Australian Broker Call

Credit Suisse rates BKL as Neutral (3) -

March quarter sales growth in China disappointed Credit Suisse although the company has cautioned investors regarding the supply constraints in the period.

Blackmores has also acquired an Australian tablet production factory to internalise up to 50% of its manufacturing volume.

To get more positive on the stock Credit Suisse needs to witness growth in China accelerating. Neutral rating and $130 target retained.

Target price is $130.00 Current Price is $121.83 Difference: $8.17
If BKL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $130.00, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Morgans rates BKL as Hold (3) -

March quarter earnings were weaker than Morgans expected. The broker reduces net profit estimates for FY18 and FY19 by -3.9% and -7.7% respectively.

Meanwhile, the company has acquired Catalent Australia, a tablet and soft-gel capsule manufacturing facility in Victoria, for $43.2m. The acquisition is expected to generate manufacturing efficiencies and be accretive in year one, FY20.

Morgans maintains a Hold rating and reduces the target to $115 from $125.

Target price is $115.00 Current Price is $121.83 Difference: minus $6.83 (current price is over target).
If BKL 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 $130.00, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Ord Minnett rates BKL as Accumulate (2) -

March quarter net profit was up 18% albeit behind expectations as the business was affected by several issues which Ord Minnett believes are unlikely to be repeated.

The broker envisages a clear path to expanding margins amid the acquisition of the Catalent manufacturing business, to be completed in 2019, as the business integrates vertically.

Accumulate rating retained. Target is reduced to $145 from $150.

Target price is $145.00 Current Price is $121.83 Difference: $23.17
If BKL meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $130.00, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Ord Minnett rates BLA as Hold (3) -

Wholesale investor perceptions about the company's business have been affected negatively by the company's March report and, while further disclosures addressed some of the concerns, Ord Minnett suggests this has not alleviated the pressure on the share price.

The broker suggests the recovery will be long and hard and the outlook for future earnings uncertain. Ord Minnett retains a Hold rating. Target is reduced to $5.75 from $12.72.

Target price is $5.75 Current Price is $3.16 Difference: $2.59
If BLA meets the Ord Minnett target it will return approximately 82% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Credit Suisse rates BLD as Neutral (3) -

Credit Suisse observes the March quarter was soft, offset by a property sale. This is the second downgrade to North American expectations in succession.

The broker observes the market failed to re-base US earnings following assurances from management at the first half result that appeared confident.

The broker retains a Neutral rating, awaiting more clarity on the US issues, and reduces the target to $7.45 from $7.70.

Target price is $7.45 Current Price is $6.88 Difference: $0.57
If BLD meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $7.98, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Macquarie rates BLD as Outperform (1) -

Wet weather in both Qld and the US impacted on Boral's March Q performance, as did a kiln outage in NSW. The broker nevertheless does not see any significant impact on valuation.

Australian infrastructure construction remains strong as does US housing, despite the weather. The weak quarter should not reflect on the Headwaters integration, the broker suggests. Outperform and $8.50 target retained.

Target price is $8.50 Current Price is $6.88 Difference: $1.62
If BLD meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $7.98, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Morgan Stanley rates BLD as Overweight (1) -

The company has announced the sale of a NSW property which is expected to contribute $56m in EBITDA in FY18 but, ex property, Morgan Stanley is disappointed as Australian underlying earnings are downgraded.

This is because of a kiln outage, challenges in WA and rain in Queensland. Nevertheless, the broker expects the problem to be temporary and considers the valuation compelling.

Overweight rating. Target is reduced to $8.00 from $8.50. Industry view is Cautious.

Target price is $8.00 Current Price is $6.88 Difference: $1.12
If BLD meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $7.98, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Ord Minnett rates BLD as Accumulate (2) -

The company's update disappointed Ord Minnett, particularly the Australian division, which was affected by a kiln outage and weather in WA and Qld.

The broker's FY18 earnings estimates increase by 12% as higher property earnings and lower tax charges offset downgrades across the underlying operations in Australia.

