Australian Broker Call

Citi rates AGL as Sell (5) -

AGL Energy has bid $3bn in cash for Vocus Group ((VOC)) with four weeks of exclusive due diligence. Citi considers AGL, being at peak earnings, is likely looking to fill an earnings hole but also suggests investors are questioning whether this is the best use of capital.

Moreover, there are execution risks as the acquisition is outside the company's core competency. Earnings accretion may be appealing, if the integration is handled well, the broker adds. Citi maintains a Sell rating and reduces the target to $17.78 from $20.87.

Target price is $17.78 Current Price is $19.56 Difference: minus $1.78 (current price is over target).
If AGL meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.68, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.8

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

Credit Suisse rates AGL as Underperform (5) -

AGL Energy has submitted a non-binding $4.85 a share offer for Vocus Group ((VOC)) and been granted exclusive due diligence. The rationale centres on the view that data and energy are becoming linked. Credit Suisse observes accretion is easily achieved because of the company's willingness to permanently increase gearing.

True value-creating synergies appear to be a secondary driver and the broker suspects this could be overwhelmed by assumptions regarding stand-alone outcomes for Vocus.

Underperform rating maintained. Target rises to $18.30 from $18.10. Credit Suisse believes a diminished capital return outlook, should the bid eventuate, is compounding a weak earnings outlook.

Target price is $18.30 Current Price is $19.56 Difference: minus $1.26 (current price is over target).
If AGL meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.68, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.8

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

Deutsche Bank rates AGL as Hold (3) -

The company has submitted a non-binding, indicative proposal to acquire Vocus Group ((VOC)) for $4.85 a share, cash, via a scheme of arrangement. Due diligence has been granted for four weeks.

Deutsche Bank maintains a Hold rating and $22.25 target.

Target price is $22.25 Current Price is $19.56 Difference: $2.69
If AGL meets the Deutsche Bank target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $19.68, suggesting upside of 0.6% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.8

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

Macquarie rates AGL as Underperform (5) -

AGL Energy had hinted at a desire to move into the telco space at Macquarie's recent conference but rather than muck around, it has put in a bid for Vocus Group ((VOC)) below the bid that private equity recently withdrew. While the broker suggests the move would be accretive given AGL's balance sheet capacity, it also believes the risk for AGL investors is significant.

Investors will need to be convinced of the benefits of this capital-heavy move into the telco space and buybacks will be a distant memory as AGL undertakes development, the broker warns. Underperform retained, target falls to $19.06 from $19.99.

Target price is $19.06 Current Price is $19.56 Difference: minus $0.5 (current price is over target).
If AGL meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.68, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.8

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

Morgans rates AGL as Reduce (5) -

A unit outage at Loy Yang could affect FY20 underlying profits by up to -$100m, Morgans notes, which raises concerns about the cost and reliability of the company's coal plants as they continue to age. AGL Energy believes this will not affect FY19.

Morgans also noted -ahead of AGL's renewed bid for Vocus Group ((VOC))- that AGL Energy has made clear its intentions of expanding into data services.

However, the broker assesses the company generates a large amount of free cash and has relatively low gearing, which could change with its expansion plans. Morgans also believes it unlikely that AGL will pay special dividends.

Reduce rating maintained. Target is lowered to $17.85 from $18.17.

Target price is $17.85 Current Price is $19.56 Difference: minus $1.71 (current price is over target).
If AGL meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.68, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.8

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

Ord Minnett rates AGL as Hold (3) -

AGL Energy is conducting due diligence on an indicative bid for Vocus Group ((VOC)) at $4.85 a share. Ord Minnett considers the indicative price is full and earnings accretion is dependent on a lower cost of debt.

The proposal also highlights the lack of available growth in the core businesses of AGL. The broker remains concerned that other parties have conducted due diligence and decided against a transaction and considers the outlook increasingly risky.

Hold rating maintained while the target is reduced to $21.00 from $22.60.

Target price is $21.00 Current Price is $19.56 Difference: $1.44
If AGL meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $19.68, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.8

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

Deutsche Bank rates ALQ as Upgrade to Hold from Sell (3) -

The FY19 result signalled growth was slowing in the minerals drilling business, which Deutsche Bank believes is indicative of an industry in the late stages of recovery.

