Australian Broker Call

Morgan Stanley rates ANN as Overweight (1) -

Morgan Stanley observes the global economic backdrop is soft and first half earnings are expected to be at the lower end of the company's growth range of 3-5% over FY20.

First half results are due on February 18. However, the company does have exposure to non-cyclical industries which may offset the weakness.

Overweight rating. Target is raised to $35.30 from $31.60. Industry view is In-Line.

Target price is $35.30 Current Price is $32.27 Difference: $3.03
If ANN meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $29.54, suggesting downside of -8.5% (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

Ord Minnett rates ANN as Hold (3) -

Ord Minnett expects a strong lift in reported profits when the company reports on February 18. On an adjusted basis, stripping out the restructuring costs from a year ago, growth is expected to be modest.

Hold rating maintained. Target is raised to $28.00 from $25.50.

Target price is $28.00 Current Price is $32.27 Difference: minus $4.27 (current price is over target).
If ANN 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 $29.54, suggesting downside of -8.5% (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 AX1 as Initiation of coverage with Overweight (1) -

Morgan Stanley initiates coverage with an Overweight rating and $2.30 target. Industry view is In-Line. The broker is overweight based on the exposure to a fast-growing active footwear category.

Target price is $2.30 Current Price is $1.88 Difference: $0.42
If AX1 meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $2.01, suggesting upside of 7.1% (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

Citi rates AZJ as Neutral (3) -

Citi makes modest changes to underlying estimates in the wake of the first half result. This reflects downgrades to forecasts for the coal business which is likely to experience greater competition and pricing pressures.

Neutral rating and $5.60 target maintained.

Target price is $5.60 Current Price is $5.53 Difference: $0.07
If AZJ meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.65, suggesting upside of 2.1% (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

Credit Suisse rates AZJ as Outperform (1) -

First half earnings (EBIT) were in line with expectations. A weak coal segment offset strong bulks. Credit Suisse notes management was even more downbeat on pricing, expecting flat revenue in the coal segment over the next three years.

Competitor Genesee & Wyoming Australia appears to be moving in on the Queensland coal market. However, this is considered a low risk for the short term as Aurizon has extended most of its near-term contract expiries.

 Outperform rating maintained. Target is reduced to $5.80 from $6.00.

Target price is $5.80 Current Price is $5.53 Difference: $0.27
If AZJ meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.65, suggesting upside of 2.1% (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 AZJ as Underperform (5) -

Aurizon's result was solid, the broker suggests, as network earnings normalised and the bulk division posted a beat. Strong cash generation has led to an expansion of the buyback, given meaningful growth opportunities are hard to find.

The downside is coal contract repricing is offsetting underlying growth. Upside is limited to cost cutting, the broker notes, given limited organic growth. The broker thus sees the stock as overvalued. Underperform retained. Target rises to $5.54 from $5.33.

Target price is $5.54 Current Price is $5.53 Difference: $0.01
If AZJ meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.65, suggesting upside of 2.1% (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

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

First half earnings (EBIT) were ahead of estimates. Morgan Stanley finds distribution growth and capital management have some appeal for the near term.

Amid heightened attention to environmental factors, the broker notes many positive initiatives from the company, including emissions reductions, while pointing out that rail emissions are typically lower than road transport emissions on a net tonne per kilometre basis.

Target is reduced to $5.68 from $5.78. Equal-weight rating. Industry view: Cautious.

Target price is $5.68 Current Price is $5.53 Difference: $0.15
If AZJ meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.65, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Morgans rates AZJ as Add (1) -

First half earnings (EBIT) beat forecasts. Although the business faces a lower growth outlook, Morgans suspects investors will be attracted to the dividend yield, a significant share buyback and valuation support.

Management expects limited above-rail revenue growth for coal across FY20-22 with competitive pressure on contract pricing offsetting volume growth. Morgans also notes coal revenue quality is declining.

Add rating maintained. Target is reduced to $5.71 from $5.78.

Target price is $5.71 Current Price is $5.53 Difference: $0.18
If AZJ meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.65, suggesting upside of 2.1% (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

UBS rates AZJ as Neutral (3) -

Guidance has been reiterated despite lower first-half coal earnings. Group earnings (EBIT) were slightly below UBS estimates.

