Australian Broker Call

Credit Suisse rates A2M as Outperform (1) -

Trading updates on the infant formula companies in Australasia in the past two weeks revealed a divergence in fortunes, Credit Suisse observes. The broker notes a2 Milk has been a stronger performer versus Bellamy's Australia ((BAL)).

The company's EBIT margin of around 22% is also demonstrably stronger. The broker believes the fall in the stock price following the disappointing update from Bellamy's represents a buying opportunity.

The broker maintains an Outperform rating and NZ$2.57 target.

Current Price is $2.21. Target price not assessed.

Current consensus price target is $1.80, suggesting downside of -19.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Credit Suisse rates AHY as Neutral (3) -

September retail sales for the company's toilet paper business were weak in terms of volume and price. Credit Suisse expects the company should have partially mitigated volume growth outside the scanned channels, and via paper towels.

The broker suspects as the year draws to a close company is likely to have to navigate a build up in inventory. A Neutral rating and $1.50 target are maintained.

Target price is $1.50 Current Price is $1.52 Difference: minus $0.015 (current price is over target).
If AHY meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.57, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.7

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

Citi rates BAL as Sell (5) -

Citi had initiated in late October with the view that risks were too high for infant formula exporters into China and investors should wait for cheaper entry points. They think investors can wait longer.

Post Friday's shock market update, estimates have been slashed, the price target has halved to $6.00 from $12.10 and the rating remains Sell. The analysts state they need to see an improvement in brand momentum and Chinese industry conditions before they can turn more positive.

Interestingly, the loss of momentum also reduces the chances for a take-over approach, in Citi's view, while price discounting could severely hurt the Bellamy's brand, which would be a long term negative.

Target price is $6.00 Current Price is $6.85 Difference: minus $0.85 (current price is over target).
If BAL meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.94, suggesting upside of 3.8% (ex-dividends)

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

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

The company's trading update and FY17 guidance were well below estimates. Morgans downgrades FY17 and FY18 net profit forecasts by 45% and 55% respectively.

The company's second quarter has not been as strong as expected. The company is also being affected by regulatory changes in China which is causing brands which won't meet the December 31 2017 CFDA approval deadline to heavily discount their excess stock.

Morgans downgrades to Hold from Add and reduces the target to $7.55 from $16.65.

Target price is $7.55 Current Price is $6.85 Difference: $0.7
If BAL meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Ord Minnett rates BAL as Downgrade to Hold from Buy (3) -

Revenue for the year to November 20 2016 is up 24% which compares with Ord Minnett's FY17 estimate of up 59.3%. FY17 EBIT margins are now expected to be below 20%, depending on the sales channel mix.

With momentum materially slowing, market dislocation from regulatory changes, and the stock trading on FY17 price/earnings ratio of 20x post the downgrade, the broker lowers its recommendation to Hold from Buy. Target is reduced to $7.26 from $20.00.

Target price is $7.26 Current Price is $6.85 Difference: $0.41
If BAL meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Citi rates BDR as Upgrade to Buy from Neutral (1) -

Citi commodities analysts have changed their view on commodities, now expecting 2016's momentum is likely to remain the dominant theme for 2017 and 2018. The analysts remain bearish on bulk commodities whose rallies are labeled "a fluke" on the back of China changing its policies.

Price estimates have all gone up. For gold producers in particular, the combination of flat prices in AUD and a pull back in share prices has inspired to upgrades. Rating moved to Buy/High Risk from Neutral.

Current Price is $0.30. Target price not assessed.

Current consensus price target is $0.48, suggesting upside of 53.2% (ex-dividends)

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.3

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

Citi rates BHP as Upgrade to Neutral from Sell (3) -

Citi commodities analysts have changed their view on commodities, now expecting 2016's momentum is likely to remain the dominant theme for 2017 and 2018. The analysts remain bearish on bulk commodities whose rallies are labeled "a fluke" on the back of China changing its policies.

Price estimates have all gone up. BHP has been upgraded to Neutral from Sell.

Current Price is $25.02. Target price not assessed.

Current consensus price target is $24.80, suggesting downside of -0.6% (ex-dividends)

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

Macquarie rates BHP as Outperform (1) -

The company has approved the US$9bn development of Mad Dog 2. Macquarie notes the approval was well flagged at the investor briefing in October and operating metrics and capital expenditure are in line with expectations.

The broker incorporates the development in estimates for the first time. Outperform retained. Target is $28.

