Australian Broker Call

Macquarie rates AQG as Downgrade to Neutral from Outperform (3) -

Macquarie assesses a strengthening Australian dollar has taken the gloss off the gold sector, putting a brake on earnings growth.

This is exacerbated by expectations for a disrupted June quarter and production growth in FY21 is likely to be limited.

Rating is downgraded to Neutral from Outperform. Target is raised to $9.40 from $9.00.

Target price is $9.40 Current Price is $9.31 Difference: $0.09
If AQG meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $9.70, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.3

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

Macquarie rates BSL as Outperform (1) -

Macquarie observes the steel market is stabilising and the prospect of further housing stimulus in Australia could add confidence to the recovery.

The broker is also attracted to the strong balance sheet. Outperform rating maintained. Target is raised to $12.20 from $11.10.

Target price is $12.20 Current Price is $11.22 Difference: $0.98
If BSL meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $12.98, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Macquarie rates CMM as Downgrade to Underperform from Outperform (5) -

Macquarie assesses a strengthening Australian dollar has taken the gloss off the gold sector, putting a brake on earnings growth.

This is exacerbated by expectations for a disrupted June quarter and production growth in FY21 is likely to be limited.

Rating is downgraded to Underperform from Outperform. Target is steady at $1.50.

Target price is $1.50 Current Price is $1.72 Difference: minus $0.22 (current price is over target).
If CMM meets the Macquarie target it will return approximately minus 13% (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: -1.0

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

Macquarie rates DCN as Downgrade to Underperform from Outperform (5) -

Macquarie assesses a strengthening Australian dollar has taken the gloss off the gold sector, putting a brake on earnings growth.

This is exacerbated by expectations for a disrupted June quarter and production growth in FY21 is likely to be limited.

Rating is downgraded to Underperform from Outperform. Target is reduced to $0.43 from $0.45.

Target price is $0.43 Current Price is $0.43 Difference: $0
If DCN meets the Macquarie target it will return approximately 0% (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 ECX as Outperform (1) -

Current operations for EclipX Group have rebounded at a faster rate than Macquarie anticipated.

End of lease car sales momentum has continued since April with total unit volumes in the third quarter at 85% of pre-pandemic levels.

Macquarie upgrades estimates and raises the target to $1.35 from $1.29. Outperform.

Target price is $1.35 Current Price is $1.21 Difference: $0.14
If ECX meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.44, suggesting upside of 15.0% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates ECX as Overweight (1) -

Eclipx Group’s update points to improving liquidity and stabilising trading. Morgan Stanley notes a rebound in end-of-lease volumes (EOL) along with re-prioritising new business writings (NBW).

While the new business writing segment has been performing better than expected, the broker acknowledges uncertainty post-stimulus.

The sale process for Right2Drive continues with the debtor book down to $50.6m.

Morgan Stanley reiterates its Overweight rating with a target price of $1.70. Industry view: In-line.

Target price is $1.70 Current Price is $1.21 Difference: $0.49
If ECX meets the Morgan Stanley target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $1.44, suggesting upside of 15.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

UBS rates ECX as Buy (1) -

UBS has found the business update incrementally positive, confirming material upside risks to estimates for the second half.

The liquidity has improved and novated volumes are at 75-80% of pre-pandemic levels.

Right2Drive cash collection is continuing and the sales process progressing to plan. The broker maintains a Buy rating and $1.45 target.

Target price is $1.45 Current Price is $1.21 Difference: $0.24
If ECX meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.44, suggesting upside of 15.0% (ex-dividends)

The company's fiscal year ends in September.

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

Citi rates FPH as Sell (5) -

Citi analysts have been forced to lift forecasts post "the highest growth rate in at least a decade" in FY20 from Fisher & Paykel Healthcare.

They also believe guidance for FY21 might prove conservative. Yet, the analysts also maintain their view the stock continues trading on too high multiples, hence the Sell rating remains in place.

Price target lifts to NZ$22.75 from NZ$18.25. Citi has positioned itself some 5% above market consensus for FY21, believing the covid-19 related demand will continue for longer.

Current Price is $31.67. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: -0.5

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

Credit Suisse rates FPH as Underperform (5) -

FY20 results were stronger than Credit Suisse expected. There has been substantial demand through the hospital division because of the pandemic.

Lower diagnostic rates in home care were offset by strong mask re-supply. FY21 guidance is for revenue of NZ$1.48bn and net profit of NZ$320-340m.

