Australian Broker Call

November 18, 2016

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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)

Last Updated: 12:10 PM

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.

For more info about the different terms used by stockbrokers, as well as the different methodologies behind similar sounding ratings, download our guide HERE

Today's Upgrades and Downgrades
ANN - ANSELL Upgrade to Buy from Hold Ord Minnett
GMG - GOODMAN GRP Upgrade to Outperform from Neutral Credit Suisse
JHX - JAMES HARDIE Downgrade to Neutral from Buy Citi
MIN - MINERAL RESOURCES Upgrade to Outperform from Neutral Macquarie
PTM - PLATINUM Downgrade to Underperform from Neutral Credit Suisse
SLK - SEALINK TRAVEL Upgrade to Buy from Hold Ord Minnett
SYD - SYDNEY AIRPORT Downgrade to Underperform from Neutral Credit Suisse
VRL - VILLAGE ROADSHOW Downgrade to Hold from Buy Ord Minnett
ANN  ANSELL LIMITED

Health Care Equipment & Services

Overnight Price: $21.64

Ord Minnett rates ANN as Upgrade to Buy from Hold (1) -

Ord Minnett observes the company has made a solid start to FY17 and is a potential beneficiary of the economic stimulus that may emerge from the incoming Donald Trump administration in the US.

The strong US dollar provides valuation support although it may be a future headwind. The broker expects a good first half result against a weak comparable period and upgrades to Buy from Hold. Target is raised to $25.00 from $24.70.

Target price is $25.00 Current Price is $21.64 Difference: $3.36
If ANN meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $22.47, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 59.26 cents and EPS of 146.80 cents.
At the last closing share price the estimated dividend yield is 2.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 144.2, implying annual growth of N/A.

Current consensus DPS estimate is 59.6, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 15.3.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 63.68 cents and EPS of 157.16 cents.
At the last closing share price the estimated dividend yield is 2.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 150.3, implying annual growth of 4.2%.

Current consensus DPS estimate is 62.5, implying a prospective dividend yield of 2.8%.

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: 0.1

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

BHP  BHP BILLITON LIMITED

Materials

Overnight Price: $24.06

Macquarie rates BHP as Outperform (1) -

The company signalled at its AGM that debt reduction remains a key focus but Macquarie believes a higher dividend payment is becoming more likely, given the strength in spot commodity prices.

The company is pursuing organic growth opportunities, with Mad Dog 2 and Spence expected to be approved in the next 12-18 months. Outperform retained. Target is $28.

Target price is $28.00 Current Price is $24.06 Difference: $3.94
If BHP meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $24.04, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 76.77 cents and EPS of 139.66 cents.
At the last closing share price the estimated dividend yield is 3.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 110.3, implying annual growth of N/A.

Current consensus DPS estimate is 66.4, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 21.9.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 56.57 cents and EPS of 113.94 cents.
At the last closing share price the estimated dividend yield is 2.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 104.3, implying annual growth of -5.4%.

Current consensus DPS estimate is 67.5, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 23.1.

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

Market Sentiment: 0.4

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

BSL  BLUESCOPE STEEL LIMITED

Materials

Overnight Price: $8.75

UPDATED

Deutsche Bank rates BSL as Hold (3) -

The broker has increased its FY17 iron ore price forecast by 18% to US$54.90/t. While higher input costs are a drag for BlueScope, steel prices have risen by almost as much to provide a balance.

Target rises to $8.76 from $8.60. Hold retained.

Target price is $8.76 Current Price is $8.75 Difference: $0.01
If BSL meets the Deutsche Bank target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $9.36, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 9.00 cents and EPS of 89.00 cents.
At the last closing share price the estimated dividend yield is 1.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.3, implying annual growth of 53.6%.

Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 1.2%.

Current consensus EPS estimate suggests the PER is 9.2.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 18.00 cents and EPS of 85.00 cents.
At the last closing share price the estimated dividend yield is 2.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.3, implying annual growth of -15.7%.

Current consensus DPS estimate is 15.4, implying a prospective dividend yield of 1.8%.

Current consensus EPS estimate suggests the PER is 10.9.

Market Sentiment: 0.7

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

BXB  BRAMBLES LIMITED

Commercial Services & Supplies

Overnight Price: $11.69

Macquarie rates BXB as Resume coverage with Outperform rating (1) -

Macquarie resumes coverage with an Outperform rating and a $13 target. The fall in the share price since the FY16 result is not justified in the broker's opinion and the valuation remains compelling.

The broker considers the concerns around a change in CEO and the expected return on invested capital of 12% in FY19 are too bearish. The Pallets Americas business is considered solid, despite some near-term operating issues.

Target price is $13.00 Current Price is $11.69 Difference: $1.31
If BXB meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $13.27, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 33.00 cents and EPS of 59.93 cents.
At the last closing share price the estimated dividend yield is 2.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.7, implying annual growth of N/A.

Current consensus DPS estimate is 36.8, implying a prospective dividend yield of 3.1%.

Current consensus EPS estimate suggests the PER is 19.4.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 26.90 cents and EPS of 49.00 cents.
At the last closing share price the estimated dividend yield is 2.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.5, implying annual growth of 9.6%.

Current consensus DPS estimate is 39.1, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 17.7.

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

Market Sentiment: 0.4

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

CGC  COSTA GROUP HOLDINGS LIMITED

Food Beverage & Tobacco

Overnight Price: $3.11

UPDATED

UBS rates CGC as Buy (1) -

The company has upgraded FY17 profit guidance to be up at least 15% versus guidance of up 10% previously. UBS had factored in the upside risk, given the company had indicated it was tracking ahead at the FY16 result.

Hence, the broker's forecasts are largely unchanged. Favourable pricing, no major weather events and strong execution drove the upgrade.

The company has also entered into an exclusive non-binding arrangement with an agricultural funds management business to assess compelling acquisition prospects. Buy rating is maintained. Target is $3.00.

Target price is $3.00 Current Price is $3.11 Difference: minus $0.11 (current price is over target).
If CGC meets the UBS 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 FY17:

UBS forecasts a full year FY17 dividend of 11.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 3.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.29.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 13.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 4.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.55.

Market Sentiment: 1.0

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

GMG  GOODMAN GROUP

Real Estate

Overnight Price: $6.43

UPDATED

Credit Suisse rates GMG as Upgrade to Outperform from Neutral (1) -

Credit Suisse is upgrading to Outperform from Neutral as the stock is trading some 14% below its target price of $7.37. The stock now looks oversold to the broker.

