Australian Broker Call

Citi rates AGL as Buy (1) -

Post Investor Day, Citi analysts have re-calibrated their forecasts as company management highlighted their confidence in higher electricity prices after the closure of Hazelwood’s cheap brown coal power generation.

In addition, the analysts believe AGL's balance sheet can accommodate $200m in capex and $500m in share buy backs on top. Target falls to $21.45 from $21.61 on small reductions in forecasts.

Target price is $21.45 Current Price is $19.22 Difference: $2.23
If AGL meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $21.52, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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 Buy (1) -

The company has re-affirmed guidance for FY17 underlying profit of  $720-800m. Earnings growth is expected to be weighted to the second half.

The company has revealed for the first time it is seeking to enter the Western Australian retail gas market.  AGL is targeting 100,000 customers within 24 months.

Deutsche Bank believes the dynamics in the WA domestic gas market support AGL's entry. The broker believes there is potential for AGL to contract wholesale gas on very cost competitive terms.

Buy rating and $20.85 target price retained.

Target price is $20.85 Current Price is $19.22 Difference: $1.63
If AGL meets the Deutsche Bank target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $21.52, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

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

The investor briefing highlighted earnings tailwinds for the near term as well as medium-term growth initiatives, Morgan Stanley observes.

Rising wholesale electricity prices provide the near-term earnings driver. The broker has a high conviction in the company's growth outlook as pool prices are expected to remain elevated, which makes it harder for the company's competitors to attract customers via discounts.

Equal-weight rating and $21.02 target retained. Industry view: Cautious.

Target price is $21.02 Current Price is $19.22 Difference: $1.8
If AGL meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $21.52, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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 Accumulate (2) -

The company's investor briefing signalled the commencement of the feasibility study into a potential LNG import terminal and a commitment to enter the Western Australian gas retailing market.

Ord Minnett believes there are some worrying signals for the company's gas retailing business, which is only covered under firm commitments to 2020.

Ord Minnett is comfortable that AGL will benefit from higher wholesale electricity prices but the gas market is becoming more reliant on 2C resources and producers are unwilling to commit capital to develop these resources into reserves because of the low oil prices.

The broker retains an Accumulate rating and $23 target.

Target price is $23.00 Current Price is $19.22 Difference: $3.78
If AGL meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $21.52, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Macquarie rates BHP as Outperform (1) -

Macquarie upgrades copper price forecasts by 11-15% for the next four years and believes improving supply/demand fundamentals should provide some support for the recent rise in copper prices.

The broker incorporates the improved outlook, which drives material upgrades to earnings forecasts. The upgrades to copper price forecasts have factored in some of the upside risk to base case forecasts but the broker observes there is still material upside risk to its iron ore, coking coal, thermal coal, aluminium and alumina price forecasts.

Outperform retained. Target rises to $28 from $27.

Target price is $28.00 Current Price is $24.84 Difference: $3.16
If BHP meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $24.01, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Credit Suisse rates BKL as Outperform (1) -

The company's Singles Day revealed strong sales growth and Credit Suisse suspects high inventory levels among Chinese wholesalers have diminished.

As expected, volume growth exceeded value growth as retailers lower prices to clear inventory. The broker awaits further clarification on regulation, which industry participants suggest may come as soon as the end of November. Outperform retained. Target is $125.

Target price is $125.00 Current Price is $116.43 Difference: $8.57
If BKL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $118.33, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Ord Minnett rates CAR as Upgrade to Buy from Hold (1) -

After the share price fell, as the company signalled that the first half revenue and EBITDA would be substantially below FY16 for the Stratton business, Ord Minnett suggests investors have over-reacted.

Management has indicated the issue is unique to the lender involved and not related to the wider industry. The broker upgrades to Buy from Hold, envisaging quality in the core business and options in the international investments. The target falls to $12.06 from  $12.11.

Target price is $12.06 Current Price is $9.95 Difference: $2.11
If CAR meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $11.92, suggesting upside of 20.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

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

Unit growth in the second half appears to have slowed to around 4% from 12% in the first half and Morgan Stanley notes this occurred while competitor, Advanced Bionics, achieved double digit unit growth. This suggests to the broker that Cochlear may have lost some market share.

Last time Advanced Bionics launched a new implant it gained material market share and the broker suspects Cochlear could be set to lose more. Equal-weight rating, $129 target retained. Industry view is In-Line.