Distributions to shareholders continue to be a highlight, with the broker noting the company paid out 100% of earnings as dividends and increased its buyback to $400m.

Management now expects modest revenue growth from coal and, while re-contracting risk is not new, UBS believes the latest commentary is a reminder of the low growth outlook for coal haulage.

Neutral rating maintained. Target is reduced to $5.55 from $5.70.

Target price is $5.55 Current Price is $5.53 Difference: $0.02
If AZJ meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.65, suggesting upside of 2.1% (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

Citi rates BLD as Neutral (3) -

The company has reduced first half expectations for operating earnings (EBITDA), which are likely to fall -6% to $440m.

Net profit in FY20 is expected to be in a range of $320-340m, which Citi calculates at the mid point is down -21% from FY19's re-stated $420m.

The broker observes the domestic downturn has cut deeper than previously expected and North America continues to disappoint.

Management will reactivate the dividend reinvestment plan, which will provide additional cash of around $225m.

Coupled with the sale proceeds from Midland Bricks, Citi assesses this should mean FY21 gearing and leverage ratios remain below target levels.

Neutral rating and $4.80 target maintained.

Target price is $4.80 Current Price is $4.77 Difference: $0.03
If BLD meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.70, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Credit Suisse rates BLD as Underperform (5) -

FY20 net profit guidance has been reduced by -10-15%. Credit Suisse notes stone and roofing were pitched as growth businesses of the September 2019 investor briefing yet revenue has declined -7% and -3% respectively.

The company has confirmed a negative cement/concrete price outcome in Australia with no improvement expected in the second half.

Credit Suisse retains an Underperform rating, anticipating further negative developments including the contribution from US synergies, the carrying value of Headwaters and growth targets for fly ash. Target is reduced to $4.10 from $4.45.

Target price is $4.10 Current Price is $4.77 Difference: minus $0.67 (current price is over target).
If BLD meets the Credit Suisse target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.70, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates BLD as No Rating (-1) -

A pre-released report from Boral showed a first half operationally in line with the broker's expectations, while bushfires and weather have provided for a weaker second half outlook.

The broker is currently restricted from making a recommendation.

Current Price is $4.77. Target price not assessed.

Current consensus price target is $4.70, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

First half net profit was ahead of expectations. Yet updated FY20 net profit guidance of $320-340m is -27% below FY19 at the mid point and -8% below the broker's forecasts.

Management has confirmed that accounting issues in the windows business were the result of fraud and, as a result, historical pre-tax profit has been overstated by US$3.8m in FY18 and US$18.8m in FY19.

Morgan Stanley believes it is too early to adopt a positive stance and retains an Equal-weight rating. Industry view is Cautious. Target is $4.50.

Target price is $4.50 Current Price is $4.77 Difference: minus $0.27 (current price is over target).
If BLD meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.70, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates BLD as Upgrade to Hold from Lighten (3) -

The North American division has again been the main area of disappointment, particularly with respect to margins, and Ord Minnett reduces estimates for earnings per share by -9% over FY20-22 to reflect this.

The broker believes most important strategic decision for the CEO Mike Kane's successor will be whether to persist with the existing North American portfolio, possibly at lower carrying value, or to re-focus on the more profitable business in Australia.

As FY20 guidance is now more realistic, Ord Minnett upgrades to Hold from Lighten. Target is $4.50.

Target price is $4.50 Current Price is $4.77 Difference: minus $0.27 (current price is over target).
If BLD meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.70, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates BLD as Buy (1) -

First half operating earnings (EBITDA) of $493m were slightly below UBS estimates. Weakness in Australia was not a complete surprise, given the known conditions. The broker reduces FY20 net profit estimates by -16%.

CEO Mike Kane has announced his retirement following the FY20 result in August. UBS suspects the market will be wary of how a new CEO will steer the business.

Buy rating maintained as macro conditions are too strong to ignore. Target is reduced to $5.60 from $6.00.

Target price is $5.60 Current Price is $4.77 Difference: $0.83
If BLD meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.70, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates BPT as Hold (3) -

Ord Minnett, in an initial response to today's release of interim financials, calls it a "somewhat uninspiring" result. The analysts note management did narrow FY guidance, but capex is projected to come out 14% higher with expected production for the year marginally lower.