The broker suspects guidance is conservative. Underperform retained on valuation and the target is increased to NZ$25.08 from NZ$14.38.

Current Price is $31.67. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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

Macquarie rates FPH as Outperform (1) -

The company has experienced strong demand for devices during the pandemic and clinical adoption of Airvo has accelerated.

Hospital hardware growth has been more than 300% in the first quarter of FY21.

As a result the company is doubling manufacturing capacity.

Macquarie assesses an additional wave of coronavirus could also present further upside.

Outperform maintained. Target rises to NZ$37.59 from NZ$30.97.

Current Price is $31.67. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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 FPH as Sell (5) -

UBS continues to believe the extent of coronavirus-related sales will eventually disappoint investors.

The share price has added 52% since mid January, which suggests there will be some difficulty to sustain and grow the sales rate from FY22 onwards.

This would require a step change in high-flow nasal cannula adoption rates and an unchanged dominant market share.

Sell rating maintained. Target is raised to NZ$19.50 from NZ$18.20.

Current Price is $31.67. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: -0.5

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

Credit Suisse rates GOZ as Outperform (1) -

Management has indicated that earnings to date have not been materially affected by the pandemic.

The total amount of rent waved over the three months period is less than -$1m.

Having previously allowed for a -5% decline in rents, Credit Suisse now assumes a -3% decline.

Despite a challenging economic climate, the broker considers there is some defensiveness in the earnings.

The portfolio is weighted 31% to the industrial sector, with the balance being metropolitan office.

Outperform rating retained. Target is raised to $3.34 from $3.15.

Target price is $3.34 Current Price is $3.26 Difference: $0.08
If GOZ meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.62, suggesting upside of 12.7% (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 IFN as Hold (3) -

Ord Minnett notes a price war has developed for Infigen Energy, with UAC Energy now offering $0.86 a share, unconditional.

In response, Iberdrola has increased its offer by 3% to $0.89 a share. Ord Minnett assesses the offer prices are full.

The broker retains a Hold rating and raises the target to $0.89 from $0.86.

Target price is $0.89 Current Price is $0.92 Difference: minus $0.03 (current price is over target).
If IFN meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.76, suggesting downside of -17.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates ILU as Neutral (3) -

Iluka Resources has advised that not all of the 175,000t of synthetic rutile, subject to take-or-pay arrangements in 2020, will be taken up under relevant contracts.

One customer is in default and the company has issued a notice but it remains unclear whether the customer will respond.

The news is not totally unexpected, UBS points out, given the degree to which demand for titanium feedstocks has been affected by the pandemic restrictions.

Neutral and $10.00 target retained.

Target price is $10.00 Current Price is $8.27 Difference: $1.73
If ILU meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $9.38, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Morgan Stanley rates JIN as Overweight (1) -

Jumbo Interactive’s extension of the Tabcorp ((TAH)) reseller agreement till FY30 is on less favourable terms, notes Morgan Stanley. The economics of the deal are in favour of Tabcorp with Jumbo Interactive to pay a one-off fee of -$15m, elaborates the broker.

Earnings estimates have been cut for FY21-24 and the broker sees Western Australia as providing the next material change to earnings estimates.

The company should take advantage of its position as an aggregator of consumer and charity lottery inventory and opportunity in SaaS, suggests the broker.

Morgan Stanley sees scope for earnings to grow at a compounded annual growth rate (CAGR) of 25% over FY20-23 and maintains its Overweight rating with the target price decreasing to $12.50 from $16. Industry view: In-line.

Target price is $12.50 Current Price is $9.90 Difference: $2.6
If JIN meets the Morgan Stanley target it will return approximately 26% (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

Morgans rates JIN as Upgrade to Add from Hold (1) -

The extension of Jumbo Interactive's reseller deal with Tabcorp ((TAH)) through to 2030 is a case of short term pain for long term gain, Morgans suggests.

It will cost Jumbo -$15m up front and a service fee that ramps up to 4.6% in 2024. It's costly, the broker admits, but should provide the market with comfort over the relationship.

Strong ticket sales have otherwise led Jumbo to reiterate FY20 guidance. Morgans upgrades to Add from Hold. Target rises to $11.58 from $9.62.