Accumulate rating maintained. Target is reduced to $7.90 from $8.20.

Target price is $7.90 Current Price is $6.88 Difference: $1.02
If BLD meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $7.98, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Citi rates BPT as Sell (5) -

Beach Energy's Q3 production report revealed a "miss", comment Citi analysts. They blame third party sales for it. Free cash flow, on the other hand, was "very attractive".

The analysts highlight that even on their conservative estimates, Beach's free cash flow yield should be 5-10% over coming years. The analysts are already looking forward towards the asset review process update scheduled for July. Sell. Target drops to $1.14, down -4c from $1.18 prior.

Target price is $1.14 Current Price is $1.52 Difference: minus $0.38 (current price is over target).
If BPT meets the Citi target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.28, suggesting downside of -15.7% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

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

Beach's March Q numbers were in line with expectation. FY production guidance has been narrowed to the middle of the range and capex guidance has been lowered.

Capex deferrals and the divestment of 30% of Otway Basin could help fund the next phase of development, Macquarie suggests, unlocking undeveloped reserves and exploration upside on the back of recent drilling success. Valuation is closely leveraged to the oil price and higher prices lead to an upgrade to Neutral.

Target rises to $1.20 from $1.05.

Target price is $1.20 Current Price is $1.52 Difference: minus $0.32 (current price is over target).
If BPT meets the Macquarie target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.28, suggesting downside of -15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Morgan Stanley rates BPT as Overweight (1) -

Morgan Stanley believes there is potential for a re-rating should the company successfully extend its reserve life over time.

The broker expects Beach Energy to generate around $400m in free cash in 2019 and head towards a net cash position by 2020.

Overweight. Price target is $1.70. Industry view is In-Line.

Target price is $1.70 Current Price is $1.52 Difference: $0.18
If BPT meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.28, suggesting downside of -15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Ord Minnett rates BPT as Lighten (4) -

Cash flow was strong in the March quarter and there was further successful exploration in the Cooper Basin. Ord Minnett envisages opportunities to extend reserves but believes the stock is already factoring in the potential success.

Given the company's relatively short reserve life, the broker notes the sensitivity of the valuation to changes in near-term oil price is heightened.  Lighten rating. Target is $1.05.

Target price is $1.05 Current Price is $1.52 Difference: minus $0.47 (current price is over target).
If BPT meets the Ord Minnett target it will return approximately minus 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.28, suggesting downside of -15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Credit Suisse rates BTT as Neutral (3) -

The share price has fallen -20% over the year to date and Credit Suisse observes the stock is the cheapest it has been since mid 2013.

The broker believes, despite valuation support, that risks ares skewed to the downside, and is increasingly concerned regarding the outlook for fund flows.

Credit Suisse retains a Neutral rating and lowers the target to $9.75 from $10.40.

Target price is $9.75 Current Price is $9.30 Difference: $0.45
If BTT meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.05, suggesting upside of 18.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Citi rates CHC as Buy (1) -

The broker believes the company is well-positioned to deliver another earnings upgrade in FY18. That sentence was written in February, but it again applies today with Citi analysts repeating their positive outlook.

Their belief is that Charter Hall is able to grow profits at a rate above peers, forecasting EPS CAGR of 8.1% from FY17-FY20.

Target price is $6.81 Current Price is $5.70 Difference: $1.11
If CHC meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.08, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Citi rates FMG as Sell (5) -

March quarter shipments missed expectations, while rising costs further add to the disappointment, with Citi analysts cutting estimates post the quarterly report release.

Target price loses 10c to $4. Citi retains its Sell rating.

Target price is $4.10 Current Price is $4.57 Difference: minus $0.47 (current price is over target).
If FMG 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 $5.12, suggesting upside of 12.0% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Credit Suisse rates FMG as Outperform (1) -

Credit Suisse considers the March quarter was a reflection of a year year for the company. Pricing pressure continues and weaker shipments in the quarter imply 46.7mt is needed in the June quarter to meet guidance.

The broker believes there is value in the stock and price realisation is slowly ticking higher. Outperform rating and $5.75 target maintained.

