Australian Broker Call

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

AGL has announced a new gas-fired peaker in NSW as part of its post 2022 replacement plan for Liddell. Subsequently the company has received a conditional $250m offer for Liddell from Alinta.

Morgan Stanley envisages little fundamental difference between the scenarios envisaged for Liddell, assuming normal commercial rules apply.

The broker believes AGL will continue to resist calls to change its Liddell closure plan and may extend the plant life, if market conditions justify, or sell at an attractive price.

Equal-weight rating. Target is $24.28. Industry view: Cautious

Target price is $24.28 Current Price is $21.76 Difference: $2.52
If AGL meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $24.56, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates AGL as Accumulate (2) -

The company has received an indicative and highly conditional offer from Alinta to purchase the Liddell power plant for $250m.

Ord Minnett does not believe AGL will consider the sale of Liddell for such a low price, having indicated that, because Liddell is intrinsically linked to its other NSW coal assets, it would be difficult to sell the plant.

Accumulate rating and $24.50 target maintained.

Target price is $24.50 Current Price is $21.76 Difference: $2.74
If AGL meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $24.56, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

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 ANZ as Buy (1) -

In an initial response to today's interim results release, Citi analysts observe cash earnings from continuing operations were slightly better than expected (by 1%) with the headline number bang in-line.

Net interest margin (NIM) came out below expectation, while operating expenses fell by -2%. One big surprise was the BDD expense, at 14bps only. All in all, Citi thinks it was a "solid" result. Buy. Target $30.

Target price is $30.00 Current Price is $26.90 Difference: $3.1
If ANZ meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $29.95, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates ANZ as Outperform (1) -

In an initial response to today's interim report, Macquarie analysts note cash earnings were 2% ahead of expectation, largely due to a very low BDD expense. Underlying, the analysts suggest the financial numbers were largely in-line with expectations.

Macquarie points out ANZ's capital surplus remains one key feature; it offers potential for share buy-backs, and thus for EPS growth. Outperform. Target $30.

Target price is $30.00 Current Price is $26.90 Difference: $3.1
If ANZ meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $29.95, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in September.

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 ANZ as Neutral (3) -

In an initial response to today's interim report release, UBS analysts comment underlying trends seem "soft", with headline numbers published "broadly in line". Nothing spectacular here to see, thus.

Regarding the bank's outlook, the analysts note credit conditions remain tight, with standards overall tightening, and growth in general is slowing. Neutral rating retained and the suggestion is the $29 valuation won't be subject to change.

Target price is $29.00 Current Price is $26.90 Difference: $2.1
If ANZ meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $29.95, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in September.

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

Deutsche Bank rates AWE as Hold (3) -

March quarter production missed estimates. Deutsche Bank notes Mitsui has reached 93.51% ownership and compulsory acquisition is underway.

Hold and $0.95 target retained.

Target price is $0.95 Current Price is $0.94 Difference: $0.01
If AWE meets the Deutsche Bank target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $0.95, suggesting upside of 1.1% (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 - Cessation of coverage

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 AZJ as Sell (5) -

Ord Minnett has reviewed its investment thesis, concluding that the rail and logistics operator is yet to reflect significant risks associated with the final outcome on the UT5.

In what the broker believes is an unprecedented move, the company is seeking a judicial review from the Queensland Supreme Court on the draft UT5 decision. The broker understands the court's role will be to determine if there was any legal error in the procedure and not rule on whether the draft is fair.

Sell rating and $4 target maintained.

Target price is $4.00 Current Price is $4.51 Difference: minus $0.51 (current price is over target).
If AZJ 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 $4.59, suggesting upside of 1.7% (ex-dividends)

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

Deutsche Bank rates CSL as Hold (3) -

After a site visit Deutsche Bank suggests the Bio21 institute provides the company with distinct benefits amid the large R&D expenditure plans for the second half. The collection centres target is reiterated for FY18.

Hold rating and $169 target maintained.

Target price is $169.00 Current Price is $170.50 Difference: minus $1.5 (current price is over target).
If CSL meets the Deutsche Bank target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $168.25, suggesting downside of -1.3% (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: 0.6

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

Macquarie rates CSL as Outperform (1) -

Macquarie continues to believe CSL is well-positioned to deliver robust earnings growth in FY18 and FY19.

The broker believes the plasma collection centre network is a competitive advantage, allowing the company to meet robust immunoglobulin demand as well as increased volumes from expanded indications.

Outperform rating and $172 target maintained.

