Australian Broker Call

Credit Suisse rates AGL as Underperform (5) -

Credit Suisse expects a $500m buyback will be announced at the FY20 results, scheduled for August 13.

The broker suspects the market has been better than expected since the company's update in May, with aggregate electricity demand more resilient.

Underperform rating retained, with growing downside risk to earnings from FY21 anticipated because of a sustained fall in wholesale prices. Target is reduced to $13.70 from $14.80.

Target price is $13.70 Current Price is $17.07 Difference: minus $3.37 (current price is over target).
If AGL meets the Credit Suisse target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.22, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.4

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

Morgan Stanley rates ALL as Overweight (1) -

Aristocrat Leisure notes strong monthly revenue growth in June from its big fish games portfolio. For the first nine months of FY20, social casino revenue is up 26% while social casual is up 36%, better than Morgan Stanley’s expectations of 13% and 28% respectively.

Raid continues to rank in the top 20 in Google stores worldwide and the broker estimates annualised revenue to be close to US$310m.

Morgan Stanley retains its Overweight rating with a target price of $30. Industry view: Cautious.

Target price is $30.00 Current Price is $25.05 Difference: $4.95
If ALL meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $29.89, suggesting upside of 20.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgan Stanley rates APT as Upgrade to Overweight from Equal-weight (1) -

Afterpay is demonstrating better than expected credit quality control, points out Morgan Stanley. The company’s sales growth is accelerating and the broker notes the company is diversifying away from the fashion category via eBay.

Afterpay is expected to deliver almost 60% in revenue CAGR (compounded annual growth rate) over FY20-22 while maintaining about 2% net transaction margin.

The company is starting operations in Canada in the first quarter of FY21 along with a US in-store rollout. This is to solidify its early mover advantage by moving to an omni-channel platform, comments the broker.

Morgan Stanley thinks Afterpay may use its $800m capital raising to look for M&A options so as to enter new geographies.

Revenue forecasts for FY21-22 upgraded by circa 15%. The broker is of the opinion that Afterpay is under-owned by Australian institutional investors.

Morgan Stanley upgrades to Overweight from Equal-weight with the target price increasing to $101 from $36. Industry view: In-line.

Target price is $101.00 Current Price is $66.00 Difference: $35
If APT meets the Morgan Stanley target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $67.92, suggesting downside of -7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Ord Minnett rates APT as Buy (1) -

The business update was ahead of Ord Minnett's expectations. The $650m placement and $150m share purchase plan should mean the company is in a good position to expand.

The broker notes, in the US, Afterpay is now adding around 100,000 active customers per week, similar to levels experienced in the seasonally strong December 2019 quarter.

Buy rating retained. Target rises to $76.70 from $64.70.

Target price is $76.70 Current Price is $66.00 Difference: $10.7
If APT meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $67.92, suggesting downside of -7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Morgans rates AQR as Add (1) -

APN Convenience Retail REIT has confirmed that Chevron has acquired Puma Energy, making Chevron its main tenant (representing around 58% of income). An independent valuation of all 46 Puma Energy sites has lifted values across the portfolio by about 5%.

Morgans believes the acquisition is a positive as it strengthens the key tenant's (i.e. Chevron) credit quality.

The company also announced the debt-funded acquisition of Brisbane Airport Link Service Centre for -$10.5m. This is a new building with Ampol ((ALD)) as an anchor tenant on a 15 year lease.

Add rating is maintained. Target price has increased to $3.78 from $3.75.

Target price is $3.78 Current Price is $3.53 Difference: $0.25
If AQR meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates AWC as Downgrade to Neutral from Buy (3) -

Following a review of transfer pricing arrangements over a 20-year period, the Australian Taxation Office has claimed additional tax plus interest from the AWAC joint venture.

In accordance with dispute resolution practices, 50% of the additional tax of $214m will be paid out of cash flow in the September quarter. No further payment will be made until final resolution of the matter.

Citi revises 2020/21 earnings estimates down by -4% to reflect higher Australian dollar forecasts. Distribution estimates are reduced as well.

Alumina Ltd valuation is reduced. The broker downgrades to Neutral from Buy and lowers the target to $1.60 from $1.80.

Target price is $1.60 Current Price is $1.59 Difference: $0.01
If AWC meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.71, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.2

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

Credit Suisse rates AWC as Neutral (3) -

Alcoa, 60% partner in the AWAC JV, has been issued with a notice to pay additional income tax of $214m, of which half will be paid in August. The sting comes from an additional $707m for compounded interest.