Target price is $5.75 Current Price is $4.57 Difference: $1.18
If FMG meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $5.12, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Macquarie rates FMG as Outperform (1) -

Fortescue's shipments and pricing in the March Q were in line with the broker's forecast. A cost increase of 9% outpaced the broker's 6% but increased FY cost guidance meets the broker's expectations given movements in FX and the oil price.

All up a solid result. Target falls to $5.40 from $5.50, Outperform retained.

Target price is $5.40 Current Price is $4.57 Difference: $0.83
If FMG meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $5.12, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Ord Minnett rates FMG as Accumulate (2) -

Volumes in the March quarter were lower than Ord Minnett forecast. Achieved pricing was also weak, the broker notes, with a -38% discount being the highest on record.

However, the company continues to generate strong free cash flow and remains well placed to reduce debt. Ord Minnett maintains an Accumulate rating and $5 target.

Target price is $5.00 Current Price is $4.57 Difference: $0.43
If FMG meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.12, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

UBS rates FMG as Buy (1) -

Shipments in the March quarter were in line with UBS estimates. However, costs were higher on the back of less favourable FX and higher fuel costs.

The broker notes the company continues to focus on diversifying its shipments, with 11% going ex-China.

UBS maintains a Buy rating and reduces the target to $5.50 from $5.60.

Target price is $5.50 Current Price is $4.57 Difference: $0.93
If FMG meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.12, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Morgans rates GEM as Add (1) -

The company has indicated that supply problems are putting pressure on occupancy. In 2017 supply growth exceeded demand growth by around 2.5%.

While the stock has de-rated and conditions are expected to be tough in the near term, Morgans takes a medium-term view and maintains an Add rating. Target is reduced to $3.07 from $3.53.

Target price is $3.07 Current Price is $2.23 Difference: $0.84
If GEM meets the Morgans target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $3.03, suggesting upside of 35.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Credit Suisse rates IFL as Outperform (1) -

Funds under management were in line with Credit Suisse estimates in the March quarter. Given the large decline in the share price recently, the broker suggest hte update should provide a positive note.

A re-rating is expected to be delayed until late in 2018 when there is further insight into the accretion/attrition from the ANZ Wealth acquisition.

Outperform rating maintained. Target is $12.00.

Target price is $12.00 Current Price is $9.35 Difference: $2.65
If IFL meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $12.08, suggesting upside of 29.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Macquarie rates IFL as Outperform (1) -

IOOF's March Q funds under management were underpinned by positive inflows in the quarter, the broker notes. Recent share price weakness has the stock trading at an -18% discount to the all industrials (ex banks) compared to a long run average of -7%.

Weakness is due to the Royal Commission, which may offer emerging risks for the sector, but at this stage the broker can't make an assumption about what, if any, the impact will be. Outperform retained. Target falls to $12.10 from $12.20.

Target price is $12.10 Current Price is $9.35 Difference: $2.75
If IFL meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $12.08, suggesting upside of 29.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

UBS rates IFL as Buy (1) -

March quarter fund flows were solid and in line with UBS. The company has confirmed that all regulatory hurdles to the acquisition of ANZ Wealth have been cleared.

UBS believes the risks are now centred around Royal Commission hearings although IOOF appears relatively better positioned, albeit not immune to industry-wide implications.

Buy rating and $11.50 target maintained.

Target price is $11.50 Current Price is $9.35 Difference: $2.15
If IFL meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $12.08, suggesting upside of 29.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Macquarie rates LLC as Outperform (1) -

An update from Lend Lease on its Asian operations have not led the broker to change forecasts. Asia is currently under-earning but larger projects are yet to come through and new opportunities are being pursued.

Despite re-rating recently, the stock still offers value at 12x FY19 earnings, the broker suggests, with a growing opportunity set of potential projects. Outperform and $18.30 target retained.

