Australian Broker Call

Macquarie rates ALL as Outperform (1) -

Aristocrat's social casino businesses delivered 33% year on year growth in the June Q through a market share of 12.2%. The broker has lifted its annual revenue growth assumption through to FY20 to 18% from 16%.

The stock continues to look attractive on earnings growth and a 21x FY19 multiple, the broker believes. Outperform retained, target rises to $34 from $33.

Target price is $34.00 Current Price is $31.68 Difference: $2.32
If ALL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $34.61, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in September.

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 AMP as Neutral (3) -

Citi analysts are entertaining the idea that investors might be too harsh on AMP. Maybe everything is not as bad/dark as we are presently pricing in?

But then, the analysts have to also acknowledge there are so many unknowns and uncertainties, one can only speculate about these things at this stage.

Neutral rating retained. Price target lowered to $3.90 from $4.15.

Target price is $3.90 Current Price is $3.58 Difference: $0.32
If AMP meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.20, suggesting upside of 17.2% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates ANN as Neutral (3) -

Ahead of the FY18 results on August 20, UBS now considers it very likely that the stock will surprise to the upside. Updated forecasts show significant upside to both guidance and consensus estimates.

UBS now factors in 6% organic growth in the second half. Analysis shows that purchasing manager data, US industrial employee growth and Grainger US sales growth remains supportive for the company's industrial prospects.

Neutral rating maintained. Target is raised to $27.45 from $25.00.

Target price is $27.45 Current Price is $28.51 Difference: minus $1.06 (current price is over target).
If ANN meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.22, suggesting downside of -4.5% (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: 0.3

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

Macquarie rates CIM as Outperform (1) -

Cimic's first half profit came in 3% ahead of the broker and was ahead on most metrics. The broker forecasts 9%pa compound earnings growth over the next three years compared to 5% for the broader market, as well as M&A optionality.

The share price jumped on the result but should be supported by earnings growth, the broker suggests. Target rises to $51.84 from $50.65, Outperform retained.

Target price is $51.84 Current Price is $47.66 Difference: $4.18
If CIM meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $45.54, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates LYC as Reinstate Coverage with Buy (1) -

UBS re-initiates coverage with a Buy rating and $3.30 target. The company's assets are strategic, with the best global rare earth deposit in the broker's opinion. This is exploited through the only active non-China processing facility. Ramp up has been difficult but this appears to be largely behind the company and production has been steadily improving.

While the change in government in Malaysia has meant that some long-time critics of the plant are now in power, and this poses regulatory risks that are difficult to quantify, UBS believes the company will be able to point to a track record of compliance with all environmental standards and a large employer/contributor to the region.

Target price is $3.30 Current Price is $2.32 Difference: $0.98
If LYC meets the UBS target it will return approximately 42% (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

Deutsche Bank rates MP1 as Initiation of coverage with Buy (1) -

Deutsche Bank has initiated coverage of Megaport with a Buy rating. Global spending on data networks, infrastructure and software is expected to accelerate. The broker believes the company has leverage to strong structural growth in data consumption. Target $5.

Target price is $5.00 Current Price is $3.83 Difference: $1.17
If MP1 meets the Deutsche Bank target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $4.91, suggesting upside of 28.1% (ex-dividends)

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

UBS rates MYX as Buy (1) -

The company has completed the acquisition of generic Efudex for US$20m with an additional contingent component of up to US$10m.

The cream is used to treat actinic and solar keratosis and basal cell carcinoma where conventional treatment is impractical. Annual sales for the market are around US$66m with volume growth of around 10% annually over the past five years.

UBS increases estimates for earnings per share by 5% over the forecast period. Buy retained. Target rises to $1.02 from $0.95.

Target price is $1.02 Current Price is $0.90 Difference: $0.12
If MYX meets the UBS target it will return approximately 13% (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

Citi rates NUF as Buy (1) -

Nufarm has reduced FY18 guidance significantly. The drought in Australia is far worse than Citi expected and there is yet no decision on the derogation application in France.

Citi believes the drop in the share price of -21% more than captures the reduced potential in the near term. Buy rating is reiterated. Target is reduced to $9 from $10.