Meanwhile, the life sciences business is considered attractive because of the recurring nature of services and structural growth. Deutsche Bank upgrades to Hold from Sell as the stock is now trading closer to the target of $6.57.

Target price is $6.57 Current Price is $6.87 Difference: minus $0.3 (current price is over target).
If ALQ meets the Deutsche Bank target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.91, suggesting upside of 15.2% (ex-dividends)

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 AOG as Hold (3) -

A further deterioration in housing conditions in the second half is likely to have affected earnings, Morgans suspects. This may also lead to a potential reduction in medium-term price growth assumptions, which underlie the calculation of the retirement valuation.

The broker assesses privatising a mature and large portfolio of retirement assets at this point in the cycle makes sense. However, there is no certainty this will occur and Morgans remains mindful that, in the absence of a whole-of-business transaction, the share price would probably fall materially.

Hold rating maintained. Target is lowered to $1.95 from $1.99.

Target price is $1.95 Current Price is $2.15 Difference: minus $0.2 (current price is over target).
If AOG meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.11, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.2

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

Macquarie rates BHP as Outperform (1) -

BHP Group has reviewed all its tailings dams, which the broker believes puts the company in good stead to be in compliance with pending new international standards. The cost of increased oversight and dam management should be immaterial.

Meanwhile, it is all about the iron ore price. Outperform and $41 target retained.

Target price is $41.00 Current Price is $39.81 Difference: $1.19
If BHP meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $38.03, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.0

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

Macquarie rates CGF as Outperform (1) -

The broker expects Challenger to rebound from a tough FY19 of margin and book growth pressure into a brighter FY20 of improvement on both fronts. There are near-term risks, but a -9% discount to the company's five-year average PE takes these into account, the broker believes.

Outperform retained, target falls to $9.50 from $9.80.

Target price is $9.50 Current Price is $7.67 Difference: $1.83
If CGF meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $8.14, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Macquarie rates CHC as Outperform (1) -

In the wake of Charter Hall's investor day the broker suggests the group's development business is a good supplement to its core business. The group is benefiting from interest in unlisted direct real estate investment.

While valuation is stretched at this level the broker retains Outperform on forecast 15% dividend growth over the next two years. Target unchanged at $10.53.

Target price is $10.53 Current Price is $11.10 Difference: minus $0.57 (current price is over target).
If CHC 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 $10.56, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Credit Suisse rates CSL as Neutral (3) -

Credit Suisse observes specialty sales for CSL Behring have grown around 15% per annum since FY13, driven in part by Kcentra. The broker believes this product is increasingly used off label to reverse other anti-coagulants including NOAC and control bleeding in trauma situations.

This usage for NOAC reversal is unlikely to come under pressure for more than two years and the broker estimates around 40% of Kcentra sales are coming from NOAC reversal. Yet, sales growth is expected to start slowing heading into FY20 and be in mid single digits by FY21.

Credit Suisse maintains a Neutral rating and raises the target to $199 from $192 because of FX changes.

Target price is $199.00 Current Price is $207.84 Difference: minus $8.84 (current price is over target).
If CSL meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $209.21, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.4

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

Macquarie rates CWN as Neutral (3) -

A profit warning from peer Star Entertainment has led the broker to review its earnings outlook for Crown, leading to -6% and -11% forecast cuts for FY19/20. The numbers assume a -1% fall in domestic and a -40% fall in VIP given trade tensions and solid growth in the previous period that will be hard to replicate. Target falls to $12.00 from $14.75.

The broker nevertheless expects Crown to continue to trade at a premium to its underlying valuation given corporate appeal. Neutral retained.

Target price is $12.00 Current Price is $12.09 Difference: minus $0.09 (current price is over target).
If CWN 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 $12.19, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Deutsche Bank rates DOW as Buy (1) -

After a site tour of the Rosehill asphalt plant and Auburn rail maintenance centre Deutsche Bank is confident both businesses have strong teams and the roads business has a strong point of differentiation.

Margin should expand as the industry adopts greater use of recycled product. The rail business should also benefit from additional trains on the network.

