Australian Broker Call

Ord Minnett rates ALU as Buy (1) -

Ord Minnett adjusts earnings forecasts to account for the potential impact of coronavirus. The broker reduces revenue forecasts by -5%.

On a like-for-like basis, Ord Minnett now forecasts revenue of $201.9m and operating earnings (EBITDA) of $76.3m.

Buy rating maintained. Target is reduced to $32.50 from $33.40.

Target price is $32.50 Current Price is $28.63 Difference: $3.87
If ALU meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

Citi rates ARB as Neutral (3) -

Citi considers ARB a high-quality business and reiterates a Neutral rating, given the downside risk to demand from the coronavirus disruption and headwinds from weaker Australian dollar.

Given the weak macro economic outlook the broker prefers GUD Holdings ((GUD)) as its products are less discretionary than those of ARB.

The broker estimates ARB has liquidity to last seven months without any sales, assuming employee hours are reduced, there are benefits from the JobKeeper subsidy and no rent is paid while the stores are closed. Target is reduced to $15.06 from $19.55.

Target price is $15.06 Current Price is $13.97 Difference: $1.09
If ARB meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $17.58, suggesting upside of 25.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Credit Suisse rates ASX as Neutral (3) -

Credit Suisse assesses earnings should benefit from volatility in the short term. ASX is considered the most defensive stock amongst diversified financials and it carries no debt.

While the valuation may be challenging, given the low growth outlook, the broker believes it deserves a safety premium. A Neutral rating is reiterated and the target raised to $73 from $70.

Target price is $73.00 Current Price is $80.25 Difference: minus $7.25 (current price is over target).
If ASX meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $73.75, suggesting downside of -8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.4

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

Macquarie rates AUB as Outperform (1) -

Macquarie has reviewed the balance sheet position of AUB Group, in light of moves by big insurers to defer premiums for SMEs and other measures. If broker commissions are deferred, liquidity risk rises, but brokers could offset by charging fees over the deferral period, Macquarie suggests.

Macquarie cannot speak for individual brokers but on a look-through basis believes multi-sector exposure and a diversified broker network is defensive in the current uncertain environment, hence Outperform and $11.71 target retained for AUB.

Target price is $11.71 Current Price is $9.84 Difference: $1.87
If AUB meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

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

Citi upgrades to Buy from Neutral noting the yield appeal along with the defensive earnings mix. Coal export data have been strong, particularly in Queensland since the coronavirus outbreak.

The broker considers the current valuation provides an ideal risk/return for investors. Further upside could be derived from cost efficiencies and new contracts in the bulks segment. Target is reduced to $5.40 from $5.60.

Target price is $5.40 Current Price is $4.51 Difference: $0.89
If AZJ meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.61, suggesting upside of 24.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Macquarie rates BPT as Outperform (1) -

Downside risk to the broker's oil & gas sector forecasts has increased, with spot prices now -48% and -60% below 2020-21 assumptions. The broker has shifted its valuation methodology to a blend of net present value and enterprise value to earnings to better reflect this risk.

Beach Energy target unchanged at $1.90. Outperform retained.

The broker prefers Woodside and Beach Energy to Santos and Oil Search among big names and Senex Energy and Cooper Energy among smaller names.

Target price is $1.90 Current Price is $1.32 Difference: $0.58
If BPT meets the Macquarie target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $1.78, suggesting upside of 34.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Credit Suisse rates BXB as Upgrade to Outperform from Underperform (1) -

With higher demand for packaged food, fresh produce and beverages through supermarket channels as restaurants close, Brambles is exposed to the current crisis in a positive way, Credit Suisse asserts.

Brambles obtains around 80% of revenue from producers of packaged/fresh food and beverages.

While margins have suffered in the Americas in recent years because of high cost inflation, Credit Suisse expects the economic slowdown will significantly reduce these costs for some time.

Rating is upgraded to Outperform from Underperform and the target lifted to $12.50 from $12.00.

Target price is $12.50 Current Price is $11.19 Difference: $1.31
If BXB meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $12.58, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

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

Credit Suisse considers Coca-Cola Amatil is well placed to meet financial obligations. The broker assesses leverage could remain around 1.3x in 2020 reducing to 1.0x in 2021.

Flat revenue is assumed for Australia in 2020 and the key December quarter is expected to be largely unaffected by coronavirus restrictions.

A -10% volume decline is assumed in Indonesia and 2% volume growth in New Zealand.

The broker upgrades to Outperform from Neutral because of recent weakness in the share price. Target is reduced to $10.70 from $11.40.