Interim dividend didn't quite meet expectations, and the analysts observe net cash is a miss too, though working capital is to blame. All in all, Ord Minnett believes the interim report is a slight miss overall.

Target price is $2.65 Current Price is $2.32 Difference: $0.33
If BPT meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.44, suggesting upside of 5.0% (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

Morgan Stanley rates CCX as Initiation of coverage with Overweight (1) -

Morgan Stanley initiates coverage with an Overweight rating and $3.60 target. Industry view is In-Line.

Target price is $3.60 Current Price is $3.11 Difference: $0.49
If CCX meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Market Sentiment: 0.0

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

Citi rates CLW as Buy (1) -

First half results were in line with expectations and FY20 guidance is unchanged. Citi envisages upside to guidance, driven by several factors including the potential for further acquisitions and lower debt costs.

Amid attractive low-risk income and a 5.3% dividend yield as well as the anticipation of strong growth over 2019-2022 the broker reiterates a Buy rating. Target is reduced to $6.50 from $6.52.

Target price is $6.50 Current Price is $5.58 Difference: $0.92
If CLW meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $5.87, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates CLW as Neutral (3) -

Charter Hall Long WALE REIT increased earnings by 8.5% in the first half, in line with the broker's forecast. Full year guidance was reaffirmed. Net tangible asset value was increased by 10.5% and the acquisition market outlook remains solid, the broker notes.

The REIT remains a stable income vehicle with a good track record of portfolio management, the broker suggests, but concerns remain around free cash flow post acquisition costs, and thus dividend coverage. The broker sees limited valuation support. Neutral retained. Target falls to $5.61 from $5.88 on higher interest expense.

Target price is $5.61 Current Price is $5.58 Difference: $0.03
If CLW meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.87, suggesting upside of 5.1% (ex-dividends)

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 CLW as Buy (1) -

First half earnings were marginally ahead of forecasts. FY20 guidance has been reiterated. Ord Minnett continues to like the defensive, long-lease portfolio with predictable earnings growth.

The broker believes the 10-year Australian government bond spread of 5.5 percentage points will continue to compress as investors factor lower bond yields into their discount rates.

The stock is trading on a yield of 5.2%, in line with the broader A-REIT sector but with a materially lower re-leasing risk, a higher proportion of fixed rent reviews and low capital expenditure. Buy rating and $5.90 target maintained.

Target price is $5.90 Current Price is $5.58 Difference: $0.32
If CLW meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.87, suggesting upside of 5.1% (ex-dividends)

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

UBS rates CLW as Neutral (3) -

First half results and FY20 guidance were in line with expectations. While interest rates remain low, UBS expects the company will remain well supported, but prefers the superior growth of Charter Hall ((CHC)) as manager, notwithstanding the different risk/return profile.

The growth potential in 2020 is more about evolution than revolution, in the broker's view. Strong demand for long WALE assets, fuelled by low interest rates, is continuing to drive further compression in capitalisation rates.

Neutral rating maintained. Target is raised to $5.45 from $5.40.

Target price is $5.45 Current Price is $5.58 Difference: minus $0.13 (current price is over target).
If CLW meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.87, suggesting upside of 5.1% (ex-dividends)

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

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

Morgan Stanley expects the first half results on February 18 will demonstrate a recovery in implant market share, tempered somewhat by the maturing N7 upgrade cycle.

Momentum in unit growth is likely to define the market's confidence in FY20, the broker adds. Target is raised to $233 from $223.70. Equal-weight rating. In-Line industry view.

Target price is $233.00 Current Price is $236.24 Difference: minus $3.24 (current price is over target).
If COH 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 $204.00, suggesting downside of -13.6% (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

Citi rates GPT as Sell (5) -

Guidance for growth of 3.5% in 2020 is ahead of expectations. Citi notes, having recently upgraded the stock on the potential for guidance to outperform, that small improvements matter, as the stock is up 2.8%.

Revised estimates reflect weaker retail income, stronger growth in office, and lower debt costs. The broker maintains a Neutral rating and raises the target to $6.17 from $5.68.

