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Weekly Ratings, Targets, Forecast Changes – 14-02-20

Weekly Reports | Feb 17 2020

This story features A2 MILK COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: A2M

By Rudi Filapek-Vandyck, Editor FNArena

Guide:

The FNArena database tabulates the views of seven major Australian and international stock brokers: Citi, Credit Suisse, Macquarie, Morgan Stanley, Morgans, Ord Minnett and UBS.

For the purpose of broker rating correlation, Outperform and Overweight ratings are grouped as Buy, Neutral is grouped with Hold and Underperform and Underweight are grouped as Sell to provide a Buy/Hold/Sell (B/H/S) ratio.

Ratings, consensus target price and forecast earnings tables are published at the bottom of this report.

Summary

Period: Monday February 10 to Friday February 14, 2020
Total Upgrades: 18
Total Downgrades: 21
Net Ratings Breakdown: Buy 37.49%; Hold 46.52%; Sell 15.99%

More downgrades than upgrades for ASX-listed stocks thus far into the February reporting season, with earnings estimates making an unexpected bend upwards, on balance, but also with valuations and price targets coming under intense pressure from companies who fail to live up to expectations.

Welcome to investing in the share market anno 2020.

For the week ending Friday, 14th Feburay 2020, FNArena registered 18 upgrades in recommendations against 21 downgrades. Only nine of the upgrades moved to Buy (50%) while nine of the downgrades moved to Sell.

Several profit results reporters are represented on both sides of the ledger. AGL Energy received two upgrades, as did Oil Search, and Synlait Milk. Carsales received three downgrades. Challenger was downgraded twice.

Possibly the real message from the first week of the local February reporting season is that earnings forecasts have finally made a trend-break in rising during the week. Stockbroking analysts are revising upwards their valuations and price targets for those companies who do not fail. But plenty do fail, and thus reductions in price targets are larger than the increases.

For the week, IDP Education and Challenger both enjoyed 20%-plus increases to consensus forecasts, handsomely beating companies such as a2 Milk, Magellan Financial, CSL, and Carsales (all still enjoying double digit percentage increases). On the flipside, we find Suncorp, Downer EDI and Orora as the week's biggest losers, but their reductions pale in comparison to the gains booked on the positive side.

In terms of positive revisions to target prices, Woodside Petroleum sits on top for the week, followed by Magellan Financial, IDP Education and Challenger. Amongst those suffering declines in targets we find Blackmores, Unibail-Rodamco-Westfield, Megaport, and Orora.

As stated earlier, average increases to forecasts outweigh the reductions, but for price targets the average upgrade is out-muscled by downgrades on the back of profit warnings and earnings disappointments.

The February reporting season steps up a gear (or two) from Wednesday this week onwards.

Upgrade

THE A2 MILK COMPANY LIMITED ((A2M)) Upgrade to Buy from Sell by Citi .B/H/S: 3/2/1

Citi has decided it's time for a double-whammy upgrade; to Buy from Sell. The move is explained by the fact Citi analysts now see upside to forecasts for H2 on the back of the coronavirus outbreak. They note their ebitda forecast for FY20 sits 17% above market consensus presently.

Evidence, albeit anecdotal, that consumers have begun stockpiling essential items, including infant formula, underpins Citi's positive view. While this essentially pulls forward future sales, the analysts are not deterred and anticipate positive impact short-term.

Target price jumps 18% to $17.45 on increased forecasts.

AGL ENERGY LIMITED ((AGL)) Upgrade to Hold from Reduce by Morgans and Upgrade to Neutral from Sell by Citi .B/H/S: 0/3/4

The broker had expected a weak first half from AGL Energy due to the extended outage at Loy Yang but the result surprised to the upside. That said, FY guidance implies a weaker second half, netting out the upside surprise. The company has pointed to a weakening electricity market although FY21 might enjoy a boost from a Loy Yang insurance payout.

The broker sees a challenging longer term outlook but a solid dividend and a buyback resumption should support the share price. Upgrade to Hold from Reduce, target rises to $18.38 from $17.88.

Citi analysts won't hide their amazement today. That interim report by AGL revealed a "stellar performance". Wholesale gas gross margin in particular helped the utility with significantly outperforming market consensus and projections at Citi.

