Australian Broker Call

Morgan Stanley rates 3PL as Overweight (1) -

The company has reiterated guidance for revenue growth to exceed costs growth in FY18. The revenue acceleration ex forecasts for the second half of FY19 remains intact. The company is also more constructive on the outlook for EMEA.

Morgan Stanley envisages the catalyst for subscriber acceleration will be a second half of FY19 story. Target is $2.30. Overweight rating. Industry view is In-Line.

Target price is $2.30 Current Price is $1.29 Difference: $1.01
If 3PL meets the Morgan Stanley target it will return approximately 78% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 52.2% (ex-dividends)

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

Deutsche Bank rates ABC as Hold (3) -

The company has hosted an investor briefing, noting the outlook for the east coast remains strong. The main disappointment for Deutsche Bank was the continued delay of the northern connector project in South Australia, although this is more than offset by other projects.

The broker notes volume growth also remains subdued and there is increased competition in south-east Queensland. Hold rating and $5.85 target.

Target price is $5.85 Current Price is $6.70 Difference: minus $0.85 (current price is over target).
If ABC meets the Deutsche Bank target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.06, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates ABC as Outperform (1) -

The company has hosted an investor briefing, reiterating its FY18 outlook. Macquarie observes the market dynamics are favourable and the lime business, at 11% of revenue, remains a stable contributor.

The broker continues to like the investment case, amid evidence of improving pricing power. Outperform rating maintained. Target is $7.00.

Target price is $7.00 Current Price is $6.70 Difference: $0.3
If ABC meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.06, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in December.

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

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

Macquarie suggests the FY19 growth outlook is challenging as new games are underperforming and there is low visibility on the sales to Churchill Downs and Novomatic. The broker's new pre-tax profit forecasts assume another step down in earnings.

Macquarie acknowledges that its forecasts are materially below consensus but highlights the high operating leverage and extremely low visibility.

Earnings per share estimates are cut by -26%. Rating is downgraded to Underperform from Neutral. Target is reduced to $0.95 from $1.05.

Target price is $0.95 Current Price is $1.15 Difference: minus $0.2 (current price is over target).
If AGI meets the Macquarie target it will return approximately minus 17% (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: -1.0

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

Credit Suisse rates ASX as Underperform (5) -

Despite higher annual listing fees and some stronger cyclical activity Credit Suisse considers the earnings benefit is minimal. Annual listing fees are set to grow around 10% in FY19.

Capital raisings were particularly strong in May but the broker suggests this reflected a large URW listing, which will be at a very low margin for ASX.

Credit Suisse remains supportive of the incremental growth opportunities the company is pursuing but considers the gains will be long-dated. Valuation is considered full and the broker retains an Underperform rating and a $55 target.

Target price is $55.00 Current Price is $61.02 Difference: minus $6.02 (current price is over target).
If ASX 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 $55.57, suggesting downside of -8.9% (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

Deutsche Bank rates ASX as Sell (5) -

The company's trading release for May highlighted, in Deutsche Bank's view, a solid 11 months. Cash market values are broadly stable but derivatives volumes have been very strong.

Sell rating and $55.90 target maintained.

Target price is $55.90 Current Price is $61.02 Difference: minus $5.12 (current price is over target).
If ASX meets the Deutsche Bank target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $55.57, suggesting downside of -8.9% (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

Morgans rates ASX as Reduce (5) -

May was a strong trading month for ASX, Morgans observes, with futures volumes up 14% and listings & capital raisings up 224% on the prior corresponding period.

The level of equity capital markets activity was the highest achieved since October 2015. Cash market trading was more mixed, with volumes up 2% but average daily value down -1%.

The broker believes the company is slowly changing perceptions on the long-term revenue growth outlook but considers the stock too expensive. Reduce retained. Target is raised to $52.81 from $52.56.

Target price is $52.81 Current Price is $61.02 Difference: minus $8.21 (current price is over target).
If ASX meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $55.57, suggesting downside of -8.9% (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 BHP as Neutral (3) -

Credit Suisse upgrades near-term copper estimates and now reflects these in its BHP modelling. Copper is expected to be in surplus until 2022, resulting in the price falling to a cost support level. The broker forecasts US$2.70/lb from 2020.