Target price is $10.70 Current Price is $9.20 Difference: $1.5
If CCL meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $11.42, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Macquarie rates CCL as Outperform (1) -

Macquarie has removed its dividend forecasts for all large cap consumer stocks under coverage, ex of supermarkets, due to uncertainty and the high risk of dividend cuts. The broker has also adjusted for currency moves for offshore earners.

Outperform and $13.30 target retained for Coca-Cola Amatil.

Target price is $13.30 Current Price is $9.20 Difference: $4.1
If CCL meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $11.42, suggesting upside of 24.2% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Macquarie rates COE as Outperform (1) -

Downside risk to the broker's oil & gas sector forecasts has increased, with spot prices now -48% and -60% below 2020-21 assumptions. The broker has shifted its valuation methodology to a blend of net present value and enterprise value to earnings to better reflect this risk.

Cooper Energy target falls to 55c from 65c. Outperform retained.

The broker prefers Woodside and Beach Energy to Santos and Oil Search among big names and Senex Energy and Cooper Energy among smaller names.

Target price is $0.55 Current Price is $0.44 Difference: $0.11
If COE meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $0.57, suggesting upside of 30.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Macquarie rates CTD as Neutral (3) -

The broker now forecasts a reduction in Corporate Travel Management's total transaction value of around -70% in the first half FY21 followed by a recovery to around 90% of prior levels by the second half FY22. The broker nonetheless believes the ultimate impact on the travel industry may be structural as businesses embrace, and may decide to stick with, remote operation and communication.

It is thus unknown when the industry might return to FY19 levels. Corporate Travel has a strong balance sheet, the broker notes, which will support it through the downturn and provide for opportunities at the other end. For now, with limited earnings visibility, Neutral retained. Target falls to $9.00 from $18.00.

Target price is $9.00 Current Price is $9.04 Difference: minus $0.04 (current price is over target).
If CTD meets the Macquarie target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.40, suggesting upside of 37.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Macquarie rates CVN as Outperform (1) -

Downside risk to the broker's oil & gas sector forecasts has increased, with spot prices now -48% and -60% below 2020-21 assumptions. The broker has shifted its valuation methodology to a blend of net present value and enterprise value to earnings to better reflect this risk.

Carnarvon Petroleum target falls to 25c from 55c. Outperform retained.

The broker prefers Woodside and Beach Energy to Santos and Oil Search among big names and Senex Energy and Cooper Energy among smaller names.

Target price is $0.25 Current Price is $0.15 Difference: $0.1
If CVN meets the Macquarie target it will return approximately 67% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Ord Minnett rates CWY as Accumulate (2) -

The company has withdrawn guidance, given the uncertain outlook. The main risk, Ord Minnett assesses, is the exposure to small-medium enterprises which have been affected severely by government policy over recent weeks.

The broker notes management spent some time on a conference call dispelling views that the business model has a large fixed cost base, instead pointing out there is a large fixed asset base with many costs having a degree of flexibility.

Ord Minnett maintains an Accumulate rating and $2.40 target, noting the balance sheet remains in good shape.

Target price is $2.40 Current Price is $1.81 Difference: $0.59
If CWY meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $2.32, suggesting upside of 28.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Ord Minnett rates DHG as Accumulate (2) -

Ord Minnett estimates a -50% decline in listings over April to September with a 75% rebound to trend in 2021. Management has retracted its FY20 cost guidance, the broker notes.

Accumulate rating maintained. Target is reduced to $3.00 from $3.95.

Target price is $3.00 Current Price is $2.13 Difference: $0.87
If DHG meets the Ord Minnett target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $3.00, suggesting upside of 40.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Citi rates DMP as Sell (5) -

Citi expects sales will slow and new store growth could suffer for at least 18 months. The broker lowers estimates for earnings per share by -3% for FY20 and -6% for FY21.

While Domino's Pizza is less susceptible to a loss of sales versus other discretionary retailers, Citi assesses the combination of a high PE and lower earnings growth will lead to a de-rating.

Sell maintained. Target is reduced to $47.80 from $49.80.

Target price is $47.80 Current Price is $50.21 Difference: minus $2.41 (current price is over target).
If DMP meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.49, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Macquarie rates DMP as Outperform (1) -

Macquarie has removed its dividend forecasts for all large cap consumer stocks under coverage, ex of supermarkets, due to uncertainty and the high risk of dividend cuts. The broker has also adjusted for currency moves for offshore earners.

Outperform and $66.10 target retained for Domino's Pizza.

Target price is $66.10 Current Price is $50.21 Difference: $15.89
If DMP meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $56.49, suggesting upside of 12.5% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

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

The company has updated on the wage subsidy program where eligible businesses received $1500 per eligible employee per fortnight. The company must experience a -30% decline in revenue to be eligible.

