Australian Broker Call

Deutsche Bank rates AMC as Buy (1) -

Deutsche Bank expects the first half result to be affected by higher raw material costs and lower North American rigid plastics volumes.

Flexibles Americas has announced price increases of 5-10% to recover higher raw material costs. Deutsche Bank increases earnings estimates by 2-4%. Target is raised to $18.45 from $17.90. Buy rating retained.

Target price is $18.45 Current Price is $15.63 Difference: $2.82
If AMC meets the Deutsche Bank target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $16.34, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Credit Suisse rates ANN as Neutral (3) -

Credit Suisse reviews activity trends and, with the stock now trading at a five-year high relative PE premium, believes market expectations are similarly high with regard  to the company delivering at the upper end of its FY18 guidance range.

One risk in FY18 the broker envisages is the ability to pass through price increases to customers without affecting volumes. Neutral rating and $21.70 target retained.

Target price is $21.70 Current Price is $24.15 Difference: minus $2.45 (current price is over target).
If ANN meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.54, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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 APA as Neutral (3) -

Macquarie expects the new arbitration framework will be tested in the next 12 months. The main issue is whether the company's uncovered pipelines are transitioned to concessions from being an asset.

The broker considers the stock has underperformed most of its peers in recent months, reflecting the regulatory pressure and consideration to move offshore.

Macquarie retains a Neutral rating, as many of the issues are still to be finalised. Target is $8.51.

Target price is $8.51 Current Price is $8.39 Difference: $0.12
If APA meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $8.89, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Deutsche Bank rates BHP as Buy (1) -

Deutsche Bank is upgrading price forecasts for metallurgical coal, copper, nickel, zinc and mineral sands, and sector earnings by 15% for 2018. The broker notes the sector generally appears fully valued.

Deutsche Bank is more positive on the base metals and envisages deficits persisting and supporting prices.

The broker retains a Buy rating and raises the target to $29.50 from $28.50.

Target price is $29.50 Current Price is $26.36 Difference: $3.14
If BHP meets the Deutsche Bank target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $29.33, suggesting upside of 8.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Deutsche Bank rates BOQ as Hold (3) -

Deutsche Bank observes the second half revealed improvements in operating trends relative to the first half, with net interest margin recovering by five basis points and loan growth returning to positive territory.

The broker considers potential for further capital management a positive for the stock.

Hold rating retained. Target rises to $12.00 from $11.80.

Target price is $12.00 Current Price is $12.85 Difference: minus $0.85 (current price is over target).
If BOQ meets the Deutsche Bank target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.11, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Citi rates BXB as Neutral (3) -

Citi is unclear as to the strategy CHEP will use to address the structural headwinds in the US. Kroger is joining Costco in increasing its pallet sort and return costs to CHEP.

The broker continues to expect solid growth in CHEP and RPCs in the rest of the world, with some additional margin pressure in the Americas following the above issue with retailers.

Neutral rating retained. Target is reduced to $9.70 from $9.90.

Target price is $9.70 Current Price is $9.24 Difference: $0.46
If BXB meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.35, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Ord Minnett rates EVN as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage with a Buy rating and $2.60 target. The broker believes the mid-cap ASX-listed gold sector is in an enviable position, with strong balance sheets & cash operating margins and internal growth options.

The broker also notes a clear discount to global majors and mid-cap peers, which it considers is because of the lingering perception of mine-life issues. The counter argument is that these gold companies are discovering reserve ounces around 85% cheaper than suggested by M&A over the past five years. Hence the valuation discount is considered unjustified.

Target price is $2.60 Current Price is $2.26 Difference: $0.34
If EVN meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.43, suggesting upside of 5.9% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Credit Suisse rates HSO as Underperform (5) -

While the overall impact of the Australian government's private health insurance reforms will not be known for some years, Credit Suisse does not believe they will fundamentally alter the affordability issues.

The broker believes the decline in participation will continue, albeit at a slower pace.

Underperform retained. Target is $1.87.

Target price is $1.87 Current Price is $1.85 Difference: $0.025
If HSO meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Citi rates HVN as Sell (5) -

Amazon is likely to be disruptive to the core electronics and small appliances business, which Citi estimates accounts for around 60% of Australian franchisees sales.

