Australian Broker Call

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November 24, 2017

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COMPANIES DISCUSSED IN THIS ISSUE

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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

THIS REPORT WILL BE UPDATED SHORTLY

Last Updated: 10:36 AM

Your daily news report on the latest recommendation, valuation, forecast and opinion changes.

This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.

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Today's Upgrades and Downgrades
AHG - AUTOMOTIVE HOLDINGS Upgrade to Overweight from Underweight Morgan Stanley
CL1 - CLASS Downgrade to Neutral from Buy UBS
RCG - RCG CORP Upgrade to Buy from Neutral Citi
AHG  AUTOMOTIVE HOLDINGS GROUP LIMITED

Automobiles & Components

Overnight Price: $3.79

Morgan Stanley rates AHG as Upgrade to Overweight from Underweight (1) -

Auto Holdings has pulled off a game changer, Morgan Stanley believes, in selling its troublesome refrigerated logistics business for a much better than expected $400m. This will leave around $300m in the kitty for acquisitions and/or a special dividend while only representing around -2% in lost earnings.

The remaining auto division has had a slow start to the year but the worst is now behind WA, the broker suggests, and the new kitty provides greater confidence in growth. The end result is a double-upgrade from Morgan Stanley to Overweight from Underweight. Industry View is In-Line and target rises to $4.10 from $3.00.

Target price is $4.10 Current Price is $3.79 Difference: $0.31
If AHG meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 18.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 4.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.2, implying annual growth of 54.1%.

Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 5.0%.

Current consensus EPS estimate suggests the PER is 14.5.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 20.30 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 5.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.2, implying annual growth of 7.6%.

Current consensus DPS estimate is 20.1, implying a prospective dividend yield of 5.3%.

Current consensus EPS estimate suggests the PER is 13.4.

Market Sentiment: 0.8

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


Morgans rates AHG as Add (1) -

The company has announced the long-awaited divestment of its refrigerated logistics business, for $400m.

While this divestment is not accretive in itself, Morgans believes the company is now well able to fund further growth into higher-value automotive earnings opportunities.

The company has now transformed into an almost pure-play automotive dealer. Add rating retained. Target rises to $4.04 from $3.60.

Target price is $4.04 Current Price is $3.79 Difference: $0.25
If AHG meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 19.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 5.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.2, implying annual growth of 54.1%.

Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 5.0%.

Current consensus EPS estimate suggests the PER is 14.5.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 19.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 5.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.2, implying annual growth of 7.6%.

Current consensus DPS estimate is 20.1, implying a prospective dividend yield of 5.3%.

Current consensus EPS estimate suggests the PER is 13.4.

Market Sentiment: 0.8

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


UBS rates AHG as Neutral (3) -

The company has entered into a binding agreement to sell its refrigerated logistics division to Chinese group HNA for $400m.

UBS believes the company now has a more certain earnings profile following the trading update in automotive and the divestment of refrigerated logistics.

Neutral rating retained. Target rises to $3.70 from $3.30. While the multiple is relatively undemanding the broker would like underlying growth to be more visible before taking a more positive view.

Target price is $3.70 Current Price is $3.79 Difference: minus $0.09 (current price is over target).
If AHG 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 $3.78, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 19.00 cents and EPS of 25.40 cents.
At the last closing share price the estimated dividend yield is 5.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.2, implying annual growth of 54.1%.

Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 5.0%.

Current consensus EPS estimate suggests the PER is 14.5.

Forecast for FY19:

UBS forecasts a full year FY19 dividend of 19.00 cents and EPS of 26.30 cents.
At the last closing share price the estimated dividend yield is 5.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.2, implying annual growth of 7.6%.

Current consensus DPS estimate is 20.1, implying a prospective dividend yield of 5.3%.

Current consensus EPS estimate suggests the PER is 13.4.

Market Sentiment: 0.8

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

AJD  ASIA PACIFIC DATA CENTRE GROUP

REITs

Overnight Price: $1.75

Morgans rates AJD as Hold (3) -

360 Capital ((TGP)) now holds 67.31% of the units on issue following on-market purchases and acceptances of its bid at a $1.95 per security. NextDC ((NXT)) continues to hold a 29.1% stake.

The new board will now undertake a strategic review including implementing a capital distribution, assessing growth opportunities as well as reviewing operating costs.

Morgans maintains a Hold rating and $1.70 target.

Target price is $1.70 Current Price is $1.75 Difference: minus $0.05 (current price is over target).
If AJD meets the Morgans 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 FY18:

Morgans forecasts a full year FY18 dividend of 9.80 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 5.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.50.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 10.20 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 5.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.50.