Credit Suisse notes the market was fairly quick to price in an adverse finding, given Alcoa intends to fully defend its position and pursue all avenues.

The case covers a 20-year period of transfer pricing between Alcoa and the Bahrain aluminium smelter, Alba.

Neutral rating and $1.65 target maintained.

Target price is $1.65 Current Price is $1.59 Difference: $0.06
If AWC meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.71, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.2

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

Macquarie rates AWC as Underperform (5) -

A transfer pricing review undertaken by the Australian Taxation Office has resulted in additional tax on interest charges for Alcoa.

A prepayment of $107m will be made in the September quarter that will reduce the AWAC distributions to Alumina Ltd by -US$28m.

This could potentially impact distributions in later periods, too, should the final ruling be against Alcoa, Macquarie points out.

The broker maintains an Underperform rating and $1.20 target.

Target price is $1.20 Current Price is $1.59 Difference: minus $0.39 (current price is over target).
If AWC meets the Macquarie target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.71, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.2

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

Morgan Stanley rates AWC as Overweight (1) -

The Australian Taxation Office has asked Alcoa, 60% partner in the AWAC JV,  to pay additional income tax of $212m along with $707m as compound interest.

The investigation pertains to a case of transfer pricing between Alcoa and Alba (Bahrain aluminium smelter).

Morgan Stanley notes Alcoa plans to contest the ruling while transferring 50% of the tax assessed amount ($107m) to the ATO as prepaid tax asset on the balance sheet.

The market has priced about 86% of the total liability, highlights the broker and expects the case could take time to settle.

Morgan Stanley rates the stock as Overweight with a target price of $2. Industry view: Attractive.

Target price is $2.00 Current Price is $1.59 Difference: $0.41
If AWC meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $1.71, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.2

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

Ord Minnett rates AWC as Hold (3) -

AWAC joint venture (60% Alcoa) has received a $214m tax assessment as a result of a transfer pricing review over 20 years which is coupled with a claim for $707m in compound interest.

As part of the resolution process an initial $107m will be payable and as Alcoa is disputing the claim. This could delay final payment for some time.

Ord Minnett notes there appears to be reasonable grounds for AWAC to dispute the charges given the transactions were not with a related party. Hold rating and $1.80 target retained.

Target price is $1.80 Current Price is $1.59 Difference: $0.21
If AWC meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $1.71, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.2

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

UBS rates AWC as Buy (1) -

Alcoa (60% of the AWAC JV) has been issued with a notice for additional income tax of $214m. UBS is not surprised as it was disclosed in the Alumina Ltd annual report that transfer pricing was being scrutinised in respect of historical third-party sales.

A payment of $107m will result in the company's share of AWAC distributions reducing by -US$28m. UBS still expects its interim dividend estimate of US2.2c is intact. Buy rating and $2 target maintained.

Target price is $2.00 Current Price is $1.59 Difference: $0.41
If AWC meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $1.71, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.2

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

Morgans rates BRG as Add (1) -

Morgans initiates coverage of Breville Group with an Add rating and a target price of $27.

The broker is attracted by the growth drivers of the global rollout, existing growth, new product development and covid-19 related trends such as home cooking and a shift to expresso coffee.

An 'acceleration program', deployed 5 years ago by management, has seen around 5% growth in FY16-18 increase to 18% in FY19 and Morgans forecasts greater than 24% in FY20.

The broker believes expansion in Europe will have the biggest impact and regards the Middle East, Latin America and Asia as longer-term opportunities. Based on a revenue opportunity analysis, Morgans predicts revenues to increase over time from $760m in FY19 to approximately 3.8bn over time.

Morgans initiates coverage with Add. Target price $27.

Target price is $27.00 Current Price is $23.19 Difference: $3.81
If BRG meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $21.85, suggesting downside of -6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Macquarie rates CCX as Outperform (1) -

Macquarie reviews the stock and the sensitivities regarding a potential US acquisition and website traffic trends throughout June.

The analysis points to potential margin accretion from acquisitions, such as the speculation about Lane Bryant's e-commerce assets, assuming scale and synergies.

Macquarie retains an Outperform rating and raises the target to $3.57 from $3.13.

Target price is $3.57 Current Price is $3.11 Difference: $0.46
If CCX meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.06, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

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

CML Group provided a trading update and FY20 earnings guidance.