G8 Education had 11,729 employees as of December 31, and Morgan Stanley calculates an implied average fortnightly salary of around $2150.

Assuming a -30% decline in revenue, average employee benefits for the six months could be -70% lower. Overall, the broker suggests the program is good news for the sector.

Equal-weight. Target is $1.90. In-Line industry view maintained.

Target price is $1.90 Current Price is $0.84 Difference: $1.06
If GEM meets the Morgan Stanley target it will return approximately 126% (excluding dividends, fees and charges).

Current consensus price target is $1.56, suggesting upside of 85.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

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

Ord Minnett reduces the valuation and target to 15c from 30c and downgrades to Hold from Speculative Buy. The valuation is sensitive to delays and changes in capital expenditure.

Negotiations for project funding are ongoing, the broker notes, and the issues regarding the German state debt appear complex, albeit not insurmountable.

Target price is $0.15 Current Price is $0.07 Difference: $0.08
If HAS meets the Ord Minnett target it will return approximately 114% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

The company is beginning to experience an impact on the core business as a result of social distancing measures.

The government has restricted the number of people able to attend funerals in Australia to 10 and this will result in a loss of revenue as InvoCare will not be able to offer the same range of services.

Citi reduces FY20 and FY21 forecasts by -10% and -5% respectively and now assumes social distancing lasts three months.

The broker expects the share price to re-rate higher once any uncertainty around the amount of headroom on the balance sheet is removed.

Target is reduced to $13.50 from $14.50. Rating is upgraded to Buy from Neutral.

Target price is $13.50 Current Price is $10.76 Difference: $2.74
If IVC meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $13.45, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Macquarie rates KAR as Outperform (1) -

Downside risk to the broker's oil & gas sector forecasts has increased, with spot prices now -48% and -60% below 2020-21 assumptions. The broker has shifted its valuation methodology to a blend of net present value and enterprise value to earnings to better reflect this risk.

Karoon Energy target falls to $0.90 from $1.80 Outperform retained.

The broker prefers Woodside and Beach Energy to Santos and Oil Search among big names and Senex Energy and Cooper Energy among smaller names.

Target price is $0.90 Current Price is $0.49 Difference: $0.41
If KAR meets the Macquarie target it will return approximately 84% (excluding dividends, fees and charges).

Current consensus price target is $1.06, suggesting upside of 117.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates LVH as Add (1) -

LiveHire has won a major contract for its talent community software from the Queensland public service. The deal will allow Queensland to have a more efficient response to the coronavirus pandemic, redeploying more than 15,000 public service employees.

However, this is not enough to offset reduced demand from the corporate sector, Morgans asserts, and forecasts are reduced.

The broker points out that, should the company be successful in implementing its strategy, the rewards for shareholders could be substantial down the track. Add maintained. Target is reduced to $0.56 from $0.76.

Target price is $0.56 Current Price is $0.13 Difference: $0.43
If LVH meets the Morgans target it will return approximately 331% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates MPL as Neutral (3) -

Citi expects claims will drop materially during the coronavirus outbreak. While this should provide some upside for net margins, most of the savings are expected to be returned to customers to avoid the perception of the politically-sensitive sector profiting from a health crisis.

The broker allows for higher net margins and a deferred premium rate increase. FY20 estimates for earnings per share are reduced by -10% while FY21 estimates are raised by 2%. Neutral maintained. Target is reduced to $2.90 from $3.20.

Target price is $2.90 Current Price is $2.75 Difference: $0.15
If MPL meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.83, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Credit Suisse rates NEC as Outperform (1) -

Cost initiatives by the company are expected to be positively received, with management expecting around $266m in potential benefits over the course of 2020.

Still, Credit Suisse suspects the short-term impact of the coronavirus crisis on the advertising market will be severe.

Given the cost initiatives are based on the crisis continuing for the remainder of 2020, the broker does not incorporate the full extent of the savings into forecasts.

Leverage metrics remain comfortable, in the broker's assessment. Outperform rating and $1.90 target maintained.

Target price is $1.90 Current Price is $1.20 Difference: $0.7
If NEC meets the Credit Suisse target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $1.92, suggesting upside of 60.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates NEC as Buy (1) -

Or Minnett updates estimates to incorporate guidance on cost savings. The broker now estimates metro free-to-air TV, radio and newspaper advertising revenue will fall -30% for the next six months with a 75% rebound to trend in 2021.

The broker maintains a Buy rating and lowers the target to $2.10 from $2.50.