In response, Citi analysts suggest this is AGL putting its incumbency to work, and to work well. Among the factors noted, Citi observes AGL has been opportunistically buying in the relatively cheaper gas spot market.

The outlook for earnings is indisputable stronger, the analysts acknowledge, even though they remain of the view structural challenges longer term remain. Upgrade to Neutral from Sell, price target jumps to $20.12 from $17.35.

AMCOR LIMITED ((AMC)) Upgrade to Add from Hold by Morgans .B/H/S: 5/2/0

First half results were slightly weaker than expected. FY20 underlying growth guidance has been improved to 7-10%.

Management has advised that the Bemis integration is progressing well, with cost synergies of US$30m delivered in the first half.

Morgans upgrades to Add from Hold, believing the share price in the short term should be supported by the ongoing US$500m buyback. Target is raised to $16.62 from $14.70.

See also AMC downgrade.

AMP LIMITED ((AMP)) Upgrade to Neutral from Sell by UBS .B/H/S: 1/5/1

The second half outcome fell well short of UBS estimates. This largely related to AMP life which will be divested in the current half.

Nevertheless, with the stock now trading at an FY21 estimated PE of 14x, and with improving growth thereafter, UBS upgrades to Neutral from Sell. Target is steady at $1.80.

BORAL LIMITED ((BLD)) Upgrade to Hold from Lighten by Ord Minnett .B/H/S: 1/3/1

The North American division has again been the main area of disappointment, particularly with respect to margins, and Ord Minnett reduces estimates for earnings per share by -9% over FY20-22 to reflect this.

The broker believes most important strategic decision for the CEO Mike Kane's successor will be whether to persist with the existing North American portfolio, possibly at lower carrying value, or to re-focus on the more profitable business in Australia.

As FY20 guidance is now more realistic, Ord Minnett upgrades to Hold from Lighten. Target is $4.50.

See also BLD downgrade.

CENTURIA CAPITAL GROUP ((CNI)) Upgrade to Accumulate from Hold by Ord Minnett .B/H/S: 1/0/0

First half earnings were 40% above Ord Minnett's forecasts. The result ticked many boxes in terms of fund manager performance.

The broker incorporates the proposed acquisition of Augusta Capital for $175m. Ord Minnett believes New Zealand is an attractive market and the target has relatively strong growth prospects.

Rating is upgraded to Accumulate from Hold and the target is lifted to $2.75 from $2.00.

COMPUTERSHARE LIMITED ((CPU)) Upgrade to Outperform from Neutral by Credit Suisse .B/H/S: 1/3/2

First half results missed expectations although guidance implies a stronger second half. Credit Suisse expects 10% growth in FY21-22.

The company should benefit from cost reductions and the Equatex synergies.

Rating is upgraded to Outperform from Neutral as the broker believes the stock offers good value and there is a track record of delivering on guidance. Target is raised to $19.40 from $16.50.

See also CPU downgrade.

EVOLUTION MINING LIMITED ((EVN)) Upgrade to Buy from Neutral by UBS .B/H/S: 3/4/0

The share price has fallen -6% since November and underperformed the Australian dollar gold price and the S&P/ASX gold index.

However, the pessimism on several fronts is now priced into the stock, UBS suggests, and optimism is warranted regarding the expanding Cowal underground.

The broker considers the valuation attractive and upgrades to Buy from Neutral. Target is raised to $4.60 from $4.25.

GOODMAN GROUP ((GMG)) Upgrade to Hold from Sell by Ord Minnett .B/H/S: 4/2/0

First half operating profit was well ahead of Ord Minnett's forecasts because of materially higher development earnings.

The broker's forecasts of 13.5% growth in earnings per share are now ahead of the company's upgraded FY20 guidance of 11%.

Ord Minnett acknowledges having made a wrong call on the stock, as momentum has become far more important than valuation.

While the stock remains fully priced, the broker upgrades to Hold from Sell. Target is raised to $16.10 from $12.70.

IDP EDUCATION LIMITED ((IEL)) Upgrade to Accumulate from Hold by Ord Minnett .B/H/S: 4/0/1

First half operating earnings (EBITDA) beat Ord Minnett estimates. The broker believes the company's lead in innovation is paying dividends.

Despite the lofty valuation, Ord Minnett asserts investors cannot ignore the quality of the business and upgrades to Accumulate from Hold. Target is raised to $22.34 from $16.23.

