Australian Broker Call

Morgan Stanley rates AMP as Overweight (1) -

While weak second half flows and falling planner numbers raise questions for Morgan Stanley regarding the resilience of the company's wealth franchise, the broker believes improvement should materialise on stronger markets and clarity over  tax treatment of super.

The broker is also happy with the new digital/direct capabilities and the goals-based advice model. The broker accepts the market is yet to be fully convinced the issues with the life business are over but, with the company downgrading life, the likelihood of any material adverse claims appears low.

Overweight retained. Target is $5.90. Industry view: In-line.

Target price is $5.90 Current Price is $5.34 Difference: $0.56
If AMP meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.58, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

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

Deutsche Bank rates BHP as Hold (3) -

In revisiting its valuation for BHP's oil division, the broker continues to believe the company's onshore shale assets are not tier one and should be divested assuming recent comparable pricing can be achieved.

It would help reduce debt and provide capital for investment in higher return offshore oil and mining projects. Hold and $24.50 target retained.

Target price is $24.50 Current Price is $22.62 Difference: $1.88
If BHP meets the Deutsche Bank target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $27.65, suggesting upside of 18.8% (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: 0.5

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

Credit Suisse rates BLD as Outperform (1) -

The US regulator has cleared the transaction to acquire Headwaters. Credit Suisse suspects the length of time taken by the regulator may have spooked some investors into believing that asset divestments were on the horizon.

With the removal of this cloud, the broker expects the stock to re-rate. Target is revised to $6.95 from $6.85. Outperform rating retained.

Target price is $6.95 Current Price is $6.42 Difference: $0.53
If BLD meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.48, suggesting downside of -0.6% (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

UBS rates BLD as Buy (1) -

The company is expected to complete the acquisition of Headwaters over the next two days as the US regulator has cleared the transaction.  UBS believes the announcement  is more positive than expected because it required no forced asset divestments.

The broker raises FY17 estimates for earnings per share by 2% to allow  for eight weeks of Headwaters earnings in the current year. The broker forecasts average EBIT growth of 14% per annum from FY18-21.

Buy and $6.90 target retained.

Target price is $6.90 Current Price is $6.42 Difference: $0.48
If BLD meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.48, suggesting downside of -0.6% (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

Ord Minnett rates CSR as Hold (3) -

Ord Minnett expects net profit of $191.9m when the company reports FY17 results on May 10. This is above guidance and the top end of consensus ranges at the time of the first half result.

 The focus will be on the outlook for the demand  for building products, expectations for efficiencies at the Tomago smelter and the strategy to deploy capital.

 Ord Minnett retains a Hold rating. Target rises to $4.50 from $4.15.

Target price is $4.50 Current Price is $5.00 Difference: minus $0.5 (current price is over target).
If CSR meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.23, suggesting downside of -17.7% (ex-dividends)

The company's fiscal year ends in March.

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 DLX as Neutral (3) -

Ahead of the first half results on May 17, Macquarie observes the macro support is fading as hardware retail sales are slowing.

There is little stimulus for growth, the broker observes, although consolidation in the retail channel may support growth in the short term for the business.

Neutral retained. Target rises to $6.70 from $6.30.

Target price is $6.70 Current Price is $6.81 Difference: minus $0.11 (current price is over target).
If DLX meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.10, suggesting downside of -11.0% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates DXS as Neutral (3) -

Feedback from Macquarie's conference indicates that cap rates are likely to compress further over 2017. Dexus has forecast 12 basis points of compression this year.

Accordingly, the broker lifts the target for stocks that are exposed to office, factoring elevated demand for these assets. Neutral rating retained. Target is raised to $10.14 from $9.57.

Target price is $10.14 Current Price is $10.25 Difference: minus $0.11 (current price is over target).
If DXS 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 $9.34, suggesting downside of -9.1% (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

UBS rates ECX as Buy (1) -

The company has acquired Grays ((GEG)) for $179m.  UBS believes the deal is a sound strategic fit in terms of the ability to cross-sell finance and insurance products into the Grays automotive and equipment customers.

The first half results were slightly ahead of UBS estimates. Guidance is reiterated for growth of  18-20% in net profit in FY17.

Buy rating retained. Target rises to $4.20 from $4.00.