The company has emphasised its development pipeline and, while the shares are not cheap, Citi believes guidance could again prove to be conservative.

Target price is $6.17 Current Price is $6.32 Difference: minus $0.15 (current price is over target).
If GPT meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.21, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in December.

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 GPT as Neutral (3) -

2019 results were in line with expectations. The company is guiding to 3.5% growth in 2020. Portfolio fundamentals were solid, Credit Suisse observes, particularly in office.

The broker suspects the focus of the market is to heavily centred on the retail portfolio and not enough on the commercial development pipeline.

The capital position remains strong with plenty of capacity for development. Neutral rating maintained. Target rises to $6.15 from $6.09.

Target price is $6.15 Current Price is $6.32 Difference: minus $0.17 (current price is over target).
If GPT meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.21, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates GPT as Neutral (3) -

GPT Group's 2019 earnings were in line with the broker and guidance while 2020 guidance is slightly above forecast. Office and logistics are clearly the stand-out performers, the broker notes, offset by concerning retail outcomes.

Retail free cash flow was negative in the period. On balance, the broker retains Neutral. Target falls to $6.26 from $6.29.

Target price is $6.26 Current Price is $6.32 Difference: minus $0.06 (current price is over target).
If GPT meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.21, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates GPT as Underweight (5) -

2019 results were in line with expectations. 2020 guidance for 3.5% growth is ahead of Morgan Stanley's forecasts. The broker suspects the market is under-appreciating the logistics segment. Around $300m in new facilities will contribute to 2020 earnings.

However, retail will remain a drag in 2020. The broker has an Underweight rating. Target is raised to $5.90 from $5.70. Industry view is In-Line.

Target price is $5.90 Current Price is $6.32 Difference: minus $0.42 (current price is over target).
If GPT meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.21, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in December.

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 GPT as Hold (3) -

2019 results revealed the relatively strong growth in office and logistics assets, which now account for 57% of book value. Comparable income growth was marginally better than Ord Minnett expected.

The broker expects earnings growth of 2.5% per annum over the next five years. Hold rating maintained. Target is raised to $6.40 from $6.20.

Target price is $6.40 Current Price is $6.32 Difference: $0.08
If GPT meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.21, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in December.

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 GPT as Neutral (3) -

2019 results and guidance for 2020 growth of 3.5% met UBS expectations. Office and logistics continually surprise to the upside while the broker notes retail metrics are subdued.

The broker believes the company is well-positioned to refine guidance higher throughout 2020. Neutral maintained. Target rises to $6.35 from $6.25.

Target price is $6.35 Current Price is $6.32 Difference: $0.03
If GPT meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $6.21, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in December.

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 HUO as Neutral (3) -

Credit Suisse reviews estimates ahead of the first half result on February 21. A combination of lower first-half pricing and the fact that the company will only start harvesting 2019 fish in the second half of FY20, means a stronger second half is required to achieve expectations.

Neutral maintained. Target is reduced to $4.50 from $4.70.

Target price is $4.50 Current Price is $4.57 Difference: minus $0.07 (current price is over target).
If HUO meets the Credit Suisse target it will return approximately minus 2% (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: 0.0

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

UBS rates IPL as Neutral (3) -

UBS notes global fertiliser prices remain challenged as the 2020 planting season gets underway.

The broker anticipates some upside risk from the facts soils need replenishment after several seasons of missed applications, but this remains dependent on suitable weather. FY20 earnings (EBIT) forecasts are reduced by -10%.

UBS, meanwhile, remains attracted to the company's strong position in the global mining explosives market. Neutral maintained. Target is reduced to $3.40 from $3.50.

Target price is $3.40 Current Price is $3.16 Difference: $0.24
If IPL meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.50, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in September.

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

Citi rates JBH as Downgrade to Sell from Neutral (5) -

For the initial response to JB Hi-Fi's interim report, see yesterday's Broker Call Report. Following an initially positive response, Citi analysts have subsequently decided it's time to downgrade to Sell from Neutral.

What has changed over the past 24 hours? Well, the share price, of course. Citi analysts remain positioned near the top of market consensus, having only minimally upgraded their forecasts post the release.