The broker already allows for a decline of around 200 basis points in development margins from FY17-20 in its forecasts.

If cap rates soften, driven by bonds, the broker suspects this could procure downside to development profit assumptions but this should be more than offset  by the company ceasing its asset disposal program in such a scenario.

Target price is $7.37 Current Price is $6.43 Difference: $0.94
If GMG meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $7.52, suggesting upside of 15.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 26.00 cents and EPS of 42.90 cents.
At the last closing share price the estimated dividend yield is 4.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.6, implying annual growth of -40.8%.

Current consensus DPS estimate is 25.5, implying a prospective dividend yield of 3.9%.

Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 28.00 cents and EPS of 45.90 cents.
At the last closing share price the estimated dividend yield is 4.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.0, implying annual growth of 5.6%.

Current consensus DPS estimate is 26.9, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 14.4.

Market Sentiment: 0.5

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

GTY  GATEWAY LIFESTYLE GROUP

Real Estate

Overnight Price: $2.25

Macquarie rates GTY as Neutral (3) -

The company has retained its FY17 guidance for profit growth of 5%, expecting settlement patterns to be similar to FY16 and a heavy weighting to the second half.

Macquarie continues to envisage growth in manufactured home estates, with positive long-term trends including an aging population, financial pressure on retirees and increasing acceptance of the segment for retirement accommodation.

Yet certainty on the FY17 outlook needs to increase for the broker upgrades its recommendation. Neutral retained. Target reduces to $2.28 from $2.40.

Target price is $2.28 Current Price is $2.25 Difference: $0.03
If GTY meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 11.70 cents and EPS of 15.70 cents.
At the last closing share price the estimated dividend yield is 5.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.33.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 12.40 cents and EPS of 16.50 cents.
At the last closing share price the estimated dividend yield is 5.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.64.

Market Sentiment: 0.5

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


UBS rates GTY as Buy (1) -

FY17 guidance for underlying net profit growth of 5% has been reaffirmed at the AGM. UBS observes momentum remains solid across the portfolio.

While the acquisition pipeline remain strong, the broker notes competition for assets appears to be increasing. UBS considers the big picture remains positive for the stock and retains a Buy rating and $2.75 target.

Target price is $2.75 Current Price is $2.25 Difference: $0.5
If GTY meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 12.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 5.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.06.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 14.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 6.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.24.

Market Sentiment: 0.5

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

ICQ  ICAR ASIA LIMITED

Media

Overnight Price: $0.19

Morgans rates ICQ as Add (1) -

Carsales.com ((CAR)) has withdrawn two of its directors from the board, effectively ending a three-year relationship. Carsales has not disclosed the future of its 16.5% stake but Morgans now assumes this is now on the market at a suitable price.

The broker envisages potential for a new strategic partner to emerge now that Carsales has left. Add rating retained. Target is steady at 45c.

Target price is $0.45 Current Price is $0.19 Difference: $0.26
If ICQ meets the Morgans target it will return approximately 137% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY16:

Morgans forecasts a full year FY16 dividend of 0.00 cents and EPS of minus 4.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.88.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.05.

Market Sentiment: 0.5

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

ISD  ISENTIA GROUP LIMITED

Software & Services

Overnight Price: $2.38

Deutsche Bank rates ISD as Buy (1) -

iSentia management was very upbeat about the company's King Content acquisition when its earnings result was posted back in August. The market was less upbeat, seeing a shift into a lower quality segment with fewer competitive advantages, the broker notes.

A sudden downturn for Content since that time has led to a profit warning from iSentia at its AGM. Core businesses are otherwise performing strongly. The King CEO will be summarily replaced. The broker retains Buy after cutting its target to $2.90 from $4.20.

Target price is $2.90 Current Price is $2.38 Difference: $0.52
If ISD meets the Deutsche Bank target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $2.78, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 10.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.3, implying annual growth of 42.6%.

Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 15.6.

Forecast for FY18:

Deutsche Bank 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 5.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.9, implying annual growth of 15.0%.

Current consensus DPS estimate is 11.0, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 13.6.

Market Sentiment: 0.7

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


Macquarie rates ISD as Outperform (1) -

The company has downgraded FY17 guidance, with its King Content expected to lose money in the first half. Marketing has lost revenue momentum because of decisions made in regards to the new strategy.

Management believes the business will regain its revenue pipeline with a new organisational structure. The company now expects  FY17 EBITDA growth in high single digits as opposed to previous guidance for growth in the low to mid teens.

Macquarie retains an Outperform rating based on a 12-month view. While the response to the downgrade in the share price was severe the broker suspects it will take time for investors to appreciate the value that resides in the core business. Target is reduced to $2.95 from $4.13.

Target price is $2.95 Current Price is $2.38 Difference: $0.57
If ISD meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.78, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 8.40 cents and EPS of 16.80 cents.
At the last closing share price the estimated dividend yield is 3.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.3, implying annual growth of 42.6%.

Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 15.6.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 9.90 cents and EPS of 19.80 cents.
At the last closing share price the estimated dividend yield is 4.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.9, implying annual growth of 15.0%.

Current consensus DPS estimate is 11.0, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 13.6.

Market Sentiment: 0.7

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


UBS rates ISD as Neutral (3) -

UBS believes the issues affecting King Content appear to have been addressed and the rest of the business is tracking in line with expectations.

The company has indicated that the King Content performance has affected its first half outlook and expects to generate a $2m EBITDA loss for the division. Changes have been implemented and should result in positive EBITDA  for FY17.

UBS considers the valuation attractive, although it requires a recovery in earnings in the second half and into FY18. The broker maintains a Neutral rating and reduces its target to $2.50 from $3.85.

Target price is $2.50 Current Price is $2.38 Difference: $0.12
If ISD meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.78, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 9.00 cents and EPS of 18.00 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 13.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.3, implying annual growth of 42.6%.

Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 15.6.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 11.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 4.62%.
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 19.9, implying annual growth of 15.0%.

Current consensus DPS estimate is 11.0, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 13.6.

Market Sentiment: 0.7

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

JHX  JAMES HARDIE INDUSTRIES N.V.

Materials

Overnight Price: $20.40

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

Having previously nominated James Hardie as one to own post US presidential elections, Citi has now pulled back to Neutral from Buy. The reason lies with an appreciating share price.

James Hardie is struggling to meet demand due to capacity constraints in the US. Management is addressing the matter but it will weigh on margins in the short term. Citi notes management is confident these issues will have been addressed to support growth in FY18.