Target price is $4.20 Current Price is $3.66 Difference: $0.54
If ECX meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.32, suggesting upside of 18.3% (ex-dividends)

The company's fiscal year ends in September.

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 FDV as Add (1) -

Morgans upgrades revenue forecasts, noting transaction-based services for new apartment developers are driving most  of the incremental revenue growth.

The broker retains a positive view on the stock, believing it offers exposure to the growth in online advertising in newly emerging economies with large populations and growing smart phone usage.

Add recommendation retained. Target is $0.72.

Target price is $0.72 Current Price is $0.53 Difference: $0.19
If FDV meets the Morgans target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Morgans rates IPD as Add (1) -

Following the quarterly results Morgans resets its outlook. Expectations are pushed out by 3-6 months.

Sales growth in the March quarter was modest and, while the broker is disappointed to be downgrading forecasts again, underlying fundamentals are believed to be in place.

Add rating retained. Target falls to $1.82 from $2.04.

Target price is $1.82 Current Price is $0.71 Difference: $1.11
If IPD meets the Morgans target it will return approximately 156% (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

Citi rates MQG as Sell (5) -

Macquarie surprised, once again, with a market beating result but Citi analysts are not to be deterred and stick with their Sell rating. The upside surprise can be explained through one-off factors, explain the analysts.

Underlying, the analysts maintain, core operations already showed signs of peaking one year ago. It is Citi's view Macquarie needs a transformational acquisition to keep the good growth story going.

In the absence of such an acquisition, the analysts see negative growth ahead, and a weaker share price. Sell. Target price rises to $72 from $67.75.

Target price is $72.00 Current Price is $94.89 Difference: minus $22.89 (current price is over target).
If MQG meets the Citi target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $88.63, suggesting downside of -7.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Credit Suisse rates MQG as Neutral (3) -

Credit Suisse found the  FY17 results solid, with a beat on dividends but compositionally soft second half earnings.

The key risks envisaged are a downturn in capital markets activity and the emergence of a risk-off market environment.

The broker retains a Neutral rating. Target is raised to $100 from $95.

Target price is $100.00 Current Price is $94.89 Difference: $5.11
If MQG meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $88.63, suggesting downside of -7.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Deutsche Bank rates MQG as Hold (3) -

Macquarie's result beat the broker by 5% and easily beat guidance of "broadly in line with FY16". Lower cost growth and a much lower tax rate helped.

While beating guidance has become a habit of late, the broker sees FY18 as a tougher call. Income was boosted by volatile items while recurring income streams appear subdued. Revenue growth was anaemic. Nevertheless, capital strong and solid dividend can be maintained.

On price strength, the broker retains Hold. Target rises to $96.20 from $91.60.

Target price is $96.20 Current Price is $94.89 Difference: $1.31
If MQG meets the Deutsche Bank target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $88.63, suggesting downside of -7.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

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

Morgan Stanley believes operating momentum has slowed, although the FY18 earnings outlook could be underpinned by material gains on a weaker Australian dollar, a lower US tax rate and ongoing decline in the compensation ratio.

The broker expects these factors to support the share price ahead of the July trading update. Equal-weight rating and In-Line industry view retained. Target  is raised to $85 from $75.

Target price is $85.00 Current Price is $94.89 Difference: minus $9.89 (current price is over target).
If MQG 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 $88.63, suggesting downside of -7.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Morgans rates MQG as Hold (3) -

FY17 net profit was above expectations, and Morgans observes it was assisted by favourable second-half tax rate. Given a significant drop in performance fees over the year the broker believes 7% growth in net profit was a solid effort.

The broker makes minimal changes to  the earnings outlook. Morgans maintains a Hold rating. Target is raised to $89.20 from $81.41.

Target price is $89.20 Current Price is $94.89 Difference: minus $5.69 (current price is over target).
If MQG meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $88.63, suggesting downside of -7.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Ord Minnett rates MQG as Hold (3) -

FY17 cash earnings were ahead of Ord Minnett's forecasts. The broker upgrades FY18 estimates by around 10%, with a commensurately increase in the target to $87 from $80.

Going forward, the broker believes the maturity of unlisted funds will mean base fees fall. Still, these will provide the opportunity for high levels of asset realisation gains and transaction fees to support guidance for FY18 to be broadly in line with FY17.