In June, new clients and higher volumes lifted the Invoice Financing division, while client attrition and risk metrics are consistent with the pre-covid-19 era. Management expects volumes to keep growing and be assisted by reduced Government assistance for SME funding.

Uncertain SME business conditions leaves the Equipment Finance book below historical levels.

While future FY20 guidance may be impacted by provisioning, management is confident of no material future credit losses.

Morgans believes the company is well positioned to return to sustainable growth, with the key opportunity in Factoring, and the potential for acquisitions as smaller operators lack access to funding.

The rating is increased to Add from Hold. The target price is $0.40.

Target price is $0.40 Current Price is $0.29 Difference: $0.11
If CGR meets the Morgans target it will return approximately 38% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

UBS rates CQR as Buy (1) -

Charter Hall Retail has acquired a 52% interest in a distribution facility leased to Coles ((COL)).

UBS is surprised at the acquisition, given the company is a convenience retail A-REIT, but notes the rationale is to de-risk the income profile and continue a strong relationship with a major tenant.

The acquisition increases the weighted average lease expiry (WALE) slightly and takes the long WALE retail property weighting to 13% of the total portfolio.

Buy rating and $3.50 target maintained.

Target price is $3.50 Current Price is $3.16 Difference: $0.34
If CQR meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.49, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Credit Suisse rates CSL as Outperform (1) -

As coronavirus cases surge in the US, where CSL has a large plasma collection centre exposure, Credit Suisse suspects the industry has not experienced a significant return in collections since the peak of lockdowns in April.

Meanwhile, there is upside for flu vaccines, given demand has increased in order to limit the burden on health systems from the coronavirus pandemic.

The broker forecasts Seqirus volumes to the US will increase by more than 10% in the upcoming northern hemisphere flu season.

Credit Suisse considers the stock screening cheap and retains an Outperform rating and $323 target.

Target price is $323.00 Current Price is $280.50 Difference: $42.5
If CSL meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $311.46, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in May.

Forecast for FY20:

Forecast for FY21:

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 CWN as Outperform (1) -

As Melbourne returns to stage 3 lockdown Credit Suisse reconsiders projections for Crown. Estimates for FY21 and FY22 earnings per share are downgraded by -16-17%.

The broker retains an Outperform rating on the basis that FY22 will demonstrate a path towards full earnings capacity and gearing remains low. Target is reduced to $10.80 from $12.00.

Target price is $10.80 Current Price is $9.02 Difference: $1.78
If CWN meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $10.31, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Morgan Stanley rates DTC as Overweight (1) -

Damstra Holdings will be acquiring Vault Intelligence ((VLT)) and expects benefit of $4m in cost synergies. Morgan Stanley highlights the agreement points towards a more balanced customer exposure profile and R&D.

The company's FY20 results are mostly in-line with guidance. Further, it has guided to 30-40% organic growth in FY21 revenue. Morgan Stanley has increased FY21 revenue estimates to $5.3m driven by the contribution from Vault Holdings.

Morgan Stanley is concerned about the pace of acquisitions and wants to see more organic growth. The broker retains its Overweight rating with the target price increasing to $1.80 from $1.70. Industry view: In-line.

Target price is $1.80 Current Price is $1.32 Difference: $0.48
If DTC meets the Morgan Stanley target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates EVT as Buy (1) -

The company has announced a $205m extension to debt facilities and also a series of initiatives to preserve cash.

This includes a decision not to pay a final dividend for FY20 or an interim dividend for FY21. This is expected to mitigate the risk of raising equity in the short to medium term.

Ord Minnett expects recovery in the company's businesses will take place at varying speeds but can envisage no reason why earnings will not return to FY19 levels by FY23.

Buy rating maintained. Target is reduced to $10.47 from $14.38.

Target price is $10.47 Current Price is $8.50 Difference: $1.97
If EVT meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates GWA as Neutral (3) -

Macquarie revises forecasts to reflect current housing activity and low visibility into FY21.

The business is considered well-placed to grow ahead of the market in the medium term but the speed and magnitude of any recovery remains uncertain.

The broker expects some weakness in FY21 in commercial before a modest improvement in FY22. A further fall of -10% in residential completions is expected over FY21.

Neutral rating retained. Target is reduced to $2.90 from $3.90.

