Australian Broker Call

Credit Suisse rates AGL as Outperform (1) -

The company appears set to benefit from the squeeze occurring in three markets, Credit Suisse observes.These markets are electricity, gas and renewable certificates. The most significant is electricity, with the forward curve nearly doubling in the last 18 months.

Credit Suisse believes that the rise in the forward curve will likely be sustained and that AGL will substantially pass this through to customers in FY17-19.

The broker increases FY18 and FY19 net profit estimates by 3.7% and 4.0% respectively. Outperform rating retained and target is raised to $22.50 from $19.90.

Target price is $22.50 Current Price is $20.62 Difference: $1.88
If AGL meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $21.64, suggesting upside of 4.2% (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 AMC as Buy (1) -

Citi analysts point out history shows macro related underperformance has more often than not been a good buying opportunity, and Amcor shares have been underperforming in weeks past.

Defensive markets and yield have helped the stock outperform in years past and the analysts don't see anything has changed to the Amcor story. Buy.

Target price is $17.60 Current Price is $14.91 Difference: $2.69
If AMC meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $16.30, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

Deutsche Bank rates AMC as Buy (1) -

The stock has underperformed the Australian market by 11% over the past three months, which Deutsche Bank considers excessive.

Full year guidance for underlying earnings growth in constant currency terms has been reiterated and the company expects particularly strong earnings growth in flexibles.

Deutsche Bank maintains a Buy rating. Target is $17.35.

Target price is $17.35 Current Price is $14.91 Difference: $2.44
If AMC meets the Deutsche Bank target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $16.30, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

Morgans rates BKY as Add (1) -

The company has raised US$30m towards the initial capital cost of US$95.7m to develop the Salamanca uranium project. A funding package supported by its strategic partner and/or project level interest and debt is yet to be finalised.

Morgans notes the company has provided clarity for the development, with construction scheduled to start in the September quarter 2017 and production to ramp up in the second half of 2018.

As development milestones are reached, the broker would look to unwind a substantial discount to the valuation.Target is lifted to $1.31 for $1.12. Add rating retained

Target price is $1.31 Current Price is $0.74 Difference: $0.57
If BKY meets the Morgans target it will return approximately 77% (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

UBS rates BXB as Neutral (3) -

The stock has underperformed the ASX 200 by 8% since the CEO,Tom Gorman, announced his retirement.

UBS notes the circumstances are different compared with the previous underperformance following the departures of John Fletcher and David Turner, as the painful catch-up in investment is unlikely to occur again.

While a significant increase in sustaining capital expenditure appears unlikely, the broker's current forecasts assume Brambles misses its target (20%) and achieves a return on capital of 18.5% in FY19.

The broker reduces forecast earnings per share by 6% in FY17 and 7% in FY18. A Neutral rating is retained and the target is reduced to $12.60 from $13.60.

Target price is $12.60 Current Price is $12.13 Difference: $0.47
If BXB meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $13.13, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

UBS rates CMA as Upgrade to Buy from Neutral (1) -

The responsible entity for Centuria Metropolitan, CPFL, has conditionally acquired an 8.76% stake in 360 Capital Office Fund ((TOF)) for $14.5m.

CPFL believes the property portfolios of CMA and TOF are highly complimentary and intends to consider a merger of the two at some time in the future.

UBS notes two issues with CMA have been liquidity and scale. Hence, a larger vehicle makes sense. The broker expects confidence in the manager to build as it leases vacancy in Canberra, executes on the residential conversion opportunity in Epping and de-risks the FY17 lease expiry in Keswick.

Rating is upgraded to Buy from Neutral. Target is raised to $2.30 from $2.20.

Target price is $2.30 Current Price is $2.12 Difference: $0.18
If CMA meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Macquarie rates LOV as Outperform (1) -

Lovisa's investor day revealed sales are tracking ahead of management's 3-5% growth target set at last month's AGM. The broker suspects margins are at least holding, if not improved.

The broker is factoring in 45 new store openings in the UK but believes many more will be rolled out in time. Lovisa has re-rated since its August result but the sales trend and UK rollout offer further upside, the broker suggests. Outperform and $4.08 target retained.

Target price is $4.08 Current Price is $3.43 Difference: $0.65
If LOV meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.47, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in July.