Hold rating retained.

Target price is $87.00 Current Price is $94.89 Difference: minus $7.89 (current price is over target).
If MQG 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 $88.63, suggesting downside of -7.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

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

The FY17 result was ahead of UBS estimates.  The element that was most pleasing for the broker was the delivery on costs.

The cost-to-income ratio fell to 68.5% in the second half, continuing its downward trend from 85% in FY12. UBS envisages substantial operating leverage now, with every -5% reduction in the cost-to-income ratio providing 16% upside to earnings per share.

While the broker envisages material upside over time, the stock is up 53% over the last 12 months and ongoing evidence of cost reductions needs to be demonstrated to justify further appreciation. Rating is downgraded to Neutral from Buy. Target is raised to $91 from $89.

Target price is $91.00 Current Price is $94.89 Difference: minus $3.89 (current price is over target).
If MQG meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $88.63, suggesting downside of -7.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

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

The company has made a material revision to FY17 earnings guidance because of adverse seasonal conditions. Underlying guidance for EBITDA is downgraded by  -15-21%.

Morgans makes material downgrades to its forecasts and stresses that short-term earnings uncertainty exist, as 80% of the harvest is yet to be completed. The broker also observes gearing is now at uncomfortable levels for a highly cyclical business.

Rating is downgraded to Hold from Add. Target is reduced to $0.68 from $1.57.

Target price is $0.68 Current Price is $0.59 Difference: $0.095
If MRG meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

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

Credit Suisse rates MYR as Downgrade to Underperform from Outperform (5) -

Credit Suisse suspects the entry of TK Maxx and Amazon and, in the near term, a deteriorating discretionary spending environment are likely to be difficult for the company to overcome.

The two businesses are both selling premium branded products, with TK Maxx at significantly discounted prices. The broker notes TK Maxx is to have 35 stores in Australia after conversion of a former Trade Secret stores, providing a solid geographic footprint.  Meanwhile, Amazon is likely to accelerate a shift to consumers spending online.

The broker downgrades forecasts on the expectation of slower sales growth.  Rating is downgraded to Underperform from Outperform. Target is reduced to $0.82 from $1.44.

Target price is $0.82 Current Price is $1.11 Difference: minus $0.285 (current price is over target).
If MYR meets the Credit Suisse target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.16, suggesting upside of 10.6% (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

Morgan Stanley rates ORI as Underweight (5) -

The move up in the stock price is a strong indicator to Morgan Stanley that investors believe the major drivers of the business have improved materially. Finding compelling evidence for this, in the broker's opinion, remains challenging.

While there are some positive  features, ammonium nitrate remains stuck in a downtrend and this is a material headwind, Morgan Stanley believes.

The broker suspects the company may find itself with an an increasingly limited set of options if east coast gas prices remain inflated. Structural impediments remain embedded in the broker's forecasts.

Underweight. Target is raised to $11.59 from $11.03. Industry view is Cautious.

Target price is $11.59 Current Price is $18.15 Difference: minus $6.56 (current price is over target).
If ORI meets the Morgan Stanley target it will return approximately minus 36% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.64, suggesting downside of -10.2% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates PTM as Underweight (5) -

Morgan Stanley estimates outflows of around -$110m in April. The broker believes it is too early to gauge the impact on flows of the recent 10% re-pricing of retail trusts down to a 135bps base fee.

In the short term Morgan Stanley envisages downside to forecasts. Underweight. Target is $4.30. Industry view: In-Line.

Target price is $4.30 Current Price is $4.34 Difference: minus $0.04 (current price is over target).
If PTM 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 $4.31, suggesting downside of -3.3% (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 QAN as Outperform (1) -

The company's investor briefing revealed multiple drivers of growth, Macquarie observes. The company is confident that, over the medium term, it can deliver between $500-600m per annum in EBIT.  This implies a 7-10% compound growth rate from FY17-22.

The company is launching a white-label credit card with unlimited points potential and the broker expects a minimum earn rate of 1.5 points per dollar spent on this card.

Outperform rating retained. Target is $5.90.