Market Sentiment: 0.0

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

CCL  COCA-COLA AMATIL LIMITED

Food, Beverages & Tobacco

Overnight Price: $7.54

Credit Suisse rates CCL as Outperform (1) -

Management has reiterated expectations for flat underlying net profit in 2017. A new $40m investment initiative for Australian beverages was also announced. Credit Suisse had been anticipating 2018 Australian earnings would fall by -2.5% and now suspects it may drop by near double that amount.

The broker does not assume revenue benefit from the newly announced growth initiative. Outperform is maintained as the company is the cheapest of global bottlers and trading on a historically high dividend yield. Target is reduced to $9.80 from $9.90.

Target price is $9.80 Current Price is $7.54 Difference: $2.26
If CCL meets the Credit Suisse target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $8.59, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 46.00 cents and EPS of 55.50 cents.
At the last closing share price the estimated dividend yield is 6.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.3, implying annual growth of 71.7%.

Current consensus DPS estimate is 46.1, implying a prospective dividend yield of 6.1%.

Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 46.00 cents and EPS of 55.22 cents.
At the last closing share price the estimated dividend yield is 6.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.3, implying annual growth of -1.8%.

Current consensus DPS estimate is 45.6, implying a prospective dividend yield of 6.0%.

Current consensus EPS estimate suggests the PER is 13.9.

Market Sentiment: 0.1

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


Morgans rates CCL as Hold (3) -

2017 guidance for underlying net profit to be broadly in line with 2016 has been reiterated.

This may be a positive, but Morgans suggests structural headwinds continue to challenge Australian beverages and the company requires additional investment to stabilise the business.

The stock is trading at a material discount to peers and offers an attractive dividend yield but the broker does not believe this is sufficiently compelling.

Hold rating maintained and target is reduced to $8.10 from $8.75.

Target price is $8.10 Current Price is $7.54 Difference: $0.56
If CCL meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $8.59, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 46.00 cents and EPS of 56.00 cents.
At the last closing share price the estimated dividend yield is 6.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.3, implying annual growth of 71.7%.

Current consensus DPS estimate is 46.1, implying a prospective dividend yield of 6.1%.

Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 46.00 cents and EPS of 53.00 cents.
At the last closing share price the estimated dividend yield is 6.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.3, implying annual growth of -1.8%.

Current consensus DPS estimate is 45.6, implying a prospective dividend yield of 6.0%.

Current consensus EPS estimate suggests the PER is 13.9.

Market Sentiment: 0.1

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


UBS rates CCL as Neutral (3) -

The company has reiterated 2017 guidance for net profit growth to be flat with the medium-term target for mid-single digit growth. The company will pull forward a $40m investment in price and new products.

UBS suggests accelerated re-investment is a sign the company needs to spend more to stand still. The update implies around -7% downgrade to UBS estimates in 2018.

Neutral. Target is $8.60.

Target price is $8.60 Current Price is $7.54 Difference: $1.06
If CCL meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.59, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 46.80 cents and EPS of 54.60 cents.
At the last closing share price the estimated dividend yield is 6.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.3, implying annual growth of 71.7%.

Current consensus DPS estimate is 46.1, implying a prospective dividend yield of 6.1%.

Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 46.60 cents and EPS of 55.40 cents.
At the last closing share price the estimated dividend yield is 6.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.3, implying annual growth of -1.8%.

Current consensus DPS estimate is 45.6, implying a prospective dividend yield of 6.0%.

Current consensus EPS estimate suggests the PER is 13.9.

Market Sentiment: 0.1

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

CL1  CLASS LIMITED

Wealth Management & Investments

Overnight Price: $2.52

Ord Minnett rates CL1 as Buy (1) -

Ord Minnett observes the sales campaign, aimed at pulling forward demand into a period that is less disrupted by changes to superannuation, appears to be delivering.

The broker is encouraged, as this reinforces the value proposition and the fact that the company may not have reached the limit in terms of its addressable SMSF opportunity.

The broker considers the stock at an attractive entry point and maintains a Buy rating, reducing the target to $3.60 from $3.80.

Target price is $3.60 Current Price is $2.52 Difference: $1.08
If CL1 meets the Ord Minnett target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $3.33, suggesting upside of 32.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 5.00 cents and EPS of 7.30 cents.
At the last closing share price the estimated dividend yield is 1.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.8, implying annual growth of N/A.