Target price is $28.00 Current Price is $25.02 Difference: $2.98
If BHP meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $24.80, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

Morgans rates CAT as Add (1) -

FY17 revenue guidance is in the range of $61-65.5m, well above Morgans former estimates. The company has also announced plans to accelerate development of the next prosumer wearables product range.

Morgans called a higher development spending on both the prosumer and XOS businesses, resulting in higher near-term losses and a deferral of the point of cash-flow break even.

As there is a wide gap between the valuation and share price, the broker maintains an Add rating. Target is raised to $4.32  from $4.23.

Target price is $4.32 Current Price is $2.89 Difference: $1.43
If CAT meets the Morgans target it will return approximately 49% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

UBS rates CGC as Buy (1) -

The company has acquired Avocado Ridge orchards and associated packaging operations, adding a fifth product to its offering.

The acquisition is expected to be accretive to earnings in its first full financial year.  Buy rating is maintained. Target is $3.00.

Target price is $3.00 Current Price is $3.08 Difference: minus $0.08 (current price is over target).
If CGC meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Morgan Stanley rates CPU as Underweight (5) -

The stock returned 10% in November, seeming to Morgan Stanley to be back in favour as a play on rising US dollar and rates. While this is positive, structural challenges appear to be overlooked and the broker considers the valuation is stretched.

Underweight retained. Target is $8.80. Industry view: In-Line.

Target price is $8.80 Current Price is $11.78 Difference: minus $2.98 (current price is over target).
If CPU meets the Morgan Stanley target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.70, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

Citi rates EVN as Upgrade to Buy from Neutral (1) -

Citi commodities analysts have changed their view on commodities, now expecting 2016's momentum is likely to remain the dominant theme for 2017 and 2018. The analysts remain bearish on bulk commodities whose rallies are labeled "a fluke" on the back of China changing its policies.

Price estimates have all gone up. For gold producers in particular, the combination of flat prices in AUD and a pull back in share prices has inspired to upgrades. Rating moved to Buy/High Risk from Neutral.

Current Price is $1.89. Target price not assessed.

Current consensus price target is $2.64, suggesting upside of 38.3% (ex-dividends)

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Macquarie rates FLT as Underperform (5) -

Macquarie has reviewed various travel apps which suggest the company will find it difficult to organically grow online. The Australian market is advanced with a high usage of apps for shopping, banking, music and travel.

The broker believes the company has failed to capitalise on its brand awareness and is a late and unremarkable entrant in a market characterised by high competition and dominant incumbents.

Recently launched Aunt Betty neither capitalises on the Flight Centre brand nor is available as an app. Underperform retained. Target is $27.20.

Target price is $27.20 Current Price is $32.91 Difference: minus $5.71 (current price is over target).
If FLT meets the Macquarie target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.88, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Citi rates FMG as Upgrade to Neutral from Sell (3) -

Citi commodities analysts have changed their view on commodities, now expecting 2016's momentum is likely to remain the dominant theme for 2017 and 2018. The analysts remain bearish on bulk commodities whose rallies are labeled "a fluke" on the back of China changing its policies.

Price estimates have all gone up. Fortescue has been upgraded to Neutral from Sell.

Current Price is $6.15. Target price not assessed.

Current consensus price target is $5.43, suggesting downside of -11.3% (ex-dividends)

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.1

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

Citi rates FPH as Buy (1) -

Some relief has arrived in the patent dispute with ResMed ((RMD)) as a German court has overturned the two preliminary injunctions preventing the company from selling its Simplus, Eson and Eson 2 Masks in Germany. Citi analysts estimate some three months worth of sales have gone out of the window.

German relief is seen as a positive development and likely to push up the share price after a sharp downtrend recently, the analysts suggest. Target NZ$11.00. Buy.

Current Price is $8.15. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Citi rates IGO as Upgrade to Neutral from Sell (3) -

Citi commodities analysts have changed their view on commodities, now expecting 2016's momentum is likely to remain the dominant theme for 2017 and 2018. The analysts remain bearish on bulk commodities whose rallies are labeled "a fluke" on the back of China changing its policies.

Price estimates have all gone up. For gold producers in particular, the combination of flat prices in AUD and a pull back in share prices has inspired to upgrades. Rating moved to Neutral from Sell.

Current Price is $4.39. Target price not assessed.