Target price is $9.00 Current Price is $7.32 Difference: $1.68
If NUF meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $9.01, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in July.

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

Credit Suisse rates NUF as Outperform (1) -

The impact of the Australian drought is unlikely to be limited to the second half of FY18, Credit Suisse suggests. Headwinds also include elevated inventory and the shift to lower margin products. The delayed approval for the derogation application for the use of neonicotinoid-based seed treatment in Europe has also had an impact on earnings estimates for FY18.

Credit Suisse revises forecasts down for FY18, while FY19 estimates include a partial recovery from the impact of poor winter cropping conditions. A full recovery of Australasian contributions to earnings is factored in by FY20.

The medium term opportunities including Omega-3, footprint expansion in North America and acquisitions in Europe support an Outperform rating, the broker believes. Target is reduced to $9.12 from $9.45.

Target price is $9.12 Current Price is $7.32 Difference: $1.8
If NUF meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $9.01, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in July.

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

Deutsche Bank rates NUF as Sell (5) -

The degree of downgrade to earnings estimates for FY18, given extended dry conditions in Australia, was larger than Deutsche Bank anticipated. The company is now reviewing the Australasian business for impairment implications.

The broker believes positives such as the European acquisitions, Omega-3 and recent transactions will largely be discounted as attention reverts to sustainable earnings, multiples and leverage.

Deutsche Bank maintains a Sell rating. Target is $6.75.

Target price is $6.75 Current Price is $7.32 Difference: minus $0.57 (current price is over target).
If NUF meets the Deutsche Bank target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.01, suggesting upside of 23.1% (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

Macquarie rates NUF as Outperform (1) -

With the local season now one of the driest on record, Nufarm has cut FY18 earnings guidance to $255-270m from a prior $317m, or -13% at midpoint, the broker notes.

With the share price already down -22% since early June the broker retains Outperform, lowering its target to $9.55 from $10.40.

Target price is $9.55 Current Price is $7.32 Difference: $2.23
If NUF meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $9.01, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in July.

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

Morgan Stanley rates NUF as Overweight (1) -

Nufarm has downgraded FY18 EBIT guidance to $255-270m as a function of the drought in Australasia and the absence of a derogation from French authorities for its neonicotinoid seed product.

Morgan Stanley lowers FY18 estimates for EBIT by -16% to the mid point of revised guidance. The broker also downwardly revises FY19 estimates by -11% because of ongoing inventory/demand issues in Australia and weakness in the Brazilian real which is affecting the translation of Latin American earnings.

The broker maintains an Overweight rating and Cautious industry view. Target is reduced to $10.65 from $11.75.

Target price is $10.65 Current Price is $7.32 Difference: $3.33
If NUF meets the Morgan Stanley target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $9.01, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in July.

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

Morgans rates NUF as Add (1) -

Morgans was expecting an earnings downgrade because of the drought but the quantum is worse than feared. A delay in approvals for an EU derogation application has also affected earnings. The company has downgraded  FY18 EBIT guidance to $255-270m, which is down -15.6% to -10.7% versus FY17.

Morgans downgrades FY18 EBIT estimates by -15.5%. The broker notes the company has experienced challenging seasonal conditions in most regions amid a plant shutdown and product ban.

While believing the stock has been oversold, given some lingering issues into FY19, Morgans suspects any re-rating will take time. Add maintained. Target is reduced to $9 from $10.

Target price is $9.00 Current Price is $7.32 Difference: $1.68
If NUF meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $9.01, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in July.

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

Ord Minnett rates NUF as Buy (1) -

The company has downgraded FY18 estimates because of the drought in Australia. Ord Minnett believes the update reflects seasonal, not structural, challenges as the company has recently enjoyed strong sales momentum in most geographies.

The broker acknowledges the potential risk to first half FY19 earnings because of excess inventory but believes the Omega-3 opportunity remains the key long-term driver. Buy rating maintained. Target is reduced to $9 from $10.

Target price is $9.00 Current Price is $7.32 Difference: $1.68
If NUF meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $9.01, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in July.