Target price is $11.58 Current Price is $9.90 Difference: $1.68
If JIN meets the Morgans target it will return approximately 17% (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

Morgans rates MDC as Initiation of coverage with Speculative Buy (1) -

Medlab Clinical specialises in the nutraceutical, pharmacological, and drug delivery space and has a number of novel cannaboid drug candidates showing high levels of efficacy that are progressing through to the final stages of regulatory approval, the broker notes.

There are a number of catalysts ahead in the next 6-12 months including the outcomes of depression and cancer pain relief trials. Morgans initiates coverage with a Speculative Buy rating and a 36c target, warning this is not one for the faint-hearted.

Target price is $0.36 Current Price is $0.15 Difference: $0.21
If MDC meets the Morgans target it will return approximately 140% (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 MMS as Neutral (3) -

The business update suggests the core novated leasing division is holding up.

However, Macquarie finds there are too many unknowns to become more positive at this stage.

The company's guidance is for underlying net profit in the range of $69-72m in FY20.

Neutral maintained. Target is raised to $8.87 from $7.47.

Target price is $8.87 Current Price is $8.79 Difference: $0.08
If MMS meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $9.47, suggesting upside of 4.3% (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 MMS as Overweight (1) -

McMillan Shakespeare has guided towards FY20 underlying net profit (UNPATA) of $69-72m, above Morgan Stanley’s estimated $60m. The company’s guidance implies a better top line along with cost reduction, comments the broker.

Group revenue services (GRS) business update is stronger than expected with novated volumes at 85% of the prior comparable period (June).

Plan Partners saw net profit (UNPATA) at $1m in the first half. Morgan Stanley notes the company will be paying $8m for the remaining 25% stake in this segment.

Volumes in the retail financial services (RFS) segment have recovered with more sales of warranty products.

Morgan Stanley maintains its Overweight rating with a target price of $11.50. Industry view: In-line.

Target price is $11.50 Current Price is $8.79 Difference: $2.71
If MMS meets the Morgan Stanley target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $9.47, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates MMS as Hold (3) -

The company has indicated underlying net profit guidance of $69-72m for FY20.

Novated volumes have been weaker but the trend is improving, Ord Minnett observes.

The broker is not surprised by the write-downs, given the macro backdrop.

The broker prefers to remain on the sidelines and retains a Hold rating. Target is reduced to $9.20 from $11.80.

Target price is $9.20 Current Price is $8.79 Difference: $0.41
If MMS meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $9.47, suggesting upside of 4.3% (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

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

Macquarie assesses a strengthening Australian dollar has taken the gloss off the gold sector, putting a brake on earnings growth.

This is exacerbated by expectations for a disrupted June quarter and production growth in FY21 is likely to be limited.

Rating is downgraded to Underperform from Neutral. Target is steady at $28.

Target price is $28.00 Current Price is $31.39 Difference: minus $3.39 (current price is over target).
If NCM meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.09, suggesting upside of 1.8% (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

Macquarie rates ORG as Outperform (1) -

Macquarie has reduced expectations for oil prices with a long-term forecast of US$56/bbl for Brent.

The broker assesses Origin Energy faces challenging markets, amid falling wholesale prices and structural change towards renewables.

Nevertheless, the business is lowering risk through deleveraging of assets.

Target is reduced to $6.56 from $7.58. Outperform maintained.

Target price is $6.56 Current Price is $5.67 Difference: $0.89
If ORG meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.70, suggesting upside of 15.1% (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

Macquarie rates ORI as Outperform (1) -

Macquarie notes a gradual restarting of global mine production. Raw material supply has almost normalised.

A second wave virus remains a risk factor in Chile, Indonesia and India.

Macquarie assesses Orica offers cyclical leverage to a global recovery, a dividend payment and a solid balance sheet.

Outperform rating maintained. Target is reduced to $19.09 from $19.69.

Target price is $19.09 Current Price is $16.16 Difference: $2.93
If ORI meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $18.07, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

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

Macquarie reduces medium-term nickel price forecasts. The broker prefers Western Areas ((WSA)) and Nickel Mines ((NIC)) among nickel producers.

Panoramic Resources is downgraded to Underperform from Neutral. Target is reduced to 8c from 9c.

Target price is $0.08 Current Price is $0.08 Difference: $0
If PAN meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

UBS rates RHC as Neutral (3) -

UBS has quantified the volume of non-urgent elective surgery that was likely deferred across Australia during the peak of the pandemic-related restrictions.