The analysts suggest investors should view the next 2-3 quarters as "work in progress". Target drops by 20c to $20.30. Estimates have been reduced.

Target price is $20.30 Current Price is $20.40 Difference: minus $0.1 (current price is over target).
If JHX meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.36, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Citi forecasts a full year FY17 dividend of 56.57 cents and EPS of 80.27 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.2, implying annual growth of N/A.

Current consensus DPS estimate is 56.0, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 25.3.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 64.65 cents and EPS of 91.04 cents.
At the last closing share price the estimated dividend yield is 3.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.1, implying annual growth of 24.8%.

Current consensus DPS estimate is 65.7, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 20.2.

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


Credit Suisse rates JHX as Outperform (1) -

FY18 is shaping up to be a strong year for James Hardie as manufacturing start-up costs are a one-off and a market price hike should be complemented by tactical price adjustments, in Credit Suisse's opinion.

North American volumes pleased the broker in the second quarter, in the context of end market activity and relative to competitors.The broker believes the growth and market penetration story is intact. This supports an Outperform rating and $22.70 target price.

Target price is $22.70 Current Price is $20.40 Difference: $2.3
If JHX meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $21.36, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 56.57 cents and EPS of 80.59 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.2, implying annual growth of N/A.

Current consensus DPS estimate is 56.0, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 25.3.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 63.30 cents and EPS of 96.49 cents.
At the last closing share price the estimated dividend yield is 3.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.1, implying annual growth of 24.8%.

Current consensus DPS estimate is 65.7, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 20.2.

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 JHX as Buy (1) -

James Hardie's Sep Q profit exceeded forecasts but FY17 guidance was cut to 5% below consensus. The issue is one of spending on plant ramp-ups.

The broker believes FY18's outlook remains unchanged given ramp-up costs will have eased off by then and fibre cement prices are likely to rise in March, and believes 30% FY18 profit growth is achievable. Buy retained. Target falls to $22.20 from $22.47.

Target price is $22.20 Current Price is $20.40 Difference: $1.8
If JHX meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $21.36, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 56.57 cents and EPS of 80.81 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.2, implying annual growth of N/A.

Current consensus DPS estimate is 56.0, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 25.3.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 70.54 cents and EPS of 105.81 cents.
At the last closing share price the estimated dividend yield is 3.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.1, implying annual growth of 24.8%.

Current consensus DPS estimate is 65.7, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 20.2.

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


Macquarie rates JHX as Outperform (1) -

Second quarter results were below Macquarie's expectations because of manufacturing issues experienced in North America. The broker downgrades FY17 and FY18 forecasts by 5.7% and 0.5% respectively.

While the headline results were weaker than expected they are not unexplainable, the broker believes. North American fibre cement capacity remains stretched.

 Encouragingly, volume growth of 12% was still recorded despite the company being unable to meet demand on certain lines. The broker retains a Outperform rating and lowers the target to $22.40 from $23.00.

Target price is $22.40 Current Price is $20.40 Difference: $2
If JHX meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $21.36, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 55.22 cents and EPS of 79.46 cents.
At the last closing share price the estimated dividend yield is 2.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.2, implying annual growth of N/A.

Current consensus DPS estimate is 56.0, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 25.3.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 61.95 cents and EPS of 95.35 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 21.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.1, implying annual growth of 24.8%.

Current consensus DPS estimate is 65.7, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 20.2.

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


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

Morgan Stanley believes the market is looking through the near-term downgrades in FY17, expecting strong growth into FY18.

While FY17 downgrades set the business up for a stronger performance in FY18, the broker believes consensus estimates still appear too high. Low growth in US new housing and slowing growth in renovations will provide headwinds.

Equal-weight retained. Target is $19.51. In-Line sector view.

Target price is $19.51 Current Price is $20.40 Difference: minus $0.89 (current price is over target).
If JHX meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.36, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Morgan Stanley forecasts a full year FY17 dividend of 53.60 cents and EPS of 78.11 cents.
At the last closing share price the estimated dividend yield is 2.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.2, implying annual growth of N/A.

Current consensus DPS estimate is 56.0, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 25.3.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 76.36 cents and EPS of 88.89 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 22.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.1, implying annual growth of 24.8%.

Current consensus DPS estimate is 65.7, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 20.2.

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


UPDATED

Ord Minnett rates JHX as Hold (3) -

Second quarter results were above Ord Minnett's forecast. The stock soared on the results, which demonstrates to the broker that the market is willing to look through short-term issues.

The results highlight persistent growing pains for the company, Ord Minnett believes. Costs associated with the ramp up of capacity and manufacturing inefficiencies continue to act as margin headwinds.

Hold retained. Target is raised to $19.40 from $18.60.

Target price is $19.40 Current Price is $20.40 Difference: minus $1 (current price is over target).
If JHX meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.36, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 56.57 cents and EPS of 80.81 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.2, implying annual growth of N/A.

Current consensus DPS estimate is 56.0, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 25.3.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 65.99 cents and EPS of 96.97 cents.
At the last closing share price the estimated dividend yield is 3.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.1, implying annual growth of 24.8%.

Current consensus DPS estimate is 65.7, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 20.2.

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


UBS rates JHX as Buy (1) -

James Hardie has reduced FY17 net profit guidance to a range of US$250-270m, reflecting a 5.5% reduction at the mid point. This is mainly due to the pulling forward of start-up costs relating to new brownfield capacity additions.

UBS trims estimates by 2%, which implies 10% profit growth for the full year. The broker believes the update provides some comfort that plant performance is showing signs of improvement. The broker retains a Buy rating and $23 target.

Target price is $23.00 Current Price is $20.40 Difference: $2.6
If JHX meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $21.36, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 36.00 cents and EPS of 80.00 cents.
At the last closing share price the estimated dividend yield is 1.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.2, implying annual growth of N/A.

Current consensus DPS estimate is 56.0, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 25.3.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 59.26 cents and EPS of 129.29 cents.
At the last closing share price the estimated dividend yield is 2.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.1, implying annual growth of 24.8%.

Current consensus DPS estimate is 65.7, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 20.2.

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

MIN  MINERAL RESOURCES LIMITED

Commercial Services & Supplies

Overnight Price: $12.01

Deutsche Bank rates MIN as Hold (3) -

It was a good news fest at Mineral Resources' AGM, the broker notes. FY17 earnings guidance has been upgraded by 5%, expected first lithium production from Wodgina has been brought forward, iron ore shipments could increase by 40-50% over the next two years, and two or three new profit sharing projects will likely commence in FY17.