JB HI-FI LIMITED ((JBH)) Upgrade to Outperform from Neutral by Macquarie .B/H/S: 1/4/2

JB Hi-Fi's first half profit beat consensus by 5%, while full year guidance is also ahead of consensus. All divisions delivered positive comparable sales in the first half, Macquarie notes. Improved execution at The Good Guys has the broker becoming more bullish on what had been the company's problem child.

Despite the threats from online (ie Amazon), JB Hi-Fi has proved it is able to successfully innovate and diversify into new products while maintaining costs, Macquarie notes. Upgrade to Outperform. Target rises to $51.10 from $36.8 as the broker resets PE multiple assumptions back to historical levels.

See also JBH downgrade.

NATIONAL AUSTRALIA BANK LIMITED ((NAB)) Upgrade to Equal-weight from Underweight by Morgan Stanley .B/H/S: 2/4/1

The first quarter trading update builds on the bank's recent track record, Morgan Stanley asserts. The broker believes the operating performance is sound, given the challenging environment.

Housing and SME loans have slowed and the broker acknowledges it will not be easy to achieve expenses that are "broadly flat", but margin pressure is being managed and the credit quality is good.

Rating is upgraded to Equal-weight from Underweight and the target raised to $25.50 from $24.50. Industry view: In-line.

OIL SEARCH LIMITED ((OSH)) Upgrade to Buy from Neutral by UBS and Upgrade to Hold from Lighten by Ord Minnett .B/H/S: 2/4/1

UBS believes the market has over-reacted to the news that discussions over the P'nyang gas development have been terminated. As such the broker lifts the rating to Buy from Neutral.

The broker does not believe the expansion is ruled out completely and Papua LNG remains in play. Alaska is also regarded a driver of positive news for the company in 2020. Target is raised to $7.30 from $7.10.

The breakdown of discussions over P'nyang has meant the share price has de-rated and there are significant impediments to reviving the three-train PNG LNG expansion.

Moreover, a two-train expansion appears unlikely, in Ord Minnett's view. As the share price is now placing little value on the project, the broker upgrades to Hold from Lighten. Target is $6.85.

SOUTH32 LIMITED ((S32)) Upgrade to Accumulate from Hold by Ord Minnett .B/H/S: 5/1/1

Operating earnings were ahead of Ord Minnett's forecasts in the first half. The broker now expects FY21 earnings to be double FY20 levels.

Additionally, on the disposal of South African Energy Coal, the company's ESG credentials and capital efficiency will improve.

Rating is upgraded to Accumulate from Hold and the target raised to $3.00 from $2.60.

SYNLAIT MILK LIMITED ((SM1)) Upgrade to Neutral from Underperform by Credit Suisse and Upgrade to Neutral from Underperform by Macquarie .B/H/S: 0/4/0

Credit Suisse upgrades to Neutral from Underperform and assesses the market is now more realistic about diversification outcomes.

The broker would like more visibility on the impact of the A2 Milk ((A2M)) negotiations and the margin that can be extracted in the long term. The legal risk around Pokeno also needs to be resolved.

Target is raised to NZ$8.84 from NZ$8.50.

Macquarie has reviewed its outlook for Synlait Milk given new capacity which could drive earnings growth of 85% in the medium to longer term if the company can achieve incremental returns on capital anywhere near its 20%-plus target. Start-up costs for this new capacity are currently dragging on profit.

To that end the market is valuing the stock at a material discount to the NZX50 index. The broker upgrades to Neutral. Target rises to NZ$8.72 from NZ$8.69.

Downgrade

AMCOR LIMITED ((AMC)) Downgrade to Neutral from Outperform by Credit Suisse .B/H/S: 5/2/0

First half earnings (EBIT) were slightly below Credit Suisse forecasts. Packaging growth in flexibles has been impressive, with the broker noting the company is bucking the broad trends in North America and Europe.

As there was no new significant operating cash in the result, and given the recent share price rally, Credit Suisse downgrades to Neutral from Outperform. Target is $16.25.

See also AMC upgrade.

BORAL LIMITED ((BLD)) Downgrade to Underperform from Neutral by Credit Suisse .B/H/S: 1/3/1

US coal power station output has fallen -15% in 2019 with a further -9% fall expected in 2020.

