Australian Broker Call

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

Ainsworth's initial FY19 profit guidance of $22m compares to Macquarie's prior forecast $33m and consensus $38m. With Ainsworth more than 70% leveraged to outright sales, new game performance is critical in driving revenues, the broker notes. Australia continues to lose market share in early FY19 and the broker suspects improvement in North America is being driven by increased overall volumes rather than increased share.

The company plans to beef up its R&D spend which Macquarie sees as a positive, but any benefits will not be near-term. Downgrade to Underperform from Neutral. Target falls to 75c from $1.10.

Target price is $0.75 Current Price is $0.80 Difference: minus $0.05 (current price is over target).
If AGI meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -1.0

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

Deutsche Bank rates AHG as Hold (3) -

The update from the company reflects a tough automotive industry with the impact of changes to financial and insurance regulations flowing through, Deutsche Bank observes. Some improvements are evident in refrigerated logistics over the first quarter.

Automotive Holdings remains the largest automotive group in Australia, the broker points out, in a segment where scale is becoming increasingly important and consolidation is expected to accelerate.

While near-term earnings risks are high there is valuation support and the broker maintains a Hold rating. Target is reduced to $2.10 from $2.50.

Target price is $2.10 Current Price is $1.65 Difference: $0.45
If AHG meets the Deutsche Bank target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $2.07, suggesting upside of 25.5% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.2

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

Morgan Stanley rates AHG as Underweight (5) -

The company has released a trading update at its AGM. The performance in the first four months of FY19 was softer than expected but a stronger second half is forecast.

While automotive trading has been weak, Morgan Stanley recognises the company is cycling the most difficult comparables in the first four months.

Underweight. Target is $1.55. Industry view: In line.

Target price is $1.55 Current Price is $1.65 Difference: minus $0.1 (current price is over target).
If AHG meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.07, suggesting upside of 25.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.2

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

UBS rates AHG as Neutral (3) -

FY19 net profit guidance of $56-59m is -2-7% below UBS estimates. The company has indicated trading was slower than expected over the first four months of FY19.

UBS notes the poor start to the year was a result of soft new car volumes in Australia, and reduces estimates by -9-24% over FY19-21.

The company has indicated that slowing housing and deteriorating consumer confidence are affecting the private buyer market for new cars. Beyond this, the company also has the impact of regulatory changes in finance and insurance to deal with.

However, growth is returning to refrigerated logistics following its restructure and the company expects a substantial improvement in the second half. Neutral rating maintained. Target is reduced to $1.75 from $2.45.

Target price is $1.75 Current Price is $1.65 Difference: $0.1
If AHG meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.07, suggesting upside of 25.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.2

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

Deutsche Bank rates ALL as Buy (1) -

Ainsworth Game Technology ((AGI)) has attributed an earnings shortfall to a decline in the Australian market as well as highly competitive conditions and delays to approvals. Deutsche Bank does not believe there are any material implications for Aristocrat Leisure.

The broker's channel checks suggests the market is flat to down -5% and Aristocrat is gaining share. As well, Australia represents just 12% of earnings. Buy rating and $41.45 target maintained.

Target price is $41.45 Current Price is $25.70 Difference: $15.75
If ALL meets the Deutsche Bank target it will return approximately 61% (excluding dividends, fees and charges).

Current consensus price target is $35.29, suggesting upside of 37.3% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

UBS rates ASG as Neutral (3) -

The company has guided to first half results broadly in line with the prior corresponding half. Challenging new car market conditions have been confirmed, consistent with VFACTS data.

UBS believes the drivers for the slowdown are falling house prices, a weaker consumer backdrop and delays in new cars from Europe caused by the new global emission testing procedures.

The broker forecasts first half earnings of $26.5m. Neutral rating and $1.50 target maintained.

Target price is $1.50 Current Price is $1.17 Difference: $0.33
If ASG meets the UBS target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

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

Morgan Stanley believes the category 2 approval for Simpli to become a property settlement operator is a positive development, as ASX is a step closer to monetising its 50% equity stake in the business.

Nevertheless, the broker notes the ability to gain meaningful market share is unproven and zero value is likely being assigned to Simpli at present.

Equal-weight retained. Target is $61. Industry view: In-Line.

Target price is $61.00 Current Price is $60.15 Difference: $0.85
If ASX meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $56.91, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.6

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

Macquarie rates AVN as Neutral (3) -

The broker has toured the Tuggerah Super Centre, which represents 4.5% of Aventus' portfolio. A development yield of 9% is solid, the broker suggests, with further options down the track. The REIT is not divesting other assets to reduce gearing.