Deutsche Bank maintains a Buy rating and $8.26 target.

Target price is $8.26 Current Price is $7.01 Difference: $1.25
If DOW meets the Deutsche Bank target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $7.83, suggesting upside of 11.7% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Deutsche Bank rates FBU as Hold (3) -

The company has recently announced the completion of the sale of Formica and downgraded FY19 earnings guidance.

Deutsche Bank has high expectations for more details at the investor briefing on June 26, including an Australian turnaround plan and a capital management decision.

Hold rating retained. Price target is NZ$5.35.

Current Price is $5.11. Target price not assessed.

Current consensus price target is N/A

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.0

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

UBS rates GNC as Buy (1) -

The company has entered into a 10-year contract with White Rock Insurance for a grain derivative. The payments kick in when the east coast winter crop is either below 15.3mt or above 19.3mt.

The decade to FY19 included one year below the bottom threshold and four years above the top. UBS believes grains earnings will improve to around $98m with better average crop conditions and other cost reduction initiatives. Buy rating and $9.65 target maintained.

Target price is $9.65 Current Price is $8.25 Difference: $1.4
If GNC meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $9.34, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Deutsche Bank rates IMD as Buy (1) -

Deutsche Bank believes Imdex is testing its Buy thesis. Target is $1.57. The market appears concerned about the short-term outlook. Demand for drilling and testing is coming from precious and base metal mining companies as well as junior explorers.

Each of these are affected by distinct market forces, the broker notes. Large and intermediate miners are generating a lot of cash, Deutsche Bank observes, and this is largely offsetting the juniors, which are experiencing weakness from the lack of equity raising.

Target price is $1.57 Current Price is $1.02 Difference: $0.55
If IMD meets the Deutsche Bank target it will return approximately 54% (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

Morgans rates IPD as Add (1) -

Morgans observes the share price has weakened considerably and catalysts to drive greater adoption of the company's technology are difficult to pin down.

To reflect lower liquidity and the need for additional capital, the broker applies a -50% discount to valuation, reducing the target to $0.28 from $0.79. Add rating maintained.

Target price is $0.28 Current Price is $0.13 Difference: $0.15
If IPD meets the Morgans target it will return approximately 115% (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

Deutsche Bank rates LNK as Sell (5) -

The company has lowered operating earnings (EBITDA) guidance for FY19 to around $350-360m and operating net profit to $195-205m. Factors behind the downgrade include uncertainty regarding Brexit, lower capital markets activity and upcoming regulatory changes in superannuation.

Deutsche Bank believes the operational issues are partly the result of the business growing too quickly and not bedding down synergies before moving onto the next deal. Sell rating and $5.30 target.

Target price is $5.30 Current Price is $5.48 Difference: minus $0.18 (current price is over target).
If LNK meets the Deutsche Bank target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.06, suggesting upside of 28.8% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Morgan Stanley rates LNK as Overweight (1) -

The company will complete the sale of the European corporate trust business three months ahead of schedule. The original consideration price of GBP240m is confirmed.

Morgan Stanley believes the announcement should address some investor concerns, suspecting the deal drove around -30% of the recent downgrade to FY19 earnings. The broker expects the company to redeploy capital to expand its asset services footprint in Europe once uncertainty around Brexit is resolved.

Overweight rating and $8.20 target maintained. Industry view is In-Line.

Target price is $8.20 Current Price is $5.48 Difference: $2.72
If LNK meets the Morgan Stanley target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $7.06, suggesting upside of 28.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Macquarie rates MMM as Outperform (1) -

Marley Spoon has entered into a five-year strategic partnership with Woolworths ((WOW)) that comes with a $30m funding package, which alleviates Marley Spoon's near term balance sheet concerns.

The companies will work together to grow Marley's offerings in Australia, with synergies available from  leveraging Woolies' existing capabilities.

The broker sees a significantly positive catalyst, offering material re-rating on execution. Outperform retained, target falls to $1.10 from $1.15.