Credit Suisse estimates a decline of more than -0.8mt in ash sold from Boral sites and decreases its FY20 forecast to 6.6mt.

The broker expects Boral will abandon its 2021 target for a 20-25% increase in volumes amid margin pressure from alternatives.

Credit Suisse downgrades to Underperform from Neutral on these stock-specific issues and reduces the target to $4.45 from $4.50.

See also BLD upgrade.

CARSALES.COM LIMITED ((CAR)) Downgrade to Neutral from Outperform by Credit Suisse and Downgrade to Hold from Accumulate by Ord Minnett and Downgrade to Sell from Neutral by UBS .B/H/S: 1/3/2

First half results were in line with expectations. Credit Suisse believes the result should alleviate any concerns that the dealer business is being directly affected by weakness in new car sales.

New strategic initiatives appear priced in and the broker downgrades to Neutral from Outperform. Target is raised to $18.80 from $18.30.

First half results were in line with expectations and Ord Minnett believes Carsales.com has shown, once again, relative resilience in its core advertising segment.

International businesses were also up strongly. The broker assesses the valuation is full and downgrades to Hold from Accumulate. Target is raised to $18.98 from $16.54.

The company had a tough first half but UBS believes there are signs of improvement in top-line growth rates from the second half. The broker's estimates already factor in this improvement.

Confidence in management leads UBS to factor in greater long-term upside from initiatives, but the target is still well in arrears of the current price and the rating is downgraded to Sell from Neutral. Target is raised to $17.50 from $15.00.

COMMONWEALTH BANK OF AUSTRALIA ((CBA)) Downgrade to Reduce from Hold by Morgans .B/H/S: 0/1/6

First half net profit was better than Morgans expected, largely because of strong net interest income.

The broker expects an off-market share buyback of $2.5bn will be announced in the first half of FY21.

Morgans believes the home loan momentum is partly the result of good execution and places the bank in good stead.

Despite believing this is a good quality business, the current share price is considered expensive and the broker downgrades to Reduce from Hold. Target is $74.

CHALLENGER LIMITED ((CGF)) Downgrade to Sell from Lighten by Ord Minnett and Downgrade to Neutral from Outperform by Macquarie .B/H/S: 0/6/1

First half results were ahead of Ord Minnett's forecast. FY20 guidance appears conservative but the broker suspects the company will struggle to provide an adequate return on capital, given the inherent risks and the business model.

As the stock is considered too expensive, Ord Minnett downgrades to Sell from Lighten. Target is steady at $7.50.

After a tough operating environment in the past 12-18 months, Challenger has delivered a strong result. Full year profit is expected to be around the top end of the guidance range. Macquarie believes this might prove conservative.

The broker continues to like the company's long term growth thematic, but the stock has risen 60% since June and 25% in 2020, including 14% yesterday. Downgrade to Neutral. Target rises to $10.00 from $8.50.

COMPUTERSHARE LIMITED ((CPU)) Downgrade to Lighten from Hold by Ord Minnett .B/H/S: 1/3/2

First half net profit was below expectations. Ord Minnett notes significant pressure on management earnings in the first half, making it difficult to have confidence in the revised guidance.

Substantial capital has been deployed into mortgage servicing rights to boost earnings, although gearing is now elevated. This forces the broker to remove the buyback from estimates.

Rating is downgraded to Lighten from Hold. Target is steady at $16.

See also CPU upgrade.

CSL LIMITED ((CSL)) Downgrade to Neutral from Outperform by Macquarie .B/H/S: 3/4/0

CSL's underlying profit was in line with consensus. Strength in Ig continues given robust demand and competitor shortages and albumin performed ahead of expectation, Macquarie notes. Operating leverage was nonetheless limited, with earnings growing 8% on 11% revenues growth.

CSL is maintaining its competitive advantage in plasma collection and the trajectory for other key products appears favourable, the broker suggests. But at 43.2x forward earnings, it's all in the price. Downgrade to Neutral from Outperform. Target rises to $324 from $300.

DOWNER EDI LIMITED ((DOW)) Downgrade to Hold from Accumulate by Ord Minnett .B/H/S: 2/2/1

The weak result missed Ord Minnett's estimates by -20%. The company has reiterated net profit guidance for FY20 of around $300m, which means earnings will be much more weighted to the second half than previously expected.