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

Morgan Stanley rates MVF as Overweight (1) -

Morgan Stanley observes industry growth Is weak and the company is losing share. This suggests a low base for FY18 growth is being created.

Despite the short-term weakness, the broker suspects the industry will grow at 3-4% in the long-term and forecasts a rebound to around 6% cycle growth in FY18, before normalising to long-term expectations.

Morgan Stanley lowers FY17 net profit estimates by 1.0%. The broker retains an Overweight rating and lowers the target to $2.50 from $2.58. In-Line industry view.

Target price is $2.50 Current Price is $1.91 Difference: $0.595
If MVF meets the Morgan Stanley target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $2.23, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Macquarie rates NCK as Outperform (1) -

Nick Scali has guided to 30-35% profit growth in the first half FY17 following the 40% achieved in FY16. This is well above the broker's 12% forecast and all but certain given all orders have already been received for the period.

The broker sees the retailer as well positioned, benefiting from housing strength and offering upside from an elevated store rollout program. Outperform retained. Target rises to $6.90 from $6.09.

Target price is $6.90 Current Price is $6.16 Difference: $0.74
If NCK meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Macquarie rates NCM as Neutral (3) -

Newcrest's site tours have now completed, with the broker finding the operational improvements at Lihir more impressive than the last tour two years ago. Management is confident of increasing the throughput rate beyond 13mpta and the broker believes 14mtpa is achievable.

No change to forecasts. Neutral and $24 target retained.

Target price is $24.00 Current Price is $19.95 Difference: $4.05
If NCM meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $20.91, suggesting upside of 5.5% (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

Morgans rates NCM as Add (1) -

Morgans reviews assumptions for the company's main mines following its investor briefing and a site visit to Cadia. Changes are net positive but this has been offset by lower short-term gold price forecasts, given the post-US election sell off.

Morgans remains confident in the company's ability to economically expand throughput at Cadia to 32mtpa from around FY20. An Add rating is retained. Target is reduced to $26.66 from $27.05.

Target price is $26.66 Current Price is $19.95 Difference: $6.71
If NCM meets the Morgans target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $20.91, suggesting upside of 5.5% (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

Credit Suisse rates PRG as Neutral (3) -

Credit Suisse observes that, while the company has successfully exceeded cost reduction targets resulting from its merger with Skilled, this is on the back of a softer-than-anticipated revenue profile.

While acknowledging revenue opportunities at the merged group, the broker notes month-to-month performance has been volatile against a patchy macroeconomic backdrop. Credit Suisse retains a Neutral rating and the target is reduced to $1.80 from $3.03.

Target price is $1.80 Current Price is $1.71 Difference: $0.09
If PRG meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.7

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

Macquarie rates QUB as Outperform (1) -

The ACCC has approved Qube's acquisition of the other 50% of Australian Amalgamated Terminals. The $150m price tag will be funded by existing debt, the broker notes.

The company's AGM revealed expected profit growth in FY17 from contract wins, organic growth and cost controls. The broker finds this encouraging given near term operational challenges, seeing growth opportunities in both divisions, and Patrick, and Moorebank down the track.

Outperform retained. Target rises to $2.85 from $2.74.

Target price is $2.85 Current Price is $2.36 Difference: $0.49
If QUB meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $2.64, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Ord Minnett rates QUB as Buy (1) -

The competition regulator has approved the company's purchase of Brookfields 50% stake in Australian Amalgamated Terminals for $150m.

The company has also confirmed it is edging towards financial close on the Moorebank development, also confirming that the Patrick stevedoring business is under pressure.

This does not surprise Ord Minnett, which estimates the loss of the A3 contract will mean Patrick's share slips to 43% from 46%. Nevertheless, the broker questions the profitability of Hutchison's gain and thus its ability to offer similar rates in future contracts that come up for tender.

The broker reduces net profit forecast by 1.5% for FY17 and 5.5% for FY18. Ord Minnett retains a Buy rating and $2.85 target.

Target price is $2.85 Current Price is $2.36 Difference: $0.49
If QUB meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $2.64, suggesting upside of 12.0% (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

Citi rates RIO as Sell (5) -

Citi analysts hold a bearish view on the outlook for bulk commodity prices, which explains their Sell rating and $48 price target. But even they have to admit Rio Tinto will be swimming in cash in the not too distant future.