Target price is $2.90 Current Price is $2.65 Difference: $0.25
If GWA meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.21, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates GWA as Hold (3) -

In anticipation of the August 17 profit release, Morgans predicts FY20 earnings will be down -8% to $71m, due to government-imposed covid-19 restrictions.

The broker expects strength in Retail will be offset by weakness in Trade. The stricter lockdowns in New Zealand and the UK will more severely impact earnings in those regions.

Morgans suggests a focus on the progress of the FY21 cost out program. They expect achievement of $6m in FY20 (cumulative $9m) and nearly $12m by FY21. Regard should also be paid to trends in market share.

FY20 earnings forecasts are lowered by -13%. FY21 and FY22 are also reduced by -21% and -12% respectively.

Hold rating maintained. Target is reduced to $2.80 from $3.67. 

Target price is $2.80 Current Price is $2.65 Difference: $0.15
If GWA meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.21, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Citi rates IAG as Buy (1) -

Citi reviews estimates, noting a market recovery has helped although uncertainties abound. The lift in reinsurance costs and significant rise in perils allowance is likely to mean the company takes some time to re-price what it sets aside.

While there is doubt over the second half dividend, the broker points out the recent market recovery should mean Insurance Australia Group is in a better position to pay a final dividend.

Buy rating and $6.60 target maintained.

Target price is $6.60 Current Price is $5.70 Difference: $0.9
If IAG meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.33, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

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

Fourth-quarter copper production at IGO’s Nova operations was higher than Morgan Stanley’s estimates and brings FY20 production in-line with the broker’s forecast.

Production of 102kt at Tropicana in the fourth quarter puts the full-year production within guidance but ahead of Morgan Stanley’s estimate. The broker notes Boston Shaker remains on schedule for commercial production in September 2020.

Morgan Stanley maintains its Equal-weight rating with a target price of $4.95. Industry view: Attractive.

Target price is $4.95 Current Price is $5.07 Difference: minus $0.12 (current price is over target).
If IGO meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.08, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates IGO as Buy (1) -

Nova nickel production in the June quarter was -8% below UBS estimates. Copper and cobalt were better-than-expected.

Tropicana gold production was -5% below estimates. UBS prefers IGO for nickel exposure and expects there will be evidence of some benefits from new offtake contracts at Nova in the full quarter report (with FY21 guidance) on July 29.

UBS retains a Buy rating and $6.20 target.

Target price is $6.20 Current Price is $5.07 Difference: $1.13
If IGO meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $5.08, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Citi rates LVT as Neutral (3) -

Citi expects fourth quarter revenue will be negatively affected by a stronger Australian dollar as well as customers delaying or cancelling projects.

This is despite the fact remote working could result in increased interest in the company's digital workplace solutions.

Citi retains a Neutral/High Risk rating, noting potential for increased churn. Target is raised to $0.29 from $0.28.

Target price is $0.29 Current Price is $0.24 Difference: $0.05
If LVT meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates MME as Add (1) -

MoneyMe provided a business update and pre-released unaudited FY20 revenue and loan origination figures.

Revenue was around 5% ahead of prospectus forecasts and loan originations rose to $178m from a prospectus forecast of $168m.

A strategic alliance with Cashrewards was also announced. Freestyle account users (in-store and online) will be able to access a rewards program pre-Christmas. The company is also looking to introduce an interest-free point-of-sale installment product for merchants.

Morgans lowers both FY21 and FY22 forecasts by around -11% due to ongoing covid-19 impacts and winding back of Government stimulus packages.

Add rating maintained. Target price decreased to $1.66 from $1.71.

Target price is $1.66 Current Price is $1.14 Difference: $0.52
If MME meets the Morgans target it will return approximately 46% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Credit Suisse rates NST as Outperform (1) -

FY20 production of 905,000 ounces is just shy of prior guidance, Credit Suisse observes, which was withdrawn amid concerns over pandemic disruptions.

Jundee stood out, with record mill throughput producing 300,000 ounces. The main highlight for the broker was a record level of free cash flow.

Outperform rating maintained. Target is $14.70.

Target price is $14.70 Current Price is $14.84 Difference: minus $0.14 (current price is over target).
If NST meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.69, suggesting downside of -8.1% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Macquarie rates NST as Neutral (3) -

Operating performance was strong in the June quarter as Kalgoorlie and Jundee offset a weaker-than-expected Super Pit.

Macquarie suggests confidence in the balance sheet has returned, with a resumption in dividend payments and repayment of $200m of debt.