Ord Minnett downgrades to Hold from Accumulate, noting the company is battling to turn around its operations on a number of fronts. Target is reduced to $7.70 from $8.90.

FLIGHT CENTRE LIMITED ((FLT)) Downgrade to Hold from Buy by Ord Minnett .B/H/S: 2/5/0

Ord Minnett assesses outbound travel out of Australia is holding up reasonably well but remains on high alert for any worsening in the coronavirus.

Industry sources suggest the combined impact of the bushfires and coronavirus has had a negative impact on hotel bookings.

While understanding the potential earnings risk, the broker notes history indicates the coronavirus issue will be resolved and normal operating conditions will return within a relatively short timeframe.

The broker downgrades to Hold from Buy, acknowledging there are risk exposures across multiple lines of business for Flight Centre. Target is reduced to $41.38 from $46.09.

JB HI-FI LIMITED ((JBH)) Downgrade to Sell from Neutral by Citi .B/H/S: 1/4/2

For the initial response to JB Hi-Fi's interim report, see yesterday's Broker Call Report. Following an initially positive response, Citi analysts have subsequently decided it's time to downgrade to Sell from Neutral.

What has changed over the past 24 hours? Well, the share price, of course. Citi analysts remain positioned near the top of market consensus, having only minimally upgraded their forecasts post the release.

Citi continues to laud the quality and the growth potential of the business, also carried by improving housing activity, but the share price is simply assuming too optimistic an outlook, suggest the analysts. Price target has jumped to $39.50 from $35.20.

See also JBH upgrade.

KATHMANDU HOLDINGS LIMITED ((KMD)) Downgrade to Neutral from Outperform by Credit Suisse .B/H/S: 0/2/0

The investor briefing on Rip Curl highlighted the importance of brand authenticity and what a "surf" focus means for growth. The briefing reinforced Credit Suisse's view that Rip Curl is an attractive and strategically sound acquisition.

No specific revenue or cost synergies were provided. The general trading update was also in line with expectations, with underlying earnings (EBIT) to be up 40% in FY20.

Credit Suisse believes the current share price now reflects a balanced risk/reward and downgrades to Neutral from Outperform. Target is raised to NZ$3.65 from NZ$3.35.

MAGELLAN FINANCIAL GROUP LIMITED ((MFG)) Downgrade to Sell from Hold by Ord Minnett .B/H/S: 0/1/6

First half results were slightly ahead of expectations. Pre-tax profit in funds management was up 24%.

While the retirement fund will be a disruptive offering, targeting a large and growing segment, Ord Minnett assesses timeliness in generating traction limits the earnings impact on a business already managing over $100bn.

Rating is downgraded to Sell from Hold and the target raised to $60.18 from $50.41.

NEWCREST MINING LIMITED ((NCM)) Downgrade to Lighten from Hold by Ord Minnett .B/H/S: 0/3/3

The company has maintained production guidance at the lower end of the 2.38-2.54m ounces range. Ord Minnett observes Lihir will need a strong second half to achieve this.

Cadia and Lihir have increased to 78% of the broker's valuation. Target is lowered to $26 from $28 and the rating is downgraded to Lighten from Hold.

NAVIGATOR GLOBAL INVESTMENTS LIMITED ((NGI)) Downgrade to Neutral from Outperform by Macquarie .B/H/S: 1/1/0

Navigator Global Investments' result beat Macquarie on stronger performance fees. A solid operating cost performance also provided support. If the fund manager can sustain its investment performance, positive net flows and improved cost discipline, then the broker sees further upside.

But the stock's recent run has Macquarie pulling back to Neutral from Outperform, while acknowledging an attractive dividend. Target falls to $3.36 from $3.39.

NORTHERN STAR RESOURCES LTD ((NST)) Downgrade to Neutral from Buy by UBS .B/H/S: 1/3/2

Underlying first half operating earnings (EBITDA) were ahead of forecasts because of higher tolling revenue and lower costs.

The share price has lifted 42% since December, UBS observes, outperforming the gold price. Hence, while the production outlook is firm, the shares are considered fair value.

Rating is downgraded to Neutral from Buy and the target is raised to $14.00 from $13.75.

ORORA LIMITED ((ORA)) Downgrade to Hold from Add by Morgans .B/H/S: 1/5/0

First half results were weaker than expected. Morgans removes fibre from earnings forecasts which reduces FY20 underlying earnings (EBIT) estimates by -26%.