Target price is $129.00 Current Price is $122.28 Difference: $6.72
If COH meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $122.08, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Citi rates CSL as Neutral (3) -

Citi analysts point out CSL is expected to announce the results from its Phase IIB trial for CSL112 on Wednesday 16 November 2016. With little priced in in today's share price, a positive announcement could spark a rally, suggests the report.

CSL112 reduces major adverse cardiac events for heart patients and Citi believes it could be "transformative" for the company, generating an estimated $1bn in the first five years after a successful launch.

Bottom line: Citi would not have a negative short term view going into the release of the trial results. Otherwise, the shares seem fairly valued. Target $110.73. Neutral.

Target price is $110.73 Current Price is $103.92 Difference: $6.81
If CSL meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $109.49, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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 CSL as Underweight (5) -

The main risk event for FY17 is near as  the company is due to present its phase 2b data to the US heart conference.

Morgan Stanley believes the market will interpret the significance of the primary and secondary endpoints as a read on the likelihood that the company moves to phase 3 and, hence, commercialisation.

In another area,  the broker believes the company's haemophilia franchise is in gradual decline as the market becomes more crowded.

Underweight rating and In-Line industry view retained. Target is $101.00.

Target price is $101.00 Current Price is $103.92 Difference: minus $2.92 (current price is over target).
If CSL 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 $109.49, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Ord Minnett rates CSL as Hold (3) -

Ord Minnett believes it increasingly likely that traditional factor replacement therapy for both haemophilia A and B will face significant new competition in the next decade.

The broker makes modest revisions to its Afstyla and Idelvion forecasts. The broker also takes the opportunity to review forecasts for the recently launched recombinant therapies.

Hold retained. Target drops to $100 from $105.

Target price is $100.00 Current Price is $103.92 Difference: minus $3.92 (current price is over target).
If CSL 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 $109.49, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Credit Suisse rates CWN as Outperform (1) -

Credit Suisse now considers Crown's leverage ratio may be more benign by FY20. Construction of the Queensbridge hotel tower may now start later than previously modelled.

The time lag between planning approval and construction starting in earnest in FY19 should enable the company to generate more cash.

Credit Suisse retains a Outperform rating and $13 target.

Target price is $13.00 Current Price is $10.65 Difference: $2.35
If CWN meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $13.58, suggesting upside of 27.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Morgans rates ELD as Add (1) -

FY16 results were solid in a busy year, Morgans observes, and improved seasonal conditions, high commodity prices and recent acquisitions bode well for another strong year.

The broker believes Elders should comfortably achieve its eight-point plan, now in its final year. The company should also benefit from recent acquisitions and Morgans expects more in the future.

An Add rating is retained and the target rises to $4.75 from $4.65.

Target price is $4.75 Current Price is $3.95 Difference: $0.8
If ELD meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Macquarie rates IAG as Neutral (3) -

Ahead of the December investor briefing Macquarie reviews the outlook, noting  the company has better gross expense ratios than Suncorp ((SUN)).

The broker expects IAG  to announce more system rationalisation and a reduction in staffing levels at the investor briefing.

While expecting the market to react positively to specific cost reduction details at the briefing Macquarie continues to prefer Suncorp on a relative valuation basis. Neutral and $5.80 target retained.

Target price is $5.80 Current Price is $5.45 Difference: $0.35
If IAG meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.56, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Macquarie rates JHX as Outperform (1) -

Macquarie previews James Hardie ahead of the second quarter result. The broker forecasts growth in revenue and EBIT of 12% and 17% respectively.

While US multi-residential housing starts are weak, the broker observes single family housing starts remain strong. Input costs are climbing and this makes price increases more important. Outperform rating and $23 target retained.

Target price is $23.00 Current Price is $19.70 Difference: $3.3
If JHX meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $21.25, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.7

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

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

Morgan Stanley suspects the mid point of FY17 profit guidance of US$260-290m could be difficult to achieve, given seasonal trends in margins.

The broker also suspects guidance may be revised as early as the second quarter result, despite the probably near-term strength in volumes.

Equal-weight retained. Target is $19.51. In-Line sector view.

Target price is $19.51 Current Price is $19.70 Difference: minus $0.19 (current price is over target).
If JHX 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 $21.25, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.7

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

UBS rates JHX as Buy (1) -

Ahead of James Hardie's quarterly result this week, the broker has cut its target to $23 from $25 but retains Buy.

