Australian Broker Call

Citi rates BSL as Buy (1) -

Citi found few surprises in the strategy briefing, with the company confirming the key growth projects are on track. Management was upbeat on US and Australian operations and bullish for further growth in China.

However, BlueScope Steel conceded competitive conditions in Southeast Asia and problems with NZ Steel remain. Buy rating and $15 target are retained.

Target price is $15.00 Current Price is $14.76 Difference: $0.24
If BSL meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $14.20, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Macquarie rates BSL as Neutral (3) -

BlueScope Steel's investor day provided nothing new on top of last week's AGM. The broker remains cautious, acknowledging an apparent bottoming in global manufacturing PMIs but also ongoing trade uncertainty.

Neutral and $14 target retained.

Target price is $14.00 Current Price is $14.76 Difference: minus $0.76 (current price is over target).
If BSL meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.20, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

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

The first half highlighted strong momentum in the base KFC Australia business while Europe continues to underperform. The company has highlighted same-store sales growth in the second half to date of 4.5% for KFC Australia.

Store roll-out expectations have been reiterated. Morgans expects FY20 operating earnings (EBITDA) of $122.3m, up 7.5%.

The broker notes the stock trades at a discount to listed peers and points to de-gearing of the balance sheet to the top of the target range with the potential for further accretive acquisitions.

Rating is upgraded to Add from Hold and the target raised to $11.76 from $8.20.

Target price is $11.76 Current Price is $10.54 Difference: $1.22
If CKF meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in April.

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 CKF as Downgrade to Neutral from Buy (3) -

The first half result would have beat UBS estimates had the Netherlands not underperformed. Customer uptake at the new Taco Bell locations remains strong and the broker considers this a core driver for medium and long-term growth.

Nevertheless, after a material re-rating the broker considers the valuation fair and downgrades to Neutral from Buy. Target is raised to $10.60 from $8.75.

Target price is $10.60 Current Price is $10.54 Difference: $0.06
If CKF meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in April.

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 DTC as Overweight (1) -

The company provided its first quarterly update and reaffirmed FY20 prospectus forecasts. Cash receipts of $4.2m were up 41%. Registered licences were up 48% on the preceding year as of October.

Morgan Stanley retains an Overweight rating and $1.60 target. Industry view is In-Line.

Target price is $1.60 Current Price is $1.11 Difference: $0.49
If DTC meets the Morgan Stanley target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

UBS rates EBO as Upgrade to Buy from Neutral (1) -

UBS upgrades to Buy from Neutral as the stock now offers a 16% total return based on the current target. The broker's FY20 operating earnings (EBITDA) forecast now sits at $294m.

Given the strong capital allocation record, UBS would expect the company to, at a minimum, achieve its stated 15% return on capital target on future acquisitions.

Assuming EBOS Group does deploy $300m of capital into acquisitions by the end of FY20 it could add 14% to group earnings (EBIT). Target is reduced to NZ$25.50 from NZ$25.90.

Current Price is $22.07. Target price not assessed.

Current consensus price target is $23.54, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates FPH as Neutral (3) -

Fisher & Paykel Healthcare's first half result featured another strong performance for hospital new apps consumables growth, Macquarie notes, while FY guidance is unchanged as the broker expected.

Management nevertheless again highlighted a challenging gross margin outlook, from short term investment in new facilities to risk from the competitive bidding round in the June Q next year.

While a solid first half provides a good platform for revenue growth, at a 42x PE the stock is trading ahead of domestic peers and its own long run average. Target rises to NZ$21.49 from NZ$20.79, Neutral retained.

Current Price is $20.52. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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 FPH as Sell (5) -

UBS notes the share price has been heavily supported by operational benefits while revenue trends remain mixed. Homecare growth has been well below the market while hospital sales are benefiting from a dominant market share.

The broker suspects the revenue backdrop is not being factored into the stock and maintains a Sell rating. Target is raised to NZ$14.35 from NZ$13.85.