The sale of the fibre business is due to be completed by the end of March. Management expects challenging market conditions to persist for the remainder of FY20.

Morgans believes, while the valuation is attractive, ongoing weakness in North America is a concern.

Unless the company can deliver stable earnings, the share price is considered unlikely to track materially higher, although the prospect of a capital return limits downside risk.

Rating is downgraded to Hold from Add. Target is reduced to $3.15 from $3.34.

REA GROUP LIMITED ((REA)) Downgrade to Underperform from Neutral by Macquarie .B/H/S: 1/1/3

REA Group delivered a solid first half in the context of a -14% overall drop in listings, and worse still in Sydney and Melbourne, Macquarie suggests. Management has executed well in continuing to build yield and protect the earnings outlook.

The second half should see volumes recover and earnings growth accelerate, the broker believes, but the market has already run ahead of this expectation. Downgrade to Underperform. Target rises to $110 from $105.

SUNCORP GROUP LIMITED ((SUN)) Downgrade to Hold from Add by Morgans .B/H/S: 1/3/3

First half earnings were -13% below consensus and Morgans lowers FY20 and FY21 estimates for earnings per share by -8-12%, mainly because of reduced group insurance margin forecasts.

The broker believes the strategy to reduce earnings volatility and improve the core performance is correct but headwinds continue and a timeframe for a meaningful uplift in the trajectory is difficult to assess.

Rating is downgraded to Hold from Add and the target reduced to $12.47 from $13.85.

Total Recommendations
Recommendation Changes

Broker Recommendation Breakup

Broker Rating

 

Order Company New Rating Old Rating Broker
Upgrade
1 AGL ENERGY LIMITED Neutral Sell Morgans
2 AGL ENERGY LIMITED Neutral Sell Citi
3 AMCOR LIMITED Buy Neutral Morgans
4 AMP LIMITED Neutral Sell UBS
5 BORAL LIMITED Neutral Sell Ord Minnett
6 CENTURIA CAPITAL GROUP Buy Neutral Ord Minnett
7 COMPUTERSHARE LIMITED Buy Neutral Credit Suisse
8 EVOLUTION MINING LIMITED Buy Neutral UBS
9 GOODMAN GROUP Neutral Sell Ord Minnett
10 IDP EDUCATION LIMITED Buy Neutral Ord Minnett
11 JB HI-FI LIMITED Buy Neutral Macquarie
12 NATIONAL AUSTRALIA BANK LIMITED Neutral Sell Morgan Stanley
13 OIL SEARCH LIMITED Buy Neutral UBS
14 OIL SEARCH LIMITED Neutral Sell Ord Minnett
15 SOUTH32 LIMITED Buy Neutral Ord Minnett
16 SYNLAIT MILK LIMITED Neutral Sell Macquarie
17 SYNLAIT MILK LIMITED Neutral N/A Credit Suisse
18 THE A2 MILK COMPANY LIMITED Buy Sell Citi
Downgrade
19 AMCOR LIMITED Neutral Buy Credit Suisse
20 BORAL LIMITED Sell Neutral Credit Suisse
21 CARSALES.COM LIMITED Sell Neutral UBS
22 CARSALES.COM LIMITED Neutral Buy Credit Suisse
23 CARSALES.COM LIMITED Neutral Buy Ord Minnett
24 CHALLENGER LIMITED Neutral Buy Macquarie
25 CHALLENGER LIMITED Sell Sell Ord Minnett
26 COMMONWEALTH BANK OF AUSTRALIA Sell Neutral Morgans
27 COMPUTERSHARE LIMITED Sell Neutral Ord Minnett
28 CSL LIMITED Neutral Buy Macquarie
29 DOWNER EDI LIMITED Neutral Buy Ord Minnett
30 FLIGHT CENTRE LIMITED Neutral Buy Ord Minnett
31 JB HI-FI LIMITED Sell Neutral Citi
32 KATHMANDU HOLDINGS LIMITED Neutral Buy Credit Suisse
33 MAGELLAN FINANCIAL GROUP LIMITED Sell Neutral Ord Minnett
34 NAVIGATOR GLOBAL INVESTMENTS LIMITED Neutral Buy Macquarie
35 NEWCREST MINING LIMITED Sell Neutral Ord Minnett
36 NORTHERN STAR RESOURCES LTD Neutral Buy UBS
37 ORORA LIMITED Neutral Buy Morgans
38 REA GROUP LIMITED Sell Neutral Macquarie
39 SUNCORP GROUP LIMITED Neutral Buy Morgans