Target price is $1.10 Current Price is $0.60 Difference: $0.5
If MMM meets the Macquarie target it will return approximately 83% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 1.0

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

Citi rates MPL as Neutral (3) -

Citi expects the health insurance industry will remain difficult under a re-elected Coalition government, despite the overhang of Labor's 2% price cap policy receding. This is due to poor affordability and falling industry participation.

Still, the broker assesses Medibank Private will maintain its net margins, and lifts estimates for earnings per share by 2% for FY19 and by 1% for FY20.

The broker maintains a Neutral rating and raises the target to $3.30 from $2.85.

Target price is $3.30 Current Price is $3.38 Difference: minus $0.08 (current price is over target).
If MPL meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.84, suggesting downside of -16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Morgan Stanley rates NEA as Overweight (1) -

Morgan Stanley assesses, whilst it is too early to gauge the adoption of the new 3D and AI product, ongoing innovation by the company is impressive. Anecdotally, customer feedback has been positive.

The company is integrating the functionality into core products and continues to build out the ecosystem, driving deeper engagement in the map browser.

Overweight. Industry view is In-Line. Price target is $4.20.

Target price is $4.20 Current Price is $3.58 Difference: $0.62
If NEA meets the Morgan Stanley target it will return approximately 17% (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

Deutsche Bank rates RHP as Buy (1) -

The company has provided a trading update on the public cloud business, where the margin contribution has surpassed that of the private cloud. The business has exceeded 530,000 seats on O365 including around 100,000 academic seats.

This suggests strong continuation of the O365 and Azure momentum, Deutsche Bank observes. Buy rating and $2.70 target.

Target price is $2.70 Current Price is $2.39 Difference: $0.31
If RHP meets the Deutsche Bank target it will return approximately 13% (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

Credit Suisse rates SGR as Outperform (1) -

Credit Suisse downgrades estimates for operating earnings (EBITDA) by -10% based on the trading update. As a result the target is lowered to $4.90 from $5.50. The broker maintains an Outperform rating, although notes the risks of new competition.

The cost reduction program is expected to save -$40-50m per annum from the December quarter and the broker incorporates half of these savings. Credit Suisse suggests a significant cost reduction program may not be easy to execute and therefore values only half the benefit.

Target price is $4.90 Current Price is $3.84 Difference: $1.06
If SGR meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting upside of 26.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

Deutsche Bank rates SGR as Buy (1) -

Deutsche Bank believes the company will continue to trade at a discount to valuation because of the latest earnings downgrade, amid scepticism regarding cost reductions and the threat of the second Gold Coast casino licence.

The company has attributed the slowdown in domestic revenue growth in the second half to a weak macro environment and construction disruption at The Star, despite no impact being experienced in the first half.

Deutsche Bank still finds the valuation attractive and retains a Buy rating with a $5.05 target.

Target price is $5.05 Current Price is $3.84 Difference: $1.21
If SGR meets the Deutsche Bank target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting upside of 26.5% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

Macquarie rates SGR as Outperform (1) -

The broker was surprised by the speed of the downturn in Star Entertainment's domestic business, which had led to a guidance cut to -8% below the broker's prior forecast. Weakness is likely to persist into the second half of FY20.

However a strong focus on cost-outs will provide greater leverage to a recovery and cushions further downside risk, the broker suggests, more so than Crown Resorts ((CWN)), to which Star trades at a -35% discount. This upside risk looks even better at the lower multiples brought about by yesterday's sell-off. Outperform retained, target falls to $4.65 from $5.20.

Target price is $4.65 Current Price is $3.84 Difference: $0.81
If SGR meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting upside of 26.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

Morgan Stanley rates SGR as Overweight (1) -

The trading update was soft, with Morgan Stanley noting lower hold rates in private gaming rooms and disruption from capital works. The company has guided to FY19 operating earnings (EBITDA) to be down up to -3%, at $550-560m.

Capital projects remain on time and budget. The broker notes, achieving FY20 expectations for operating earnings implies 14-16% growth. Cost savings may help but expected to be challenging.

Overweight and $5.60 target retained. Industry view: Cautious.