The broker notes the company's US onshore exit remains on track and news suggests the process is attracting bids. Neutral and $31 target retained.

Target price is $31.00 Current Price is $33.39 Difference: minus $2.39 (current price is over target).
If BHP meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.13, suggesting downside of -0.8% (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: 0.8

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

Macquarie rates BHP as Outperform (1) -

Macquarie notes speculation that multiple bidders have provided offers for the company's US shale assets. The emergence of multiple bidders is encouraging and the broker suggests this could represent upside risks to its US$8-10bn divestment target range.

The conclusion to the sale process is expected by the end of the year. While a break-up sale may deliver a higher combined price, in the broker's opinion a trade sale of the entire portfolio was likely to have been the company's preferred strategy.

Outperform rating and $36.20 target maintained.

Target price is $36.20 Current Price is $33.39 Difference: $2.81
If BHP meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $33.13, suggesting downside of -0.8% (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: 0.8

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

Morgan Stanley rates BPT as Overweight (1) -

Morgan Stanley believes the energy sector is in the early stages of a longer-term recovery and upgrades its industry view to Attractive. The broker believes downside risks that plagued the industry in 2017 are dissipating although oil will likely retain its volatility.

The broker's oil price forecasts have been upgraded to US$77/bbl for the remainder of 2018, US$74/bbl in 2019, US$72/bbl in 2020 and US$70/bbl long-term.

Overweight. Price target is raised to $2.00 from $1.70.

Target price is $2.00 Current Price is $1.65 Difference: $0.35
If BPT meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.43, suggesting downside of -13.4% (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

Ord Minnett rates CGC as Accumulate (2) -

Ord Minnett suspects the company's 1.9m trade target in avocados could be exceeded and the market remains attractive despite current prices being low.

International growth is considered likely to help drive outperformance in the next year and beyond. Rating is Hold. Target is $7.52.

Target price is $7.52 Current Price is $7.86 Difference: minus $0.34 (current price is over target).
If CGC meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.55, suggesting downside of -4.0% (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

Morgan Stanley rates CTD as Overweight (1) -

Corporate Travel has reiterated guidance for second half organic earnings growth of over 20%. The company's commentary at the Morgan Stanley conference supports the broker's thesis on the economics of automation and ongoing vertical integration.

Morgan Stanley reiterates an Overweight rating, In-Line industry view and $31 target.

Target price is $31.00 Current Price is $24.96 Difference: $6.04
If CTD meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $26.29, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Morgan Stanley rates CTX as Underweight (5) -

Morgan Stanley believes the energy sector is in the early stages of a longer-term recovery and upgrades its industry view to Attractive. The broker believes downside risks that plagued the industry in 2017 are dissipating although oil will likely retain its volatility.

The broker's oil price forecasts have been upgraded to US$77/bbl for the remainder of 2018, US$74/bbl in 2019, US$72/bbl in 2020 and US$70/bbl long-term.

Underweight rating. Target is $26.

Target price is $26.00 Current Price is $29.18 Difference: minus $3.18 (current price is over target).
If CTX meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.22, suggesting upside of 24.1% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates DMP as Overweight (1) -

Morgan Stanley believes nothing material has emerged from the submissions into the inquiry into franchising, which has begun. The broker believes the market will start to focus on growth potential in Europe.

The broker remains conscious that FY18 guidance requires a strong performance in June. Overweight rating and Cautious industry view. Target is $55.

Target price is $55.00 Current Price is $51.04 Difference: $3.96
If DMP meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $48.64, suggesting downside of -4.7% (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

Morgan Stanley rates FAR as Overweight (1) -

Morgan Stanley believes the energy sector is in the early stages of a longer-term recovery and upgrades its industry view to Attractive. The broker believes downside risks that plagued the industry in 2017 are dissipating although oil will likely retain its volatility.