Hence why the biggest question is how excess capital will be returned in 2017 and beyond. The analysts believe Rio Tinto could return in excess of US$3bn on top of regular dividend in 2017 at current spot prices.

Target price is $48.00 Current Price is $60.30 Difference: minus $12.3 (current price is over target).
If RIO meets the Citi target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $58.73, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

Market Sentiment: 0.4

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

Credit Suisse rates RIO as Neutral (3) -

The company aims to generate an additional US$5bn improvement in free cash flow through productivity improvements over the next five years. The company also intends to sustain production growth at over 2% per annum up to 2025.

Credit Suisse suspects 2017 could be a year for capital management. The broker considers it possible that 2017 dividends of nearly $4 per share could be paid, on running a plausible set of commodity price forecasts. This compares with a base case of $1.36.

Credit Suisse retains a Neutral rating and $50 target.

Target price is $50.00 Current Price is $60.30 Difference: minus $10.3 (current price is over target).
If RIO meets the Credit Suisse target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $58.73, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

Market Sentiment: 0.4

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

Deutsche Bank rates RIO as Buy (1) -

The company has outlined US$5bn of additional cash flow potential over the next five years with another US$500m reduction in capital expenditure in 2016.

Management has reiterated a commitment to paying a dividend of at least US$1.10 share from 2016 earnings. Deutsche Bank forecast a 50% pay-out, which equates to US$1.30 per share.

The company has stated it is comfortable for gearing to drop below the lower end of the 20-30% target range and the broker notes gearing has only been this low twice in the past 30 years.

The broker expects a lift in the dividend payout to 60% and a US$2bn buy-back in 2017. A Buy rating is retained and the target is raised to $66 from $62.

Target price is $66.00 Current Price is $60.30 Difference: $5.7
If RIO meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $58.73, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

Market Sentiment: 0.4

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

Macquarie rates RIO as Outperform (1) -

Rio Tinto's update revealed another US500m in capex reduction and an expected US$5bn increase in cash flow over five years thanks to productivity improvements.

The broker sees a greater likelihood Rio will continue to divest assets, in coal, alumina and aluminium, rather than seek M&A opportunities. Resultant balance sheet deleveraging will open up capital return possibilities for shareholders. Outperform and $68 target retained.

Target price is $68.00 Current Price is $60.30 Difference: $7.7
If RIO meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $58.73, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

Market Sentiment: 0.4

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

Morgan Stanley rates RIO as Overweight (1) -

The main message from the company's briefing for Morgan Stanley was that discipline drives margin. The 2016 capital expenditure guidance is trimmed by US$500m while 2017 and 2018 are unchanged.

As expected, the broker observes, for the current year, the only remark regarding dividends was a minimum commitment to US$1.10. Morgan Stanley expects excess cash will be used for debt reduction, given the company's comments about being prepared to go below the 20-30% gearing ratio target range.

Overweight rating, $59.50 target and Attractive sector view retained.

Target price is $59.50 Current Price is $60.30 Difference: minus $0.8 (current price is over target).
If RIO 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 $58.73, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

Market Sentiment: 0.4

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

Ord Minnett rates RIO as Accumulate (2) -

The company has outlined US$5bn in productivity targets over the five years and a long-term production growth rate of 2% per annum over 10 years.  Meanwhile, a US$10bn cost savings target over 2016 and 2017 was maintained.

Ord Minnett found the briefing positive and maintains an Accumulate rating, raising the target to $65 from $57.

Target price is $65.00 Current Price is $60.30 Difference: $4.7
If RIO meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $58.73, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

Market Sentiment: 0.4

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

UBS rates RIO as Buy (1) -

The main messages UBS received from the investor briefing were that the focus is shifting from pure cost-cutting to productivity, with an additional US$5bn in cash flow to be generated over the next five years, and AutoHaul is expected to be fully implemented by the end of 2018.

The broker also notes the Australian  alumina/aluminium business remains part of the group for now. Buy rating and $61 target unchanged.

Target price is $61.00 Current Price is $60.30 Difference: $0.7
If RIO meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $58.73, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

Market Sentiment: 0.4

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

Morgans rates SDG as Add (1) -

FY17 guidance signals net profit will be around  $35m, up 11% on the prior year with the distribution fully franked at $0.10.

Morgans observes near-term earnings visibility is good, with contracts in hand valued at $605m and new projects due to be launched in 2017.

The broker retains an Add rating and a revised price target of $1.97, from $2.00.