The broker retains Neutral, balancing a decent yield in excess of 8% with concerns over the balance sheet and the residential market. Target unchanged at $2.05.

Target price is $2.05 Current Price is $2.05 Difference: $0
If AVN meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.21, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Citi rates AX1 as Buy (1) -

Citi estimates like-for-like sales momentum has slowed to just 1.4% over the last 13 weeks of the first half, possibly because of unfavourable weather and reduced discounting.

While the slower sales are in line with other retailers, the company's margin dollar growth is ahead of sales growth, indicating the strategy to reduce discounting has been successful.

Citi upgrades FY19-21 forecasts for net profit by 6% to reflect better margins and the accelerated roll-out.

Target is reduced to $1.65 from $1.75 as higher earnings are offset by lower multiples. Buy rating maintained.

Target price is $1.65 Current Price is $1.28 Difference: $0.37
If AX1 meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Morgans rates AX1 as Upgrade to Add from Hold (1) -

The company has indicated like-for-like sales in the first 20 weeks of FY19 are up 2.5%. This is broadly in line with Morgans' estimates.

The broker had anticipated sales would slowdown after the FY18 result because of a reduction in clearance activity and the cycling of a strong result within Hype.

Online sales growth has been exceptionally strong as a result of the investment in this channel in recent years.

While December is an important month, the broker envisages upside risk to guidance, predominantly because of the material expansion of gross margin experience to date.

Rating is upgraded to Add from Hold. Target is reduced to $1.46 from $1.47.

Target price is $1.46 Current Price is $1.28 Difference: $0.18
If AX1 meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

UBS rates BAP as Upgrade to Buy from Neutral (1) -

UBS observes commentary from retailers is becoming more cautious. Christmas is expected to be challenging, creating risks to forecasts.

Yet this appears priced into Bapcor. UBS has upgraded to Buy from Neutral and reduced the target to $7.05 from $7.10.

Target price is $7.05 Current Price is $5.95 Difference: $1.1
If BAP meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $7.44, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Macquarie rates BKW as Neutral (3) -

Brickworks has acquired the fourth biggest brick producer in the US, Glen-Gery. While the company is looking to expand its US penetration, and efficiency improvement opportunities are on offer, the broker is surprised given the US brick market is under pressure, as noted by Boral ((BLD)).

Given geographical dislocation, synergies are limited. It is nevertheless not a large acquisition and Brickworks seems positive on the US market longer term, with around 50% of Glen-Gery's exposure non-residential, the broker notes, in an otherwise weakening housing market. Neutral retained.

 Target rises to $16.10 from $15.65 on net asset value adjustment.

Target price is $16.10 Current Price is $14.99 Difference: $1.11
If BKW meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $16.53, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Morgans rates BKW as Hold (3) -

The company has announced the acquisition of Glen-Gery for $151m. This is the fourth-largest brick manufacturer in the US with leading market positions in the midwest, Northeast and mid-Atlantic states.

Overall, Morgans believes this is a good deal, given the tough operating environment in Australia. The larger US market should also create long-term growth prospects.

After incorporating the acquisition, the broker's underlying estimates for operating earnings (EBIT) are increased by 3%. The broker notes the contribution in the first half will be negative, given plant closures and lower sales during the winter months.

Hold rating maintained. Target is reduced to $15.41 from $16.00.

Target price is $15.41 Current Price is $14.99 Difference: $0.42
If BKW meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $16.53, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

UBS rates BRG as Downgrade to Sell from Neutral (5) -

UBS observes commentary from retailers is becoming more cautious. Christmas is expected to be challenging, creating risks to forecasts.

UBS has downgraded to Sell from Neutral. Target is reduced to $11.20 from $13.70.

Target price is $11.20 Current Price is $10.85 Difference: $0.35
If BRG meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $13.19, suggesting upside of 21.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Citi rates BSL as Upgrade to Neutral from Sell (3) -

The company has reaffirmed first half guidance amid upbeat comments on demand conditions. The company acknowledges steel prices and spreads have moderated, which Citi believes implies a weaker second half.

Still, the stock has now priced in much of the expected moderation. Citi expects steel markets will stabilise and a further share buyback will be announced as well as approval for the North Star expansion.

Rating is upgraded to Neutral from Sell and the target is reduced to $14 from $15.

