Australian Broker Call

Morgans rates ABC as Reinstate coverage with Hold (3) -

Morgans observes the stock has materially re-rated since October as concerns of a prolonged downturn in construction activity have subsided.

The broker suspects structural headwinds will limit the company's leverage to a cyclical recovery relative to the past.

Therefore, Morgans reinstates coverage with a Hold rating and $3.65 target.

The broker is looking for signs of a faster improvement in the demand environment or an easing of competitive pressures to gain more confidence in the recovery.

Target price is $3.65 Current Price is $3.61 Difference: $0.04
If ABC meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting downside of -11.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.6

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

Macquarie rates APA as Neutral (3) -

The broker has revised down its expectation for APA Group profit guidance to the lower end of the range to reflect a delay in first gas at Orbost. The final regulatory price reset of 4.5% is also well below a prior 5.8%.

A strong performance in wind provides an offset, but the broker lowers its target by -2% to $11.79. Neutral retained.

Target price is $11.79 Current Price is $11.22 Difference: $0.57
If APA meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.09, suggesting downside of -1.2% (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 AQG as Upgrade to Outperform from Neutral (1) -

2019 net profit materially exceeded Credit Suisse forecasts as an additional tax credit was realised, partly offset by unrealised non-cash FX losses. No dividend was declared, as expected, with the focus remaining on debt repayment.

The company is intent on growing oxide reserves and production and advancing its geological understanding of Cakmaktepe and Ardich as well as increasing the sustainable Copler production.

Credit Suisse upgrades to Outperform from Neutral. Target is steady at $7.20.

Target price is $7.20 Current Price is $6.93 Difference: $0.27
If AQG meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $8.37, suggesting upside of 20.7% (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: 1.0

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

Macquarie rates AQG as Outperform (1) -

Alacer Gold's profit result was stronger than expected due to a largely one-off tax adjustment. Production guidance for 2020 is weaker than forecast but the broker sees the potential for oxide to again outperform guidance in 2020.

New study work has the potential to materially improve Copler's long term production outlook, the broker suggests. Adjustments to the depreciation schedule leads to a cut in earnings forecasts. Target falls to $8.40 from $9.20, Outperform retained.

Target price is $8.40 Current Price is $6.93 Difference: $1.47
If AQG meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $8.37, suggesting upside of 20.7% (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: 1.0

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

Credit Suisse rates AQZ as Outperform (1) -

The interim result was solid, in Credit Suisse's view, although an accelerated maintenance schedule prevented a meaningful improvement.

Nevertheless, the outlook for the second half appears particularly strong, with an estimated 5% more active capacity, a tight resources market and a larger contribution from recently re-priced contracts.

Yet, Credit Suisse assesses the devil is in the detail around cash flow, with a slower-than-expected ramp up of assets that were added to the business in the first half and an accelerated maintenance program meaning more downtime.

Outperform rating maintained. Target rises to $3.15 from $2.90.

Target price is $3.15 Current Price is $2.62 Difference: $0.53
If AQZ meets the Credit Suisse target it will return approximately 20% (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

Citi rates BEN as Sell (5) -

Citi expects another difficult year ahead for Bendigo and Adelaide Bank. The broker believes the outperformance versus Bank of Queensland ((BOQ)) over the last 12 months is unlikely to be repeated.

The broker maintains a Sell rating and reduces the target to $9.25 from $9.50.

Target price is $9.25 Current Price is $10.38 Difference: minus $1.13 (current price is over target).
If BEN meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.88, suggesting downside of -4.8% (ex-dividends)

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 BLD as Upgrade to Buy from Neutral (1) -

UBS observes Boral is trading at a steep discount to the market and suspects this reflects expectations that the 2019 underperformance will continue into 2020.

While the previous year was difficult, FY20 guidance assumes a catch up is possible in the second half.

The broker suspects investors are increasingly worried that the diverse operating footprint will stretch management.

However, downside risks are considered limited and UBS upgrades to Buy from Neutral. Target is raised to $6.00 from $4.90.

Target price is $6.00 Current Price is $5.21 Difference: $0.79
If BLD meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting downside of -6.7% (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 BOQ as Upgrade to Neutral from Sell (3) -

Citi believes the majority of the near-term downside for Bank of Queensland has played out. The dilution from funding the restructuring plan has been quantified and CET1 will be at the upper end of the target range.

