If NST meets the Credit Suisse target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.24, suggesting downside of -10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Macquarie rates NST as Neutral (3) -

Northern Star enjoyed an exceptional June Q, the broker suggests, hitting record gold production. The company highlights exploration as the key to success and to that end has increased its exploration budget.

The broker is confident exploration will lead to another significant uplift in inventory in FY19. Target rises to $7.50 from $6.10. Neutral retained on valuation.

Target price is $7.50 Current Price is $6.97 Difference: $0.53
If NST meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.24, suggesting downside of -10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

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

Northern Star sustained record production of 184,000 ounces in the June quarter, 10% ahead of Ord Minnett's estimates. FY19 guidance of 600-640,000 ounces is below expectations, with some conservatism at Kalgoorlie but also lower grades suspected.

The broker remains comfortable that the company's strategy maximises the value of the assets and extends mine life, while acknowledging it does moderate some of the growth optimism embedded in the share price. Rating is downgraded to Lighten from Hold. Target is reduced to $6.30 from $6.50.

Target price is $6.30 Current Price is $6.97 Difference: minus $0.67 (current price is over target).
If NST meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.24, suggesting downside of -10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

UBS rates NST as Buy (1) -

The company reported record quarterly production of gold and announced FY19 guidance of 600-640,000 ounces.

UBS suspects this is conservative as the production results from the June quarter indicate the infrastructure is capable, although the rate may not be sustained for a full year.

The broker maintains a Buy rating and $7.50 target.

Target price is $7.50 Current Price is $6.97 Difference: $0.53
If NST meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.24, suggesting downside of -10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Citi rates NWH as Buy (1) -

Citi analysts had already expressed their confidence in NRW Holdings being well placed to capitalise on the expected increase in mining construction expenditure. The company has now been awarded the South Flank contract from BHP ((BHP)).

Citi analysts continue to see upside potential to management's guidance. Estimates have lifted 2-5%. Target price increases to $1.95 (was $1.85). Buy.

Target price is $1.95 Current Price is $1.67 Difference: $0.28
If NWH meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

UBS rates NWH as Buy (1) -

The company has been awarded a $176m contract at BHP's ((BHP)) South Flank iron ore project for bulk earthworks and concrete. FY19 work in hand increases to around $963m for revenue guidance of $1.1bn, implying 86% revenue coverage.

UBS expects material project awards in iron ore over the first half. The broker's margin expectations for the civil division are below industry target margins, which provides a high level of confidence in the earnings profile. Buy rating and $1.90 target.

Target price is $1.90 Current Price is $1.67 Difference: $0.23
If NWH meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Macquarie rates NWS as Outperform (1) -

The broker sees the merger of Foxtel and Fox Sports as value accretive compared to running the businesses separately, but this is in the face of structural headwinds provided by increasing competition from streaming platforms and the increasing cost of sports rights, particularly cricket, AFL and NRL.

Outside of cable, News' key drivers are its REA Group ((REA)) stake and its Move digital business, the broker suggests, while the challenged news media business will be supported by cost initiatives (ie Fairfax ((FXJ)) deal).

Outperform retained, target rises to $25.44 from $20.67 largely on recent REA upgrade.

Target price is $25.44 Current Price is $21.06 Difference: $4.38
If NWS meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $23.20, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Macquarie rates OSH as Outperform (1) -

Oil Search's June Q report revealed gas production bounced back in the quarter post the PNG earthquake to record monthly production in May. The need to rebuild inventories meant sales and revenue were both weak, the broker notes.

This should prove only temporary, and the broker is also keen on a data sharing arrangement with Conoco that reduces the number of exploratory wells required in Alaska. The broker prefers Oil Search in the oil and LNG space.

Outperform and $9.05 target retained.

Target price is $9.05 Current Price is $8.55 Difference: $0.5
If OSH meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.55, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Ord Minnett rates RCR as Buy (1) -

Ord Minnett observes the share price has been under significant pressure recently, dropping -40% since February. The broker believes the most likely reasons for the fall include slower contract awards and potential downside to consensus forecasts, given the significant amount of solar projects that are scheduled to finish in FY19.

The broker calculates an implied P/E ratio of 11.3x and concludes that, if investors are happy to pay this multiple for the stock, based on its 10-year average discount to the sector, then the current share price effectively signals no more contract wins in FY19. This means any contract gains would provide upside potential.

Buy rating maintained. Target is $5.19.

Target price is $5.19 Current Price is $2.62 Difference: $2.57
If RCR meets the Ord Minnett target it will return approximately 98% (excluding dividends, fees and charges).

Current consensus price target is $4.58, suggesting upside of 74.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Ord Minnett rates SYD as Buy (1) -

Ord Minnett believes news flow associated with the Productivity Commission's 2018 pending review of airport services has unfairly weighed on the stock, as it has underperformed by -3.3% since the review's terms of reference were released.

However, Ord Minnett found nothing unexpected in the terms of reference and suspects that the status quo will be maintained, although a final outcome will not be known for 12 months. The broker suspects Sydney Airport is likely to argue for an easing in legislated restrictions, although the probability of success appears low. The broker also finds no evidence of excessive passenger service charge pricing by Sydney Airport.

The broker maintains a Buy rating and $8.45 target.

Target price is $8.45 Current Price is $7.20 Difference: $1.25
If SYD meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $7.40, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Ord Minnett rates VVR as Accumulate (2) -

Ord Minnett updates its model after the company announced the acquisition of a further six properties for $62.13m.

The broker considers the stock offers an attractive dividend yield, predictable rent growth and there are no material near-term lease expiries.

Ord Minnett maintains an Accumulate rating and $2.35 target.

Target price is $2.35 Current Price is $2.21 Difference: $0.14
If VVR meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Morgan Stanley rates WOW as Underweight (5) -

Morgan Stanley notes supermarket category growth looks to have strengthened further in June, while hardware & garden growth appears to have slowed.

The broker suggests the driver of faster industry growth in supermarkets is comprised of some cost-push inflation but also benign competition ahead of the Coles ((WES)) de-merger.

Woolworths is now trading at its highest one-year forward PE multiple in over 10 years based on consensus estimates, the broker observes. While acknowledging the improving industry dynamics, Morgan Stanley believes the current trading multiple indicates the earnings outlook is stretched.

Target is $23. Underweight rating. Industry view: Cautious.

Target price is $23.00 Current Price is $30.97 Difference: minus $7.97 (current price is over target).
If WOW meets the Morgan Stanley target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.49, suggesting downside of -8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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