The company also reiterated its intention to divest Mt Marion (lithium) and sell down Wodgina. Of all of the above, only the new profit sharing projects were not already assumed by the broker's forecasts. Hold retained. Target rises to $11.80 from $11.30.

Target price is $11.80 Current Price is $12.01 Difference: minus $0.21 (current price is over target).
If MIN meets the Deutsche Bank target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.44, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 49.00 cents and EPS of 99.00 cents.
At the last closing share price the estimated dividend yield is 4.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.2, implying annual growth of N/A.

Current consensus DPS estimate is 36.7, implying a prospective dividend yield of 3.0%.

Current consensus EPS estimate suggests the PER is 17.4.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 30.00 cents and EPS of 61.00 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.7, implying annual growth of 19.0%.

Current consensus DPS estimate is 46.5, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 14.6.

Market Sentiment: 0.5

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


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

The company has announced that EBITDA is now expected to be $380-420m, an increase on guidance provided in August. The guidance also assumes the proportional consolidation of the company's 43.1% stake in the Mt Marion project.

Macquarie upgrades to Outperform from Neutral believing the stock has a large number of opportunities available.Target is raised to $13.37 from $11.70.

Target price is $13.37 Current Price is $12.01 Difference: $1.36
If MIN meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $12.44, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 45.00 cents and EPS of 89.90 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.2, implying annual growth of N/A.

Current consensus DPS estimate is 36.7, implying a prospective dividend yield of 3.0%.

Current consensus EPS estimate suggests the PER is 17.4.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 54.00 cents and EPS of 109.10 cents.
At the last closing share price the estimated dividend yield is 4.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.7, implying annual growth of 19.0%.

Current consensus DPS estimate is 46.5, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 14.6.

Market Sentiment: 0.5

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

MQA  MACQUARIE ATLAS ROADS GROUP

Transportation

Overnight Price: $4.20

Macquarie rates MQA as Outperform (1) -

APRR debt re-financing of EUR1bn signals funding costs have not moved materially. Macquarie believes the APRR outlook is attractive but concerns over bonds are clearly weighing on the sector.

The broker believes that fundamentals are unchanged, with higher bonds having a minor impact on funding costs. The broker retains a Outperform rating and $5.90 target.

Target price is $5.90 Current Price is $4.20 Difference: $1.7
If MQA meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $5.62, suggesting upside of 33.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Macquarie forecasts a full year FY16 dividend of 18.00 cents and EPS of 27.90 cents.
At the last closing share price the estimated dividend yield is 4.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of 62.6%.

Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 4.3%.

Current consensus EPS estimate suggests the PER is 22.8.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 20.00 cents and EPS of 63.50 cents.
At the last closing share price the estimated dividend yield is 4.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.9, implying annual growth of 88.6%.

Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 12.1.

Market Sentiment: 0.7

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


Morgans rates MQA as Add (1) -

Morgans updates APRR forecasts to reflect recent bond issues, the French CPI and the AUD/EUR rate. Changes are minor and the broker calculates its interest cost saving thesis remains intact.

Add rating retained. Target is lowered to $5.55 from $5.86 as assumed AUD/EUR rates are revised higher.

Target price is $5.86 Current Price is $4.20 Difference: $1.66
If MQA meets the Morgans target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $5.62, suggesting upside of 33.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Morgans forecasts a full year FY16 dividend of 18.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 4.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of 62.6%.

Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 4.3%.

Current consensus EPS estimate suggests the PER is 22.8.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 20.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 4.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.9, implying annual growth of 88.6%.

Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 12.1.

Market Sentiment: 0.7

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

MTR  MANTRA GROUP LIMITED

Consumer Services

Overnight Price: $3.26

Credit Suisse rates MTR as Neutral (3) -

Credit Suisse observes the AGM update indicates conditions are tracking as expected, with resorts, unsurprisingly, standing out among divisions as the lead performer.

Growth into FY18-19 is expected. The Hawaiian asset is performing well, the broker notes, and this should lessen fears around the company's entry into a foreign market. Neutral retained. Target is $3.60.

Target price is $3.60 Current Price is $3.26 Difference: $0.34
If MTR meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.69, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 10.99 cents and EPS of 17.79 cents.
At the last closing share price the estimated dividend yield is 3.37%.
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 17.8, implying annual growth of 25.4%.

Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 12.46 cents and EPS of 19.28 cents.
At the last closing share price the estimated dividend yield is 3.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.4, implying annual growth of 9.0%.

Current consensus DPS estimate is 13.3, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 16.8.

Market Sentiment: 0.1

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


UBS rates MTR as Neutral (3) -

The company has confirmed FY17 guidance for net profit in the range of $48.5-52.5m. UBS believes the portfolio is well placed to capture the positive momentum in the resorts markets.

CBD remains a key concern for the broker and it suspects this division could limit the upside to guidance. Neutral retained. Target is $3.48.

Target price is $3.48 Current Price is $3.26 Difference: $0.22
If MTR meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.69, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 11.50 cents and EPS of 17.60 cents.
At the last closing share price the estimated dividend yield is 3.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.8, implying annual growth of 25.4%.

Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 13.00 cents and EPS of 19.50 cents.
At the last closing share price the estimated dividend yield is 3.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.4, implying annual growth of 9.0%.

Current consensus DPS estimate is 13.3, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 16.8.

Market Sentiment: 0.1

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

ORA  ORORA LIMITED

Materials

Overnight Price: $2.66

Macquarie rates ORA as Outperform (1) -

Competitor Oji Paper plans to build a greenfield corrugated box plant at Yatala in Queensland. No timeline has been provided but Macquarie observes it generally takes at least 18-24 months to build a new plant.

Whilst a negative development, the broker believes the impact is long dated and unlikely to be that material for Orora. Outperform rating and $3.20 price target retained.

Target price is $3.20 Current Price is $2.66 Difference: $0.54
If ORA meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.09, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 10.00 cents and EPS of 14.70 cents.
At the last closing share price the estimated dividend yield is 3.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.4, implying annual growth of 2.1%.

Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 18.8.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 11.00 cents and EPS of 16.30 cents.
At the last closing share price the estimated dividend yield is 4.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.2, implying annual growth of 12.5%.

Current consensus DPS estimate is 11.1, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 16.7.