Current consensus DPS estimate is 4.9, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 32.3.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 6.00 cents and EPS of 9.10 cents.
At the last closing share price the estimated dividend yield is 2.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.6, implying annual growth of 23.1%.

Current consensus DPS estimate is 6.1, implying a prospective dividend yield of 2.4%.

Current consensus EPS estimate suggests the PER is 26.3.

Market Sentiment: 0.7

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


UBS rates CL1 as Downgrade to Neutral from Buy (3) -

UBS observes sales momentum has improved after the addition of the Class Super accounts in the first quarter. The December and March quarters are typically quieter, but 3300 accounts have been added in the December quarter so far, 50% above the prior corresponding period.

The broker does not expect these customers to stop using the Class Super product when fees begin on July 1, 2018 but does suspect the move will hit the top line by -2-3%.

Rating is downgraded to Neutral from Buy. Target is reduced to $2.85 from $3.30.

Target price is $2.85 Current Price is $2.52 Difference: $0.33
If CL1 meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.33, suggesting upside of 32.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 5.40 cents and EPS of 7.20 cents.
At the last closing share price the estimated dividend yield is 2.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.8, implying annual growth of N/A.

Current consensus DPS estimate is 4.9, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 32.3.

Forecast for FY19:

UBS forecasts a full year FY19 dividend of 6.50 cents and EPS of 8.60 cents.
At the last closing share price the estimated dividend yield is 2.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.6, implying annual growth of 23.1%.

Current consensus DPS estimate is 6.1, implying a prospective dividend yield of 2.4%.

Current consensus EPS estimate suggests the PER is 26.3.

Market Sentiment: 0.7

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

COH  COCHLEAR LIMITED

Medical Equipment & Devices

Overnight Price: $180.24

Macquarie rates COH as Re-instate Coverage with Underperform (5) -

Macquarie believes the current valuation is factoring in a more material market share improvement relative to its forecasts.

In order to justify the share price the broker believes market share would need to increase to around 70%, from around 56% currently, which implies a five-year cochlear implant unit sales growth rate of around 13.5%.

Macquarie re-initiates coverage with an Underperform rating and $161 target.

Target price is $161.00 Current Price is $180.24 Difference: minus $19.24 (current price is over target).
If COH 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 $146.26, suggesting downside of -18.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 303.00 cents and EPS of 436.20 cents.
At the last closing share price the estimated dividend yield is 1.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 440.6, implying annual growth of 13.1%.

Current consensus DPS estimate is 303.7, implying a prospective dividend yield of 1.7%.

Current consensus EPS estimate suggests the PER is 40.9.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 340.10 cents and EPS of 489.30 cents.
At the last closing share price the estimated dividend yield is 1.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 499.5, implying annual growth of 13.4%.

Current consensus DPS estimate is 349.6, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 36.1.

Market Sentiment: -0.6

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

DHG  DOMAIN HOLDINGS AUSTRALIA LIMITED

Real Estate

Overnight Price: $3.52

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

The Domain brand has been around for 20 years but became a standalone business in the Fairfax group only three years ago, hence the broker argues it's more akin to a tech start-up. The broker remains bullish on the growth of online classifieds, and believes Domain can outpace REA Group ((REA)) on growth, coming from a lower base.

To that end the broker initiates coverage with an Overweight rating and a $4.50 target. Industry View is Attractive.

Target price is $4.50 Current Price is $3.52 Difference: $0.98
If DHG meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.66, suggesting upside of 4.0% (ex-dividends)

Forecast for FY17:

Current consensus EPS estimate is N/A, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 4.40 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 1.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.4, implying annual growth of N/A.

Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 1.2%.

Current consensus EPS estimate suggests the PER is 37.4.

Market Sentiment: -0.5

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

EGH  EUREKA GROUP HOLDINGS LIMITED

Aged Care & Seniors

Overnight Price: $0.34

Morgans rates EGH as Add (1) -

The company is in the process of readying a number of underperforming assets for sale and this is expected to free up $20-30m in cash over the next few years.

While this will be used to fund village acquisitions it creates an earnings hole in the short term, Morgans observes. The broker reduces forward operating earnings assumptions in line with the sale of a number of large villages.

Management has pointed to a tough first half on an underlying basis but a stronger second half as occupancy levels get back to 90%. Add rating retained. Target drops to $0.41 from $0.49.

Target price is $0.41 Current Price is $0.34 Difference: $0.07
If EGH meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.17.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.30.

Market Sentiment: 1.0

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

EVN  EVOLUTION MINING LIMITED

Gold & Silver

Overnight Price: $2.57

Credit Suisse rates EVN as Neutral (3) -

Credit Suisse found the exploration update for both Cracow and Cowal encouraging. FY18 guidance is unchanged.