The broker's oil price forecasts have been upgraded to US$77/bbl for the remainder of 2018, US$74/bbl in 2019, US$72/bbl in 2020 and US$70/bbl long-term.

Overweight retained. Target is raised to $0.14 from $0.12.

Target price is $0.14 Current Price is $0.09 Difference: $0.05
If FAR meets the Morgan Stanley target it will return approximately 56% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Deutsche Bank rates GPT as Hold (3) -

The company has announced the withdrawal of Wollongong Central from the market. Deutsche Bank suggests GPT was unable to find a buyer willing to pay book value for the South Coast asset.

Hold rating retained. Price target is $5.04.

Target price is $5.04 Current Price is $5.02 Difference: $0.02
If GPT meets the Deutsche Bank target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.20, suggesting upside of 3.7% (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

Citi rates GUD as Buy (1) -

Citi analysts reiterate their Buy rating for GUD Holdings. That sentence is from the last update, on May 7th, but it equally applies today. The strategy to transform the business into a pure play automotive servicing operation is shifting into a higher gear, says Citi, and it receives the thumbs up.

GUD has just announced the acquisition of Disc Brakes Australia. Citi analysts have largely left estimates unchanged, but added 4% to their price target; to $14.45.

Target price is $14.45 Current Price is $13.54 Difference: $0.91
If GUD meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $12.91, suggesting downside of -4.7% (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

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

Morgan Stanley believes the energy sector is in the early stages of a longer-term recovery and upgrades its industry view to Attractive. The broker believes downside risks that plagued the industry in 2017 are dissipating although oil will likely retain its volatility.

The broker's oil price forecasts have been upgraded to US$77/bbl for the remainder of 2018, US$74/bbl in 2019, US$72/bbl in 2020 and US$70/bbl long-term.

Equal-weight retained. Target is reduced to $1.18 from $1.31. Morgan Stanley expects the share price to re-rate if the company successfully concludes a deal with Petrobras.

Target price is $1.18 Current Price is $1.10 Difference: $0.08
If KAR meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

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

Macquarie rates LNK as Outperform (1) -

Recent announcements may have been disappointing but Macquarie believes the impact is factored into the share price.

The broker envisages some positive catalysts on the horizon and believes the company has various avenues to deliver organic growth. Hence, an Outperform rating is maintained. Target rises to $8.30 from $8.10.

Target price is $8.30 Current Price is $6.97 Difference: $1.33
If LNK meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $8.00, suggesting upside of 14.8% (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 MFG as Outperform (1) -

Funds under management of $67.4bn were reported as of May, up 1.7%. Credit Suisse observes net flows were weak, with around -$50m of outflows from the retail channel.

Outperform rating reiterated, given valuation appeal. Credit Suisse believes concerns over future flows are overplayed. Target is $28.

Target price is $28.00 Current Price is $22.39 Difference: $5.61
If MFG meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $27.94, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

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

The company experienced -$47m in net outflows in May, just the third month of outflows since 2010 Morgan Stanley observes. Outflows in the retail business occurred for the third straight month.

The broker believes the negative momentum in retail flows is driven by maturing business, increasing breadth & quality of competition and the company's narrow business mix.

Equal-weight retained. Target is $27.00. Industry view: In-Line.

Target price is $27.00 Current Price is $22.39 Difference: $4.61
If MFG meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $27.94, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Macquarie rates MGR as Outperform (1) -

Mirvac has exercised a pre-emptive right to acquire a 50% stake in 275 Kent Street Sydney for $721.9m. The company sold a 50% stake in 2014 to Blackstone for $435m, retaining the remainder.

Macquarie observes, while the earnings leverage to an improving Sydney office market is taking time to flow through, capital markets are clearly still viewing the sub-market as favourable. The broker maintains an Outperform rating and $2.31 target.

Target price is $2.31 Current Price is $2.23 Difference: $0.08
If MGR meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.36, suggesting upside of 5.9% (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 MTS as Hold (3) -

The company has announced it will recognise a -$352m impairment to its food & grocery business. The majority pertains to goodwill and other intangibles.