Market Sentiment: 0.6

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

PTM  PLATINUM ASSET MANAGEMENT LIMITED

Diversified Financials

Overnight Price: $5.37

Credit Suisse rates PTM as Downgrade to Underperform from Neutral (5) -

The growth outlook remains weak, in Credit Suisse's view, with continued fund outflows. The broker finds little valuation support given the stock is trading at a 6% premium to peers.

Credit Suisse views the recent run in the share price as temporary and downgrades to Underperform from Neutral. Target is lowered to $5.10 from $5.25.

Target price is $5.10 Current Price is $5.37 Difference: minus $0.27 (current price is over target).
If PTM meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.89, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 31.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 5.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.6, implying annual growth of -13.6%.

Current consensus DPS estimate is 27.8, implying a prospective dividend yield of 5.5%.

Current consensus EPS estimate suggests the PER is 17.1.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 33.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 6.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.8, implying annual growth of 4.1%.

Current consensus DPS estimate is 28.6, implying a prospective dividend yield of 5.6%.

Current consensus EPS estimate suggests the PER is 16.5.

Market Sentiment: -0.5

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

SGM  SIMS METAL MANAGEMENT LIMITED

Materials

Overnight Price: $12.03

Deutsche Bank rates SGM as Hold (3) -

The broker has increased its FY17 iron ore price forecast by 18% to US$54.90/t. Given a 94% correlation between the iron ore price and scrap prices, the broker assumes a similar rise for scrap.

Sims' target rises to $9.56 from $9.33. Hold retained.

Target price is $9.56 Current Price is $12.03 Difference: minus $2.47 (current price is over target).
If SGM meets the Deutsche Bank target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.36, suggesting downside of -15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 25.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 2.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.8, implying annual growth of -3.5%.

Current consensus DPS estimate is 26.7, implying a prospective dividend yield of 2.2%.

Current consensus EPS estimate suggests the PER is 23.6.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 30.00 cents and EPS of 56.00 cents.
At the last closing share price the estimated dividend yield is 2.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.0, implying annual growth of 27.4%.

Current consensus DPS estimate is 33.4, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 18.5.

Market Sentiment: 0.2

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

SLK  SEALINK TRAVEL GROUP LIMITED

Consumer Services

Overnight Price: $4.16

UPDATED

Ord Minnett rates SLK as Upgrade to Buy from Hold (1) -

Sealink has highlighted its growth options in North Stradbroke, its contract security at Gladstone and the quality of its Bay Islands operation at its investor briefing.

Ord Minnett believes, with the stock 13% off its highs, acquisitions are still on the table on top of a strong outlook. Hence why Sealink is deserving of an upgrade to Buy from Hold. Target is raised to $4.59 from $4.47.

Target price is $4.59 Current Price is $4.16 Difference: $0.43
If SLK meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 12.70 cents and EPS of 24.10 cents.
At the last closing share price the estimated dividend yield is 3.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.26.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 13.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.33.

Market Sentiment: 0.5

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

STO  SANTOS LIMITED

Energy

Overnight Price: $3.95

UBS rates STO as Buy (1) -

Santos will acquire a 20% stake in PPL402 in PNG, which contains the Muruk gas prospect. The terms of the farm in were not disclosed but UBS suspects it will include an up-front consideration plus contribution of more than its 20% interest in the Muruk-1 well which has just spudded.

If successful, the broker expects gas from Muruk to back fill existing trains in the PNG LNG project where Santos has a 13.5% interest.

Buy rating and $4.50 target retained.

Target price is $4.50 Current Price is $3.95 Difference: $0.55
If STO meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 27.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

UBS forecasts a full year FY16 dividend of 0.00 cents and EPS of 5.41 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 73.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.1, implying annual growth of N/A.

Current consensus DPS estimate is 0.9, implying a prospective dividend yield of 0.2%.

Current consensus EPS estimate suggests the PER is 350.0.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 0.00 cents and EPS of 25.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.4, implying annual growth of 1845.5%.

Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 0.9%.

Current consensus EPS estimate suggests the PER is 18.0.

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

Market Sentiment: 0.5

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

SYD  SYDNEY AIRPORT HOLDINGS LIMITED

Transportation

Overnight Price: $6.07

UPDATED

Credit Suisse rates SYD as Downgrade to Underperform from Neutral (5) -

Credit Suisse observes Sydney Airport has fixed rates of price escalation in its contracts with international airlines, Qantas domestic, and many other customers.

There is limited capacity to increase prices above agreed rates to offset higher inflation until contracts expire. The broker calculates 100 basis points of higher inflation over the life of the concession reduces the fair value estimate by 13%.

Credit Suisse reduces its rating to Underperform from Neutral and reduces the target to $6.00 from $6.60.

Target price is $6.00 Current Price is $6.07 Difference: minus $0.07 (current price is over target).
If SYD meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.02, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Credit Suisse forecasts a full year FY16 dividend of 31.00 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 5.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.2, implying annual growth of 19.3%.

Current consensus DPS estimate is 30.8, implying a prospective dividend yield of 5.1%.

Current consensus EPS estimate suggests the PER is 40.1.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 34.00 cents and EPS of 15.70 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 38.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.3, implying annual growth of 13.8%.

Current consensus DPS estimate is 33.4, implying a prospective dividend yield of 5.5%.

Current consensus EPS estimate suggests the PER is 35.2.

Market Sentiment: 0.3

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

SYR  SYRAH RESOURCES LIMITED

Materials

Overnight Price: $3.04

Credit Suisse rates SYR as Outperform (1) -

The company's update on its spherical graphite plans have confirmed a commitment to an initial 20,000tpa facility in Louisiana. Balama is on budget and scheduled for commissioning in the June quarter 2017.

Credit Suisse makes some timing adjustments to its forecasts to allow for the updated ramp-up profile.  Outperform rating retained. Target is $7.80.

Target price is $7.80 Current Price is $3.04 Difference: $4.76
If SYR meets the Credit Suisse target it will return approximately 157% (excluding dividends, fees and charges).

Current consensus price target is $5.99, suggesting upside of 101.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY16:

Credit Suisse forecasts a full year FY16 dividend of 0.00 cents and EPS of minus 5.57 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 54.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -5.2, 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 FY17:

Credit Suisse forecasts a full year FY17 dividend of 0.00 cents and EPS of 9.84 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.6, 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.

Market Sentiment: 0.5

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


Deutsche Bank rates SYR as Buy (1) -

Syrah confirmed its various spending plans at its AGM, noting amongst other things a commercial plant will be built in Louisiana and a qualification plant will produce graphite by the first quarter FY18, or six months later than previously guided.