A maiden resource at Cracow is to be included in the December statement. Continued mineralisation in the E41 West zone sits outside the currently defined resource at Cowal, supporting the broker's expectations of operating longevity.

Neutral rating and $2.22 target maintained.

Target price is $2.22 Current Price is $2.57 Difference: minus $0.35 (current price is over target).
If EVN 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 $2.47, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 10.00 cents and EPS of 17.58 cents.
At the last closing share price the estimated dividend yield is 3.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.3, implying annual growth of 30.3%.

Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 12.00 cents and EPS of 20.59 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.0, implying annual growth of 9.8%.

Current consensus DPS estimate is 8.4, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 13.5.

Market Sentiment: 0.4

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


UBS rates EVN as Buy (1) -

Exploration success has caused an increase in planned expenditure and the company has lifted its budget by 10%. Additional funds are earmarked for Cowal and Cracow.

UBS is now more confident that Cracow will continue to be mined beyond the current reserves and would not be surprised if the exploration budget is increased again.

Buy and $2.45 target retained.

Target price is $2.45 Current Price is $2.57 Difference: minus $0.12 (current price is over target).
If EVN meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.47, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 8.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 3.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.3, implying annual growth of 30.3%.

Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY19:

UBS forecasts a full year FY19 dividend of 8.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 3.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.0, implying annual growth of 9.8%.

Current consensus DPS estimate is 8.4, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 13.5.

Market Sentiment: 0.4

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

FXJ  FAIRFAX MEDIA LIMITED

Print, Radio & TV

Overnight Price: $0.68

Morgan Stanley rates FXJ as Overweight (1) -

Fairfax is now left with only 60% of Domain, rather than 100%, making it basically a "holding company", the broker notes. Similarly, News Corp's ((NWS)) premier asset is a 62% stake in REA Group ((REA)). The market applies a -10-20% valuation discount to News as that holding company, and consensus suggests the same should apply to Fairfax.

The broker disagrees. Unlike News, Fairfax's share register is open, and management has declared it would be interested in possible divestments or M&A. Were valuation to drop too low below sum-of-the-parts, the broker believes new media laws will put Fairfax in the sights of a suitor.

Overweight retained, with an 85c target post spin-off. Industry View is Attractive.

Target price is $0.85 Current Price is $0.68 Difference: $0.17
If FXJ meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $0.77, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 4.00 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.5, implying annual growth of -11.3%.

Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 5.7%.

Current consensus EPS estimate suggests the PER is 12.4.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 4.00 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.4, implying annual growth of -1.8%.

Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 5.6%.

Current consensus EPS estimate suggests the PER is 12.6.

Market Sentiment: 0.4

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

HSN  HANSEN TECHNOLOGIES LIMITED

IT & Support

Overnight Price: $3.45

Ord Minnett rates HSN as Buy (1) -

The company has maintained its full year outlook and Ord Minnett believes the AGM update will preface a positive tailwind of synergies from Enoro that should be delivered in FY18 and FY19.

The broker envisages 10% potential upside to the base business value. Price target is raised to $4.15 from $3.93. Buy rating maintained.

Target price is $4.15 Current Price is $3.45 Difference: $0.7
If HSN meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 6.00 cents and EPS of 15.40 cents.
At the last closing share price the estimated dividend yield is 1.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.40.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 6.00 cents and EPS of 16.40 cents.
At the last closing share price the estimated dividend yield is 1.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.04.

Market Sentiment: 0.5

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

JBH  JB HI-FI LIMITED

Consumer Electronics

Overnight Price: $22.07

ADDED

Citi rates JBH as Sell (5) -

Citi suggests JB Hi-Fi needs to re-accelerate growth to hit sales guidance. Momentum needs to improve to 3.7% from the 2.2% growth seen in recent months.

The Good Guys needs to accelerate to 2.7% over the balance of FY18 from the 1.7% growth witnessed in recent months.

Sell rating retained. Target is $19.00.

Target price is $19.00 Current Price is $22.07 Difference: minus $3.07 (current price is over target).
If JBH meets the Citi target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.58, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 130.00 cents and EPS of 200.70 cents.
At the last closing share price the estimated dividend yield is 5.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 205.6, implying annual growth of 33.2%.

Current consensus DPS estimate is 133.5, implying a prospective dividend yield of 6.0%.

Current consensus EPS estimate suggests the PER is 10.7.