Target price is $172.00 Current Price is $170.50 Difference: $1.5
If CSL meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $168.25, suggesting downside of -1.3% (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: 0.6

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

UBS rates CSL as Buy (1) -

The broker attended a site visit in Melbourne to CSL's R&D hub and Broadmeadows fractionation facility. Suffice to say the broker was impressed but has made no changes to forecasts.

Broadmeadows in particular is transitioning from what was a toll fraction facility for several Asia-Pac countries to a comprehensive part of the global Behring business, the broker notes. Buy and $175 target retained.

Target price is $175.00 Current Price is $170.50 Difference: $4.5
If CSL meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $168.25, suggesting downside of -1.3% (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: 0.6

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

Macquarie rates DCN as Outperform (1) -

Quarterly activities reports reveal first gold was poured at Mt Morgans at the end of March and the company expects to produce 180-200,000 ounces in FY19.

This is a significant milestone, in Macquarie's view, and the ramping up of the underground and open pit are now the focus. The broker believes Cameron Well has potential to add a third production centre.

The broker retains Outperform rating and $3.70 target.

Target price is $3.70 Current Price is $2.85 Difference: $0.85
If DCN meets the Macquarie target it will return approximately 30% (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

Ord Minnett rates DLX as Lighten (4) -

Ord Minnett observes macro support is fading in the domestic market and management is looking afield for earnings growth, such as in the UK, Indonesia and even North America. Growth is, therefore, expected to be modest and carry more risk relative to history.

Ord Minnett maintains a Lighten rating, noting the first half report is scheduled on May 17 while the investor briefing on May 31 could act as a positive catalyst. Target is raised to $6.70 from $6.50.

Target price is $6.70 Current Price is $7.71 Difference: minus $1.01 (current price is over target).
If DLX meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.02, suggesting downside of -8.9% (ex-dividends)

The company's fiscal year ends in September.

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 EHL as No Rating (-1) -

The company has announced the acquisition of Matilda Equipment which compliments its existing business. The acquisition is for $80m and the company has also announced a $90m equity raising at $0.25 a share.

Due to research restrictions Macquarie cannot offer a rating and target at present.

Current Price is $0.28. Target price not assessed.

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

Ord Minnett rates EXP as Buy (1) -

The company has downgraded earnings forecasts, reducing FY18 guidance to a range of $30-31m from $35-37m.

Ord Minnett notes, given the company is an adventure tourism business which relies on weather conditions to conduct its activities, it is clear that these were adversely affected by unfavourable weather in March and April.

Buy rating is maintained and target reduced to $0.81 from $1.00.

Target price is $0.81 Current Price is $0.61 Difference: $0.2
If EXP meets the Ord Minnett target it will return approximately 33% (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

Credit Suisse rates GNC as Downgrade to Neutral from Outperform (3) -

The outlook for rainfall is signalling low soil moisture entering the 2018 season and any further reduction in rainfall from this point would result in downside to the crop.

Outside of crop conditions, Credit Suisse notes upside rests on the company pursuing a more aggressive restructuring of its storage and logistics business. The broker expects oils and malt will be in focus at the first half result on May 11.

Credit Suisse downgrades to Neutral from Outperform. Target is steady at $9.06.

Target price is $9.06 Current Price is $8.57 Difference: $0.49
If GNC meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.75, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates GNC as Neutral (3) -

Ahead of the first half results on May 11 Macquarie notes the weather indicators are neutral to slightly negative for the winter crop. The focus in the result is likely to be on marketing and oils.

The broker observes long-term asset values are providing support to the share price. Neutral retained. Target is $8.29.

Target price is $8.29 Current Price is $8.57 Difference: minus $0.28 (current price is over target).
If GNC meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.75, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates IAG as Overweight (1) -

Favourable catastrophe experience, elevated reserve releases, cost reductions and potential capital returns suggest to Morgan Stanley that IAG will continue to outperform.

The broker forecasts cash returns on equity building above the company's 15% target and potential buybacks driving further upside.

Overweight rating retained. Industry view In-Line. Price target is $8.00.

Target price is $8.00 Current Price is $7.84 Difference: $0.16
If IAG meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $7.45, suggesting downside of -4.9% (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 KAR as Outperform (1) -

The company is currently working on positioning the Echidna project to enter FID later this year. Macquarie continues to expect the company will farm down its working interest before announcing FID.

Management is evaluating M&A opportunities in the offshore Brazil acreage. Outperform rating maintained. Target is $1.40.

Target price is $1.40 Current Price is $1.25 Difference: $0.15
If KAR meets the Macquarie 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: 0.5

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

Citi rates MML as Neutral (3) -

March quarter production was steady and FY18 guidance is affirmed. Completion of the E15 shaft is delayed until the December quarter although Citi expects the company can maintain positive cash flow.