Current Price is $20.52. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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

Citi rates HVN as Neutral (3) -

Australian franchisee like-for-like sales growth has slowed to just 0.4% over FY20 to date, signalling a sharp slowdown in September/October. Citi downgrades group earnings forecasts by -1%.

The broker observes JB Hi-Fi ((JBH)) is winning share, outperforming in the core electronics categories. Meanwhile, furniture and bedding remain relatively tough. The broker expects conditions to improve over the next 12 months.

Neutral rating and $4 target maintained.

Target price is $4.00 Current Price is $4.35 Difference: minus $0.35 (current price is over target).
If HVN meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.98, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Macquarie rates HVN as Neutral (3) -

Harvey Norman's AGM brought a second strike against board remuneration, but a spill was avoided and an attempt by an activist investor to remove the CEO failed "dismally", the broker reports. Macquarie notes corporate governance does remain an issue, and in the meantime domestic earnings continue to decline.

The good news is international and property, together 50% of earnings, remain in good shape. Target falls to $4.30 from $4.40, Neutral retained.

Target price is $4.30 Current Price is $4.35 Difference: minus $0.05 (current price is over target).
If HVN meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.98, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Morgan Stanley rates HVN as Underweight (5) -

Harvey Norman Australian franchisee numbers deteriorated in September/October signalling to Morgan Stanley that the demand backdrop is soft.

Total sales were up 0.6% and well below expectations, implying a slowdown from July/August. Like-for-like sales went backwards, down -2% in September/October.

Meanwhile like-for-like sales growth in New Zealand for the same period was up 4.7%.

Morgan Stanley maintains an Underweight rating and Cautious industry view. Target is $3.20.

Target price is $3.20 Current Price is $4.35 Difference: minus $1.15 (current price is over target).
If HVN 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 $3.98, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Ord Minnett rates HVN as Lighten (4) -

Ord Minnett observes Australian like-for-like sales growth for Harvey Norman is consistent with the trading updates from other housing-exposed peers. Trading in July and August was better while September and October deteriorated.

The broker notes the flagship strategy appears successful, with premium re-fits to occur in Australia and New Zealand.

However, the decline in Australian like-for-like sales growth puts pressure on the core franchising operations by way of lower franchisee fees and the potential for higher tactical support. Lighten rating. Target is $4.

Target price is $4.00 Current Price is $4.35 Difference: minus $0.35 (current price is over target).
If HVN meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.98, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

UBS rates HVN as Neutral (3) -

Harvey Norman reported FY20 sales for the year to date were up 1.7% with five out of its seven market slowing since July/August.

Australia's slowdown  is consistent with recent updates from Nick Scali ((NCK)) but in contrast to The Good Guys ((JBH)), UBS observes.

The broker reduces estimates for earnings per share by -1% to reflect softer sales in Australia and Singapore.

Neutral maintained. Target is $4.00.

Target price is $4.00 Current Price is $4.35 Difference: minus $0.35 (current price is over target).
If HVN meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.98, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Ord Minnett rates INR as Buy (1) -

The company has completed a $40m capital raising. Houston-based private investor Centaurus has made a $20m cornerstone investment and now holds 7.8%.

Ord Minnett was disappointed, albeit not surprised, with the 12-month delays to projects but had included this risk when initiating on the stock.

Speculative Buy rating maintained. Target is reduced to $0.36 from $0.45.

Target price is $0.36 Current Price is $0.21 Difference: $0.15
If INR meets the Ord Minnett target it will return approximately 71% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates MIN as Outperform (1) -

Macquarie is back from research restriction, resuming coverage of Mineral Resources with an Outperform rating and $20 target.

Earnings guidance for Mining Services looks conservative in the broker's view and rising iron ore volumes should offset lithium production curtailment at Wodgina.

Target price is $20.00 Current Price is $15.39 Difference: $4.61
If MIN meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $17.53, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Ord Minnett rates PDL as Accumulate (2) -

Ord Minnett believes the business will face some near-term headwinds and possibly negative news around flows but current share price levels provide an attractive opportunity.