Ramp-up delays are a fact of life in the industry, the broker notes, hence yesterday's share price response was unwarranted. The share price now reflects upstream production and no value for downstream. Buy reiterated and $7.00 target unchanged.

Target price is $7.00 Current Price is $3.04 Difference: $3.96
If SYR meets the Deutsche Bank target it will return approximately 130% (excluding dividends, fees and charges).

Current consensus price target is $5.99, suggesting upside of 101.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY16:

Deutsche Bank forecasts a full year FY16 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 152.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -5.2, 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 FY17:

Deutsche Bank forecasts a full year FY17 dividend of 0.00 cents and EPS of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.6, 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.

Market Sentiment: 0.5

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


Macquarie rates SYR as Outperform (1) -

The company provided a detailed update on its proposed spherical graphite business. A downstream processing facility is to be located in Louisiana, US. Commissioning of Balama mine is expected in the second quarter 2017 with an extended ramp up phase to the end of the second quarter in 2018.

Macquarie considers the update a positive development, noting the company has made significant advances and is on the way to delivering a very sizable global anode material business.

While envisaging the project as somewhat de-risked, the broker now has a more conservative view of what can be achieved. Target is reduced to $5.40 from $6.60. Outperform rating retained.

Target price is $5.40 Current Price is $3.04 Difference: $2.36
If SYR meets the Macquarie target it will return approximately 78% (excluding dividends, fees and charges).

Current consensus price target is $5.99, suggesting upside of 101.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY16:

Macquarie forecasts a full year FY16 dividend of 0.00 cents and EPS of minus 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 72.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -5.2, 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 FY17:

Macquarie forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 11.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.6, 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.

Market Sentiment: 0.5

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


Morgan Stanley rates SYR as Underweight (5) -

The company has confirmed it is likely to progress first commercial production from the spherical plant in the fourth quarter of 2018, with a smaller 20,000t production line.

The schedule is slower and longer than Morgan Stanley previously expected, which implies Syrah needs to find a solution for its non contracted flake graphite production until the spherical plant ramps up.

Underweight and $3.75 target retained. Industry view: Attractive.

Target price is $3.75 Current Price is $3.04 Difference: $0.71
If SYR meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $5.99, suggesting upside of 101.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY16:

Morgan Stanley forecasts a full year FY16 dividend of 0.00 cents and EPS of minus 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -5.2, 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 FY17:

Morgan Stanley forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 304.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.6, 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.

Market Sentiment: 0.5

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

TLS  TELSTRA CORPORATION LIMITED

Telecommunication Services

Overnight Price: $4.84

Citi rates TLS as Sell (5) -

As expressed earlier, Citi analysts have come to the view that the NBN earnings gap is too big for Telstra to fill. This implies the company will eventually need to pull back on dividends as the earnings profile falls post-NBN.

Commentary at the AGM has effectively vindicated such view, suggest the analysts. They retain the Sell rating alongside a $4.50/share price target.

Target price is $4.50 Current Price is $4.84 Difference: minus $0.34 (current price is over target).
If TLS 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 $5.03, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Citi forecasts a full year FY17 dividend of 31.00 cents and EPS of 36.30 cents.
At the last closing share price the estimated dividend yield is 6.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.4, implying annual growth of -27.4%.

Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 6.4%.

Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 31.00 cents and EPS of 39.80 cents.
At the last closing share price the estimated dividend yield is 6.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.9, implying annual growth of 4.4%.

Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 6.5%.

Current consensus EPS estimate suggests the PER is 13.7.

Market Sentiment: -0.4

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


UPDATED

Credit Suisse rates TLS as Underperform (5) -

The main news from the investor briefing was the announcement of a review of capital management strategy and Credit Suisse expects this will lead to fundamental changes.

The broker envisages a risk that the review leads to a re-basing of the dividend to a lower, more sustainable, level. The broker maintains its forecasts at the present time and will look to revise its view when there is clarity on the outcome of the review.

Productivity savings of $1bn over the next five years are in line with the broker's expectations. Target price is $4.80 (down from $5.00). Underperform retained.

Target price is $4.80 Current Price is $4.84 Difference: minus $0.04 (current price is over target).
If TLS meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.03, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 31.00 cents and EPS of 33.86 cents.
At the last closing share price the estimated dividend yield is 6.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.4, implying annual growth of -27.4%.

Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 6.4%.

Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 31.00 cents and EPS of 36.81 cents.
At the last closing share price the estimated dividend yield is 6.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.9, implying annual growth of 4.4%.

Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 6.5%.

Current consensus EPS estimate suggests the PER is 13.7.

Market Sentiment: -0.4

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


Deutsche Bank rates TLS as Hold (3) -

Telstra has been performing operationally ahead of the broker's expectations, the company's investor day revealed. The broker nevertheless remains cautious on capex plans given little revenue growth in the industry.

There will be a large earnings gap post NBN rollout but investors will still be drawn to the company's various capital management options. On the balance of a low total shareholder return but an attractive yield, the broker retains Hold. Target falls to $4.75 from $4.99.

Target price is $4.75 Current Price is $4.84 Difference: minus $0.09 (current price is over target).
If TLS meets the Deutsche Bank target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.03, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 32.00 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 6.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.4, implying annual growth of -27.4%.

Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 6.4%.

Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 33.00 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 6.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.9, implying annual growth of 4.4%.

Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 6.5%.

Current consensus EPS estimate suggests the PER is 13.7.

Market Sentiment: -0.4

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


UPDATED

Macquarie rates TLS as Neutral (3) -

The company has confirmed a shift in strategy that will mean it pursues growth initiatives in its businesses that are close to its "core". Macquarie notes greater clarity in the investment program and productivity targets from the investor briefing.

The broker has no change of view following the update but suspects the capital review may unlock some value to shareholders, although it is unlikely to transform the underlying earnings challenge for Telstra. Neutral retained with $5.40 target.

Target price is $5.40 Current Price is $4.84 Difference: $0.56
If TLS meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.03, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 31.00 cents and EPS of 30.70 cents.
At the last closing share price the estimated dividend yield is 6.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.4, implying annual growth of -27.4%.

Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 6.4%.

Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 31.00 cents and EPS of 30.70 cents.
At the last closing share price the estimated dividend yield is 6.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.9, implying annual growth of 4.4%.

Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 6.5%.

Current consensus EPS estimate suggests the PER is 13.7.