The broker suggests the stock is cheap but awaits the E15 completion to be more confident. Neutral/High Risk rating retained. Target is 56c.

Target price is $0.56 Current Price is $0.56 Difference: $0
If MML meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

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: 0.0

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

Morgans rates NAN as Add (1) -

The company has received FDA regulatory clearance for the next generation Trophon. The product is to be released in the first quarter of FY19.

Nanosonics has indicated sales were softer during the transition period as distributors tightly managed inventory. Morgans revises down FY18 profit forecasts, to reflect the slower US sales. FY19 and FY20 estimates are unchanged.

Add rating maintained. Target reduced to $3.12 from $3.13.

Target price is $3.12 Current Price is $2.42 Difference: $0.7
If NAN meets the Morgans target it will return approximately 29% (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 NST as Neutral (3) -

Citi notes the company is getting close to its target of 600,000 ounces per annum. The broker envisages potential for filling the recently acquired Jubilee plant.

Citi is uncertain about the grade at that run rate and looks forward to the September quarter update which should provide insight regarding the production outlook for FY19. Neutral retained. Target rises to $6.70 from $6.60.

Target price is $6.70 Current Price is $6.37 Difference: $0.33
If NST meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.52, suggesting downside of -13.4% (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

Credit Suisse rates NST as Underperform (5) -

FY18 guidance has been narrowed to 540-560,000 ounces but Credit Suisse suspects a materially improved June quarter is required to meet expectations. The high-cost Paulsens is now closed and costs should improve in the June quarter, the broker adds.

Underperform rating and $4.55 target maintained.

Target price is $4.55 Current Price is $6.37 Difference: minus $1.82 (current price is over target).
If NST meets the Credit Suisse target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.52, suggesting downside of -13.4% (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

Deutsche Bank rates NST as Sell (5) -

The March quarter was soft and Deutsche Bank observes a strong finish is required to meet FY18 expectations. Production was down -4% quarter on quarter.

Cash generation is expected to improve in the fourth quarter. The broker maintains a Sell rating on valuation. Target is $4.90.

Target price is $4.90 Current Price is $6.37 Difference: minus $1.47 (current price is over target).
If NST meets the Deutsche Bank target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.52, suggesting downside of -13.4% (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 NST as Neutral (3) -

March quarter production fell short of Macquarie's expectations. Kalgoorlie was weaker than Jundee. Incorporating the result has led to a -3% downgrade to the broker's FY18 estimates.

Neutral and $6.10 target retained.

Target price is $6.10 Current Price is $6.37 Difference: minus $0.27 (current price is over target).
If NST meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.52, suggesting downside of -13.4% (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

UBS rates NST as Sell (5) -

Northern Star's March Q production rose 5% but fell -8% short of the broker, impacted by grades. Free cash flow is lagging but this should improve once development capex tails off.

The broker applauds the company's operational and exploration excellence, but retains Sell on valuation. The risk to this rating is a positive update on the South Kalgoorlie project in August. Target unchanged at $6.06.

Target price is $6.06 Current Price is $6.37 Difference: minus $0.31 (current price is over target).
If NST meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.52, suggesting downside of -13.4% (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

Deutsche Bank rates OGC as Buy (1) -

March quarter gold production was in line with expectations. EBITDA of US$101m beat estimates. Deutsche Bank increases 2018 earnings per share estimates by 23% on lower costs and higher production.

Buy rating and $4.10 target maintained.

Target price is $4.10 Current Price is $3.55 Difference: $0.55
If OGC meets the Deutsche Bank target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.58, suggesting upside of 29.1% (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: 0.9

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

Citi rates ORE as Buy (1) -

Cost performance in the March quarter was better than Citi expected, driving 2% upgrades to FY18 earnings estimates. The broker maintains a Buy rating and target of $7.60 on the back of strong margins and further volume uplift from Olaroz stage 2.

The broker notes all basic engineering work and permits for the proposed expansion are in place and the company is expecting a final investment decision by mid 2018.

Target price is $7.60 Current Price is $5.64 Difference: $1.96
If ORE meets the Citi target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $7.18, suggesting upside of 27.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Macquarie rates ORE as Outperform (1) -

Macquarie observes costs were better but expenditure higher in the March quarter.

Preparatory works have started for phase 2 at Olaroz and approval for a subsidy for a hydroxide plant was received from the Japanese government. FID for both is expected in mid 2018.

The broker maintains an Outperform rating and $6.55 target.