Recommendation

Positive Change Covered by > 2 Brokers

Order Symbol Company New Rating Previous Rating Change Recs
1 AGL AGL ENERGY LIMITED -57.0% -86.0% 29.0% 7
2 A2M THE A2 MILK COMPANY LIMITED 21.0% -7.0% 28.0% 7
3 OSH OIL SEARCH LIMITED 14.0% -7.0% 21.0% 7
4 GMG GOODMAN GROUP 67.0% 50.0% 17.0% 6
5 AX1 ACCENT GROUP LIMITED 67.0% 50.0% 17.0% 3
6 NAB NATIONAL AUSTRALIA BANK LIMITED 7.0% -7.0% 14.0% 7
7 EVN EVOLUTION MINING LIMITED 43.0% 29.0% 14.0% 7
8 IEL IDP EDUCATION LIMITED 50.0% 40.0% 10.0% 5
9 CPU COMPUTERSHARE LIMITED -21.0% -29.0% 8.0% 7
10 S32 SOUTH32 LIMITED 50.0% 43.0% 7.0% 7

Negative Change Covered by > 2 Brokers

Order Symbol Company New Rating Previous Rating Change Recs
1 CAR CARSALES.COM LIMITED -17.0% 25.0% -42.0% 6
2 CGF CHALLENGER LIMITED -14.0% 7.0% -21.0% 7
3 REA REA GROUP LIMITED -42.0% -25.0% -17.0% 6
4 ORA ORORA LIMITED 17.0% 33.0% -16.0% 6
5 MFG MAGELLAN FINANCIAL GROUP LIMITED -86.0% -71.0% -15.0% 7
6 CBA COMMONWEALTH BANK OF AUSTRALIA -86.0% -71.0% -15.0% 7
7 SUN SUNCORP GROUP LIMITED -29.0% -14.0% -15.0% 7
8 CSL CSL LIMITED 43.0% 57.0% -14.0% 7
9 FLT FLIGHT CENTRE LIMITED 29.0% 43.0% -14.0% 7
10 DOW DOWNER EDI LIMITED 20.0% 30.0% -10.0% 5

Target Price

Positive Change Covered by > 2 Brokers

Order Symbol Company New Target Previous Target Change Recs
1 IEL IDP EDUCATION LIMITED 22.606 18.338 23.27% 5
2 CGF CHALLENGER LIMITED 9.101 7.561 20.37% 7
3 A2M THE A2 MILK COMPANY LIMITED 15.040 13.162 14.27% 7
4 MFG MAGELLAN FINANCIAL GROUP LIMITED 57.869 50.673 14.20% 7
5 CSL CSL LIMITED 326.386 286.986 13.73% 7
6 CAR CARSALES.COM LIMITED 17.558 15.822 10.97% 6
7 AX1 ACCENT GROUP LIMITED 2.013 1.870 7.65% 3
8 GMG GOODMAN GROUP 16.463 15.403 6.88% 6
9 CPU COMPUTERSHARE LIMITED 17.123 16.103 6.33% 7
10 AGL AGL ENERGY LIMITED 18.896 18.377 2.82% 7

Negative Change Covered by > 2 Brokers

Order Symbol Company New Target Previous Target Change Recs
1 SUN SUNCORP GROUP LIMITED 12.576 13.351 -5.80% 7
2 DOW DOWNER EDI LIMITED 7.546 7.894 -4.41% 5
3 ORA ORORA LIMITED 3.167 3.240 -2.25% 6
4 FLT FLIGHT CENTRE LIMITED 43.266 44.139 -1.98% 7
5 NCM NEWCREST MINING LIMITED 28.009 28.509 -1.75% 7