Target price is $1.97 Current Price is $1.56 Difference: $0.415
If SDG meets the Morgans target it will return approximately 27% (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

Deutsche Bank rates SEK as Hold (3) -

The company has confirmed FY17 guidance  for underlying net profit of $215-220m, despite also announcing the cessation  of its Learning VET operations.

With the company intending to restructure Learning to tailor it for advisory services, the new business is expected to occur about $6m in net profit losses in FY17.

Deutsche Bank changes forecasts to reflect the scaling back of Learning, given previously it had inspected some recovery. Hold rating retained. Target is reduced to $15.20 from $15.35.

Target price is $15.20 Current Price is $14.90 Difference: $0.3
If SEK meets the Deutsche Bank target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $15.98, suggesting upside of 7.1% (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

Macquarie rates SEK as Outperform (1) -

Seek Learning has ceased Vocational Education & Training operations in anticipation of negative regulatory reforms, it was revealed at the company's AGM. The asset will be written down.

Instead, Seek will launch a new online "Trip Advisor" style platform for education courses. The broker remains confident in the company's ability to drive longer term growth from its core employment businesses here and offshore. Outperform retained. Target falls to $16.05 from $16.40.

Target price is $16.05 Current Price is $14.90 Difference: $1.15
If SEK meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $15.98, suggesting upside of 7.1% (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

Morgans rates SEK as Add (1) -

The company has reiterated guidance for underlying profit of $215m to $220m, before start-up losses. The company has also foreshadowed a $16m one-off cost because of the closure of its Learning business.

Because of the heavy investment in business development, new product innovation, Morgans believes the company is on track to deliver many years of double-digit earnings growth.

As the stock trades comfortably below valuation the broker retains a Add rating. Target is increased slightly to $16.25 from $16.23.

Target price is $16.25 Current Price is $14.90 Difference: $1.35
If SEK meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $15.98, suggesting upside of 7.1% (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 SEK as Sell (5) -

The company has previously indicated new regulatory reforms in the vocational education sector could negatively impact its Learning business. These risks have now been crystallised and operations of the Learning VET business will cease.

The company will evolve its learning division into a new education business, but UBS notes the future revenue model is unknown at this stage.

Balancing the financial impacts, the broker's forecast for net profit in FY17 is unchanged but FY18 and FY19 estimates for earnings per share fall 1%. Sell rating retained. Target unchanged at $14.00.

Target price is $14.00 Current Price is $14.90 Difference: minus $0.9 (current price is over target).
If SEK meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.98, suggesting upside of 7.1% (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

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

Morgans suspects the takeover scheme is unlikely to be approved and implemented in its current form. The broker envisages the substantial holding of McDonald Jones Homes as a blocking stake, noting that the majority of this holding has been acquired above the offer price.

The broker considers Simonds to be fundamentally undervalued but recognises there are short-term price risks associated with voting against the scheme, and inherent earnings risks in the vocational division. Therefore, the company is more reliant on a turnaround in the building division.

The rating is downgraded to Hold from Add. Target is steady at 44c.

Target price is $0.44 Current Price is $0.41 Difference: $0.03
If SIO meets the Morgans target it will return approximately 7% (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

UBS rates SYD as Neutral (3) -

Rising bond yields have increased the return equity investors require which means Sydney Airport and other infrastructure stocks have underperformed over the last three months.

In line with the market movement UBS lifts its assumptions for the cost of equity to 8.0% from 7.5%. The broker expects growth in international traffic of 4.5% in 2017 and 4% from 2018. A Neutral rating is retained and the target is reduced to $6.60 from $7.20.

Target price is $6.60 Current Price is $6.25 Difference: $0.35
If SYD meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.3

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

UBS rates TCL as Buy (1) -

The stronger-than-expected performance from the company's US assets has resulted in their share of the group's equity value rising to 11%, versus 3% three years ago.

The broker envisages it prudent to capture the rise in 10-year bond yields by raising its cost of equity assumptions to 7.5% from 7.0%, which is the main driver of a decline in valuation.

Transurban has been caught up in the yield sell-off, the broker observes, with its shares underperforming by 20% since July. A Buy rating is retained. Target falls to $12.30 from $13.15.

Target price is $12.30 Current Price is $10.38 Difference: $1.92
If TCL meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $11.79, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.7

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