Citi continues to laud the quality and the growth potential of the business, also carried by improving housing activity, but the share price is simply assuming too optimistic an outlook, suggest the analysts. Price target has jumped to $39.50 from $35.20.

Target price is $39.50 Current Price is $42.64 Difference: minus $3.14 (current price is over target).
If JBH meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.46, suggesting downside of -5.1% (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

Credit Suisse rates JBH as Underperform (5) -

First half results were firm and the underlying result appears stronger than the headline suggested.

Credit Suisse removes the downside from forecasts, as an adverse impact on margin from changing sales mix has not materialised. Sales guidance has been upgraded to $7.33bn for FY20.

The broker retains an Underperform rating and raises the target to $31.97 from $28.27.

Target price is $31.97 Current Price is $42.64 Difference: minus $10.67 (current price is over target).
If JBH meets the Credit Suisse target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.46, suggesting downside of -5.1% (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 JBH as Upgrade to Outperform from Neutral (1) -

JB Hi-Fi's first half profit beat consensus by 5%, while full year guidance is also ahead of consensus. All divisions delivered positive comparable sales in the first half, Macquarie notes. Improved execution at The Good Guys has the broker becoming more bullish on what had been the company's problem child.

Despite the threats from online (ie Amazon), JB Hi-Fi has proved it is able to successfully innovate and diversify into new products while maintaining costs, Macquarie notes. Upgrade to Outperform. Target rises to $51.10 from $36.8 as the broker resets PE multiple assumptions back to historical levels.

Target price is $51.10 Current Price is $42.64 Difference: $8.46
If JBH meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $40.46, suggesting downside of -5.1% (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

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

First half results were ahead of estimates. The Good Guys surprised both at the top line and margin.

While the result demonstrated like-for-like sales since October were better than anticipated and there is margin momentum, Morgan Stanley considers the value upside is limited.

Equal-weight. Target is raised to $39 from $37. Industry view: Cautious.

Target price is $39.00 Current Price is $42.64 Difference: minus $3.64 (current price is over target).
If JBH meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.46, suggesting downside of -5.1% (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

Morgans rates JBH as Hold (3) -

First half net profit was ahead of expectations. Net profit guidance for FY20 is likely to prove conservative, implying around 6% growth in the second half.

Morgans expects net profit growth in FY20 of 8.8%. Hold rating maintained. Target rises to $40.66 from $35.34.

Target price is $40.66 Current Price is $42.64 Difference: minus $1.98 (current price is over target).
If JBH meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.46, suggesting downside of -5.1% (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

Ord Minnett rates JBH as Hold (3) -

First half net profit was ahead of Ord Minnett's estimates. Sales growth guidance has also been upgraded for FY20.

Ord Minnett considers the JB Australia division attractively positioned with reductions in costs a positive, although future cuts will be more incremental.

Valuation metrics remain mixed, however, and the broker retains a Hold rating. Target is $38.

Target price is $38.00 Current Price is $42.64 Difference: minus $4.64 (current price is over target).
If JBH 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 $40.46, suggesting downside of -5.1% (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

UBS rates JBH as Neutral (3) -

First half results was slightly ahead of UBS estimates. The broker suspects guidance for net profit in FY20 could be conservative as it implies just 2% like-for-like growth in the second half.

Despite the rise in the share price, UBS retains a Neutral rating, given the lack of downside catalysts. Target is raised to $43.00 from $37.80.

Target price is $43.00 Current Price is $42.64 Difference: $0.36
If JBH meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $40.46, suggesting downside of -5.1% (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

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

The investor briefing on Rip Curl highlighted the importance of brand authenticity and what a "surf" focus means for growth. The briefing reinforced Credit Suisse's view that Rip Curl is an attractive and strategically sound acquisition.

No specific revenue or cost synergies were provided. The general trading update was also in line with expectations, with underlying earnings (EBIT) to be up 40% in FY20.

Credit Suisse believes the current share price now reflects a balanced risk/reward and downgrades to Neutral from Outperform. Target is raised to NZ$3.65 from NZ$3.35.

Current Price is $3.37. Target price not assessed.