Forecast for FY19:

Citi forecasts a full year FY19 dividend of 136.00 cents and EPS of 211.00 cents.
At the last closing share price the estimated dividend yield is 6.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 210.4, implying annual growth of 2.3%.

Current consensus DPS estimate is 137.5, implying a prospective dividend yield of 6.2%.

Current consensus EPS estimate suggests the PER is 10.5.

Market Sentiment: -0.1

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

MIN  MINERAL RESOURCES LIMITED

Iron Ore

Overnight Price: $19.46

Macquarie rates MIN as Outperform (1) -

Management has guided to an increase in lithium DSO shipments and guidance for FY19 is also higher than Macquarie expected.

Crushing capacity is expected to grow by a further 15-20mt in FY18. Macquarie is encouraged by the upgrade which should alleviate concerns over the acceptance of the DSO product in the market, and further growth in crushing capacity presents material upside risks to its base case earnings.

Outperform rating retained. Target is $23.

Target price is $23.00 Current Price is $19.46 Difference: $3.54
If MIN meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $20.10, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 73.40 cents and EPS of 131.20 cents.
At the last closing share price the estimated dividend yield is 3.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 131.4, implying annual growth of 22.1%.

Current consensus DPS estimate is 67.2, implying a prospective dividend yield of 3.5%.

Current consensus EPS estimate suggests the PER is 14.8.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 110.90 cents and EPS of 202.20 cents.
At the last closing share price the estimated dividend yield is 5.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 206.7, implying annual growth of 57.3%.

Current consensus DPS estimate is 101.2, implying a prospective dividend yield of 5.2%.

Current consensus EPS estimate suggests the PER is 9.4.

Market Sentiment: 0.7

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

MLX  METALS X LIMITED

Tin

Overnight Price: $1.04

Macquarie rates MLX as Outperform (1) -

Macquarie observes the stock has enjoyed a strong performance since the de-merger of Westgold Resources ((WGX)).

Exploration drilling at Nifty has delivered a material improvement in the mine life and the broker expects further upside to the reserve and resource base. Hitting production targets remain a near-term catalyst.

Outperform retained. Target is $1.20.

Target price is $1.20 Current Price is $1.04 Difference: $0.16
If MLX meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 1.00 cents and EPS of 2.30 cents.
At the last closing share price the estimated dividend yield is 0.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.22.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 4.00 cents and EPS of 11.30 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.20.

Market Sentiment: 1.0

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

MQA  MACQUARIE ATLAS ROADS GROUP

Infrastructure & Utilities

Overnight Price: $6.22

Macquarie rates MQA as Outperform (1) -

Macquarie updates on the changes to French taxes. APRR is directly affected by a super tax which will mean a EUR22m increase in Eiffarie taxes.

The broker believes a simple fundamental of a stronger French economy and growth resuming at Greenway from 2019 justifies its price target, but internalisation of management also improves corporate appeal.

Outperform retained. Target is $6.64.

Target price is $6.64 Current Price is $6.22 Difference: $0.42
If MQA meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.38, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 19.90 cents and EPS of 63.10 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.9, implying annual growth of 282.5%.

Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 8.3.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 23.50 cents and EPS of 51.50 cents.
At the last closing share price the estimated dividend yield is 3.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.4, implying annual growth of -55.4%.

Current consensus DPS estimate is 24.3, implying a prospective dividend yield of 3.9%.

Current consensus EPS estimate suggests the PER is 18.6.

Market Sentiment: 0.8

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

NXT  NEXTDC LIMITED

Cloud services

Overnight Price: $5.76

Morgans rates NXT as Add (1) -

At its AGM the company has noted a strong start to FY18 and has reaffirmed FY18 guidance with confidence. The company's relationship with Amazon Web Services continues to deepen and this business has now established three new Australian points of presence in the company's M1, C1 and P1 centres.

Morgans makes no material changes to immediate forecasts but increases its valuation on the back of rising peer multiples and higher medium-term earnings forecasts.

Add rating retained. Target rises to $6.25 from $5.38.

Target price is $6.25 Current Price is $5.76 Difference: $0.49
If NXT meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.57, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 140.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.9, implying annual growth of -53.3%.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 147.7.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of 5.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 104.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of 115.4%.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 68.6.

Market Sentiment: 1.0

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

OZL  OZ MINERALS LIMITED

Copper

Overnight Price: $8.50

Credit Suisse rates OZL as Neutral (3) -

The company's chief operating officer, Bob Fulker, has resigned and will take the same role at Evolution Mining ((EVN)). Credit Suisse believes his departure is a significant loss, as he leaves at a stage when Prominent Hill open pit is nearing completion.