Once Amazon launches the broker expects Harvey Norman to underperform the broader discretionary retail sector.

Sell rating retained. Target is raised to $3.20 from $3.10.

Target price is $3.20 Current Price is $4.00 Difference: minus $0.8 (current price is over target).
If HVN meets the Citi target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.14, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Morgans rates ICQ as Add (1) -

The company has launched its first transaction model for selling new cars online in Malaysia. Similar services will be rolled out in Thailand and Indonesia.

Fourth-quarter cash receipts were up 39% on a constant currency basis and better than Morgans expected. As the stock trades well below valuation, the broker maintains an Add rating.

While year-to-date cash receipts suggests full-year revenues may come in slightly ahead of estimates, the broker sees no reason to upgrade forecasts at this stage. Target is $0.44.

Target price is $0.44 Current Price is $0.23 Difference: $0.21
If ICQ meets the Morgans target it will return approximately 91% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Deutsche Bank rates IGO as Downgrade to Hold from Buy (3) -

Deutsche Bank is upgrading price forecasts for metallurgical coal, copper, nickel, zinc and mineral sands, and sector earnings by 15% for 2018. The broker notes the sector generally appears fully valued.

Deutsche Bank is more positive on the base metals and envisages deficits persisting and supporting prices.

Independence Group is downgraded to Hold from Buy on valuation. Target is reduced to $3.60 from $3.80.

Target price is $3.60 Current Price is $3.80 Difference: minus $0.2 (current price is over target).
If IGO meets the Deutsche Bank target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.65, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Deutsche Bank rates ILU as Sell (5) -

Deutsche Bank is upgrading price forecasts for metallurgical coal, copper, nickel, zinc and mineral sands, and sector earnings by 15% for 2018. The broker notes the sector generally appears fully valued.

Deutsche Bank is more positive on the base metals and envisages deficits persisting and supporting prices.

Sell rating retained. Target raised to $7.00 from $6.50.

Target price is $7.00 Current Price is $9.86 Difference: minus $2.86 (current price is over target).
If ILU meets the Deutsche Bank target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.31, suggesting downside of -6.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Citi rates JBH as Sell (5) -

JB Hi-Fi does not offer sufficient value at current levels in order for Citi to have a margin of safety, given Amazon's upcoming launch.

The broker expects greater dispersion in retailer multiples to occur post the Amazon launch, driving underperformance for the stock.

Sell rating retained. Target drops to $19.00 from $19.90.

Target price is $19.00 Current Price is $23.46 Difference: minus $4.46 (current price is over target).
If JBH meets the Citi target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.52, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Macquarie rates MLX as Outperform (1) -

The company has upgraded the ore reserves at Nifty by 55% for contained copper. Macquarie has already factored in the majority of this upgrade, but increases contained copper in its mining inventory by 9%.

Should extension and further infill drilling prove successful, the broker believes the mine life at Nifty could extend for up to 20 years.

Outperform retained. Target is $1.20.

Target price is $1.20 Current Price is $0.80 Difference: $0.4
If MLX meets the Macquarie target it will return approximately 50% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Morgans rates MMI as Re-initiate coverage with Add (1) -

Morgans re-initiates coverage with an Add rating and $0.29 target. The company holds tenements over 2500 square kilometres in the Weipa bauxite plateau. The main project is Bauxite Hills.

The company has commenced drawing down of its $40m final debt financing to develop the project. Coupled with the recent equity raising, development to first production and subsequent expansion to 6mtpa is now fully funded.

Target price is $0.29 Current Price is $0.21 Difference: $0.085
If MMI meets the Morgans target it will return approximately 41% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Citi rates MPL as Neutral (3) -

Citi adjusts forecasts to reflect  the likelihood of lower premium rate increases following the release of the reforms by the Australian government.

Lower premiums are expected to be offset by lower claims so the broker makes no changes to operating earnings overall. Neutral retained. Target is $2.95.

Target price is $2.95 Current Price is $3.10 Difference: minus $0.15 (current price is over target).
If MPL 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 $2.87, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Deutsche Bank rates MPL as Downgrade to Hold from Buy (3) -

Proposed changes to private health insurance should result in up to $1bn in claims savings across the system over four years, mainly through a reduction in prices paid for medical devices and prostheses.