The cut reflects reduced earnings forecasts on assumptions of a lower US operating margin as the company ramps up additional product lines over the next few quarters. The Sep Q should prove an important transitional period as this ramp up begins, the broker suggests.

Target price is $23.00 Current Price is $19.70 Difference: $3.3
If JHX meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $21.25, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.7

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

Morgan Stanley rates MTR as Overweight (1) -

Morgan Stanley forecasts flat CBD earnings with the main issue being the outlook for the softer Brisbane, Perth and Darwin markets. The broker expects a reiteration of FY17 guidance at the AGM.

Scale, distribution and access to capital provide the competitive advantage in a highly fragmented industry, the broker observes.

Target is $4.75. Overweight rating retained. Industry view is In-Line.

Target price is $4.75 Current Price is $3.11 Difference: $1.64
If MTR meets the Morgan Stanley target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $3.69, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

Deutsche Bank rates MTS as Downgrade to Sell from Hold (5) -

Deutsche Bank believes the recent period of stabilising sales has been enabled by the loss of market share experienced by Woolworths ((WOW)).

Accordingly, as the sales trajectory improves for Woolworths so the broker expects independent supermarkets to come under increasing pressure.

Deutsche Bank downgrades to Sell from Hold. Target is lowered to $1.65 from $2.00.

Target price is $1.65 Current Price is $1.86 Difference: minus $0.205 (current price is over target).
If MTS meets the Deutsche Bank target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.16, suggesting upside of 17.7% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Macquarie rates NCM as Neutral (3) -

Macquarie upgrades copper price forecast by 11-15% for the next four years and believes improving supply/demand fundamentals should provide some support for the recent rise in copper prices.

The broker incorporates the improved outlook, which drives material upgrades to earnings forecasts. Neutral rating retained ahead of the investor briefing. Target is raised to $25 from $24.

Target price is $25.00 Current Price is $20.88 Difference: $4.12
If NCM meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $21.09, suggesting downside of -0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.4

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

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

The company's decision to increase upfront rent concessions  and introduce modest rental discounts to stimulate growth in occupancy should not be a negative for revenue, Ord Minnett believes.

If managed well, the company should be able to recover the decrease in average rental rate, recorded since June, over the next two years. As a result of the fall in the share price, Ord Minnett raises its recommendation to Accumulate from Hold and the price target to $1.49 from $1.48.

Target price is $1.49 Current Price is $1.35 Difference: $0.14
If NSR meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.61, suggesting upside of 17.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

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

Macquarie upgrades copper price forecast by 11-15% for the next four years and believes improving supply/demand fundamentals should provide some support for the recent rise in copper prices.

The broker incorporates the improved outlook, which drives material upgrades to earnings forecasts. The company is expected to swing back to profit in 2018. The rating is upgraded to Outperform from Neutral. Target is raised to $9.20 from $7.20.

Target price is $9.20 Current Price is $7.51 Difference: $1.69
If OZL meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $6.63, suggesting downside of -14.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.0

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

Citi rates PMV as Upgrade to Neutral from Sell (3) -

Citi analysts have upgraded to Neutral from Sell following share price weakness. The official explanation is that risks are now much more balanced.

They do anticipate weak sales in H1, in particular from womenswear, but Smiggle remains the all-important offset. Target retained at $13.80. The company is cycling a very strong Christmas 2015 too.

Following small adjustments to estimates, Citi is now positioned 6% below consensus for FY17 and 3% below consensus for FY18.

Target price is $13.80 Current Price is $13.22 Difference: $0.58
If PMV meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $15.06, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Credit Suisse rates PMV as Upgrade to Neutral from Underperform (3) -

Improving commodity prices are positive for national income and, thus, should provide a more supportive backdrop to consumer spending in the medium term, Credit Suisse observes.

While there remains some downside risks to earnings because of softer market-wide trading conditions in the first half, Credit Suisse upgrades its rating to Neutral from Underperform following share price weakness.Target is reduced to $14.50 from $14.57.

Target price is $14.50 Current Price is $13.22 Difference: $1.28
If PMV meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $15.06, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Macquarie rates RIO as Outperform (1) -

Macquarie upgrades copper price forecast by 11-15% for the next four years and believes improving supply/demand fundamentals should provide some support for the recent rise in copper prices.

The broker incorporates the improved outlook, which drives material upgrades to earnings forecasts. The upgrades to copper price forecasts have factored in some of the upside risk to base case forecasts but the broker observes there is still material upside risk to its iron ore, coking coal, thermal coal, aluminium and alumina price forecasts.