A reduction to the final dividend is considered priced in and the broker upgrades to Neutral from Sell. Target is $7.75.

Target price is $7.75 Current Price is $7.64 Difference: $0.11
If BOQ meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.79, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in August.

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 BXB as Equal-weight (3) -

Morgan Stanley believes Brambles is well positioned into the first half result. The broker considers the business relatively unique as it is an offshore earner, has limited exposure to Asia and is heavily skewed to consumer staples.

Beyond this, there is a substantial buyback program. The demand backdrop in the Americas appears benign and recycled pellet pricing suggests little incremental competition from whitewood.

Equal-weight. Target is raised to $12.80 from $11.80. Industry view is In-Line.

Target price is $12.80 Current Price is $12.62 Difference: $0.18
If BXB meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $12.07, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in June.

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 CAR as Outperform (1) -

The company has instituted price increases which suggest used car volumes are holding up well. Credit Suisse expects second half numbers will be supported by the higher pricing.

As a result, while display revenues are likely to be subdued, the broker expects the company will maintain FY20 guidance. Outperform maintained. Target is raised to $18.30 from $16.50.

Target price is $18.30 Current Price is $17.72 Difference: $0.58
If CAR meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $15.82, suggesting downside of -10.7% (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 CBA as Sell (5) -

Ahead of the first half result on February 12, UBS believes expectations are high for earnings momentum to be sustained in the second quarter.

Nevertheless, while believing the stock deserves a premium, the broker notes the PE has re-rated to 18.3x which is a world record for a very large developed market bank.

The broker expects a flat $2 dividend in the first half. No capital management outside of neutralising the dividend reinvestment plan is expected. Sell rating and $70 target maintained.

Target price is $70.00 Current Price is $84.29 Difference: minus $14.29 (current price is over target).
If CBA 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 $73.41, suggesting downside of -12.9% (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

Ord Minnett rates CIM as Buy (1) -

2019 net profit was in line with forecasts. The company provided an optimistic view on its opportunities, noting around $380bn in projects coming to the market in 2021 and beyond.

Work in hand of $37.5bn was up 2% and at the highest level since 2013.

The company has also announced the promotion of CPB Contractors managing director, Juan Santamaria, to CEO. The outgoing CEO will remain with the group.

Buy rating maintained. Target is $40.

Target price is $40.00 Current Price is $30.00 Difference: $10
If CIM meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $35.39, suggesting upside of 18.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Credit Suisse rates CIP as Neutral (3) -

First half results were slightly ahead of Credit Suisse estimates. The broker expects continued support for the share price, given the pure industrial sector focus and relatively attractive distribution yield.

Outside of any further equity raising, Credit Suisse expects comparable net operating income growth in the 2-3% per annum range with scope for cash coverage to improve. Neutral rating maintained. Target rises to $3.38 from $3.27.

Target price is $3.38 Current Price is $3.64 Difference: minus $0.26 (current price is over target).
If CIP meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.57, suggesting downside of -1.9% (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

Morgans rates CIP as Hold (3) -

The company has reaffirmed FY20 guidance, comprising free funds from operations of 19.6-19.9c per security. Distribution guidance is 18.7c.

Morgans believes the company is one of the few listed A-REITs offering pure exposure to Australian industrial property, leveraged to the growing e-commerce/logistics thematic.

The broker retains a Hold rating and raises the target to $3.28 from $3.19.

Target price is $3.28 Current Price is $3.64 Difference: minus $0.36 (current price is over target).
If CIP meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.57, suggesting downside of -1.9% (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 CIP as Buy (1) -

First half funds from operations were ahead of Ord Minnett's forecasts. Guidance for FY20 earnings is retained at 19.6-19.9c per security, representing growth of 2-3%.

Ord Minnett notes Centuria Industrial has been one of the best performing A-REITs over the past 12 months, supported by strong capital market backdrop for industrial property.

Buy rating retained. Target is raised to $4.05 from $4.00.

Target price is $4.05 Current Price is $3.64 Difference: $0.41
If CIP meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.57, suggesting downside of -1.9% (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

Credit Suisse rates CMA as Neutral (3) -

First half results were in line with expectations and full year guidance has been reaffirmed. The portfolio value has increased to $2.1bn.

Upcoming vacancies remain a potential downside risk, in Credit Suisse's view, but rental income is expected to be supported by strong metropolitan office markets.

Neutral rating maintained. Target slips to $2.91 from $2.92.