The impairment comes on the back of a poor Western Australian economy, competition in supermarkets as well as the news that Drakes Supermarkets in South Australia will not sign up to the company's new distribution centre. Instead, Drakes intends to open its own distribution centre which will remove around -$270m in sales for Metcash.

Hold maintained. Target is $2.80.

Target price is $2.80 Current Price is $2.70 Difference: $0.1
If MTS meets the Deutsche Bank target it will return approximately 4% (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: 0.2

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

Ord Minnett rates MTS as Accumulate (2) -

The company has announced $352m in impairment charges, including $318m in goodwill and intangibles. Ord Minnett believes the size of the impairment reflects conservative assumptions on cost mitigation after major customer Drakes Supermarkets indicated it would not support the new distribution centre.

The broker acknowledges its upgrade to Accumulate from Lighten in May has proven ineffective and poorly timed. Yet, at current share prices, maintains its stance as the risks of contract loss and margin compression post the Drakes decision are factored in, while food deflation is easing. Target is lowered to $3.25 from $3.60.

Target price is $3.25 Current Price is $2.70 Difference: $0.55
If MTS meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

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

The company's fiscal year ends in April.

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

Morgan Stanley rates NEA as Overweight (1) -

The company has reiterated FY18 guidance and conviction of a gross margin of 90% in the US, as well as the breadth of opportunity to sustain strong growth across the US and Australasia.

Overweight rating reiterated. Industry view is In-Line. Target is $1.40.

Target price is $1.40 Current Price is $0.96 Difference: $0.44
If NEA meets the Morgan Stanley target it will return approximately 46% (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

Morgan Stanley rates ORG as Overweight (1) -

Morgan Stanley believes the energy sector is in the early stages of a longer-term recovery and upgrades its industry view to Attractive. The broker believes downside risks that plagued the industry in 2017 are dissipating although oil will likely retain its volatility.

The broker's oil price forecasts have been upgraded to US$77/bbl for the remainder of 2018, US$74/bbl in 2019, US$72/bbl in 2020 and US$70/bbl long-term.

Overweight maintained. Origin Energy is the broker's top pick within Australian utilities and second within its large cap Australian energy coverage. Target is raised to $11.18 from $10.88. Utilities & infrastructure sector view remains at Cautious.

Target price is $10.88 Current Price is $9.65 Difference: $1.23
If ORG meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $10.00, suggesting upside of 3.6% (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

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

Morgan Stanley believes the energy sector is in the early stages of a longer-term recovery and upgrades its industry view to Attractive. The broker believes downside risks that plagued the industry in 2017 are dissipating although oil will likely retain its volatility.

The broker's oil price forecasts have been upgraded to US$77/bbl for the remainder of 2018, US$74/bbl in 2019, US$72/bbl in 2020 and US$70/bbl long-term.

Morgan Stanley believes the company's long term investment basis is sound and the equity performance is dependent on greater clarity regarding expansion including the government take. Equal-weight maintained. Target is raised to $8.45 from $7.75.

Target price is $8.45 Current Price is $8.37 Difference: $0.08
If OSH meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $8.33, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in December.

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 PGH as Outperform (1) -

Credit Suisse believes it prudent to trim its FY19 estimates for earnings, with EPS reduced by -4.4%, because of plastic resin (HDPE) cost increases. PET resin costs also continue to rise.

The broker assumes the company eventually recovers, or defrays, higher raw material costs by FY20. Moreover, the HDPE rise may relate to seasonal factors and temporary tightness in the market.

Outperform rating and $5.80 target maintained.

Target price is $5.80 Current Price is $5.43 Difference: $0.37
If PGH meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.69, suggesting upside of 4.7% (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

Credit Suisse rates RIO as Outperform (1) -

Credit Suisse makes modelling adjustments to account for expectations that copper will be in surplus until 2022 and removes the company's Queensland coal sales from earnings estimates, now the Winchester South disposal has closed.

The broker considers the balance sheet incredibly strong and, while not discounting the scale of buybacks and dividends to date, finds it hard to envisage how net debt will rise materially in the near term without M&A taking place.