Earnings and expectations for the business have been re-based and performance fee should recover over time.

The broker believes the current share price continues to present the stock as an attractive risk/reward proposition and maintains an Accumulate rating. Target is raised to $9.30 from $8.20.

Target price is $9.30 Current Price is $8.54 Difference: $0.76
If PDL meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $8.39, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Citi rates PPT as Neutral (3) -

Perpetual is now guiding to 4% cost growth in FY20 vs 2% previously, Citi notes. Priority Life is expected to make a larger contribution in FY21 and some of the new advisers could also contribute stronger growth in funds under administration at that point.

Reflecting this and other small changes, Citi reduces FY20 estimates for earnings per share by -4% and raises FY21 estimates by 0.2%. Neutral rating maintained. Target rises to $38 and $34.

Target price is $38.00 Current Price is $39.99 Difference: minus $1.99 (current price is over target).
If PPT meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.87, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Credit Suisse rates PPT as Neutral (3) -

Credit Suisse remains supportive of Perpetual's growth strategy but considers execution risk is elevated. The company is investing in efficiency gains and making small acquisitions.

Perpetual Private is actively acquiring and hiring advisers, which is expected to support revenue growth in the outer years. Allowing for recent adviser acquisitions, the broker increases FY20 and FY21 underlying net profit estimates by 1% and the outer years by 3-5%.

Neutral rating is maintained. Target is raised to $41.00 from $35.50.

Target price is $41.00 Current Price is $39.99 Difference: $1.01
If PPT meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $37.87, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

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

Perpetual reaffirmed business-as-usual cost and cost savings guidance at its AGM. Macquarie suggests the organic and inorganic pipeline for Perpetual Private is encouraging. Perpetual Investments is still looking for an acquisition as outflows continue.

Those outflows are likely to sustain pressure on the stock's relative multiple to peers thus the broker downgrades to Underperform from Neutral, noting Perpetual has joined in a recent re-rating for the sector. Target rises to $35.50 from $32.00.

Target price is $35.50 Current Price is $39.99 Difference: minus $4.49 (current price is over target).
If PPT meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.87, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

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

Morgan Stanley found no new medium-term targets in the investor briefing. Perpetual has reconfirmed expectations for annual cost savings of $18-23m from FY21.

Guidance for FY20 "underlying" costs growth is at the lower end of the 2-4% range although additional costs from adviser acquisitions and the recent purchase of Priority Life will take total cost growth to the upper end of the range.

By lifting FY20 cost growth estimates to 4% this implies -7% downgrades to Morgan Stanley's FY20 estimates for underlying earnings.

Equal-weight rating. Target is $36.00. Industry view: In-line.

Target price is $36.00 Current Price is $39.99 Difference: minus $3.99 (current price is over target).
If PPT 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 $37.87, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Ord Minnett rates PPT as Hold (3) -

Ord Minnett notes the business continues to experience meaningful fund outflows, while the focus for investors is on the plan to grow the business via acquisitions.

The outlook for the Perpetual Corporate Trust is buoyed by a stabilised large bank securitisation market, while management has highlighted success for Perpetual Private in focusing on the high net worth sector.

Ord Minnett retains a Hold rating, given the uncertainty regarding acquired businesses. Target increase to $38.50 from $36.00.

Target price is $38.50 Current Price is $39.99 Difference: minus $1.49 (current price is over target).
If PPT meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.87, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

UBS rates PPT as Neutral (3) -

The investor briefing signalled to UBS that the Perpetual Private and Perpetual Corporate Trust divisions are well-positioned for solid growth. In comparison, prospects in Perpetual Investments remain more mixed, given a softer performance across the key Australian equity franchise.

UBS maintains a Neutral rating, noting little clarity on the benefits and risks of the management opportunities that the company is continuing to assess offshore. Target is raised to $37.90 from $35.00.

Target price is $37.90 Current Price is $39.99 Difference: minus $2.09 (current price is over target).
If PPT meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.87, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

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

Press reports indicate that Rio Tinto and First Quantum are in discussions to jointly develop the La Granja copper project in Peru where Rio Tinto owns the rights.