Target price is $5.60 Current Price is $3.84 Difference: $1.76
If SGR meets the Morgan Stanley target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting upside of 26.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

Morgans rates SGR as Downgrade to Hold from Add (3) -

FY19 guidance for operating earnings (EBITDA) is weaker than Morgans expected. The company has highlighted the fact that domestic revenue growth has softened in the second half.

Given the uncertain outlook, Morgans downgrades to Hold from Add. Risks include the global economic environment affecting VIP activity, as well as a reduction in consumer spending and competition and regulatory changes. Target is lowered to $4.04 from $5.67.

Target price is $4.04 Current Price is $3.84 Difference: $0.2
If SGR meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting upside of 26.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

Ord Minnett rates SGR as Buy (1) -

Ord Minnett reduces estimates for FY19 and FY20 by -14% and -12% respectively after the company guided to a downgrade to operating earnings to $550-560m. The broker believes the drop in the share price in the wake of the guidance downgrade is overdone.

Global operators running the ruler over Australian gaming assets may pose a near-term catalyst, although macro economic headwinds and concerns around tourism and Australian consumer environment will persist, Ord Minnett suggests.

Buy rating maintained. Target is reduced to $5.05 from $5.70.

Target price is $5.05 Current Price is $3.84 Difference: $1.21
If SGR meets the Ord Minnett target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting upside of 26.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

UBS rates SGR as Buy (1) -

A week macro backdrop has continued for Star Entertainment and the company has reduced earnings guidance for FY19. Unlike the first half, UBS notes the company is no longer taking meaningful market share.

UBS lowers main floor in VIP assumptions to reflect growth in line with the broader gambling market. This results in downgrades to estimates of -16-21% in FY19-21.

UBS maintains a Buy rating and reduces the target to $4.70 from $5.60.

Target price is $4.70 Current Price is $3.84 Difference: $0.86
If SGR meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting upside of 26.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

Morgan Stanley rates VOC as Overweight (1) -

The company has received an indicative proposal by AGL Energy ((AGL)) at $4.85 a share, an -8% discount to the EQT Infrastructure bid, which was pulled.

Morgan Stanley notes this is the first time M&A interest has come from the energy sector as previous bids were from infrastructure investors.

This increases the broker's conviction in its non-consensus Overweight call. Target is $4.00. Industry view is In-Line.

Target price is $4.00 Current Price is $4.28 Difference: minus $0.28 (current price is over target).
If VOC meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.94, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

Citi rates VRL as Buy (1) -

The company has focused on organic growth opportunities in its investor briefing. Citi is encouraged by the improved capital allocation to core divisions and a reduced appetite to use debt for funding growth.

The balance sheet is expected to improve, with net debt/EBITDA reducing to 2.0x. The $50m investment in Sea World is expected to drive traffic and ticket prices, as the park currently lacks major thrill rides.

However, the broker reduces forecasts for Gold Coast earnings by -1% because of the potential disruption during construction. Buy rating maintained. Target is reduced to $3.85 from $3.90.

Target price is $3.85 Current Price is $2.83 Difference: $1.02
If VRL meets the Citi target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $3.59, suggesting upside of 26.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Credit Suisse rates WPL as Outperform (1) -

Woodside has announced a delay to the re-start of Pluto production following the planned turnaround. Credit Suisse reduces forecasts for FY19 production to 89.5 mmboe from 92.0 mmboe. Net profit estimates are reduced by -1.5%.

The company reports the outage stems from vibration occurring at the mixed refrigerant compressor. This can result in damage to the equipment, which the broker suggests could explain the relatively lengthy three-weak delay.

Outperform maintained. Target is reduced to $37.55 from $37.60.

Target price is $37.55 Current Price is $35.02 Difference: $2.53
If WPL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $35.71, suggesting upside of 2.0% (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: 0.1

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

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

Woodside Petroleum has announced the delayed re-start of production at Pluto. The extension of the turnaround has meant new guidance is set at the lower end of 88-94 mmboe. Production was 91.4 mmboe in 2018.

Morgan Stanley retains an Equal-weight rating. Industry view: In-Line. Price target is $36.50.

Target price is $36.50 Current Price is $35.02 Difference: $1.48
If WPL meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $35.71, suggesting upside of 2.0% (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: 0.1

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