Credit Suisse observes that "shrinking to greatness" can only occur for so long and the next 24 months could prove interesting.

Outperform and $82 target retained.

Target price is $82.00 Current Price is $84.01 Difference: minus $2.01 (current price is over target).
If RIO meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $85.81, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.9

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

Credit Suisse rates SFR as Underperform (5) -

Credit Suisse notes assay results from three holes from the farm-in to Morck's Well were encouraging. The copper intersections are compelling enough to continue with the drilling.

Still, the broker believes a discovery is urgently needed to avoid a production hiatus. Rating is Underperform. Target is $6.70.

Target price is $6.70 Current Price is $9.26 Difference: minus $2.56 (current price is over target).
If SFR meets the Credit Suisse target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.32, suggesting downside of -20.9% (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

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

Morgan Stanley believes the energy sector is in the early stages of a longer-term recovery and upgrades its industry view to Attractive. The broker believes downside risks that plagued the industry in 2017 are dissipating although oil will likely retain its volatility.

The broker's oil price forecasts have been upgraded to US$77/bbl for the remainder of 2018, US$74/bbl in 2019, US$72/bbl in 2020 and US$70/bbl long-term.

Equal-weight maintained. target is raised to $0.40 from $0.39.

Target price is $0.40 Current Price is $0.41 Difference: minus $0.01 (current price is over target).
If SXY meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.43, suggesting upside of 4.9% (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 SYD as Re-instate Coverage with Buy (1) -

Citi re-instates coverage with a Buy rating and $7.93 target. The broker forecasts 2017-21 compound international passenger growth of 6.3%. This estimate is supported by continued growth in Chinese travellers, in particular.

The broker also considers the retail outlook attractive, offering immunity from structural headwinds, and forecasts 2017-20 growth of 8.2%. The broker introduces a declining distribution pay-out ratio from 2020.

Target price is $7.93 Current Price is $7.21 Difference: $0.72
If SYD meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $7.38, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in December.

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 TCL as Re-instate Coverage with Sell (5) -

Citi re-instates coverage with a Sell rating and $10.52 target. The company currently distributes 100% of free cash flow and the broker believes this is unlikely to continue beyond 2020.

Citi forecasts a reduction in the pay-out ratio to 90% in FY20 and 87% in FY21 before stabilising in FY22. The broker notes the balance sheet is already leveraged and net debt to equity has increased to a record high.

The company is committed to a $6.3bn development book which is yet to be funded and this could add further pressure to the credit metrics.

Target price is $10.52 Current Price is $11.83 Difference: minus $1.31 (current price is over target).
If TCL meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.82, suggesting upside of 8.4% (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

Morgan Stanley rates WOR as Overweight (1) -

Morgan Stanley believes the energy sector is in the early stages of a longer-term recovery and upgrades its industry view to Attractive. The broker believes downside risks that plagued the industry in 2017 are dissipating although oil will likely retain its volatility.

The broker's oil price forecasts have been upgraded to US$77/bbl for the remainder of 2018, US$74/bbl in 2019, US$72/bbl in 2020 and US$70/bbl long-term.

Overweight maintained. Target is raised to $18.70 from $16.44. Utilities & infrastructure sector view remains at Cautious.

Target price is $18.70 Current Price is $16.75 Difference: $1.95
If WOR meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $17.07, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Morgan Stanley rates WPL as Overweight (1) -

Morgan Stanley believes the energy sector is in the early stages of a longer-term recovery and upgrades its industry view to Attractive. The broker believes downside risks that plagued the industry in 2017 are dissipating although oil will likely retain its volatility.

The broker's oil price forecasts have been upgraded to US$77/bbl for the remainder of 2018, US$74/bbl in 2019, US$72/bbl in 2020 and US$70/bbl long-term.

Morgan Stanley applies no discount or premium to its valuation for Woodside and increases its target to $37.50 from $36.00. Overweight retained.

Target price is $37.50 Current Price is $32.91 Difference: $4.59
If WPL meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $32.88, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.0

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