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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

UBS rates MQG as Neutral (3) -

In an initial response to today's trading update, UBS analysts note it's all pretty much in line with expectations, including management leaving the guidance unchanged for FY20 to be slightly down on FY19.

Macquarie Group remains the broker's preferred financial services provider in Australia. Price target rises to $142, but on valuation the rating remains Neutral.

Target price is $142.00 Current Price is $145.29 Difference: minus $3.29 (current price is over target).
If MQG meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $138.82, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in March.

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

Macquarie rates NWS as Outperform (1) -

It was another mixed quarter from News Corp, the broker notes. REA Group ((REA)) earnings declined on weaker volumes while Move earnings improved due to lower costs and News & Info Services improved on strong growth from Dow Jones.

The broker is forecasting a material improvement in momentum in the second half due to a number of catalysts, including a recovery in REA volumes. Outperform retained, target rises to $25.97 from $25.37.

Target price is $25.97 Current Price is $21.35 Difference: $4.62
If NWS meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $24.54, 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

UBS rates OGC as Buy (1) -

2020 guidance is slightly better than UBS forecast. Production ex Didipio is expected to be 360-380,000 ounces at an all-in sustainable cost of $1025-1075/oz.

Disruption (Didipio) and transition (Waihi) means the 2020 earnings outlook is not indicative of the underlying asset, in the broker's view.

Moreover, the stock is lagging peers and the 40% lift in the gold price. UBS maintains a Buy rating and $4 target.

Target price is $4.00 Current Price is $2.80 Difference: $1.2
If OGC meets the UBS target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $4.04, suggesting upside of 44.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.8

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

Ord Minnett rates OSH as Upgrade to Hold from Lighten (3) -

The breakdown of discussions over P'nyang has meant the share price has de-rated and there are significant impediments to reviving the three-train PNG LNG expansion.

Moreover, a two-train expansion appears unlikely, in Ord Minnett's view. As the share price is now placing little value on the project, the broker upgrades to Hold from Lighten. Target is $6.85.

Target price is $6.85 Current Price is $6.41 Difference: $0.44
If OSH meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.90, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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 PPS as Add (1) -

First half results were "acceptable" and slightly ahead of expectations, but Morgans notes the company still lacks the scale required to deliver outstanding returns.

Praemium trades on high multiples of earnings and thus needs to maintain a high level of revenue growth to sustain the current share price, the broker points out.

As the stock is trading at a discount to valuation an Add rating is maintained. Target is reduced to $0.58 from $0.59.

Target price is $0.58 Current Price is $0.47 Difference: $0.11
If PPS meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

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

REA Group delivered a solid first half in the context of a -14% overall drop in listings, and worse still in Sydney and Melbourne, Macquarie suggests. Management has executed well in continuing to build yield and protect the earnings outlook.

The second half should see volumes recover and earnings growth accelerate, the broker believes, but the market has already run ahead of this expectation. Downgrade to Underperform. Target rises to $110 from $105.

Target price is $110.00 Current Price is $113.01 Difference: minus $3.01 (current price is over target).
If REA 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 $102.36, suggesting downside of -9.4% (ex-dividends)

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 SM1 as Upgrade to Neutral from Underperform (3) -

Credit Suisse upgrades to Neutral from Underperform and assesses the market is now more realistic about diversification outcomes.

The broker would like more visibility on the impact of the A2 Milk ((A2M)) negotiations and the margin that can be extracted in the long term. The legal risk around Pokeno also needs to be resolved.

Target is raised to NZ$8.84 from NZ$8.50.

Current Price is $7.86. Target price not assessed.

Current consensus price target is $9.19, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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

Macquarie rates SM1 as Upgrade to Neutral from Underperform (3) -

Macquarie has reviewed its outlook for Synlait Milk given new capacity which could drive earnings growth of 85% in the medium to longer term if the company can achieve incremental returns on capital anywhere near its 20%-plus target. Start-up costs for this new capacity are currently dragging on profit.

To that end the market is valuing the stock at a material discount to the NZX50 index. The broker upgrades to Neutral. Target rises to NZ$8.72 from NZ$8.69.

Current Price is $7.86. Target price not assessed.

Current consensus price target is $9.19, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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