Target price is $5.90 Current Price is $4.52 Difference: $1.38
If QAN meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $4.67, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.9

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

Ord Minnett rates QAN as Hold (3) -

The investor briefing did not provide  much new information for Ord Minnett. The broker believes management is fighting the good fight in a challenging operating environment. Management is targeting an annual gross benefit of $400m over FY18-20 from its transformation program.

The company also rejected talk of a sell-down or sale of its loyalty business. Rather, a white label credit card will be launched, to minimise the negative impact of interchange fee changes.

Hold rating and $4.15 target retained.

Target price is $4.15 Current Price is $4.52 Difference: minus $0.37 (current price is over target).
If QAN 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 $4.67, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.9

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

Morgans rates RVA as Add (1) -

First quarter cash flow was in line with expectations, although Morgans observes this is inconsequential as the company prepares for the commercial launch of Fantom, a bioresorbable stent for the treatment of coronary artery disease.

The broker takes a more measured approach to sales projections and adjusts estimates accordingly, pushing out profitability to 2019.

Add rating retained. Target is reduced to $1.15 from $1.50.

Target price is $1.15 Current Price is $0.97 Difference: $0.185
If RVA meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Ord Minnett rates SCG as Accumulate (2) -

There were no surprises in the first quarter update for Ord Minnett and guidance for growth in 2017 funds from operation is 4.25%. The broker believes regional mall A-REITs are oversold and  Scentre Group is the best way to play the theme.

US and UK evidence is cited by the broker as showing there is minimal impact on the best malls from the growth of Amazon and online retailers. Accumulate rating and $4.80 target retained.

Target price is $4.80 Current Price is $4.25 Difference: $0.55
If SCG meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.73, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates SCG as Neutral (3) -

Slowing sales trends are persisting, UBS observes.

The broker acknowledges the company's superior quality portfolio means operating metrics are outperforming peers but there is little evidence the market is discriminating between retail A-REITs in the short term.

The shadow of Amazon is also expected to persist. Neutral. Target is $4.67.

Target price is $4.67 Current Price is $4.25 Difference: $0.42
If SCG meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.73, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates SPO as Hold (3) -

Ord Minnett struggles to be positive on the shares and there is now just 4.5% potential upside to the $1.15 offer price from Downer ((DOW)).

Overall, the broker believes the deal will go through but there is still a chance it may fail.  With the effective loss of potential for a higher offer the broker reduces its blended valuation and target to $1.02 from $1.04. Hold rating retained.

Target price is $1.02 Current Price is $1.10 Difference: minus $0.08 (current price is over target).
If SPO meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.95, suggesting downside of -14.1% (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

Macquarie rates TCL as Outperform (1) -

Macquarie found few surprises in the company's investor briefing. The broker notes the importance of the customer is increasing, with much of the focus on the licence to operate around the ability to improve customer services.

The broker also notes the company is playing down the importance of acquisitions such as WestConnex as being a company builder and it emphasised bidding behaviour is getting more aggressive.

Outperform retained. Target is $12.40.

Target price is $12.40 Current Price is $12.34 Difference: $0.06
If TCL meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $11.87, suggesting downside of -4.3% (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

Morgans rates TCL as Hold (3) -

Morgans found no new material information in the investor briefing.  Nevertheless, the broker retains a view that this is a high-quality stock with dependable drivers for solid distribution  growth.

The broker retains a Hold rating. Target is raised to $11.93 from $11.47, primarily as a result of changes to forecasts regarding funding and the valuation rolling forward.

Target price is $11.93 Current Price is $12.34 Difference: minus $0.41 (current price is over target).
If TCL meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.87, suggesting downside of -4.3% (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

Citi rates TLS as Sell (5) -

Undoubtedly to the delight of Telstra headquarters, the ACCC has released its draft decision proposing to not declare a wholesale domestic mobile roaming service. Citi analysts don't think the final decision will be any different.

The analysts point out the obvious: this is a major positive development for Telstra. Declaration would have allowed smaller competitors to use Telstra’s network in regional areas. Sell rating retained, regardless.

Target price is $4.00 Current Price is $4.40 Difference: minus $0.4 (current price is over target).
If TLS 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 $4.49, suggesting upside of 3.0% (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

Macquarie rates TLS as Neutral (3) -

The ACCC has released its draft decision and proposes not to declare a wholesale domestic mobile roaming service.  This removes a negative overhang for Telstra, Macquarie observes.