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

Ord Minnett rates PPT as Hold (3) -

June quarter funds under management produced net outflows of -$300m, marking the fifth consecutive quarter of net outflows and bringing FY18 net outflows to -$2.5bn.

Ord Minnett believes the business has a number of challenges for the near term, including market volatility, outflows and the replacement of the CEO. Hold rating maintained. Target is raised to $45.50 from $45.00.

Target price is $45.50 Current Price is $43.14 Difference: $2.36
If PPT meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $44.12, suggesting upside of 2.3% (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

Macquarie rates SEH as Neutral (3) -

Sino's June Q featured a falling cash level as capex jumped with the drilling of new wells, the broker notes. The company remains on track to deliver on production guidance.

The second half sees focus turn to the possible expansion of Sanjiaobei, which could double capacity in the near term. A report is due late July/early August which would provide an indication of future upside, the broker suggests, and related risk/reward.

Neutral and 25c target retained.

Target price is $0.25 Current Price is $0.23 Difference: $0.02
If SEH meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Deutsche Bank rates SLC as Initiation of coverage with Buy (1) -

Deutsche Bank has initiated coverage of Superloop with a Buy rating. Global spending on data networks, infrastructure and software is expected to accelerate. The broker believes the company has leverage to strong structural growth in data consumption. Target $2.80.

Target price is $2.80 Current Price is $2.19 Difference: $0.61
If SLC meets the Deutsche Bank target it will return approximately 28% (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

Morgan Stanley rates SPK as Overweight (1) -

The outlook for Australasian telcos remains challenging and Morgan Stanley observes downward pressure on revenue, margins and investment returns because of competition. The broker suspects consensus FY18-21 estimates will prove optimistic.

The broker notes investors are tuned to the company's maiden FY19 dividend guidance and forecasts the existing NZ$0.25 to be maintained. Any surprise on the downside (or upside) is likely to be immediately re-priced in the shares, in the broker's opinion.

Overweight rating. Industry view is In-Line. Price target is raised to NZ$4.00 from NZ$3.90.

Current Price is $3.56. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.2

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

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

UBS lifts FY19 operating earnings forecasts by 2% because of the lagged effect of the company's stronger-than-expected ratings momentum from the second half. No changes are made to FY18 forecasts.

The share price is up 17% since the February result and the broker downgrades to Neutral from Buy. From a cost perspective UBS envisages FY19 to be a relatively benign year across all businesses and, therefore, margin expansion is possible. The broker raises the target to $1.25 from $1.20.

Target price is $1.25 Current Price is $1.25 Difference: $0
If SXL meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.12, suggesting downside of -10.3% (ex-dividends)

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

Ord Minnett rates TCL as Buy (1) -

Sydney Transport Partners, a consortium led by Transurban, has submitted a conditional bid for a 51% interest in WestConnex. The bid is subject to approval from the ACCC which has delayed its decision until September 6. The government was originally expected to award the tender in August.

Ord Minnett believes STP is the natural owner of a stake in WestConnex but there is a risk that the consortium led by IFM Investors makes a more generous offer. Buy rating. Target is reduced to $14.10 from $14.50.

Target price is $14.10 Current Price is $11.84 Difference: $2.26
If TCL meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $12.77, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Morgan Stanley rates TLS as Underweight (5) -

The outlook for Australasian telcos remains challenging and Morgan Stanley observes downward pressure on revenue, margins and investment returns because of competition. The broker suspects consensus FY18-21 estimates will prove optimistic.

The broker notes conspicuous by its absence at the recent investor briefing was a commitment by Telstra to the FY19 dividend. The broker forecasts 18c versus 22c in FY18.

Target is reduced to $2.60 from $3.00. Underweight. Industry view: In-Line.

Target price is $2.60 Current Price is $2.76 Difference: minus $0.16 (current price is over target).
If TLS meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.15, suggesting upside of 14.2% (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

Morgan Stanley rates TPM as Overweight (1) -

The outlook for Australasian telcos remains challenging and Morgan Stanley observes downward pressure on revenue, margins and investment returns because of competition. The broker suspects consensus FY18-21 estimates will prove optimistic.