The broker retains a Neutral rating with a $14.40 target.

Target price is $14.40 Current Price is $14.84 Difference: minus $0.44 (current price is over target).
If NST 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 $13.69, suggesting downside of -8.1% (ex-dividends)

The company's fiscal year ends in July.

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

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

Northern Star’s fourth-quarter results have been weaker than expected and will lead to a -3% miss in FY20 guidance, expects Morgan Stanley. The miss was driven by underperformance across the portfolio (Kalgoorlie and Pogo), with the exception of Jundee.

Morgan Stanley expects the market will focus more on FY21 guidance which is expected in August.

The broker reaffirms its Equal-weight rating with a target price of $12.20. Industry view: Attractive.

Target price is $12.20 Current Price is $14.84 Difference: minus $2.64 (current price is over target).
If NST meets the Morgan Stanley target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.69, suggesting downside of -8.1% (ex-dividends)

The company's fiscal year ends in July.

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

Ord Minnett rates NST as Lighten (4) -

FY20 production of 905,000 ounces was only marginally below prior guidance.

Ord Minnett tempers FY21 forecasts for Kalgoorlie by -6%, Pogo by -5% and the Super Pit by -4%.

The broker continues to believe there is better relative value elsewhere and maintains a Lighten rating.

Target is reduced to $11.70 from $11.90.

Target price is $11.70 Current Price is $14.84 Difference: minus $3.14 (current price is over target).
If NST meets the Ord Minnett target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.69, suggesting downside of -8.1% (ex-dividends)

The company's fiscal year ends in July.

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

UBS rates NST as Sell (5) -

June quarter production was better than UBS feared, given the various issues in the March quarter and coronavirus cases at Pogo.

Still, the broker suspects the FY21 guidance, when issued, could still disappoint. The reason forecasts may be too high is concern over the grades at Kalgoorlie, Pogo productivity and costs in general.

UBS retains a Sell rating, downgrading grade forecasts are Kalgoorlie going forward to 3.2g/t. Target is raised to $14.25 from $13.20.

Target price is $14.25 Current Price is $14.84 Difference: minus $0.59 (current price is over target).
If NST 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 $13.69, suggesting downside of -8.1% (ex-dividends)

The company's fiscal year ends in July.

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

Credit Suisse rates ORG as Neutral (3) -

Credit Suisse had been of the view that Origin Energy did not offer compelling value relative to oil & gas peers, based on implied prices and a negative outlook for energy markets.

With a recovery in oil prices, equities and the share price this has now now proved true in an absolute sense.

Origin Energy remains the broker's preference as it has less exposure to falling wholesale prices compared with AGL Energy ((AGL)).

Neutral rating retained. Target rises to $6.20 from $5.30. The FY20 result is scheduled for August 20.

Target price is $6.20 Current Price is $5.76 Difference: $0.44
If ORG meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.83, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Macquarie rates RWC as Outperform (1) -

The trading environment has been more benign than Macquarie had expected and the US has proven more resilient.

Some improvement has been seen in the UK although activity remains weak.

The broker considers the stock attractive and retains an Outperform rating while the target is trimmed to $3.65 from $3.75.

Target price is $3.65 Current Price is $2.75 Difference: $0.9
If RWC meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $3.35, suggesting upside of 19.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

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

Gold production and sales were short of Macquarie's estimates in the June quarter. Yet, growing confidence in the continuity of operations in respect of the pandemic impact is observed, given reversion to the previous operating strategy.

Macquarie downgrades to Underperform from Neutral because of recent strength in the share price. Target is steady at $5.40.

Target price is $5.40 Current Price is $6.11 Difference: minus $0.71 (current price is over target).
If SAR meets the Macquarie target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.40, suggesting downside of -13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

Pre-released numbers show a weaker than anticipated June quarter for Saracen Mineral Holdings, driven by the miss at Kalgoorlie Consolidated Gold Mines (KGCM).

The group's production at 146koz in the fourth quarter was less than Morgan Stanley’s expected 158koz. Annual group production at 520koz beat the company’s guidance but fell short of the 533koz expected by Morgan Stanley.

Morgan Stanley rates the stock as Equal-weight with a target price of $4.70. Industry view: Attractive.

Target price is $4.70 Current Price is $6.11 Difference: minus $1.41 (current price is over target).
If SAR meets the Morgan Stanley target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.40, suggesting downside of -13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates SAR as Hold (3) -

June quarter production was below Ord Minnett's forecasts. The broker continues to like Saracen Mineral Holdings, but struggles to find valuation support at current levels.