Market Sentiment: -0.4

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


Morgan Stanley rates TLS as Underweight (5) -

The company has announced several refinements to its corporate strategy, including details of its previously announced $3bn incremental capital expenditure plans as well as an expansion of its productivity target to at least $1bn over the next five years.

Morgan Stanley notes capital allocation is under review with the company re-stating its goal remains to maximise returns to shareholders, maintain financial strength and retain flexibility. An update on the review is expected at the first half result.

Underweight. Target $5.00. Sector view In-Line.

Target price is $5.00 Current Price is $4.84 Difference: $0.16
If TLS meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.03, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Morgan Stanley forecasts a full year FY17 dividend of 32.00 cents and EPS of 36.00 cents.
At the last closing share price the estimated dividend yield is 6.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.4, implying annual growth of -27.4%.

Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 6.4%.

Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 33.00 cents and EPS of 37.00 cents.
At the last closing share price the estimated dividend yield is 6.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.9, implying annual growth of 4.4%.

Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 6.5%.

Current consensus EPS estimate suggests the PER is 13.7.

Market Sentiment: -0.4

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


UBS rates TLS as Neutral (3) -

Telstra has flagged a review of its capital allocation policy and is considering the best use of one-off NBN payments.

UBS speculates whether, in crystallising the value of long-term infrastructure receipts, Telstra could securitise payments in return for a lump sum.

The broker suspects, if Telstra were to divest its recurring NBN payments, this would exacerbate issues around the earnings gap and place pressure on the current dividend profile.

For now, the broker retains a Neutral rating and lowers the target to $5.00 from $5.30.

Target price is $5.00 Current Price is $4.84 Difference: $0.16
If TLS meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.03, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 32.00 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 6.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.4, implying annual growth of -27.4%.

Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 6.4%.

Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 33.00 cents and EPS of 38.00 cents.
At the last closing share price the estimated dividend yield is 6.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.9, implying annual growth of 4.4%.

Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 6.5%.

Current consensus EPS estimate suggests the PER is 13.7.

Market Sentiment: -0.4

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

TPM  TPG TELECOM LIMITED

Telecommunication Services

Overnight Price: $7.01

UPDATED

Citi rates TPM as Buy (1) -

Citi has pulled back its price target to $10.20 (was $13.35) in recognition that investors have become more sceptical towards the industry and time will be required to bring back confidence regarding growth and margins. Don't expect a return to previous exuberance is the underlying theme.

TPG is one of two bidders left in the new entrant spectrum auction in Singapore. Citi remains confident TPG, if successful, can build out a niche position, profitably. The 40% fall in the share price is seen as excessive, hence why the Buy rating remains.

Target price is $10.20 Current Price is $7.01 Difference: $3.19
If TPM meets the Citi target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $9.41, suggesting upside of 33.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Citi forecasts a full year FY17 dividend of 15.00 cents and EPS of 45.70 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 15.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.0, implying annual growth of 14.5%.

Current consensus DPS estimate is 15.6, implying a prospective dividend yield of 2.2%.

Current consensus EPS estimate suggests the PER is 15.6.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 16.50 cents and EPS of 51.40 cents.
At the last closing share price the estimated dividend yield is 2.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.1, implying annual growth of 9.1%.

Current consensus DPS estimate is 16.9, implying a prospective dividend yield of 2.4%.

Current consensus EPS estimate suggests the PER is 14.3.

Market Sentiment: 0.2

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

VRL  VILLAGE ROADSHOW LIMITED

Media

Overnight Price: $4.68

Citi rates VRL as Buy (1) -

Citi analysts have kept their Buy rating intact while cutting the price target to $5.40 from $6.05. The analysts note AGM commentary points at strength in Cinema Exhibition, uncertainty in Gold Coast theme parks and weakness in film distribution and marketing solutions.

The broker believes Village is the cheapest stock in the leisure sector trading at an undemanding valuation, albeit with the observation growth is increasingly dependent on Cinemas.

Target price is $5.40 Current Price is $4.68 Difference: $0.72
If VRL meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.03, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Citi forecasts a full year FY17 dividend of 29.00 cents and EPS of 33.30 cents.
At the last closing share price the estimated dividend yield is 6.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.5, implying annual growth of 201.0%.

Current consensus DPS estimate is 28.2, implying a prospective dividend yield of 6.2%.

Current consensus EPS estimate suggests the PER is 15.4.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 31.00 cents and EPS of 39.10 cents.
At the last closing share price the estimated dividend yield is 6.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 112.8, implying annual growth of 282.4%.

Current consensus DPS estimate is 29.2, implying a prospective dividend yield of 6.4%.

Current consensus EPS estimate suggests the PER is 4.0.

Market Sentiment: 0.3

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


Macquarie rates VRL as Neutral (3) -

The company reports its Australian cinema exhibition division has made a strong start to FY17. Trading has been inconsistent at Gold Coast theme parks after the Dreamworld incident but the company is not yet extrapolating the trends and expects to be in a better position to update at the first half result.

Macquarie remains of the view  that the stock will not re-rate until it can re-build its track record and deliver consistent earnings and cash flow, as well as reduce gearing. A Neutral rating is retained and the target is reduced to $4.70 from $5.07.

Target price is $4.70 Current Price is $4.68 Difference: $0.02
If VRL meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.03, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 28.00 cents and EPS of 33.50 cents.
At the last closing share price the estimated dividend yield is 5.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.5, implying annual growth of 201.0%.

Current consensus DPS estimate is 28.2, implying a prospective dividend yield of 6.2%.

Current consensus EPS estimate suggests the PER is 15.4.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 28.00 cents and EPS of 38.90 cents.
At the last closing share price the estimated dividend yield is 5.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 112.8, implying annual growth of 282.4%.

Current consensus DPS estimate is 29.2, implying a prospective dividend yield of 6.4%.

Current consensus EPS estimate suggests the PER is 4.0.

Market Sentiment: 0.3

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


UPDATED

Ord Minnett rates VRL as Downgrade to Hold from Buy (3) -

Ord Minnett believes the outlook for Village Roadshow is uncertain across all three of its major divisions. Cinema is leading the pack but cycling strong content in December.

With gearing rising in FY17, and no clarity on asset sales as an offset, the broker finds it hard to envisage a re-rating in the short term, despite valuation support.  Ord Minnett downgrades to Hold from Buy and reduces the target to $5.11 from $5.94.

Target price is $5.11 Current Price is $4.68 Difference: $0.43
If VRL meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.03, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 27.80 cents and EPS of 16.20 cents.
At the last closing share price the estimated dividend yield is 5.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.5, implying annual growth of 201.0%.