Analysis indicates that to clear the backlog the company would need to run at 118% capacity utilisation until the end of 2020.

However, there are obvious limitations such as access to nurses, adequate PPE and future outbreaks of coronavirus.

UBS does not expect a utilisation rate above 100% of previous levels will be achieved in the first half of FY21.

Still, the outlook for private hospital operator volumes is favourable. Neutral rating retained. Target is $71.20.

Target price is $71.20 Current Price is $65.00 Difference: $6.2
If RHC meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $67.52, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

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

Macquarie assesses a strengthening Australian dollar has taken the gloss off the gold sector, putting a brake on earnings growth.

This is exacerbated by expectations for a disrupted June quarter and production growth in FY21 is likely to be limited.

Rating is downgraded to Underperform from Neutral. Target is reduced to $4.50 from $4.60.

Target price is $4.50 Current Price is $5.21 Difference: minus $0.71 (current price is over target).
If RRL meets the Macquarie target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.24, suggesting upside of 0.4% (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 RSG as Downgrade to Underperform from Neutral (5) -

Macquarie assesses a strengthening Australian dollar has taken the gloss off the gold sector, putting a brake on earnings growth.

This is exacerbated by expectations for a disrupted June quarter and production growth in FY21 is likely to be limited.

Rating is downgraded to Underperform from Neutral. Target is steady at $1.

Target price is $1.00 Current Price is $1.12 Difference: minus $0.12 (current price is over target).
If RSG meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

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 SAR as Downgrade to Neutral from Outperform (3) -

Macquarie assesses a strengthening Australian dollar has taken the gloss off the gold sector, putting a brake on earnings growth.

This is exacerbated by expectations for a disrupted June quarter and production growth in FY21 is likely to be limited.

Rating is downgraded to Neutral from Outperform. Target is raised to $5.40 from $5.00.

Target price is $5.40 Current Price is $5.41 Difference: minus $0.01 (current price is over target).
If SAR meets the Macquarie target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.21, suggesting downside of -4.1% (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 SBM as Downgrade to Underperform from Neutral (5) -

Macquarie assesses a strengthening Australian dollar has taken the gloss off the gold sector, putting a brake on earnings growth.

This is exacerbated by expectations for a disrupted June quarter and production growth in FY21 is likely to be limited.

Rating is downgraded to Underperform from Neutral. Target is steady at $2.60.

Target price is $2.60 Current Price is $3.16 Difference: minus $0.56 (current price is over target).
If SBM meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.38, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Macquarie rates SGM as Neutral (3) -

Macquarie assesses the market fundamentals are slowly stabilising but the risk remains substantial.

Pandemic restrictions, combined with low scrap prices, have caused a slump in intake volumes.

Neutral rating. Target is raised to $7.95 from $6.80, discounting the FY22 valuation at -15% and maintaining enterprise value/EBIT multiples.

Target price is $7.95 Current Price is $7.64 Difference: $0.31
If SGM meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $9.01, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Macquarie rates SLK as Outperform (1) -

SeaLink has been awarded the contract to operate the Brisbane CityCat, CityHopper and Cross River Ferry networks.

Total contract revenue over the initial 10-year term is estimated at $390m.

Macquarie assesses this represents increased exposure to defensive public transport contracts and maintains an Outperform rating.

The company is positioning itself as a multi-modal transport provider. Target is raised to $5.02 from $4.53.

Target price is $5.02 Current Price is $4.45 Difference: $0.57
If SLK meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

UBS rates SRV as Buy (1) -

The company has closed 12 US locations out of a total of 22. UBS considers this a positive strategic move, given the region has been loss-making for several years.

The broker estimates closures provide a $4m pre-tax profit release compared with the first half annualised US losses of -$12m.

The company has also indicated it is "passively looking" for locations in which to expand in early 2021.

Buy rating and $3.80 target retained.

Target price is $3.80 Current Price is $2.14 Difference: $1.66
If SRV meets the UBS target it will return approximately 78% (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

Morgans rates STA as Add (1) -

Strandline Resources is approaching a final decision on its long-life Coburn mineral sands project in WA, which the broker describes as world class.

The stock offers a compelling capital growth prospect for investors willing to tak on project risk, the broker suggests.

On a de-risked basis the broker values the stock at 59c, but for now has ticked its target down to 35.9c from 38.4c, retaining a Speculative Buy rating.