Deutsche Bank considers this should be a net positive but the strong share price performance in anticipation of the changes has pushed the stock to its target.

Therefore the rating is downgraded to Hold from Buy. Target is raised to $3.20 from $3.10.

Target price is $3.20 Current Price is $3.10 Difference: $0.1
If MPL meets the Deutsche Bank target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.87, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Morgans rates MPL as Hold (3) -

The Australian government has announced a reform package for the private health insurance industry which Morgans considers is mainly positive, although upside is heavily linked to whether industry volumes increase.

The broker makes no changes to forecasts based on the update and maintains a cautious view, given cyclically high margins.

Hold rating and $2.68 target retained.

Target price is $2.68 Current Price is $3.10 Difference: minus $0.42 (current price is over target).
If MPL meets the Morgans target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.87, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

UBS rates MPL as Sell (5) -

UBS considers consumers the winner with the government's reforms for private health insurance. While on balance the initiatives suggest claims growth will slow, it is not clear that an orderly trajectory will ensue, as the broker notes some initiatives are inflationary.

The government will produce standard clinical definitions in 2019 to improve comparability and consumer choice. The main question UBS asks: if the government is set on applying significant pressure to premiums, how can that ultimately translate into a larger profit pool?

Sell rating and $2.50 target retained.

Target price is $2.50 Current Price is $3.10 Difference: minus $0.6 (current price is over target).
If MPL meets the UBS target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.87, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

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

The company has entered into a binding agreement with Accor SA at $3.96 cash per share. UBS expects earnings tailwinds are likely to be driven by growth and demand in the accommodation industry and new property additions to the portfolio.

The broker sets its target in line with the recommended bid price and downgrades to Neutral from Buy on forecast shareholder return.

Target price is $3.96 Current Price is $3.88 Difference: $0.08
If MTR meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.64, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Citi rates MYR as Downgrade to Neutral from Buy (3) -

Citi downgrades to Neutral from Buy/High Risk and lowers the target to $0.74 from $0.95. The broker removes the High Risk rating, given a base case scenario that now includes a potential earnings impact from Amazon.

A takeover scenario, with a 20% probability, is incorporated in valuation. Overall, the broker suspects Myer may be insulated from Amazon-related risks given its broad product assortment and willingness to exit unprofitable stores.

In order to become more positive on the stock the broker needs to witness a sustainable top line and sales productivity growth.

Target price is $0.74 Current Price is $0.75 Difference: minus $0.01 (current price is over target).
If MYR meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.69, suggesting downside of -7.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Citi rates NHF as Sell (5) -

Citi adjusts forecasts to reflect  the likelihood of lower premium rate increases following the release of the reforms by the Australian government.

Lower premiums are expected to be offset by lower claims so the broker makes no changes to operating earnings overall.

Sell maintained. Target is $5.25.

Target price is $5.25 Current Price is $6.07 Difference: minus $0.82 (current price is over target).
If NHF 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 $5.72, suggesting downside of -5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Deutsche Bank rates NHF as Hold (3) -

The proposed changes to private health insurance should result in up to $1bn in claim savings over the first four years of operation, mainly through a reduction in prices paid for medical devices and prostheses.

Deutsche Bank believes the additional intention to homogenise products across providers and allow discounts for customers aged under 30 is likely to disproportionately benefit nib, given its young customer base.

Hold rating retained. Target is raised to $6.20 from $6.00.

Target price is $6.20 Current Price is $6.07 Difference: $0.13
If NHF meets the Deutsche Bank target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.72, suggesting downside of -5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Morgans rates NHF as Hold (3) -

The Australian government has announced a reform package for the private health insurance industry which Morgans considers is mainly positive, although upside is heavily linked to whether industry volumes increase.

The broker makes no changes to forecasts based on the update and maintains a cautious view, given cyclically high margins.

Hold rating and $5.89 target retained.

Target price is $5.89 Current Price is $6.07 Difference: minus $0.18 (current price is over target).
If NHF meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.72, suggesting downside of -5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Ord Minnett rates NST as Initiation of coverage with Hold (3) -

Ord Minnett initiates coverage with a Hold rating and $5.00 target.