Current consensus price target is $4.14, suggesting downside of -5.4% (ex-dividends)

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Morgans rates INA as Add (1) -

The strength in the company's Lifestyle parks settlements in FY16 has continued into FY17 and guidance is upgraded to a target of over 170 from over 150.

Morgans likes the stock at current levels and retains an Add rating.Target is reduced to $3.03 from $3.10.

Target price is $3.03 Current Price is $2.67 Difference: $0.36
If INA meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

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

After reviewing the aged care sector Macquarie upgrades Japara to Outperform from Neutral. Target is $2.50.

The broker believes the company is well placed for the uncertainty inherent in all the regulatory environment, with more conservative gearing levels and more generous staff costs per place.

The broker expects the tight funding environment will restrict earnings growth from places, which increases the importance of portfolio growth.

Target price is $2.10 Current Price is $1.91 Difference: $0.195
If JHC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.32, suggesting upside of 19.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Citi rates LNK as Neutral (3) -

Link has lost out in trying to acquire Pillar with the NSW government selling to Mercer instead. Citi analysts suggest Link's focus is now likely to turn to organic growth and some of Pillar's customers might be on its radar.

In addition, the analysts point out success with pulling on board some insourced accounts could potentially add significantly to growth. Neutral.

Target price is $8.30 Current Price is $7.25 Difference: $1.05
If LNK meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.39, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Macquarie rates LNK as Outperform (1) -

The company's bid for Pillarr has been unsuccessful. The NSW government is selling Pillar to Mercer for $35m.

Macquarie observes the focus for Link reverts to delivering on substantial synergy targets from Superpartners and exploring other opportunities in existing and adjacent sectors.

Given the strong market position, the proportion of recurring revenues and relatively predictable earnings streams, the broker believes Link deserves a premium multiple. Outperform and $8.40 target retained.

Target price is $8.40 Current Price is $7.25 Difference: $1.15
If LNK meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $8.39, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

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

Citi has downgraded to Sell from Neutral, while reducing forecasts and pulling back the price target to $2.05 from $2.40. Clearly, Oroton's trading update did not meet expectations.

Citi analysts observe the majority of weakness in sales was driven by the core handbag category and the exit of categories such as apparel, footwear and lingerie. Factory stores are under pressure from international competitors, they add.

Target price is $2.05 Current Price is $2.20 Difference: minus $0.15 (current price is over target).
If ORL 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 $2.05, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -1.0

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

UBS rates QBE as Buy (1) -

UBS believes it is a good time to re-evaluate QBE. The company has, so far, not warned on profits. Beyond the second half, the broker still considers double digit margins are attainable by FY18.

While a chequered track record for consistency means the broker is hesitant to factor in capital returns, there are enough positives which could evolve into a bankable proposition.

UBS sits tight on a Buy call and raises the target to $12.60 from $11.50.

Target price is $12.60 Current Price is $11.74 Difference: $0.86
If QBE meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $11.16, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

Market Sentiment: 0.4

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

Citi rates RIO as Upgrade to Neutral from Sell (3) -

Citi commodities analysts have changed their view on commodities, now expecting 2016's momentum is likely to remain the dominant theme for 2017 and 2018. The analysts remain bearish on bulk commodities whose rallies are labeled "a fluke" on the back of China changing its policies.

Price estimates have all gone up. Rio Tinto has been upgraded to Neutral from Sell.

Current Price is $58.04. Target price not assessed.

Current consensus price target is $61.55, suggesting upside of 5.0% (ex-dividends)

Forecast for FY16:

Forecast for FY17:

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

Market Sentiment: 0.6

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

Citi rates RRL as Upgrade to Buy from Neutral (1) -

Citi commodities analysts have changed their view on commodities, now expecting 2016's momentum is likely to remain the dominant theme for 2017 and 2018. The analysts remain bearish on bulk commodities whose rallies are labeled "a fluke" on the back of China changing its policies.

Price estimates have all gone up. For gold producers in particular, the combination of flat prices in AUD and a pull back in share prices has inspired to upgrades. Rating moved to Buy from Neutral.

Current Price is $2.86. Target price not assessed.

Current consensus price target is $3.21, suggesting upside of 13.8% (ex-dividends)

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Citi rates RSG as Upgrade to Buy from Neutral (1) -

Citi commodities analysts have changed their view on commodities, now expecting 2016's momentum is likely to remain the dominant theme for 2017 and 2018. The analysts remain bearish on bulk commodities whose rallies are labeled "a fluke" on the back of China changing its policies.