The project has total resources of 4.3bn tonnes at a copper grade of 0.51% with silver, zinc and molybdenum by-products.

Morgan Stanley takes a favourable view on Rio Tinto's partnering with industry peers that have experience in building and operating sizeable projects. This helps share capital and operating risks.

Equal-weight rating. Industry view is In-Line. Target is $95.

Target price is $95.00 Current Price is $97.47 Difference: minus $2.47 (current price is over target).
If RIO meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $96.23, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.3

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

Macquarie rates TCL as Neutral (3) -

Recent NSW traffic data suggest the M4 East is drawing more traffic into the M4 corridor, Macquarie notes, but elsewhere performances were soft.

The interesting element for investors, the broker suggests, is the opportunity to grow the portfolio of projects such as the M7 widening and American Legion Bridge, which are lower risk than the Western Harbour Tunnel and Beachlink, emphasising optionality.

For now valuation is stretched. Neutral and $14.82 target retained.

Target price is $14.82 Current Price is $15.39 Difference: minus $0.57 (current price is over target).
If TCL meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.33, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Credit Suisse rates TLS as Upgrade to Outperform from Neutral (1) -

The company's investor briefing flagged declines in the near term for mobile revenue per unit amid competition in enterprise. However an improving trend has been noted.

Credit Suisse suspects capital intensity is likely to improve while the dividend appears sustainable at $0.16 per share.

While recognising the stock has had a good run over the past 12 months, as momentum is positive Credit Suisse upgrades to Outperform from Neutral. Target is raised to $3.90 from $3.70.

Target price is $3.90 Current Price is $3.87 Difference: $0.03
If TLS meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.97, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Macquarie rates TLS as Upgrade to Outperform from Neutral (1) -

It appears the usual uptick in competitive behaviour among mobile providers in the run-up to Christmas is absent this year. Macquarie hasn't changed its Telstra forecast, but is more confident in its FY21 mobile growth forecasts.

Leading indicators suggests a competition inflection point in the next twelve months.

Mobile improvement, as well as reduced capital intensity, provide scope for dividend growth down the track, the broker suggests. Upgrade to Outperform from Neutral, target rises to $4.00 from $3.75.

Target price is $4.00 Current Price is $3.87 Difference: $0.13
If TLS meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.97, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Morgans rates TLS as Add (1) -

Telstra has reaffirmed FY20 guidance at its investor briefing, noting conditions have improved. Telstra is running ahead of plans for the 5G mobile network expansion while the 5G network superiority has been independently validated.

Morgans is increasingly confident that FY20 is the bottom of the cycle for Telstra. Observations on market share movements over the last six years, combined with more recent price increases and fixed and mobile plans, reaffirm this view.

The broker believes Telstra's best positioned to benefit from improving industry economics and cost reductions. Add rating and $4.46 target maintained.

Target price is $4.46 Current Price is $3.87 Difference: $0.59
If TLS meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.97, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Ord Minnett rates TLS as Accumulate (2) -

Telstra has announced it will place its mobile towers and fibre backhaul within the infrastructure business, effective July 2020.

Ord Minnett observes, a move that management hoped would drive additional value has resulted in more confusion, as Telstra does not intend to give up ownership of the towers if the infrastructure company is ultimately spun off.

FY20 guidance and the FY22 cost savings target have been reiterated. Accumulate rating and $4.25 target maintained.

Target price is $4.25 Current Price is $3.87 Difference: $0.38
If TLS meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.97, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

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

Morgan Stanley adjusts estimates for the potential AUSTRAC impact including a -3% downgrade to operating earnings. The broker believes a further capital build could be required and the risk of another dividend reduction has increased.

Cash estimates for earnings per share are downgraded by -14% for FY20 and -3% for FY21. Equal-weight rating maintained. Target is reduced to $24.50 from $25.50. Industry view: In Line.

Target price is $24.50 Current Price is $24.67 Difference: minus $0.17 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.55, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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