Daily FNArena News - Australia

What can Wesfarmers do with its underperforming chain, Target? Brokers suggest the laggard of the group may be in line for a severe reassessment.

While recovery for the land-based business of Aristocrat Leisure is likely to be gradual, brokers assess there is more than enough liquidity in the business.

Business loan growth at National Australia Bank is likely over coming months but of greater concern to brokers is the potential for a surge in bad debts.

NAB has set the agenda, but most analysts suggest pain will be temporary and the bank sector remains strong.

Having withdrawn guidance in March, Steadfast Group has moved to reassure investors that earnings momentum is sound.

Carsales.com has experienced better trajectory in volumes since Easter, signalling to brokers that business may be more resilient than initially expected.

A2 Milk has been a beneficiary of the pandemic restrictions, with strong sales in online and re-seller channels, but will the effect of stockpiling subsequently unwind – and sharply?

BHP Group retains a reasonably robust outlook for its key commodities, despite restrictions, as some development projects are deferred or delayed to shore up capital in the event conditions deteriorate.

Nearmap has implemented savings initiatives, anticipating positive cash flow by June, despite being deemed an essential service and unaffected to date by the pandemic.

There are some positive stories emanating from Perpetual’s initiatives but one broker questions whether the dividend may still need to be cut.