Price estimates have all gone up. For gold producers in particular, the combination of flat prices in AUD and a pull back in share prices has inspired to upgrades. Rating moved to Buy/High Risk from Neutral.

Current Price is $1.20. Target price not assessed.

Market Sentiment: 0.5

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

Citi rates S32 as Upgrade to Buy from Sell (1) -

Citi commodities analysts have changed their view on commodities, now expecting 2016's momentum is likely to remain the dominant theme for 2017 and 2018. The analysts remain bearish on bulk commodities whose rallies are labeled "a fluke" on the back of China changing its policies.

Price estimates have all gone up. South32 has received a double-whammy upgrade to Buy from Sell.

Current Price is $2.83. Target price not assessed.

Current consensus price target is $2.80, suggesting downside of -1.6% (ex-dividends)

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

Citi rates SFR as Upgrade to Buy from Neutral (1) -

Citi commodities analysts have changed their view on commodities, now expecting 2016's momentum is likely to remain the dominant theme for 2017 and 2018. The analysts remain bearish on bulk commodities whose rallies are labeled "a fluke" on the back of China changing its policies.

Price estimates have all gone up. For gold producers in particular, the combination of flat prices in AUD and a pull back in share prices has inspired to upgrades. Rating moved to Buy/High Risk from Neutral.

Current Price is $6.02. Target price not assessed.

Current consensus price target is $5.86, suggesting downside of -3.2% (ex-dividends)

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Macquarie rates SLM as Re-instate coverage with Neutral rating (3) -

Macquarie reinstates coverage Of Salmat with a Neutral rating and $0.52 target.The company has raised $15m from an accelerated non-renounceable entitlement offer.

The funds are to be used for consideration in relation to the acquisition of Microsourcing. Microsourcing was already fully consolidated in the FY16 result.

The broker believes the building blocks are now in place to support a renewal of revenue growth. Yet Macquarie believes it is too early to become positive, although it will watch progress closely.

Target price is $0.52 Current Price is $0.53 Difference: minus $0.01 (current price is over target).
If SLM meets the Macquarie 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 FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

UBS rates TGR as Initiation of coverage with Buy (1) -

UBS initiates coverage of Australia's largest salmon grower with a Buy rating and $4.35 target.

There are strong barriers to entry in salmon production and UBS estimates the company has upside risk to revenue/kg, an improving return on capital and earnings per share growth in FY17-20 of 8.6%.

Target price is $4.35 Current Price is $3.93 Difference: $0.42
If TGR meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.41, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Morgan Stanley rates VRT as Overweight (1) -

The company has acquired Aagaard fertility clinic in Denmark, which Morgan Stanley estimates to be 1.5% accretive to earnings per share. On the broker's estimates, international operations will contribute around 11% of the company's EBITDA in FY17.

Despite short-term weakness in the domestic market, the broker expects a 3-4% long-term compound growth rate for the IVF industry.

Current valuation is considered attractive and Morgan Stanley retains an Overweight rating. Target is raised to $8.50 from $8.20. Industry view is In-Line.

Target price is $8.50 Current Price is $6.01 Difference: $2.49
If VRT meets the Morgan Stanley target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $7.57, suggesting upside of 26.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Citi rates WHC as Upgrade to Buy from Sell (1) -

Citi commodities analysts have changed their view on commodities, now expecting 2016's momentum is likely to remain the dominant theme for 2017 and 2018. The analysts remain bearish on bulk commodities whose rallies are labeled "a fluke" on the back of China changing its policies.

Price estimates have all gone up. Whitehaven Coal has received a double-whammy upgrade to Buy from Sell.

Current Price is $2.84. Target price not assessed.

Current consensus price target is $2.98, suggesting upside of 4.8% (ex-dividends)

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Morgan Stanley rates WOW as Underweight (5) -

Morgan Stanley observes, from supplier feedback, that like-for-like sales growth now appears to be ahead of Coles ((WES)). If this is reported, it would be the first time since the first quarter of 2010.

The drivers according to suppliers are better promotional effectiveness, greater stability in buyers and the re-launch of the loyalty program.

While the company's performance is improving the broker retains an Underweight rating, suspecting the market is already discounting a steep profit recovery. In-Line industry view. Target is $20.

Target price is $20.00 Current Price is $22.94 Difference: minus $2.94 (current price is over target).
If WOW meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.26, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.4

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