Target price is $2.91 Current Price is $2.97 Difference: minus $0.06 (current price is over target).
If CMA meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.97, suggesting upside of 0.0% (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 CMA as Hold (3) -

First half leasing activity was equal to around 9.5% of the portfolio's leasing assets. The portfolio is now valued at $2.1bn across 23 assets.

Debt facilities are now spread across four major lenders with the weighted average debt expiry stable at 3.8 years.

FY20 guidance is unchanged for free funds from operations of 19c. Morgans retains a Hold rating and $2.98 target, expecting the next trading update in April.

Target price is $2.98 Current Price is $2.97 Difference: $0.01
If CMA meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.97, suggesting upside of 0.0% (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

UBS rates CMA as Neutral (3) -

The company added $636m of acquisitions in the first half and leased 9.5% of vacant or expiring space. Debt facilities have also been refinanced, with UBS observing low funding costs continue to underpin asset values.

While the initiatives will benefit investors, the broker finds better value in Dexus ((DXS)) and retains a Neutral rating and $3.02 target.

Target price is $3.02 Current Price is $2.97 Difference: $0.05
If CMA meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.97, suggesting upside of 0.0% (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 COL as Neutral (3) -

At face value, it appears today's trading update is better-than-expected, but Citi analysts, in an initial response, highlight there was beneficial impact from one-offs. Supermarket like-for-like sales growth accelerated to 3.6% in 2Q20, recording the strongest print since Little Shop I in 1Q19, they add.

Among the negatives, margin pressure is emerging for the liquor operations. Citi analysts will be fishing for more insights at the upcoming interim result release. Despite the earnings "beat", the analysts remain of the view the stock is too expensive and today's update is not good enough to justify the elevated valuation.

Neutral rating alongside a $16.60 price target.

Target price is $16.60 Current Price is $16.59 Difference: $0.01
If COL meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $14.27, suggesting downside of -14.0% (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

UBS rates CPU as Neutral (3) -

The company has acquired Corporate Creations for US$143m. This is consistent with the strategy to extend issuer services business beyond share registry and expand into adjacent markets.

Earnings were undisclosed but it appears to UBS the acquisition will be around 1% accretive to earnings per share.

The broker believes value upside is limited by the lower medium-term growth prospects and retains a Neutral rating. Target is raised to $17.50 from $16.90.

Target price is $17.50 Current Price is $18.08 Difference: minus $0.58 (current price is over target).
If CPU meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.10, suggesting downside of -10.9% (ex-dividends)

The company's fiscal year ends in June.

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: -0.3

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

Morgan Stanley rates CSL as Overweight (1) -

Immunoglobulin growth will be the focus for the first half result, in Morgan Stanley's opinion, when the company reports on February 12.

In the absence of large cap growth alternatives, the broker assesses disruption risk is a background issue.

A moderation of immunoglobulin demand and supply catching up will be the catalysts to dampen enthusiasm for the bull case, but the broker suspects this may only progressively happen over the next 6-12 months.

Morgan Stanley raises the target to $306 from $290. Overweight rating and an In-Line sector view retained.

Target price is $306.00 Current Price is $321.04 Difference: minus $15.04 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $286.99, suggesting downside of -10.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.6

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

Ord Minnett rates CSL as Hold (3) -

Ord Minnett expects CSL will deliver a strong first half result. Management is likely to retain current guidance, given the likely weighting of earnings growth to the second half and the uncertainty caused by coronavirus.

Ord Minnett cautions this may disappoint investors after the strong share price performance. Hold rating maintained. Target rises to $285 from $265.

Target price is $285.00 Current Price is $321.04 Difference: minus $36.04 (current price is over target).
If CSL meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $286.99, suggesting downside of -10.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.6

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

UBS rates CSR as Upgrade to Buy from Sell (1) -

UBS adopts a more bullish approach to property valuation and upgrades CSR to Buy from Sell. The broker would not be surprised if more land sales were used to prop up earnings and therefore assesses a negative catalyst is absent.

Aluminium's negative aspects remain a drag but the broker believes this is factored into the price. Targets raised to $5.24 from $3.60.

Target price is $5.24 Current Price is $5.01 Difference: $0.23
If CSR meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.33, suggesting downside of -13.5% (ex-dividends)

The company's fiscal year ends in March.