Target price is $18.30 Current Price is $17.82 Difference: $0.48
If LLC meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $18.35, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Ord Minnett rates LLC as Lighten (4) -

Ord Minnett lowers earnings forecasts by 2-3% in FY18-19 as assumed development profits from office and retail divisions are deferred. The broker is yet to factor in the push into China with the Shanghai retirement project.

The broker estimates Lend Lease has $850m in capital invested in Asia and margin should be a key driver of earnings although leasing progress is needed.

Ord Minnett maintains a Lighten rating and $17 target.

Target price is $17.00 Current Price is $17.82 Difference: minus $0.82 (current price is over target).
If LLC meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.35, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

UBS rates LLC as Neutral (3) -

The company's update on its Asian business makes UBS more comfortable with its FY19/20 earnings estimates.

Successful offshore business is critical to medium and long-term earnings, as the company diversifies away from Australian residential and commercial profits.

Neutral rating maintained. Target is $18.20.

Target price is $18.20 Current Price is $17.82 Difference: $0.38
If LLC meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $18.35, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Macquarie rates MQA as Outperform (1) -

Macquarie Atlas' March Q traffic comps were affected by Easter falling in the quarter this year. APRR traffic rose 4.8% thanks to a strong French economy and motorway improvements, ahead of the broker's expectations of 2.1% growth for the half. Greenway traffic fell -6.5% in line with guidance due to new road opening and the Metrorail expansion.

Upside catalysts from here include any negotiation of APRR management agreement extension and confirmation of the existing plan, the broker suggests, and the internalisation of management. Outperform and $6.47 target retained.

Target price is $6.47 Current Price is $6.02 Difference: $0.45
If MQA meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.62, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Morgans rates MQA as Add (1) -

Favourable economic conditions for APRR in the March quarter signals to Morgans 2018 should deliver solid earnings growth. The decline in traffic on Dulles Greenway was not a surprise to the broker.

Morgans revises asset forecasts, which reduces valuation by 10c a share. This is countered by updated FX assumptions.

Add rating. Target rises to $6.90 from $6.81.

Target price is $6.90 Current Price is $6.02 Difference: $0.88
If MQA meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $6.62, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

UBS rates MQA as Buy (1) -

UBS observes APRR delivered a strong March quarter while Dulles Greenway experienced its fourth consecutive quarter of traffic declines.

The broker does not alter forecasts as Dulles Greenway will begin cycling weaker comparables in the remainder of the year. Buy rating and $7.10 target maintained.

Target price is $7.10 Current Price is $6.02 Difference: $1.08
If MQA meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $6.62, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Morgan Stanley rates MTS as Overweight (1) -

Recent channel checks provide increased confidence in the near-term outlook and Morgan Stanley believes the market is not taking into account the healthy growth in hardware.

Discussions with IGA retailers signal improving trading and supermarket competitive intensity is more benign. Hence, the broker expects the FY18 results in June should provide a catalyst for the stock.

Overweight rating maintained. Cautious sector view. Target is raised to $4.00 from $3.40.

Target price is $4.00 Current Price is $3.38 Difference: $0.62
If MTS meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting downside of -7.7% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Morgans rates RBL as Add (1) -

March quarter operating results were broadly in line with expectations although Morgans notes the company has foreshadowed higher operating costs in the next two years associated with the content Partnerships initiatives.

The broker downgrades estimates to reflect this investment. Target is reduced to $1.66 from $1.76. Add rating maintained.

Target price is $1.66 Current Price is $1.48 Difference: $0.18
If RBL meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Citi rates RSG as Buy (1) -

Company missed its gold production target for the March quarter, and management reduced FY18 guidance, but Citi analysts nevertheless retain the Buy/High Risk rating, partially in anticipation of completion of the new Syama underground mine in DecQ18. Target price loses 10c to $1.70.

Target price is $1.70 Current Price is $1.23 Difference: $0.47
If RSG meets the Citi target it will return approximately 38% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Macquarie rates RSG as Outperform (1) -

Resolute's March Q featured a 5% beat on production but at at a 6% higher cost than the broker's forecast. Cash flow was in line. FY production guidance has been cut by -7% due to weakness at Syama.