A declaration was always likely to hurt the premium that Telstra is able to charge customers, given the primary driver of this premium comes from its superior network coverage.

Macquarie still believes Telstra faces challenges from broad-based competition across key products. Neutral rating and $4.50 target retained.

Target price is $4.50 Current Price is $4.40 Difference: $0.1
If TLS meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.49, suggesting upside of 3.0% (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

Morgans rates TLS as Hold (3) -

The ACCC has made a draft decision not to declare wholesale domestic roaming.  A final decision is due mid year. Morgans believes the draft decision is a big positive for Telstra.

Increased competition and increased  traction in the NBN are growing challenges but Telstra's ability to continue investing in a superior mobile network, without having to share this with competitors, is a big positive in the broker's opinion.

Hold rating retained. Target is $4.50.

Target price is $4.50 Current Price is $4.40 Difference: $0.1
If TLS meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.49, suggesting upside of 3.0% (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

Ord Minnett rates TLS as Buy (1) -

Ord Minnett expects the shares to trade up on the news that the ACCC does not propose to mandate domestic mobile roaming. The broker suspects this is the news that management was awaiting in order to continue its capital management review.

As the ACCC's final decision is not expected until mid 2017, the broker expects the company will conclude its review then. Ord Minnett currently anticipates dividend payments will be sustained and a large buy-back program will commence over the next few years.

Buy retained. Target is $5.00.

Target price is $5.00 Current Price is $4.40 Difference: $0.6
If TLS meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.49, suggesting upside of 3.0% (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

UBS rates TLS as Neutral (3) -

The ACCC's preliminary view is that will it will not declare wholesale domestic mobile roaming, as there is insufficient evidence that this will lower prices or improve services in regional areas.

UBS believes the decision is positive for Telstra's dominant regional market share and its premium. Neutral and $4.30 target retained.

Target price is $4.30 Current Price is $4.40 Difference: minus $0.1 (current price is over target).
If TLS meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.49, suggesting upside of 3.0% (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

Ord Minnett rates TPM as Lighten (4) -

Ord Minnett believes the company's mobile ambitions in Australia rely heavily on wholesale roaming being declared, which explains its recent  network build announcement just ahead of the ACCC decision (with a preliminary decision not to mandate wholesale mobile roaming).

Without wholesale roaming, the broker believes the company will struggle to get any traction on its mobile initiative. Lighten rating maintained. Target is $5.55.

Target price is $5.55 Current Price is $5.78 Difference: minus $0.23 (current price is over target).
If TPM 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 $7.11, suggesting upside of 19.5% (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

Citi rates WBC as Sell (5) -

Westpac's interim result slightly beat Citi's forecasts, but missed consensus on the analysts' assessment. Revenue proved weaker than expected, in line with its peers, they point out.

Costs remain contained and Citi believes Westpac is well positioned to meet APRA’s "Unquestionably Strong" capital requirements. Having said so, the valuation is seen as too high in light of headwinds on the horizon.

The latter is not dissimilar from peers, state the analysts. Target price of $30.50 retained, as well as the Sell rating.

Target price is $30.50 Current Price is $33.86 Difference: minus $3.36 (current price is over target).
If WBC 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 $34.30, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in September.

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 WOR as Buy (1) -

A new analyst is in charge, and this has translated into a new approach. Citi loves the leverage to improved operational dynamics and, predicting better margins, has bumped up forecasts for the years ahead.

Target price jumps to $13.45 from $9.80 as a result. Updated forecasts assume the company recovers some $50m in receivables in 2H17 and a further $145m in FY18. Buy rating retained.

Target price is $13.45 Current Price is $10.64 Difference: $2.81
If WOR meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $11.03, suggesting downside of -0.1% (ex-dividends)

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

Deutsche Bank rates WOR as Hold (3) -

WorleyParsons' US peer Fluor beat revenue forecasts with its March Q result but missed earnings by a margin.

The broker sees a negative read-through for WorleyParsons given uncertainty around capital decisions and a weak outlook for the LNG market.

One bright spot is an apparent pick-up in mining. Hold and $10.20 target retained.

Target price is $10.20 Current Price is $10.64 Difference: minus $0.44 (current price is over target).
If WOR 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 $11.03, suggesting downside of -0.1% (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