Target price is $14.00 Current Price is $11.84 Difference: $2.16
If BSL meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $18.63, suggesting upside of 57.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Credit Suisse rates BSL as Outperform (1) -

The company has confirmed first half earnings guidance of around $820m. Credit Suisse observes there is no guidance for the second half but it will start off weaker, given current steel spread contraction between the US and Asia, and lower steel prices.

Moreover, continuing challenges across the Asian JV footprint appear unlikely to be resolved before FY20. The company has highlighted the domestic sales volumes remain robust.

Credit Suisse maintains an Outperform rating and reduces the target to $18.70 from $19.00.

Target price is $18.70 Current Price is $11.84 Difference: $6.86
If BSL meets the Credit Suisse target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $18.63, suggesting upside of 57.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Macquarie rates BSL as Outperform (1) -

BlueScope has been sold down in recent weeks due to a weak market, US-China trade concerns and Chinese winter curtailments, the broker notes. The company's 10% growth guidance in the first half is a little lighter than the broker hoped.

That said, BlueScope is now trading at the lowest multiple of its peer group and a -10% valuation discount to the next cheapest peer, hence the broker retains Outperform. A global de-rating of all peers leads the broker to drop its target to $16.55 from $21.40.

Target price is $16.55 Current Price is $11.84 Difference: $4.71
If BSL meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $18.63, suggesting upside of 57.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Morgan Stanley rates BSL as Overweight (1) -

BlueScope has reiterated first half guidance for operating earnings of $820m. Morgan Stanley is comfortable with forecasts that are 5% ahead of this, given favourable dynamics and the company's record of providing conservative guidance.

Overweight rating retained. Target price is $21. Industry view: Cautious.

Target price is $21.00 Current Price is $11.84 Difference: $9.16
If BSL meets the Morgan Stanley target it will return approximately 77% (excluding dividends, fees and charges).

Current consensus price target is $18.63, suggesting upside of 57.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Ord Minnett rates CGC as Hold (3) -

The company's trading update has caused Ord Minnett to revise earnings estimates. FY19 net profit estimates are cut by -5%, predominantly because of higher depreciation. The broker also expects first half net profit to be down -50%, in line with guidance.

This is disappointing, but the broker considers it largely a timing issue, which is well understood by the market. Hold rating maintained. Target is reduced to $7.00 from $7.05.

Target price is $7.00 Current Price is $6.87 Difference: $0.13
If CGC meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $7.50, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Morgans rates COL as Initiation of coverage with Hold (3) -

Morgans considers Coles a defensive business with well-known brands, a good market position and strong cash flow.

The company is the second largest grocery retailer in Australia with around 31% market share and has a sizeable liquor and convenience network. Supermarkets represented 80% of operating earnings in FY18.

Morgans initiates coverage with a Hold rating and $12.50 target. The broker acknowledges the competitive environment remains tough and fuel volumes are under pressure.

Target price is $12.50

Current consensus price target is $13.20

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Morgan Stanley rates JHG as Downgrade to Equal-weight from Overweight (3) -

Morgan Stanley downgrades to Equal-weight from Overweight, expecting flows will get worse before they get better. Factors supporting this view include increased volatility in markets, a sustained soft performance and concerns about INTECH.

Morgan Stanley expects INTECH to return to outflows despite the tailwinds for quant strategies. The former Henderson retail funds have also experienced a sustained period of challenges versus the benchmark.

Meanwhile, positive catalysts are longer-dated. Target is reduced to $35 and $50. Industry view is In-Line.

Target price is $35.00 Current Price is $32.12 Difference: $2.88
If JHG meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $38.46, suggesting upside of 19.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.2

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

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

Kathmandu reported retail sales growth of 8.4% for the first quarter, a very strong start, Morgan Stanley observes. Oboz is on track to hit the earn-out target of US$7.1m.

Morgan Stanley acknowledges the first half performance is still highly dependent on summer sales. Equal-weight rating. Target is $3.00. Industry view is In-Line.

Target price is $3.00 Current Price is $2.60 Difference: $0.4
If KMD meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.07, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY19:

Forecast for FY20:

This company reports in NZD. 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

Deutsche Bank rates MIN as Buy (1) -

Operating earnings guidance disappointed Deutsche Bank but a step down was expected. The company announced earnings guidance (EBITDA) of $280-320m.

In the current year the company has reduced DSO volumes and the iron ore contribution will be marginal. Also the Wodgina ramp up has been delayed.