Target price is $2.10 Current Price is $1.20 Difference: $0.9
If NEC meets the Ord Minnett target it will return approximately 75% (excluding dividends, fees and charges).

Current consensus price target is $1.92, suggesting upside of 60.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates OSH as Outperform (1) -

Downside risk to the broker's oil & gas sector forecasts has increased, with spot prices now -48% and -60% below 2020-21 assumptions. The broker has shifted its valuation methodology to a blend of net present value and enterprise value to earnings to better reflect this risk.

Oil Search target falls to $4.00 from $5.50. Outperform retained.

The broker prefers Woodside and Beach Energy to Santos and Oil Search among big names and Senex Energy and Cooper Energy among smaller names.

Target price is $4.00 Current Price is $2.67 Difference: $1.33
If OSH meets the Macquarie target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $3.10, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Macquarie rates RHC as Outperform (1) -

Ramsay Health Care has confirmed discussions with federal and state governments on providing private hospital capacity for the public virus response, with funding to cover operating costs. The broker assumes zero earnings in Australia in the June and September quarters.

Financial impact is more substantial than the broker assumed but post-virus, earnings will be supported by deferred elective surgery, while the medium to longer term remains favourable. Outperform retained, target falls to $71 from $75.

Target price is $71.00 Current Price is $61.64 Difference: $9.36
If RHC meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $65.34, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Ord Minnett rates RHC as Accumulate (2) -

Governments across the company's operations have agreed to provide financial support to private hospitals throughout the coronavirus crisis in exchange for these hospitals providing the capacity to deal with an influx of patients.

The net effect of these programs is likely to be similar, Ord Minnett suggests, with sufficient funding available to ensure that earnings and cash flow do not drop materially into the red.

This will allow staff to be retained despite the drop in elective surgery. With Ramsay Health Care unlikely to generate a loss in the June quarter, the broker revises down estimates by -39%. Accumulate rating and $63 target maintained.

Target price is $63.00 Current Price is $61.64 Difference: $1.36
If RHC meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $65.34, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

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

Meridian has announced that the Tiwai Point smelter intends to exercise its right to reduce consumption of electricity for up to 6 months under its 50MW Potline 4 contract.

Morgan Stanley estimates production in 2020 at Tiwai Point of 350,000t on a 100% basis, implying Potline 4 is accountable for up to 9% of asset production.

Rio Tinto has initiated a review of its NZ operations and is considering all options, including smelter closures. The company has advised Meridian that it will provide an update on its review by the end of the first quarter 2020.

Equal-weight rating retained. Industry view is In-Line. Target is $92.50.

Target price is $92.50 Current Price is $89.00 Difference: $3.5
If RIO meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $99.14, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.2

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

Macquarie rates RSG as Outperform (1) -

Resolute Mining has confirmed the sale of Ravenswood for $100m up front and $200m trailing. The miner has reiterated full year guidance for continuing operations at Syama and Mako.

The continuing ramp-up of Syama remains key for balance sheet deleveraging, the broker notes. Outperform and $1.00 target retained.

Target price is $1.00 Current Price is $0.82 Difference: $0.18
If RSG meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates STO as Outperform (1) -

Downside risk to the broker's oil & gas sector forecasts has increased, with spot prices now -48% and -60% below 2020-21 assumptions. The broker has shifted its valuation methodology to a blend of net present value and enterprise value to earnings to better reflect this risk.

Santos' target falls to $5.50 from $8.20. Outperform retained.

The broker prefers Woodside and Beach Energy to Santos and Oil Search among big names and Senex Energy and Cooper Energy among smaller names.

Target price is $5.50 Current Price is $3.76 Difference: $1.74
If STO meets the Macquarie target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $5.57, suggesting upside of 48.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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 SXY as Outperform (1) -

Downside risk to the broker's oil & gas sector forecasts has increased, with spot prices now -48% and -60% below 2020-21 assumptions. The broker has shifted its valuation methodology to a blend of net present value and enterprise value to earnings to better reflect this risk.

Senex Energy target falls to 30c from 40c. Outperform retained.

The broker prefers Woodside and Beach Energy to Santos and Oil Search among big names and Senex Energy and Cooper Energy among smaller names.

Target price is $0.30 Current Price is $0.16 Difference: $0.14
If SXY meets the Macquarie target it will return approximately 87% (excluding dividends, fees and charges).

Current consensus price target is $0.38, suggesting upside of 134.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.9

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

Morgans rates SYD as Add (1) -

Government traffic restrictions and airline capacity withdrawals have increased considerably. As such, Morgans assumes a more conservative scenario and downgrades estimates.