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 CWY as Neutral (3) -

The 2019 earnings downgrade shook confidence in the stability of earnings and led to a PE de-rating, UBS observes.

The broker still believes earnings growth is at risk from lower economic activity, likely to be exacerbated by bushfires, as well as a proposed ban on recycled cardboard exports by July 2022.

The broker retains a Neutral rating and the target is raised to $2.02 from $2.00.

Target price is $2.02 Current Price is $1.97 Difference: $0.05
If CWY meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.14, suggesting upside of 8.7% (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

Credit Suisse rates DHG as Underperform (5) -

While expecting listing volumes to improve in the second half, Credit Suisse suspects its forecast for 4% growth in market volumes is below consensus.

Given the strong pricing environment in property, the broker struggles to find other factors that will drive listing volumes much higher.

Underperform rating maintained. Target rises to $2.85 from $2.40.

Target price is $2.85 Current Price is $3.73 Difference: minus $0.88 (current price is over target).
If DHG meets the Credit Suisse target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.27, suggesting downside of -12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

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

Macquarie suggests Genworth Mortgage Insurance has signaled the end of the "run off" thesis with its 2019 result and the beginning of a growth thesis.

Gross written premium grew 32.8% in the fourth quarter compared to 24.4% in the third. The broker has increased its net earned premium forecast to above the guidance range.

Macquarie sees the opportunity for multi-year improvements to loss ratios and upgrades to Outperform. Target rises to $4.30 from $4.10.

Target price is $4.30 Current Price is $3.89 Difference: $0.41
If GMA meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 HT1 as Downgrade to Neutral from Outperform (3) -

With the metro radio market down -9.4% in the December half, Credit Suisse observes the company faces difficult trading conditions.

Still, the broker continues to expect the Australian Radio Network will outperform the market as it has had a solid ratings performance.

Rating is downgraded to Neutral from Outperform, given limited upside from current trading levels. Target is reduced to $1.65 from $1.90.

Target price is $1.65 Current Price is $1.62 Difference: $0.03
If HT1 meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.63, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Macquarie rates IGO as Outperform (1) -

IGO's analyst day has led the broker to adjust its payabilities profile at Nova and ore feed profile at Tropicana, resulting in a target price cut to $7.00 from $7.10.

Exploration remains key, the broker notes, as the miner searches for a new Nova. A substantial cash position provides for acquisition potential in nickel and copper. Outperform retained.

Target price is $7.00 Current Price is $6.11 Difference: $0.89
If IGO meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $6.01, suggesting downside of -1.7% (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

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

Janus Henderson beat earnings forecasts in the December quarter but the underlying result was weak, Macquarie suggests, given a strong market performance and currency movements offset ongoing outflows while increased performance fees were offset by higher employee expenses. Institutional flow pressures remain but the broker is encouraged by improving retail momentum.

To that end, and with the stock trading at a -22% discount to its five-year average PE, Macquarie upgrades to Outperform and sector preferred status. Target rises to $42.80 from $34.50.

Target price is $42.80 Current Price is $41.00 Difference: $1.8
If JHG meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $40.64, suggesting downside of -0.9% (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: 0.5

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

UBS rates JHX as Buy (1) -

Confidence in the company's strategy remains high and UBS expects the momentum of channel partners should sustain higher primary demand growth into 2020.

Although, with reduced expectations for US rate cuts, the current tailwind to housing could slow in 6-9 months, the broker notes.

Meanwhile, cost reduction programs appear to be ahead of schedule. UBS maintains a Buy rating and raises the target to $36 from $30.

Target price is $36.00 Current Price is $31.71 Difference: $4.29
If JHX meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $33.79, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in March.

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: 0.9

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

Macquarie rates LEP as Neutral (3) -

ALE Property's first half earnings result was -4% below the broker's forecast due to higher expenses. Target falls to $5.13 from $5.22.

The broker awaits updates to the 2018 rent review process for the remaining 43 assets, which have now been pushed out to the second half. Little in the way of total shareholder return upside is evident, outside of capital management, the broker suggests. Neutral retained.

Target price is $5.13 Current Price is $5.60 Difference: minus $0.47 (current price is over target).
If LEP meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Ord Minnett rates LEP as Lighten (4) -

First half distributable profit was slightly below Ord Minnett's forecasts.

ALE Property owns a high-quality portfolio with stable growth but the broker believes the desirable metrics are captured in the value and retains a Lighten rating and $4.70 target.