The broker suspects, as a disruptor in mobile, the focus will be on TPG's timing and budget. TPG is the broker's favourite Australasian telco for its capital growth potential.

Overweight rating and In-Line industry view. Target is reduced to $6.70 from $7.00.

Target price is $6.70 Current Price is $5.65 Difference: $1.05
If TPM meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.64, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in July.

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 VCX as No Rating (-1) -

Vicinity has announced an extension of its 5% buyback program and revalued its portfolio, leading to a 1.4% increase in NTA.

Macquarie is restricted on rating and target.

Current Price is $2.64. Target price not assessed.

Current consensus price target is $2.81, suggesting upside of 6.3% (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 VOC as Equal-weight (3) -

The outlook for Australasian telcos remains challenging and Morgan Stanley observes downward pressure on revenue, margins and investment returns because of competition. The broker suspects consensus FY18-21 estimates will prove optimistic.

Attention is on cash conversion and debt levels versus bank covenants for Vocus, Morgan Stanley notes and, after the instability, the market should be positive if the first time guidance for FY19 operating earnings is up 0-5%.

Target is reduced to $2.60 from $2.75. Equal-weight rating and In-Line industry view retained.

Target price is $2.60 Current Price is $2.33 Difference: $0.27
If VOC meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.75, suggesting upside of 18.0% (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

Morgans rates VVR as Add (1) -

Viva has acquired six petrol stations worth $62.1m. The acquisitions were off market and funded by debt from existing facilities. Morgans estimates gearing is now around 31%.

The broker notes the company's major tenant, Viva Energy ((VEA)) listed in July. This is not expected to impact VVR directly but Morgans expects it to provide increased transparency regarding its major tenant.

The company will report its first half result on August 23. Morgans maintains an Add rating and raises the target to $2.45 from $2.43.

Target price is $2.45 Current Price is $2.15 Difference: $0.3
If VVR meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.46, suggesting upside of 14.3% (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

Citi rates WES as Sell (5) -

Wesfarmers has briefed investors on its Coles demerger plan. November is the target, with a separated Coles carrying $2bn in gross debt, a BBB+ credit rating and 80%-90% payout ratio.

Citi analysts are quick to suggest Coles might have to take on additional debt to secure dividends for shareholders given the necessity of more capex spending.

Coles will have some room to spend on store refurbishments etc, Citi analysts acknowledge. They do raise longer term questions about the sustainability of high capex combined with a high dividend payout strategy. Sell rating retained, as well as the $43.50 price target.

Target price is $43.50 Current Price is $49.37 Difference: minus $5.87 (current price is over target).
If WES meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.88, suggesting downside of -9.1% (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

Deutsche Bank rates WES as Hold (3) -

Wesfarmers has provided further detail on the Coles de-merger. The debt and pay-out guidance point to a rational industry, Deutsche Bank suggests. The broker does not believe Coles will be over geared and the dividend guidance suggests all free cash will be paid out.

The broker maintains a Hold rating, given the share price reflects the value of the portfolio currently. Target is $46.

Target price is $46.00 Current Price is $49.37 Difference: minus $3.37 (current price is over target).
If WES meets the Deutsche Bank target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.88, suggesting downside of -9.1% (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

Morgan Stanley rates WES as Underweight (5) -

The de-merger of Coles appears to now come with a more appropriate debt burden than Morgan Stanley initially feared. The guidance of net debt of $2bn appears more reasonable versus the $3bn previously expected.

The broker expects Wesfarmers, ex Coles, will have a healthy balance sheet although it will have more debt than originally thought after the one-off de-merger costs of $140-170m.

Underweight rating retained. Industry view is Cautious. Target is $42.

Target price is $42.00 Current Price is $49.37 Difference: minus $7.37 (current price is over target).
If WES meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.88, suggesting downside of -9.1% (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

Morgans rates WES as Hold (3) -

Wesfarmers has provided further details on the de-merger of Coles, although Morgans finds nothing to change its overall view on the stock. Shareholders will receive one Coles share for every Wesfarmers share with the de-merger subject to final approvals.