Resolute nevertheless retains a long life growth pipeline over the next two years, the broker notes, with expansions at Syama and Ravenswood. Outperform and $1.40 target retained.

Target price is $1.40 Current Price is $1.23 Difference: $0.17
If RSG meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Citi rates VOC as Buy (1) -

Vocus has ceased negotiations with the aim of divesting its operations in New Zealand and Citi analysts highlight the sale was expected to relieve pressure on the balance sheet. Abandoning the intended sale will now refocus investor attention on the balance sheet, point out the analysts.

The analysts also highlight Vocus is well advanced on the refinancing of its debt facility, and this will deliver an increased debt ceiling. Buy.

Target price is $3.50 Current Price is $2.29 Difference: $1.21
If VOC meets the Citi target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $2.83, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

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 VOC as Equal-weight (3) -

The company has decided to withdraw its NZ assets from the sale process as, of the multiple offers received, none met its view of fair value.

As a sale of the NZ assets was key to de-leveraging, Morgan Stanley considers this an incremental negative. While the company has stated it has no intention to pursue an equity offering the broker believes the prospect cannot be ruled out.

Target is $2.75. Equal-weight rating and In-Line industry view retained.

Target price is $2.75 Current Price is $2.29 Difference: $0.46
If VOC meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $2.83, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

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 VOC as Neutral (3) -

UBS notes Vocus has abandoned the NZ asset sale process. The answer to whether the company needs to raise equity to de-leverage depends on the new covenants negotiated as part of the re-financing, the broker suggests.

The most likely scenario, UBS believes, is that the company can negotiate new and higher covenant limits, in which case an equity raising would be unlikely in the near term.

Neutral rating and $2.60 target maintained.

Target price is $2.60 Current Price is $2.29 Difference: $0.31
If VOC meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.83, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

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 WBC as Downgrade to Sell from Neutral (5) -

UBS analysts have drawn the conclusion that APRA's targeted review of mortgage loans is a "game changer" for lenders in Australia. As a direct result, the broker has downgraded Westpac to Sell from Neutral.

Data available to APRA, and released by the Royal Commission, raises questions about the quality of the bank's $400bn mortgage book, finds UBS. Addressing concerns by Westpac management can potentially lead to a sharp reduction in credit availability, says UBS.

Target price cut to $26.50 from $31 with earnings estimates left unchanged given the proximity of interim results release.

Target price is $26.50 Current Price is $29.18 Difference: minus $2.68 (current price is over target).
If WBC meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.45, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Citi rates WSA as Sell (5) -

Shock horror! As the usually reliable Western Areas delivered a weak March quarter production report, accompanied by a downgraded guidance for the full year. Luckily, for management and for shareholders, the price of nickel is currently well above Citi's forecast.

Unluckily, Citi analysts think the route of least resistance is for weaker nickel pricing going forward. Target price increases by 10c to $2.60. Sell rating retained.

Target price is $2.60 Current Price is $3.62 Difference: minus $1.02 (current price is over target).
If WSA meets the Citi target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.98, suggesting downside of -17.6% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Credit Suisse rates WSA as Outperform (1) -

March quarter production revealed higher costs albeit in line with guidance. Grades were softer. FY18 guidance has been lowered slightly, to 21,000t from 21,500-22,500t.

Outperform rating and $3.40 target maintained.

Target price is $3.40 Current Price is $3.62 Difference: minus $0.22 (current price is over target).
If WSA meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.98, suggesting downside of -17.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

UBS rates WSA as Sell (5) -

The March quarter was unusually weak, UBS observes, led by grade, as mined grades fell back to reserve grade. FY18 guidance has been reduced to 21,000t.

The broker notes the market remains bullish on the long-term outlook for nickel and this is being reflected in the share price. The stock is priced for perfection and UBS maintains a Sell rating. Target is raised to $3.02 from $2.80.

Target price is $3.02 Current Price is $3.62 Difference: minus $0.6 (current price is over target).
If WSA meets the UBS target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.98, suggesting downside of -17.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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