Current consensus DPS estimate is 28.2, implying a prospective dividend yield of 6.2%.

Current consensus EPS estimate suggests the PER is 15.4.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 27.70 cents and EPS of 334.20 cents.
At the last closing share price the estimated dividend yield is 5.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 112.8, implying annual growth of 282.4%.

Current consensus DPS estimate is 29.2, implying a prospective dividend yield of 6.4%.

Current consensus EPS estimate suggests the PER is 4.0.

Market Sentiment: 0.3

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

WES  WESFARMERS LIMITED

Food & Staples Retailing

Overnight Price: $41.37

Deutsche Bank rates WES as Sell (5) -

Wesfarmers is handing over its credit card business to Citi, while retaining the Coles brand and sharing in the revenues. The proceeds will be used to pay down debt, the broker notes.

On the balance of lost revenues and reduced costs, the net earnings impact is negligible, the broker notes. But it makes sense that a financial institution should take over. Sell and $38 target retained.

Target price is $38.00 Current Price is $41.37 Difference: minus $3.37 (current price is over target).
If WES 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 $41.15, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 EPS of 238.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 242.8, implying annual growth of 570.7%.

Current consensus DPS estimate is 202.7, implying a prospective dividend yield of 4.9%.

Current consensus EPS estimate suggests the PER is 16.9.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 EPS of 253.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 256.8, implying annual growth of 5.8%.

Current consensus DPS estimate is 212.9, implying a prospective dividend yield of 5.2%.

Current consensus EPS estimate suggests the PER is 16.0.

Market Sentiment: -0.1

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

WPL  WOODSIDE PETROLEUM LIMITED

Energy

Overnight Price: $29.27

Macquarie rates WPL as Neutral (3) -

Hess will cease work on its Australian offshore gas project, Equus, and Macquarie is not surprised. The broker was negative about Equus and removed the project from its forecasts in July based on the economics appearing challenged.

It reaffirms the broker's view that Woodside will need to do additional work to obtain backfill for the North West Shelf, including a potential tie-back from Scarborough/Thebe.

The broker retains a view that, while the company will generate meaningful cash flow from existing operations, it lacks near-term growth catalysts. Target of $31 and Neutral retained.

Target price is $31.00 Current Price is $29.27 Difference: $1.73
If WPL meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $30.19, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Macquarie forecasts a full year FY16 dividend of 122.56 cents and EPS of 148.15 cents.
At the last closing share price the estimated dividend yield is 4.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 139.4, implying annual growth of N/A.

Current consensus DPS estimate is 111.5, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 21.1.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 154.88 cents and EPS of 188.15 cents.
At the last closing share price the estimated dividend yield is 5.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 161.6, implying annual growth of 15.9%.

Current consensus DPS estimate is 129.4, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 18.2.

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

Summaries
ANN - ANSELL Upgrade to Buy from Hold - Ord Minnett Overnight Price $21.64
BHP - BHP BILLITON Outperform - Macquarie Overnight Price $24.06
BSL - BLUESCOPE STEEL Hold - Deutsche Bank Overnight Price $8.75
BXB - BRAMBLES Resume coverage with Outperform rating - Macquarie Overnight Price $11.69
CGC - COSTA GROUP Buy - UBS Overnight Price $3.11
GMG - GOODMAN GRP Upgrade to Outperform from Neutral - Credit Suisse Overnight Price $6.43
GTY - GATEWAY LIFESTYLE Neutral - Macquarie Overnight Price $2.25
Buy - UBS Overnight Price $2.25
ICQ - ICAR ASIA Add - Morgans Overnight Price $0.19
ISD - ISENTIA Buy - Deutsche Bank Overnight Price $2.38
Outperform - Macquarie Overnight Price $2.38
Neutral - UBS Overnight Price $2.38
JHX - JAMES HARDIE Downgrade to Neutral from Buy - Citi Overnight Price $20.40
Outperform - Credit Suisse Overnight Price $20.40
Buy - Deutsche Bank Overnight Price $20.40
Outperform - Macquarie Overnight Price $20.40
Equal-weight - Morgan Stanley Overnight Price $20.40
Hold - Ord Minnett Overnight Price $20.40
Buy - UBS Overnight Price $20.40
MIN - MINERAL RESOURCES Hold - Deutsche Bank Overnight Price $12.01
Upgrade to Outperform from Neutral - Macquarie Overnight Price $12.01
MQA - MACQUARIE ATLAS ROADS Outperform - Macquarie Overnight Price $4.20
Add - Morgans Overnight Price $4.20
MTR - MANTRA GROUP Neutral - Credit Suisse Overnight Price $3.26
Neutral - UBS Overnight Price $3.26
ORA - ORORA Outperform - Macquarie Overnight Price $2.66
PTM - PLATINUM Downgrade to Underperform from Neutral - Credit Suisse Overnight Price $5.37
SGM - SIMS METAL MANAGEMENT Hold - Deutsche Bank Overnight Price $12.03
SLK - SEALINK TRAVEL Upgrade to Buy from Hold - Ord Minnett Overnight Price $4.16
STO - SANTOS Buy - UBS Overnight Price $3.95
SYD - SYDNEY AIRPORT Downgrade to Underperform from Neutral - Credit Suisse Overnight Price $6.07
SYR - SYRAH RESOURCES Outperform - Credit Suisse Overnight Price $3.04
Buy - Deutsche Bank Overnight Price $3.04
Outperform - Macquarie Overnight Price $3.04
Underweight - Morgan Stanley Overnight Price $3.04
TLS - TELSTRA CORP Sell - Citi Overnight Price $4.84
Underperform - Credit Suisse Overnight Price $4.84
Hold - Deutsche Bank Overnight Price $4.84
Neutral - Macquarie Overnight Price $4.84
Underweight - Morgan Stanley Overnight Price $4.84
Neutral - UBS Overnight Price $4.84
TPM - TPG TELECOM Buy - Citi Overnight Price $7.01
VRL - VILLAGE ROADSHOW Buy - Citi Overnight Price $4.68
Neutral - Macquarie Overnight Price $4.68
Downgrade to Hold from Buy - Ord Minnett Overnight Price $4.68
WES - WESFARMERS Sell - Deutsche Bank Overnight Price $41.37
WPL - WOODSIDE PETROLEUM Neutral - Macquarie Overnight Price $29.27
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

24

3. Hold

16

5. Sell

7

Friday 18 November 2016

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