The shareholder vote is due at the AGM in November.  Wesfarmers plans to retain a 15% minority stake in Coles and a 50% stake in Flybuys. Coles is expected to have a dividend payout ratio of 80-90%. Morgans maintains a Hold rating and $47.34 target.

Target price is $47.34 Current Price is $49.37 Difference: minus $2.03 (current price is over target).
If WES 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 $44.88, suggesting downside of -9.1% (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 WES as Lighten (4) -

The company has provided an update on the proposed Coles de-merger. Guidance is for $2bn in debt and Ord Minnett considers this prudent as capital expenditure is inclusive and the business offers only modest earnings growth.

Ord Minnett finds the risk/reward equation no longer compelling at Wesfarmers because of a lack of valuation support and challenged sales growth in Coles, which is likely to remain subdued. The broker retains a Lighten rating and $45.00 target.

Target price is $45.00 Current Price is $49.37 Difference: minus $4.37 (current price is over target).
If WES meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.88, suggesting downside of -9.1% (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 WES as Neutral (3) -

Wesfarmers has provided further detail on the de-merger of Coles. Wesfarmers will retain 15% of Coles and 50% of Flybuys. Coles will hold net debt of around $2 bn. The payout ratio will be 80-90%.

Assuming ongoing cash conversion of around 108% UBS estimates net cash generation for Coles of around $85m per annum to FY22. The broker suggests recent trading appears to have improved based on its suppliers survey.

Meanwhile, the outlook for Wesfarmers, ex Coles, is becoming challenged, in the broker's view, given a weaker housing backdrop and consumer headwinds as well as new supply in the Western Australian ammonium nitrate market.

Neutral and $43 target retained.

Target price is $43.00 Current Price is $49.37 Difference: minus $6.37 (current price is over target).
If WES meets the UBS target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.88, suggesting downside of -9.1% (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

Credit Suisse rates WSA as Outperform (1) -

June quarter production of coking coal was in line and cash flow was stronger. The company has achieved 21,000t in FY18, as per recent guidance. Nickel mined in the quarter was 6,381t for an FY18 total of 24,442t.

Cost guidance for  FY18 of $2.40-2.65/lb nickel is maintained. Credit Suisse notes June quarter costs were higher because of pressures across energy, labour and consumables and the quarter is likely to be the average for FY19. FY19 guidance on costs will be published at the August results.

Outperform rating and $3.40 target maintained.

Target price is $3.40 Current Price is $3.34 Difference: $0.06
If WSA meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 3.3% (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

Macquarie rates WSA as Outperform (1) -

Western Areas' June Q production fell short of expectation but was within the guidance range. More influential was news the company is assessing a larger scale development at Odysseus, significantly larger than the broker's base case.

A rise in nickel prices would underpin strong earnings growth for Western Areas while Odysseus expansion could potentially double production in the medium term, the broker notes. Target falls to $4.10 from $4.40, Outperform retained.

Target price is $4.10 Current Price is $3.34 Difference: $0.76
If WSA meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 3.3% (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

Ord Minnett rates WSA as Hold (3) -

June quarter production of 5400t of nickel in concentrate was ahead of Ord Minnett's estimates. Operating costs were in line. The company now has $152m in cash, unofficially gated for the development of the Odysseus project, which is scheduled to have a DFS completed by September.

Ord Minnett maintains a Hold rating and $3.80 target.

Target price is $3.80 Current Price is $3.34 Difference: $0.46
If WSA meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 3.3% (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

UBS rates WSA as Neutral (3) -

The June quarter production was consistent with expectations although costs were slightly higher, albeit within guidance. The next catalyst is the definitive feasibility study for the Odysseus project in September, which UBS suggests may be value accretive to forecasts.

Production could begin in 2022, at the time of accelerating demand for nickel for electric vehicles, and should lead to further appreciation in the nickel price. UBS retains a Neutral rating and considers the share price is running ahead of core valuation. Target is $3.50.

Target price is $3.50 Current Price is $3.34 Difference: $0.16
If WSA meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 3.3% (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