The broker believes management change at Oz Minerals has been a troubling constant and is concerned by the risks associated with losing corporate experience from key personnel. Neutral rating and $8.25 target.

Target price is $8.25 Current Price is $8.50 Difference: minus $0.25 (current price is over target).
If OZL 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 $8.69, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 12.00 cents and EPS of 55.67 cents.
At the last closing share price the estimated dividend yield is 1.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.4, implying annual growth of 69.2%.

Current consensus DPS estimate is 15.6, implying a prospective dividend yield of 1.8%.

Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 12.00 cents and EPS of 34.10 cents.
At the last closing share price the estimated dividend yield is 1.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.9, implying annual growth of -42.2%.

Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 1.6%.

Current consensus EPS estimate suggests the PER is 24.4.

Market Sentiment: 0.4

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

PRY  PRIMARY HEALTH CARE LIMITED

Healthcare services

Overnight Price: $3.48

ADDED

Citi rates PRY as Neutral (3) -

Citi suggests the top end of the company's guidance for underlying net profit of $92-97m in FY18 is optimistic.

The broker notes confirmation at the AGM of prior items that were flagged such as slow GP recruitment, reduced growth in pathology centres rent and negatives from investments in new clinics and IT.

Citi maintains a Neutral rating and $3.30 target.

Target price is $3.30 Current Price is $3.48 Difference: minus $0.18 (current price is over target).
If PRY meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.56, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 10.70 cents and EPS of 17.90 cents.
At the last closing share price the estimated dividend yield is 3.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of N/A.

Current consensus DPS estimate is 11.3, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 19.2.

Forecast for FY19:

Citi forecasts a full year FY19 dividend of 12.00 cents and EPS of 20.10 cents.
At the last closing share price the estimated dividend yield is 3.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.2, implying annual growth of 11.6%.

Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 17.2.

Market Sentiment: 0.0

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


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

A flash update from the broker following Primary's AGM notes GP recruitment continues to be an issue for medical centres and it could be 12-18 months before this division is "firing". Pathology revenues are nevertheless growing faster than collection centre growth and diagnostic imaging has been a solid performer year to date.

The broker retains Equal-weight and a $3.78 target. Industry View is In-Line.

Target price is $3.78 Current Price is $3.48 Difference: $0.3
If PRY meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 11.80 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 3.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of N/A.

Current consensus DPS estimate is 11.3, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 19.2.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 13.40 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.2, implying annual growth of 11.6%.

Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 17.2.

Market Sentiment: 0.0

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


Ord Minnett rates PRY as Hold (3) -

The company's update suggests transition to a new medical centre model will be challenging and potentially, in Ord Minnett's opinion, a multi-year task.

The improvement in earnings from the diagnostics division is encouraging for the broker and should ensure sufficient cash flow to support the business through the transition.

Ord Minnett maintains a Hold rating and lowers the target to $3.40 from $3.50.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $3.40 Current Price is $3.48 Difference: minus $0.08 (current price is over target).
If PRY meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.56, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 11.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of N/A.

Current consensus DPS estimate is 11.3, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 19.2.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 12.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 3.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.2, implying annual growth of 11.6%.

Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 17.2.

Market Sentiment: 0.0

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


UBS rates PRY as Buy (1) -

UBS observes the new CEO, Malcolm Parmenter, has categorised the company's results to date in FY18 as "mixed" and underlying net profit guidance has been set at $92-97m.

Given the propensity for new healthcare CEOs to re-base market expectations, UBS is not surprised guidance has been set to the downside of consensus expectations.

Another disappointment was news that GP recruitment was softer than expected so far in FY18, and this was a surprise for the broker after an acceleration was reported over FY17. UBS maintains a Buy rating and $3.90 target.

Target price is $3.90 Current Price is $3.48 Difference: $0.42
If PRY meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 12.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 3.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of N/A.

Current consensus DPS estimate is 11.3, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 19.2.

Forecast for FY19:

UBS forecasts a full year FY19 dividend of 13.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.2, implying annual growth of 11.6%.

Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 17.2.

Market Sentiment: 0.0

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

RCG  RCG CORPORATION LIMITED

Apparel & Footwear

Overnight Price: $0.77

ADDED

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

Green shoots are emerging, declare analysts at Citi. They have decided it's time to upgrade to Buy from Hold, encouraged by like-for-like sales momentum leading into Christmas, while year-on-year comparison should get easier from here onwards due to lacklustre performance last year.