Target price is $0.36 Current Price is $0.27 Difference: $0.089
If STA meets the Morgans target it will return approximately 33% (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 STO as Downgrade to Neutral from Outperform (3) -

The Santos share price is up 10% since May. This leads Macquarie to downgrade to Neutral from Outperform.

The broker also expects a slower recovery in the oil price over 2021. Target is reduced to $5.50 from $6.05.

Target price is $5.50 Current Price is $5.05 Difference: $0.45
If STO meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $6.19, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

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

Tabcorp has renegotiated its reseller agreement with Jumbo Interactive ((JIN)), effectively halving the long-term net commission rate.

Citi assesses this is less risky than exiting the agreement altogether and reflects Tabcorp's market power.

Rating is upgraded to Neutral from Sell and the target raised to $3.40 from $2.80.

Target price is $3.40 Current Price is $3.34 Difference: $0.06
If TAH meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.30, suggesting downside of -2.5% (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 TAH as Neutral (3) -

Tabcorp has extended its digital lottery relationship with Jumbo Interactive ((JIN)) to 2030 under new terms.

Effectively, Credit Suisse points out, Tabcorp has reduced the net commission paid to Jumbo Interactive.

Jumbo Interactive accounts for around 20% of total digital lottery sales in Australia outside of Western Australia.

Neutral maintained. Target rises to $3.65 from $3.20.

Target price is $3.65 Current Price is $3.34 Difference: $0.31
If TAH meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.30, suggesting downside of -2.5% (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 TAH as Outperform (1) -

Tabcorp has extended its reseller agreement with Jumbo Interactive ((JIN)).

Under the new agreement this may generate an additional $20m in operating earnings annually.

Recent trading has been better than Macquarie expected and the reseller agreement is considered a small extra positive.

The broker increases the target to $4.00 from $3.80. Outperform retained.

Target price is $4.00 Current Price is $3.34 Difference: $0.66
If TAH meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.30, suggesting downside of -2.5% (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 TAH as Equal-weight (3) -

Tabcorp Holdings will be extending Jumbo Interactive's ((JIN)) online lottery re-seller contract agreement for seven years to circa July 2030.

Jumbo Interactive will pay a fee of -$15m on commencement with a service fee of 1.5% of the ticket price in FY21 which will increase to $2.5% in FY22, then 3.5% in FY23, and 4.65% thereafter.

Morgan Stanley notes the fee is a marginal benefit for the company and limits Jumbo Interactive from by-passing Tabcorp as a re-seller until 2030.

Morgan Stanley retains its Equal-weight rating with a target price of $2.60. Industry view: Cautious.

Target price is $2.60 Current Price is $3.34 Difference: minus $0.74 (current price is over target).
If TAH meets the Morgan Stanley target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.30, suggesting downside of -2.5% (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 TLS as Accumulate (2) -

Ord Minnett reviews the financial details on Telstra's infrastructure company and the decision to incorporate the mobile tower and fibre backhaul assets from July 1.

The broker estimates the infrastructure company could be worth $30-37bn as a stand-alone entity, without having to merge with the NBN.

Furthermore, a tower company could be worth $6bn and a fibre company another $4bn.

Including the retail business Telstra could have an equity value of $59bn, the broker calculates, representing more than 50% potential equity upside from current levels.

Ord Minnett retains an Accumulate rating and $4.10 target.

Target price is $4.10 Current Price is $3.13 Difference: $0.97
If TLS meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $3.81, suggesting upside of 21.2% (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

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

Macquarie assesses a strengthening Australian dollar has taken the gloss off the gold sector, putting a brake on earnings growth.

This is exacerbated by expectations for a disrupted June quarter and production growth in FY21 is likely to be limited.

Rating is downgraded to Neutral from Underperform. Target is steady at $0.90.

Target price is $0.90 Current Price is $0.92 Difference: minus $0.02 (current price is over target).
If WAF 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 December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

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

Macquarie lowers oil price assumptions for the next 18 months and notes Woodside Petroleum shares are underperforming sector peers.

The broker suggests there is increased upside risk for the stock as Woodside may be able to capture value by acquiring the Chevron stake in North West Shelf.

The broker upgrades to Outperform from Neutral on valuation. Target is raised to $25.00 from $23.50.

Target price is $25.00 Current Price is $20.57 Difference: $4.43
If WPL meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $25.45, suggesting upside of 17.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.7

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