Target price is $4.70 Current Price is $5.60 Difference: minus $0.9 (current price is over target).
If LEP meets the Ord Minnett target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Credit Suisse rates LNK as Neutral (3) -

Credit Suisse expects earnings growth will return in FY21-22 and FY20 will be a trough year.

There is some valuation appeal when the broker looks at FY22 earnings estimates, but caution prevails given volatility from the higher operating and financial leverage, the risk around acquisitions and exposure to industries that are experiencing regulatory change.

Neutral rating maintained. Target rises to $6.90 from $5.75.

Target price is $6.90 Current Price is $6.53 Difference: $0.37
If LNK meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.32, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Morgans rates MX1 as Add (1) -

Sales of the Nano in the December quarter were still below expectations.

Morgans observes the company continues to support the Carestream sales initiative, while building independent strategies to help regain sales momentum for the Nano.

Defence opportunities, meanwhile, for the Rover are likely to emerge once US FDA clearance has been achieved.

Speculative Buy (Add) maintained. Target is 41c.

Target price is $0.41 Current Price is $0.16 Difference: $0.25
If MX1 meets the Morgans target it will return approximately 156% (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 NWS as Outperform (1) -

Credit Suisse expects a lot of the underlying trends experienced in the first quarter will have continued into the second, including weak property listings, a subdued Australian advertising market and further declines in subscription video services.

However, comparables in book publishing will become easier. Given a lot of the negatives are well known, the broker retains an Outperform rating. Target is raised to $23.80 from $22.00.

Target price is $23.80 Current Price is $21.15 Difference: $2.65
If NWS meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $24.31, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in June.

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: 0.5

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

Credit Suisse rates SEK as Upgrade to Outperform from Neutral (1) -

The week macro environment creates a risk for near-term guidance, in Credit Suisse's view.

FY20 is expected to be affected by weak domestic volumes, the direct impact of coronavirus on the Chinese labour market and any knock-on impact on Asia.

Estimates are lowered as a result. Longer-term, the dynamics are intact.

Given the upside from current trading levels, Credit Suisse upgrades to Outperform from Neutral. Target is raised to $23.80 from $19.60.

Target price is $23.80 Current Price is $22.31 Difference: $1.49
If SEK meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $22.22, suggesting downside of -0.4% (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 SSM as Buy (1) -

First half results were broadly in line with Ord Minnett's expectations. The company expects its main lines of growth will deliver stronger second half revenue and guides to FY20 operating earnings (EBITDA) of $116m on a post-IFRS basis.

The broker retains a Buy rating and reduces the target to $2.86 from $2.87.

Target price is $2.86 Current Price is $2.49 Difference: $0.37
If SSM meets the Ord Minnett target it will return approximately 15% (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 TAH as Buy (1) -

Ahead of the first half results, UBS assesses almost all investors consider the wagering performance the number one issue for the stock.

From its survey, the broker highlights a number of bookmakers experienced a significant benefit from win rates in the December quarter.

Tabcorp has continued with aggressive promotions, including new offers that will offset some of the gains. UBS maintains a Buy rating and reduces the target to $5.80 from $5.90.

Target price is $5.80 Current Price is $4.57 Difference: $1.23
If TAH meets the UBS target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 7.8% (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

Macquarie rates TWE as Neutral (3) -

Data from Wine Australia corroborates Treasury Wine Estates' revelations of weakness in the US and China which led to a profit warning. The US is entering a period of intense competition and uncertainty, the industry body warns.

The broker also sees downside potential in the second half from the coronavirus, bushfire smoke damage and private label risk. Neutral and $13.30 target retained.

Target price is $13.30 Current Price is $11.99 Difference: $1.31
If TWE meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $14.58, suggesting upside of 21.6% (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 TWE as Equal-weight (3) -

Exports data in the December quarter from Wine Australia show premium wine improved. Overall, quarterly wine export value to China and Hong Kong was up 8%. Growth was also strong in wines where Treasury Wine Estates is more prominent.

While anticipating coronavirus will have an impact on sales, particularly to China, at this stage Wine Australia finds it difficult to predict the extent of that impact.

Hence, Morgan Stanley acknowledges valuation upside but remains relatively cautious. Equal-weight rating and Cautious industry view maintained. Target is $15.

Target price is $15.00 Current Price is $11.99 Difference: $3.01
If TWE meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $14.58, suggesting upside of 21.6% (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