An undemanding valuation, as Citi sees it, further supports the move. Q1 performance proved slightly above expectations, and is consistent with industry feedback, report the analysts.

Citi acknowledges Amazon represents downside risk to earnings, but licenced brands (40% of the company's retail sales) should provide some protection, argue the analysts. Target increases by 6% to $0.95.

Target price is $0.95 Current Price is $0.77 Difference: $0.18
If RCG meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 6.00 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 7.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.27.

Forecast for FY19:

Citi forecasts a full year FY19 dividend of 6.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 7.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.00.

Market Sentiment: 0.5

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

REA  REA GROUP LIMITED

Real Estate

Overnight Price: $77.43

Morgan Stanley rates REA as Overweight (1) -

The broker has initiated coverage on REA competitor Domain ((DHG)) with an Overweight rating, suggesting Domain can grow faster from a lower base. The market is taking the view a win by Domain means a loss for REA, but the broker disagrees.

The Australian real estate ad revenue pool will continue to grow at a 10% compound rate for the next five years, the broker forecasts. REA may lose some market share to Domain but will retain number one position. Both companies are busy lifting prices, so the risk of a price war is remote.

Overweight retained for REA. Target rises to $85 from $72. Industry View is Attractive.

Target price is $85.00 Current Price is $77.43 Difference: $7.57
If REA meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $72.94, suggesting downside of -5.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 119.00 cents and EPS of 226.00 cents.
At the last closing share price the estimated dividend yield is 1.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 218.4, implying annual growth of 505.0%.

Current consensus DPS estimate is 109.7, implying a prospective dividend yield of 1.4%.

Current consensus EPS estimate suggests the PER is 35.5.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 141.00 cents and EPS of 270.00 cents.
At the last closing share price the estimated dividend yield is 1.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 260.5, implying annual growth of 19.3%.

Current consensus DPS estimate is 134.2, implying a prospective dividend yield of 1.7%.

Current consensus EPS estimate suggests the PER is 29.7.

Market Sentiment: 0.0

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

RRL  REGIS RESOURCES LIMITED

Gold & Silver

Overnight Price: $4.07

Macquarie rates RRL as Neutral (3) -

Macquarie believes the company is well-positioned heading into 2018 as it has a growth outlook that is led by McPhillamys, while drilling for an underground inventory at Rosemont is also a highlight.

Duketon operations continue to perform, the broker adds, delivering a $0.15 per share dividend over FY17.

Target is $4.00. Neutral.

Target price is $4.00 Current Price is $4.07 Difference: minus $0.07 (current price is over target).
If RRL meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.52, suggesting downside of -13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 20.00 cents and EPS of 34.10 cents.
At the last closing share price the estimated dividend yield is 4.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.9, implying annual growth of 12.0%.

Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 4.2%.

Current consensus EPS estimate suggests the PER is 13.2.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 28.00 cents and EPS of 47.40 cents.
At the last closing share price the estimated dividend yield is 6.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.7, implying annual growth of 12.3%.

Current consensus DPS estimate is 19.4, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 11.7.

Market Sentiment: -0.6

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

S32  SOUTH32 LIMITED

Mining

Overnight Price: $3.37

Macquarie rates S32 as Neutral (3) -

Management has provided an update on operating issues at Illawarra and Cannington at its AGM but no changes to guidance.

Macquarie expects the capital markets briefing on December 5 will provide a more detailed outlook for production from these operations.

Neutral maintained. Target is $3.30.

Target price is $3.30 Current Price is $3.37 Difference: minus $0.07 (current price is over target).
If S32 meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.23, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 13.23 cents and EPS of 26.59 cents.
At the last closing share price the estimated dividend yield is 3.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.9, implying annual growth of N/A.

Current consensus DPS estimate is 12.9, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 13.5.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 15.86 cents and EPS of 31.59 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.0, implying annual growth of -7.6%.

Current consensus DPS estimate is 12.8, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 14.7.

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

WEB  WEBJET LIMITED

Travel, Leisure & Tourism

Overnight Price: $9.70

Morgan Stanley rates WEB as Underweight (5) -

Webjet has cut FY18 earnings guidance to below the consensus range, on soft cash flow and higher than expected costs, as the company attempts to restructure the B2B platform and management. New guidance looks conservative, the broker suggests, but execution risk remains elevated.

The broker retains Underweight and cuts its target to $9.40 from $11.35. Industry View is In-Line.