The broker expects the company will not pay a first half distribution and the distribution may not return to the FY19 level until FY22.

The broker factors in a -50% decline in FY20 passenger numbers. At this stage property income is expected to be solid but a decline is factored in the hotels earnings.

Add maintained, as Morgans assesses there is plenty of value in the stock. Target is reduced to $7.82 from $8.54.

Target price is $7.82 Current Price is $5.80 Difference: $2.02
If SYD meets the Morgans target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $6.80, suggesting upside of 17.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Ord Minnett rates TNE as Downgrade to Lighten from Hold (4) -

Ord Minnett adjusts forecasts to account for the potential impact of coronavirus. The broker believes it prudent to factor in the potential risks and downgrades to Lighten from Hold.

Revenue forecasts are reduced by -3%. The broker now forecasts pre-tax profit growth of 11.5% in FY20. Target is reduced to $7.30 from $7.50.

Target price is $7.30 Current Price is $8.22 Difference: minus $0.92 (current price is over target).
If TNE meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.14, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates TWE as Neutral (3) -

Macquarie has removed its dividend forecasts for all large cap consumer stocks under coverage, ex of supermarkets, due to uncertainty and the high risk of dividend cuts. The broker has also adjusted for currency moves for offshore earners.

Treasury Wine Estates target rises to $9.90 from $9.40, Neutral retained.

Target price is $9.90 Current Price is $10.16 Difference: minus $0.26 (current price is over target).
If TWE meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.51, suggesting upside of 23.2% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Macquarie rates UMG as Initiation of coverage with Outperform (1) -

The broker initiates coverage of United Malt Group, following its spin-off from Graincorp ((GNC)). The company is the fourth largest commercial "maltster" globally, with plants across North America, Australia and the UK, and an integrated processing and distribution platform with plants strategically located across most major barley regions.

The broker believes United Malt deserves a valuation premium to the brewers it supplies, given its leading market position, greater-than-market exposure to craft beers and lower earnings risk given the majority of volumes are contracted at the beginning of each financial year.

Outperform and $5.33 target.

Target price is $5.33 Current Price is $4.48 Difference: $0.85
If UMG meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates WES as Sell (5) -

Wesfarmers has sold down its stake in Coles and now has 4.9% of the Coles register. The sale is not expected to impact the Flybuys joint venture.

Citi observes Wesfarmers continues to benefit from a conglomerate premium, similar to grocery retailers but without the same stability of earnings growth and industry tailwinds.

The broker does not expect capital returns, given the lack of excess franking credits. Attractiveness of acquisitions has improved markedly with the recent de-rating but the broker cautions against building in upside without an acquisition track record.

Sell rating and $30.90 target maintained.

Target price is $30.90 Current Price is $35.22 Difference: minus $4.32 (current price is over target).
If WES meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $34.64, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Macquarie rates WES as Outperform (1) -

Macquarie has removed its dividend forecasts for all large cap consumer stocks under coverage, ex of supermarkets, due to uncertainty and the high risk of dividend cuts. The broker has also adjusted for currency moves for offshore earners.

Outperform and $40.20 target retained for Wesfarmers.

Target price is $40.20 Current Price is $35.22 Difference: $4.98
If WES meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $34.64, suggesting downside of -1.7% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

UBS rates WES as Neutral (3) -

UBS cuts forecasts for Wesfarmers by -4-16% as well as updates for the sell-down of the Coles stake.

The broker envisages significant risk to forecasts but now aims to reflect a 2-3-month hibernation of the economy, a -10-20% decline in house prices, a shutdown of NZ stores but no shutdown of Australian stores, and a gradual recovery in late 2020.

Neutral rating maintained. The broker considers the business strong, and the balance sheet supports the ability to pay a dividend and assess opportunities when and if they arise. Target is reduced to $33.80 from $37.00.

Target price is $33.80 Current Price is $35.22 Difference: minus $1.42 (current price is over target).
If WES meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $34.64, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Macquarie rates WPL as Outperform (1) -

Downside risk to the broker's oil & gas sector forecasts has increased, with spot prices now -48% and -60% below 2020-21 assumptions. The broker has shifted its valuation methodology to a blend of net present value and enterprise value to earnings to better reflect this risk.

Woodside Petroleum target falls to $24 from $27. Outperform retained.

The broker prefers Woodside and Beach Energy to Santos and Oil Search among big names and Senex Energy and Cooper Energy among smaller names.

Target price is $24.00 Current Price is $19.59 Difference: $4.41
If WPL meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $24.25, suggesting upside of 23.8% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.7

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