Earning Forecast

Positive Change Covered by > 2 Brokers

Order Symbol Company New EF Previous EF Change Recs
1 WPL WOODSIDE PETROLEUM LIMITED 196.578 169.453 16.01% 7
2 MFG MAGELLAN FINANCIAL GROUP LIMITED 241.286 221.157 9.10% 7
3 IEL IDP EDUCATION LIMITED 36.140 33.340 8.40% 5
4 CGF CHALLENGER LIMITED 56.671 53.429 6.07% 7
5 FSF FONTERRA SHAREHOLDERS' FUND 23.762 22.526 5.49% 3
6 AGL AGL ENERGY LIMITED 134.714 128.343 4.96% 7
7 AMC AMCOR LIMITED 90.678 86.611 4.70% 7
8 JBH JB HI-FI LIMITED 229.514 222.000 3.38% 7
9 GPT GPT GROUP 33.500 32.440 3.27% 6
10 COL COLES GROUP LIMITED 66.821 64.813 3.10% 7

Negative Change Covered by > 2 Brokers

Order Symbol Company New EF Previous EF Change Recs
1 BKL BLACKMORES LIMITED 108.267 279.967 -61.33% 6
2 URW UNIBAIL-RODAMCO-WESTFIELD 45.468 56.707 -19.82% 4
3 MP1 MEGAPORT LIMITED -24.433 -22.033 -10.89% 3
4 ORA ORORA LIMITED 14.733 16.466 -10.52% 6
5 S32 SOUTH32 LIMITED 7.118 7.824 -9.02% 7
6 TCL TRANSURBAN GROUP 20.365 21.983 -7.36% 7
7 SUN SUNCORP GROUP LIMITED 77.029 83.080 -7.28% 7
8 EVN EVOLUTION MINING LIMITED 20.099 21.151 -4.97% 7
9 COH COCHLEAR LIMITED 493.400 517.557 -4.67% 7
10 TLS TELSTRA CORPORATION LIMITED 19.653 20.510 -4.18% 6

Technical limitations

If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.

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CHARTS

A2M AGL AMC AMP BLD CAR CBA CGF CNI CPU CSL DOW EVN FLT GMG IEL JBH KMD MFG NAB NCM NGI NST ORA REA S32 SM1 SUN

For more info SHARE ANALYSIS: A2M - A2 MILK COMPANY LIMITED

For more info SHARE ANALYSIS: AGL - AGL ENERGY LIMITED

For more info SHARE ANALYSIS: AMC - AMCOR PLC

For more info SHARE ANALYSIS: AMP - AMP LIMITED

For more info SHARE ANALYSIS: BLD - BORAL LIMITED

For more info SHARE ANALYSIS: CAR - CAR GROUP LIMITED

For more info SHARE ANALYSIS: CBA - COMMONWEALTH BANK OF AUSTRALIA

For more info SHARE ANALYSIS: CGF - CHALLENGER LIMITED

For more info SHARE ANALYSIS: CNI - CENTURIA CAPITAL GROUP

For more info SHARE ANALYSIS: CPU - COMPUTERSHARE LIMITED

For more info SHARE ANALYSIS: CSL - CSL LIMITED

For more info SHARE ANALYSIS: DOW - DOWNER EDI LIMITED

For more info SHARE ANALYSIS: EVN - EVOLUTION MINING LIMITED

For more info SHARE ANALYSIS: FLT - FLIGHT CENTRE TRAVEL GROUP LIMITED

For more info SHARE ANALYSIS: GMG - GOODMAN GROUP

For more info SHARE ANALYSIS: IEL - IDP EDUCATION LIMITED

For more info SHARE ANALYSIS: JBH - JB HI-FI LIMITED

For more info SHARE ANALYSIS: KMD - KMD BRANDS LIMITED

For more info SHARE ANALYSIS: MFG - MAGELLAN FINANCIAL GROUP LIMITED

For more info SHARE ANALYSIS: NAB - NATIONAL AUSTRALIA BANK LIMITED

For more info SHARE ANALYSIS: NCM - NEWCREST MINING LIMITED

For more info SHARE ANALYSIS: NGI - NAVIGATOR GLOBAL INVESTMENTS LIMITED

For more info SHARE ANALYSIS: NST - NORTHERN STAR RESOURCES LIMITED

For more info SHARE ANALYSIS: ORA - ORORA LIMITED

For more info SHARE ANALYSIS: REA - REA GROUP LIMITED

For more info SHARE ANALYSIS: S32 - SOUTH32 LIMITED

For more info SHARE ANALYSIS: SM1 - SYNLAIT MILK LIMITED

For more info SHARE ANALYSIS: SUN - SUNCORP GROUP LIMITED