Target price is $6.55 Current Price is $5.64 Difference: $0.91
If ORE meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $7.18, suggesting upside of 27.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

UBS rates ORE as Buy (1) -

Orocobre's production was weak in the March Q but this was offset by strong lithium pricing, the broker notes. The broker has reduced its FY production assumptions to below guidance to be conservative.

With expansion projects fully funded and due for completion this year, the broker retains Buy and a $7.40 target.

Target price is $7.40 Current Price is $5.64 Difference: $1.76
If ORE meets the UBS target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $7.18, suggesting upside of 27.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Deutsche Bank rates ORG as Hold (3) -

March quarter APLNG production was in line with expectations at 67.2PJe. Revenue was -7% below Deutsche Bank's expectations because of a sales underlift in the quarter. No update on FY18 production guidance was provided.

Hold maintained. Target is $9.35.

Target price is $9.35 Current Price is $9.86 Difference: minus $0.51 (current price is over target).
If ORG meets the Deutsche Bank target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.82, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

UBS rates ORG as Buy (1) -

Origin's March Q report illustrated to the broker APLNG -- the company's only producing asset since the sale of Lattice -- is in a position to begin increased cash distributions back to Origin on a combination of rising oil prices and cost controls.

The key catalyst is debt reduction, the broker suggests, which is required before the dividend can be reinstated. The broker believes FY19 is possible. Buy retained. Target rises to $10.70 from $10.15.

Target price is $10.70 Current Price is $9.86 Difference: $0.84
If ORG meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $9.82, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Macquarie rates PNL as Outperform (1) -

The company is making progress on the development of Poplar Grove and first coal production is on schedule. Macquarie observes operating margins remain attractive and sales offtake has been agreed.

Marketing efforts are currently focused on contracting production for delivery from 2020 onwards. Outperform rating and $0.60 target maintained.

Target price is $0.60 Current Price is $0.34 Difference: $0.26
If PNL meets the Macquarie target it will return approximately 76% (excluding dividends, fees and charges).

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: 1.0

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

Citi rates QAN as Buy (1) -

An increasingly rational domestic market is positive for the outlook, in Citi's view, particularly in light of rising fuel prices which could affect profitability in the international and freight divisions. An improving outlook for the domestic business is likely to improve earnings certainty.

Management is confident that structural changes can offset the cyclical factors which still have a considerable influence on earnings. Citi envisages less justification for valuation discounts relative to international peers.

Target price is $7.50. Buy rating retained.

Target price is $7.50 Current Price is $5.80 Difference: $1.7
If QAN meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $6.58, suggesting upside of 13.5% (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

Deutsche Bank rates SGP as Buy (1) -

Deutsche Bank observes continuing positive residential trading conditions and improving retail sales in the March quarter for Stockland. The company has re-affirmed guidance for distributions of 26.5c per security.

The broker retains a Buy rating based on 18% upside envisaged to the current share price and a strong distribution yield relative to peers. Target is $4.89.

Target price is $4.89 Current Price is $4.14 Difference: $0.75
If SGP meets the Deutsche Bank target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $4.50, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates SGP as Neutral (3) -

The company has reaffirmed FY18 guidance. Macquarie expects a step up in residential earnings to be supplemented by lower debt costs that will offset a reduction in retirement earnings and a flat contribution from the commercial property portfolio.

The broker believes the residential business remains well placed. Neutral rating and $4.27 target maintained.

Target price is $4.27 Current Price is $4.14 Difference: $0.13
If SGP meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.50, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates SGP as Accumulate (2) -

Stockland has maintained guidance for growth in FY18 funds from operations of 5.0-6.5%. Ord Minnett notes retail sales growth in the March quarter was the best in two years for the company, while quarterly residential sales rates were the lowest since 2012.

The broker considers the stock cheap and expects good growth in FY19 from potential residential margin upgrades and accretive developments. Accumulate maintained. Target is $4.70.

Target price is $4.70 Current Price is $4.14 Difference: $0.56
If SGP meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.50, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates SGP as Neutral (3) -

Stockland's March Q update highlighted a moderation in residential conditions, despite record contracts at hand, improvement in retail sales and softness in retirement living, the broker notes.

The broker does not see value as demanding but believes earnings risk is to the downside. Lending standards are likely to become tighter than the broker originally anticipated as a result of the banking RC. Neutral and $4.20 target retained.

Target price is $4.20 Current Price is $4.14 Difference: $0.06
If SGP meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.50, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates SVW as Re-instate Coverage with Accumulate (3) -

Ord Minnett resumes coverage with an Accumulate rating and $20.08 target. Seven Group, the primary investment vehicle of Kerry Stokes, appears poised to deliver significant growth and the broker notes a recovery in mining capital expenditure is benefiting the WesTrac business.