Deutsche Bank updates its model allowing for higher costs for Mount Marion, Wodgina and Koolyanobbing. The broker maintains a Buy rating and reduces the target to $18.00 from $18.50.

Target price is $18.00 Current Price is $14.45 Difference: $3.55
If MIN meets the Deutsche Bank target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $19.67, suggesting upside of 36.1% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Ord Minnett rates MTS as Accumulate (2) -

Ord Minnett expects a lower rate of deflation will help limit the decline in wholesale sales, excluding tobacco, while cost savings from the Working Smarter program should support earnings in food and grocery.

The company is scheduled to report its first half results on December 3. Ord Minnett maintains an Accumulate rating and $3.25 target.

Target price is $3.25 Current Price is $2.78 Difference: $0.47
If MTS meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.93, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

UBS rates MYR as Downgrade to Sell from Neutral (5) -

UBS observes commentary from retailers is becoming more cautious. Christmas is expected to be challenging, creating risks to forecasts.

UBS has downgraded Myer to Sell from Neutral. Target is reduced to $0.38 from $0.41.

Target price is $0.38 Current Price is $0.41 Difference: minus $0.03 (current price is over target).
If MYR meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.38, suggesting downside of -8.1% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.8

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

UBS rates PMV as Upgrade to Buy from Neutral (1) -

UBS observes commentary from retailers is becoming more cautious. Christmas is expected to be challenging, creating risks to forecasts.

Yet this appears priced into Premier Investments. UBS has upgraded to Buy from Neutral. Target is reduced to $19.80 from $20.20.

Target price is $19.80 Current Price is $16.33 Difference: $3.47
If PMV meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $18.82, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

UBS rates SUL as Upgrade to Buy from Neutral (1) -

UBS observes commentary from retailers is becoming more cautious. Christmas is expected to be challenging, creating risks to forecasts.

Yet this appears priced into Super Retail. UBS has upgraded to Buy from Neutral. Target is reduced to $8.65 from $9.30.

Target price is $8.65 Current Price is $7.54 Difference: $1.11
If SUL meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $9.43, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Deutsche Bank rates TAH as Buy (1) -

GVC Holdings will acquire Neds International. Deutsche Bank observes the company's rationale is scale and proprietary technology, as GVC has ambition to be the market leader.

For the broker, this acquisition highlights Australia as a core market for GVC and that industry consolidation is likely to continue.

Deutsche Bank considers the transaction a minor positive for Tabcorp, as Neds was a small competitor that was growing rapidly and pricing competitively.

Buy rating and $5.50 target maintained.

Target price is $5.50 Current Price is $4.44 Difference: $1.06
If TAH meets the Deutsche Bank target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.13, suggesting upside of 15.6% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Citi rates VRL as Neutral (3) -

Citi was pleased with the positive trading update at the AGM but believes after two years of downgrades more is required to restore investor confidence. The broker also questions whether the strength in the box office is sustainable.

The broker increases FY19-20 estimates for earnings per share by 11-14% because of higher cinema exhibition and film distribution earnings.

Neutral rating maintained. Target is raised to $2.40 from $2.30.

Target price is $2.40 Current Price is $2.41 Difference: minus $0.01 (current price is over target).
If VRL 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 $2.30, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Morgans rates WES as Upgrade to Add from Hold (1) -

Morgans removes Coles ((COL)) from earnings forecasts, resulting in FY19 operating earnings falling by -31%. The broker suggests that, with a number of divestments over the last 12 months, Bunnings will now be a more important driver of earnings.

Regardless of the slowdown in residential building activity the broker expects renovations and replacements will remain resilient, given many of the products sold by Bunnings focus on maintenance.

The broker envisages a greater focus on the company's other businesses as a positive for longer-term growth. Rating is upgraded to Add from Hold. Target is reduced to $33.64 from $48.40.

Target price is $33.64 Current Price is $31.50 Difference: $2.14
If WES meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $38.77, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

UBS rates WOW as Upgrade to Buy from Neutral (1) -

UBS observes commentary from retailers is becoming more cautious. Christmas is expected to be challenging, creating risks to forecasts.

The grocery is outlook is more positive because of a more rational market. UBS has upgraded Woolworths to Buy from Neutral. Target is raised to $31.25 from $28.20.

Target price is $31.25 Current Price is $29.19 Difference: $2.06
If WOW meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $29.30, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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