Outperform retained. Target rises to $68 from $64.

Target price is $68.00 Current Price is $59.44 Difference: $8.56
If RIO meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $56.29, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

Credit Suisse rates SBM as Neutral (3) -

The Simberi strategic review has concluded that the asset will be retained by St Barbara, extracting greater value for shareholders than can be realised by divestment.

Credit Suisse does not expect the sulphides resource to proceed. The decision to keep the project also probably reflects a diminished need to realise cash for debt reduction, now this has been achieved through cash flow.

Neutral rating is retained. Target is $2.90.

Target price is $2.90 Current Price is $2.28 Difference: $0.62
If SBM meets the Credit Suisse target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $3.17, suggesting upside of 37.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Citi rates SCO as Buy (1) -

Lower than expected activity levels have forced the company to issue a profit warning; it's not going to achieve forecasts as provided in the IPO prospectus.

Citi analysts are clearly taken by surprise, as is company management, they add. Estimates have been reduced, but trust remains as company management maintains the volatility in the core business is rather uncommon.

The medium term outlook should remain positive, Citi agrees, citing new client wins, a strong pipeline, low loss rates, better than expected expense control and record new business enquiries in October.

Target tumbles to $3.56 from $4.26. Buy rating retained.

Target price is $3.56 Current Price is $2.50 Difference: $1.06
If SCO meets the Citi target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

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

Macquarie upgrades copper price forecast by 11-15% for the next four years and believes improving supply/demand fundamentals should provide some support for the recent rise in copper prices.

The broker incorporates the improved outlook, which drives material upgrades to earnings forecasts and the rating is upgraded to Outperform from Neutral.Target is raised to $7.30 from $5.40.

Target price is $7.30 Current Price is $6.07 Difference: $1.23
If SFR meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.82, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Citi rates SHL as Sell (5) -

Citi has updated its modeling post the acquisition of Germany based Staber Lab Group and updated FX forecasts. The end result is for an increase to estimates, mainly because of the acquisition.

Higher estimates push up the target to $19.33 (from $18.25), but Sell rating retained as the share price trades at a higher level.

Target price is $19.33 Current Price is $21.36 Difference: minus $2.03 (current price is over target).
If SHL meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.85, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

UBS rates SMX as Neutral (3) -

The challenging conditions suffered by SMS in FY16 have continued into FY17, it was revealed at the company's AGM. The magnitude of headcount reduction suggests to the broker no end is in sight.

SMS has initiated strategies to improve revenue growth and reduce costs but the benefits will take time to emerge, the broker believes. Earnings forecasts have been slashed. Target falls to $1.40 from $1.80, Neutral retained.

Target price is $1.40 Current Price is $1.39 Difference: $0.015
If SMX meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.57, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Morgans rates VHT as Add (1) -

The company's VolparaDensity has been included in the Tyrer-Cuzick breast cancer assessment, a widely accepted breast cancer risk model which estimates the likelihood of a woman developing breast cancer.

Morgans considers the development an important milestone. The company's assessment tool is an important driver of awareness of breast density as a risk factor.

Add rating and 85c target retained.

Target price is $0.85 Current Price is $0.76 Difference: $0.095
If VHT meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Deutsche Bank rates WES as Sell (5) -

Deutsche Bank expects sales growth for Coles to come under pressure as Woolworths ((WOW)) recovers, particularly in the context of a market constrained by food deflation.

This may break the efficiency-driven customer value model for Coles which puts its margins at risk, in the broker's view.

Rating remains at Sell. Target is $38.

Target price is $38.00 Current Price is $41.16 Difference: minus $3.16 (current price is over target).
If WES 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 $41.15, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Deutsche Bank rates WOW as Upgrade to Buy from Hold (1) -

Woolworths has made large investments to re-start growth and Deutsche Bank believes the turnaround is beginning. The broker's survey suggests shoppers are seeing improvements in price and execution and are buying more groceries.

Store location remains the main driver of shopper behaviour, which should provide the company with a long-term competitive advantage in the broker's opinion.

Deutsche Bank upgrades to Buy from Hold on the basis that competitors, such as Wesfarmers ((WES)) and Metcash ((MTS)) should experience erosion of growth as Woolworths improves. Target is raised to $27 from $24.

Target price is $27.00 Current Price is $23.25 Difference: $3.75
If WOW meets the Deutsche Bank target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $22.31, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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