An east coast infrastructure boom is also driving profits at the Coats Hire operation. The broker believes the shape and focus of the business is changing for the better.

Target price is $5.10 Current Price is $18.47 Difference: minus $13.37 (current price is over target).
If SVW meets the Ord Minnett target it will return approximately minus 72% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.30, suggesting downside of -22.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Credit Suisse rates SYR as Outperform (1) -

March quarter production was softer than expected. Plant optimisation should deliver a better June quarter and the performance in April is already showing evidence of the enhancements, Credit Suisse notes.

2018 guidance for 160-180,000t is unchanged but the lower end is now targeted. Outperform rating and $6.60 target maintained.

Target price is $6.60 Current Price is $3.26 Difference: $3.34
If SYR meets the Credit Suisse target it will return approximately 102% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 51.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Macquarie rates SYR as Outperform (1) -

The company produced 112,000t of graphite in the March quarter, below plan but ahead of Macquarie's assumptions. The broker notes the company is working through the start-up issues and models a continued improvement in recoveries over the coming quarters.

The company has approvals in place for a new battery anode material plant, an important development in the broker's opinion. Outperform rating and $5 target maintained.

Target price is $5.00 Current Price is $3.26 Difference: $1.74
If SYR meets the Macquarie target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 51.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

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

The company is now targeting the lower end of 160-180,000t for 2018. Morgan Stanley focuses on the committed offtakes for 2018, which are running at around 100,000t as of December and leave 60,000t without offtake.

The broker maintains a view that Chinese contracts are likely to be discounted to gain market share. Equal-weight retained. Target is $3.75. Industry view is Attractive.

Target price is $3.75 Current Price is $3.26 Difference: $0.49
If SYR meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 51.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

UBS rates SYR as Buy (1) -

Syrah's March Q production fell short of the broker due to a slower ramp up in recoveries. First product payments were received in the quarter and feedback from over 20 customers was positive, the broker notes.

The net price realised was, as expected, lower than the basket price but the discount should narrow this quarter. Given minimal spot volumes for graphite, it's early days for price discovery, management noted. The broker retains Buy, lowering its target to $4.60 from $4.70.

Target price is $4.60 Current Price is $3.26 Difference: $1.34
If SYR meets the UBS target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 51.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Ord Minnett rates TCL as Buy (1) -

Following the investor briefing, Ord Minnett is convinced that the outlook is positive and development upside is likely from the existing portfolio. The main short-term risk remains the WestConnex bid process.

The broker suspects some investors are overly concerned by the re-financing risk, but estimates less than 20% of the debt is maturing in the next two or so years and this is likely to be re-financed at a lower cost. Buy rating. Target is $14.50.

Target price is $14.50 Current Price is $11.63 Difference: $2.87
If TCL meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $13.06, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

UBS rates TCL as Buy (1) -

Transurban's investor day provided no new information and the broker has made no changes to forecasts. The company plans to continue investing capital beyond its four networks and is establishing a debt strategy to provide some protection against rising interest rates.

The development pipeline is strong, with the West Gate Tunnel -- Transurban's biggest ever project -- showcased on the day. Buy and $13.35 target retained.

Target price is $13.35 Current Price is $11.63 Difference: $1.72
If TCL meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $13.06, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Deutsche Bank rates WES as Hold (3) -

The company's update provided insights into the operating conditions for Bunnings UK. Like-for-like sales growth was 3.0% and strong trade in plumbing and heating offset weakness in consumer segments, which was attributed to a "fragile UK consumer environment".

Hold rating and $41 target maintained.

Target price is $41.00 Current Price is $43.81 Difference: minus $2.81 (current price is over target).
If WES meets the Deutsche Bank target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $41.98, suggesting downside of -4.2% (ex-dividends)

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

Morgans rates WES as Hold (3) -

March quarter sales were slightly better than Morgans expected. Bunnings Australasia stood out with strong like-for-like sales growth of 7.7%. Coles' sales grew 1.3%.

Bunnings UK & Ireland delivered a poor result, in the broker's view, with like-for-like sales falling -15.4% despite management's efforts to improve Homebase and refine the offerings at Bunnings.

Severe weather in March significantly affected the performance despite an improvement in January and February. Morgans believes Bunnings UK & Ireland is still a long way from where it needs to be for management to justify continuing with the venture.

Hold rating maintained. Target rises to $44.74 from $44.65.

Target price is $44.74 Current Price is $43.81 Difference: $0.93
If WES meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $41.98, suggesting downside of -4.2% (ex-dividends)

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