The broker believes the mid-cap ASX-listed gold sector is in an enviable position, with strong balance sheets & cash operating margins and internal growth options.

The broker also notes a clear discount to global majors and mid-cap peers, believing this stems from the lingering perception of mine-life issues. The counter argument is that these gold companies are discovering reserve ounces around 85% cheaper than suggested by M&A over the past five years. Hence the valuation discount is considered unjustified.

Target price is $5.00 Current Price is $5.16 Difference: minus $0.16 (current price is over target).
If NST 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 $4.79, suggesting downside of -8.0% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Deutsche Bank rates OGC as Downgrade to Hold from Buy (3) -

Deutsche Bank is upgrading price forecasts for metallurgical coal, copper, nickel, zinc and mineral sands, and sector earnings by 15% for 2018. The broker notes the sector generally appears fully valued.

OceanaGold is downgraded to Hold from Buy on valuation. Target is reduced to $3.70 from $4.40.

Target price is $3.70 Current Price is $3.99 Difference: minus $0.29 (current price is over target).
If OGC meets the Deutsche Bank target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.54, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.6

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

Ord Minnett rates OGC as Upgrade to Accumulate from Hold (2) -

Ord Minnett believes the mid-cap ASX-listed gold sector is in an enviable position, with strong balance sheets & cash operating margins and internal growth options.

The broker also notes a clear discount to global majors and mid-cap peers, believing this stems from the lingering perception of mine-life issues. The counter argument is that these gold companies are discovering reserve ounces around 85% cheaper than suggested by M&A over the past five years. Hence the valuation discount is considered unjustified.

Rating is upgraded to Accumulate from Hold. Target is raised to $4.50 from $3.90.

Target price is $4.50 Current Price is $3.99 Difference: $0.51
If OGC meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.54, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.6

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

Deutsche Bank rates OZL as Upgrade to Hold from Sell (3) -

Deutsche Bank is upgrading price forecasts for metallurgical coal, copper, nickel, zinc and mineral sands, and sector earnings by 15% for 2018. The broker notes the sector generally appears fully valued.

Deutsche Bank is more positive on the base metals and envisages deficits persisting and supporting prices.

Rating is upgraded to Hold from Sell. Target is raised to $7.70 from $7.30.

Target price is $7.70 Current Price is $8.05 Difference: minus $0.35 (current price is over target).
If OZL meets the Deutsche Bank target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.41, suggesting upside of 2.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

Credit Suisse rates RHC as Neutral (3) -

While the overall impact of the Australian government's private health insurance reforms will not be known for some years, Credit Suisse does not believe they will fundamentally alter the affordability issues.

The broker believes the decline in participation will continue, albeit at a slower pace.

Neutral retained. Target is $71.60.

Target price is $71.60 Current Price is $65.91 Difference: $5.69
If RHC meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $73.05, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

Deutsche Bank rates RIO as Buy (1) -

Deutsche Bank is upgrading price forecasts for metallurgical coal, copper, nickel, zinc and mineral sands, and sector earnings by 15% for 2018. The broker notes the sector generally appears fully valued.

Deutsche Bank is more positive on the base metals and envisages deficits persisting and supporting prices.

Buy rating retained. Target is raised to $80 from $77.

Target price is $80.00 Current Price is $68.21 Difference: $11.79
If RIO meets the Deutsche Bank target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $74.75, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.8

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

Macquarie rates RRL as Neutral (3) -

Gold production was 5% above Macquarie's forecasts during the September quarter from the Duketon operations. Costs were -11% lower.

The potential underground mine at Rosemont and continued success in developing satellite deposits as well as advances at McPhillamys remain the key drivers behind the share price, in the broker's opinion.

Target is $4.00. Neutral.

Target price is $4.00 Current Price is $3.96 Difference: $0.04
If RRL meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.51, suggesting downside of -10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.6

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

Ord Minnett rates RRL as Hold (3) -

The broker believes the mid-cap ASX-listed gold sector is in an enviable position, with strong balance sheets & cash operating margins and internal growth options.