Target price is $9.40 Current Price is $9.70 Difference: minus $0.3 (current price is over target).
If WEB meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.93, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 27.00 cents and EPS of 43.00 cents.
At the last closing share price the estimated dividend yield is 2.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.6, implying annual growth of -18.9%.

Current consensus DPS estimate is 21.9, implying a prospective dividend yield of 2.3%.

Current consensus EPS estimate suggests the PER is 22.2.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 36.70 cents and EPS of 59.00 cents.
At the last closing share price the estimated dividend yield is 3.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.6, implying annual growth of 34.4%.

Current consensus DPS estimate is 29.2, implying a prospective dividend yield of 3.0%.

Current consensus EPS estimate suggests the PER is 16.6.

Market Sentiment: 0.2

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


Ord Minnett rates WEB as Buy (1) -

The company has given specific FY18 operating earnings guidance of $80m, below consensus and Ord Minnett estimates. Despite the downgrade, the broker believes the number is likely to be exceeded as the underlying performance of the business is sound.

The broker understands the concerns regarding seasonality in the B2B business that will result in a negative first half, and a reversal in the second half, but suggests this is amplified by the timing of the JacTravel acquisition.

Buy rating retained. Target is reduced to $14.35 from $15.00.

Target price is $14.35 Current Price is $9.70 Difference: $4.65
If WEB meets the Ord Minnett target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $11.93, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 22.20 cents and EPS of 44.30 cents.
At the last closing share price the estimated dividend yield is 2.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.6, implying annual growth of -18.9%.

Current consensus DPS estimate is 21.9, implying a prospective dividend yield of 2.3%.

Current consensus EPS estimate suggests the PER is 22.2.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 29.50 cents and EPS of 58.90 cents.
At the last closing share price the estimated dividend yield is 3.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.6, implying annual growth of 34.4%.

Current consensus DPS estimate is 29.2, implying a prospective dividend yield of 3.0%.

Current consensus EPS estimate suggests the PER is 16.6.

Market Sentiment: 0.2

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

Summaries
AHG AUTOMOTIVE HOLDINGS Upgrade to Overweight from Underweight - Morgan Stanley Overnight Price $3.79
Add - Morgans Overnight Price $3.79
Neutral - UBS Overnight Price $3.79
AJD ASIA PACIFIC DATA CENTRE Hold - Morgans Overnight Price $1.75
CCL COCA-COLA AMATIL Outperform - Credit Suisse Overnight Price $7.54
Hold - Morgans Overnight Price $7.54
Neutral - UBS Overnight Price $7.54
CL1 CLASS Buy - Ord Minnett Overnight Price $2.52
Downgrade to Neutral from Buy - UBS Overnight Price $2.52
COH COCHLEAR Re-instate Coverage with Underperform - Macquarie Overnight Price $180.24
DHG DOMAIN HOLDINGS Initiation of coverage with Overweight - Morgan Stanley Overnight Price $3.52
EGH EUREKA GROUP HOLDINGS Add - Morgans Overnight Price $0.34
EVN EVOLUTION MINING Neutral - Credit Suisse Overnight Price $2.57
Buy - UBS Overnight Price $2.57
FXJ FAIRFAX MEDIA Overweight - Morgan Stanley Overnight Price $0.68
HSN HANSEN TECHNOLOGIES Buy - Ord Minnett Overnight Price $3.45
JBH JB HI-FI Sell - Citi Overnight Price $22.07
MIN MINERAL RESOURCES Outperform - Macquarie Overnight Price $19.46
MLX METALS X Outperform - Macquarie Overnight Price $1.04
MQA MACQUARIE ATLAS ROADS Outperform - Macquarie Overnight Price $6.22
NXT NEXTDC Add - Morgans Overnight Price $5.76
OZL OZ MINERALS Neutral - Credit Suisse Overnight Price $8.50
PRY PRIMARY HEALTH CARE Neutral - Citi Overnight Price $3.48
Equal-weight - Morgan Stanley Overnight Price $3.48
Hold - Ord Minnett Overnight Price $3.48
Buy - UBS Overnight Price $3.48
RCG RCG CORP Upgrade to Buy from Neutral - Citi Overnight Price $0.77
REA REA GROUP Overweight - Morgan Stanley Overnight Price $77.43
RRL REGIS RESOURCES Neutral - Macquarie Overnight Price $4.07
S32 SOUTH32 Neutral - Macquarie Overnight Price $3.37
WEB WEBJET Underweight - Morgan Stanley Overnight Price $9.70
Buy - Ord Minnett Overnight Price $9.70
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

17

3. Hold

12

5. Sell

3

Friday 24 November 2017

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Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.