Ord Minnett also remains wary about FY21 guidance and costs, particularly at the Super Pit.

FY21 estimates are trimmed by -9% and the target is lowered to $5.30 from $5.40. Hold maintained.

Target price is $5.30 Current Price is $6.11 Difference: minus $0.81 (current price is over target).
If SAR meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.40, suggesting downside of -13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

UBS envisages a number of upcoming positive catalysts such as an update at Carosue Dam/Thunderbox and a comprehensive update on the the Super Pit opportunity.

The June quarter production result has driven a -10% downgrade to underlying net profit forecasts for FY20 and the broker also trims production forecasts at the Super Pit which are now considered too optimistic.

UBS notes Saracen Mineral Holdings is no longer trading at a material discount to peers and downgrades to Neutral from Buy. Target is raised to $6.30 from $5.60.

Target price is $6.30 Current Price is $6.11 Difference: $0.19
If SAR meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.40, suggesting downside of -13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Credit Suisse rates SCG as Outperform (1) -

Credit Suisse reviews earnings estimates, as FY20 guidance remains withdrawn and there has been no update on rent collection. The broker continues to allow for a -17% decline in asset values.

The company will report its first half result on August 25. Nevertheless, Credit Suisse considers Scentre Group an undervalued asset play and retains an Outperform rating. Target is reduced to $3.02 from $3.34.

Target price is $3.02 Current Price is $2.12 Difference: $0.9
If SCG meets the Credit Suisse target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $2.35, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Morgan Stanley rates SHL as Overweight (1) -

While Sonic Healthcare withdrew FY20 guidance in March, Morgan Stanley notes improving trends to pre-covid-19 levels in most markets except for the US. This has prompted the broker to lift its estimates for Sonic Healthcare.

The broker expects there to be significant benefits from well-reimbursed and high margin covid-19 testing. Assuming Sonic Healthcare performs 5% of these tests, Morgan Stanley expects a boost of 5% and 13% in its FY20-21 operating earnings.

After including covid-19 testing, Morgan Stanley reaffirms its Overweight rating while increasing its target price to $33 from $28.90. Industry view: In-line.

Target price is $33.00 Current Price is $31.03 Difference: $1.97
If SHL meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $30.63, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates SHL as Hold (3) -

Ord Minnett believes Sonic Healthcare should be a beneficiary as the threat of a second wave of coronavirus is increasingly apparent across major markets.

The company is a leading provider of covid-19 tests and has been able to rapidly develop significant testing infrastructure.

Meanwhile, routine work is likely to slow in Australia now a second lockdown is occurring in Melbourne. Hold rating and $30 target maintained.

Target price is $30.00 Current Price is $31.03 Difference: minus $1.03 (current price is over target).
If SHL meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.63, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates SHV as Buy (1) -

UBS downgrades estimates for earnings per share in FY20 by -38%, noting wet weather has affected crop quality and processing costs have increased.

Overall, the broker envisages downside risks to the stock over the short term given the current price conditions.

However, almond pricing is now below the average US cost of production and has rarely traded at that level for long, points out the broker..

Buy rating retained. Target is reduced to $7.75 from $8.15.

Target price is $7.75 Current Price is $5.91 Difference: $1.84
If SHV meets the UBS target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates WAF as Upgrade to Neutral from Underperform (3) -

Operating performance was in line in the June quarter while the cash position was better than Macquarie expected.

Commercial production at Sanbrado was declared and the broker expects progressive production growth over the next year.

Given the stronger net debt position and the rolling forward of valuation, Macquarie upgrades to Neutral from Underperform. Target is raised to $1 from $0.90.

Target price is $1.00 Current Price is $0.96 Difference: $0.04
If WAF meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates WTC as Downgrade to Lighten from Hold (4) -

Ord Minnett suspects FY21 consensus estimates are too high. The broker finds the range of forecasts surprising for a stock that is leveraged to existing customer growth and has a higher proportion of recurring revenue.

A recovery in top-line momentum or margin improvement is not anticipated until FY22 and, hence, the broker suspects the stock is exposed to a downside correction.

Rating is downgraded to Lighten from Hold and the target raised to $19.60 from $19.00.

Target price is $19.60 Current Price is $21.57 Difference: minus $1.97 (current price is over target).
If WTC meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.20, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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