The broker also notes a clear discount to global majors and mid-cap peers, believing this stems from the lingering perception of mine-life issues.

The counter argument is that these gold companies are discovering reserve ounces around 85% cheaper than suggested by M&A over the past five years. Hence the valuation discount is considered unjustified.

Hold rating retained. Target is lowered to $3.70 from $4.10.

Target price is $3.70 Current Price is $3.96 Difference: minus $0.26 (current price is over target).
If RRL meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.51, suggesting downside of -10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.6

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

Credit Suisse rates S32 as Neutral (3) -

The company has provided a qualitative update on Illawarra. This helps eliminate some of the unknowns around the operation, Credit Suisse observes.

However, the broker is disappointed there was no indication of what FY18 or FY19 production may look like, or the costs to be assumed.

Credit Suisse retains a Neutral rating, lowering the target to $3.10 from $3.20.

Target price is $3.10 Current Price is $3.23 Difference: minus $0.13 (current price is over target).
If S32 meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.22, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Ord Minnett rates SBM as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage with a Buy rating and $3.20 target.

The broker believes the mid-cap ASX-listed gold sector is in an enviable position, with strong balance sheets & cash operating margins and internal growth options.

The broker also notes a clear discount to global majors and mid-cap peers, believing this stems from the lingering perception of mine-life issues.

The counter argument is that these gold companies are discovering reserve ounces around 85% cheaper than suggested by M&A over the past five years. Hence the valuation discount is considered unjustified.

Target price is $3.20 Current Price is $2.69 Difference: $0.51
If SBM meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 15.9% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Citi rates SUL as Buy (1) -

Citi observes the auto parts industry has proven highly resilient globally to Amazon, both in DIY and trade. Retailers in the sports and outdoor categories have had mixed outcomes in competing.

With half of operating earnings expected to come from the automotive business and the company's relatively high level of preparedness, the broker considers Super Retail better placed than what is being priced in by the market.

Buy rating retained. Target is reduced to $9.10 from $10.00.

Target price is $9.10 Current Price is $8.35 Difference: $0.75
If SUL meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $9.26, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Citi rates WES as Sell (5) -

As a conglomerate, Wesfarmers has a mixed exposure to Amazon. Citi expects little to no impact on Coles, Bunnings and Kmart, with a moderate impact on Target and a high impact on Officeworks.

As the largest impacts are on the smallest earnings contributors, the broker considers the risks for Wesfarmers to be low.

Sell rating retained. Target is raised to $39.20 from $39.00.

Target price is $39.20 Current Price is $42.31 Difference: minus $3.11 (current price is over target).
If WES meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $41.10, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Ord Minnett rates WHC as Accumulate (2) -

September quarter production and sales were in line with Ord Minnett estimates. Pricing slightly disappointed the broker because of a greater percentage of low CV coal sales and fewer metallurgical coal sales.

Accumulate retained. Target is raised to $3.90 from $3.45.

Target price is $3.90 Current Price is $3.70 Difference: $0.2
If WHC meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.49, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Deutsche Bank rates WSA as Downgrade to Sell from Hold (5) -

Deutsche Bank is upgrading price forecasts for metallurgical coal, copper, nickel, zinc and mineral sands, and sector earnings by 15% for 2018. The broker notes the sector generally appears fully valued.

Deutsche Bank is more positive on the base metals and envisages deficits persisting and supporting prices.

Western Areas is downgraded to Sell from Hold on valuation. Target is raised to $2.40 from $2.20.

Target price is $2.40 Current Price is $2.95 Difference: minus $0.55 (current price is over target).
If WSA meets the Deutsche Bank target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.52, suggesting downside of -16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Morgans rates XIP as Hold (3) -

FY18 operating earnings guidance of $18-22m is below Morgans forecasts. Subsequently, the broker reduces estimates and now expects FY18 EBITDA of $20.4m.

The company said the first quarter performance had fallen short at both the revenue and operating earnings lines, with the main issues being disruptions and the need to bed down the new practice group structures.

Morgans retains a Hold rating and reduces the target to $1.10 from $2.03.

Target price is $1.10 Current Price is $1.14 Difference: minus $0.04 (current price is over target).
If XIP meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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