Australian Broker Call

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June 10, 2020

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COMPANIES DISCUSSED IN THIS ISSUE

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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1).

Last Updated: 05:00 PM

Your daily news report on the latest recommendation, valuation, forecast and opinion changes.

This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.

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Today's Upgrades and Downgrades
AMI - Aurelia Metals Downgrade to Accumulate from Buy Ord Minnett
DMP - Domino's Pizza Downgrade to Hold from Add Morgans
IGO - IGO Co Downgrade to Neutral from Buy Citi
SFR - Sandfire Downgrade to Neutral from Buy Citi
SGM - Sims Metal Management Upgrade to Buy from Neutral UBS
VCX - Vicinity Centres Downgrade to Neutral from Outperform Macquarie
AFG  AUSTRALIAN FINANCE GROUP LTD

Banks

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Overnight Price: $1.76

Macquarie rates AFG as Outperform (1) -

The broker had been on research restriction for Australian Finance Group's capital raising but returns to retain an Outperform recommendation.

Funding is now in place to support book growth, the broker notes, and margin clarity has increased with funding renewal and securitisation market activity.

Target slips to $1.93 from $1.95 on a roll-forward to more normalised earnings in FY22.

Target price is $1.93 Current Price is $1.76 Difference: $0.17
If AFG meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 8.90 cents and EPS of 14.10 cents.
At the last closing share price the estimated dividend yield is 5.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.48.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 6.90 cents and EPS of 9.70 cents.
At the last closing share price the estimated dividend yield is 3.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.14.

Market Sentiment: 0.5

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

AMI  AURELIA METALS LIMITED

Gold & Silver

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Overnight Price: $0.47

Macquarie rates AMI as Outperform (1) -

Aurelia Metals has reported a 2.6mt maiden lead-zinc indicated and inferred resource at its Federation prospect near Hera.

Accounting for a development scenario pushes Hera production out to FY28 and significantly increases the broker's valuation and earnings forecasts.

Target rises to 70c from 50c, Outperform retained.

Target price is $0.70 Current Price is $0.47 Difference: $0.23
If AMI meets the Macquarie target it will return approximately 49% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 0.00 cents and EPS of 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.69.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of 9.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.16.

Market Sentiment: 0.8

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


Ord Minnett rates AMI as Downgrade to Accumulate from Buy (2) -

The stock has rallied 66% over the past month and is approaching Ord Minnett's valuation. Hence, the rating is downgraded to Accumulate from Buy and the target is raised to $0.55 from $0.45.

The broker assesses investor sentiment has shifted to a view that the worst is now behind the business. Recent exploration updates have broadly confirmed expectations for mine life extensions at higher grades.

Target price is $0.55 Current Price is $0.47 Difference: $0.08
If AMI meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 1.50 cents and EPS of 3.90 cents.
At the last closing share price the estimated dividend yield is 3.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.05.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 dividend of 2.20 cents and EPS of 10.50 cents.
At the last closing share price the estimated dividend yield is 4.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.48.

Market Sentiment: 0.8

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

ARF  ARENA REIT

REITs

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Overnight Price: $2.40

Macquarie rates ARF as Outperform (1) -

The broker has considered the impact on a hypothetical child care tenant of Arena REIT in the wake of the government's withdrawal of free care offset by an injection of fiscal support.

The wash-up is profitability is largely unchanged. Occupancy is running at an average 74% in June and centres need 90% to break even, the broker notes.

The occupancy build path is thus critical, but the broker continues to believe regulatory support will remain for the sector. Outperform and $2.63 target retained.

Target price is $2.63 Current Price is $2.40 Difference: $0.23
If ARF meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.58, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 13.90 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 5.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.1, implying annual growth of -35.1%.

Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 17.0.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 14.10 cents and EPS of 14.30 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.1, implying annual growth of N/A.

Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 17.0.

Market Sentiment: 0.7

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

BLD  BORAL LIMITED

Building Products & Services

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Overnight Price: $3.77

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

Morgan Stanley believes there is potential to unlock meaningful value in Boral. While the company has not indicated any intention to break up its businesses, the broker takes a look at ways in which it might extract greater value.

The main issue is the future leadership of the business, which is unclear, and the broker finds it difficult to adopt a high-conviction view without some insight into the future leaders and the mandate under which they will operate.

Target is raised to $3.60 from $3.00. Equal-weight rating. Industry view is Cautious.

Target price is $3.60 Current Price is $3.77 Difference: minus $0.17 (current price is over target).
If BLD meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.14, suggesting downside of -16.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 9.50 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 2.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.1, implying annual growth of -17.7%.

Current consensus DPS estimate is 11.5, implying a prospective dividend yield of 3.1%.

Current consensus EPS estimate suggests the PER is 19.7.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 8.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 2.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.5, implying annual growth of -13.6%.

Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 2.3%.

Current consensus EPS estimate suggests the PER is 22.8.

Market Sentiment: 0.4

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

CCX  CITY CHIC COLLECTIVE LTD

Apparel & Footwear

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Overnight Price: $2.71

Macquarie rates CCX as Outperform (1) -

The broker's assessment of online trends within City Chic's stable of stores reveals website visits 22% higher in May from April, which were up 49% from February. The numbers underscore the broker's positive view on City Chic's online capabilities.

Earnings forecasts are unchanged but the broker's PE multiple valuation shifts up to 13-16x from a prior 11-13x, leading to a target increase to $3.25 from $2.71. Outperform retained.

Target price is $3.25 Current Price is $2.71 Difference: $0.54
If CCX meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $2.95, suggesting upside of 8.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.2, implying annual growth of -1.2%.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 33.0.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.6, implying annual growth of 29.3%.

Current consensus DPS estimate is 1.3, implying a prospective dividend yield of 0.5%.

Current consensus EPS estimate suggests the PER is 25.6.

Market Sentiment: 0.7

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

CQR  CHARTER HALL RETAIL REIT

REITs

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Overnight Price: $3.60

Ord Minnett rates CQR as Resume Coverage with Hold (3) -

Charter Hall Retail has completed a $275m capital raising as well as a $29.5m unit purchase plan. Ord Minnett believes a material reduction in leverage will position the balance sheet better to absorb any asset write-downs.

The broker resumes coverage with a Hold rating and $3.40 target.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $3.40 Current Price is $3.60 Difference: minus $0.2 (current price is over target).
If CQR meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.48, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 27.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 7.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.3, implying annual growth of 119.0%.

Current consensus DPS estimate is 25.4, implying a prospective dividend yield of 7.1%.

Current consensus EPS estimate suggests the PER is 12.7.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 dividend of 23.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 6.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.3, implying annual growth of -10.6%.

Current consensus DPS estimate is 22.9, implying a prospective dividend yield of 6.4%.

Current consensus EPS estimate suggests the PER is 14.2.

Market Sentiment: 0.3

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

CSL  CSL LIMITED

Pharmaceuticals & Biotech/Lifesciences

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Overnight Price: $285.69

Citi rates CSL as Buy (1) -

CSL has exercised its right to acquire Vitaeris, with which it has had a strategic partnership since 2017. Citi already includes a risk-adjusted value of $3 per share for the partnership's clazakizumab.

The company also presented the results of the phase 2 clinical trial for garadacimab, previously known as CSL312, to the European Academy of Allergy and Clinical Immunology conference.

CSL has also, along with the University of Queensland, announced a partnering agreement to accelerate the development, manufacture and distribution of a coronavirus vaccine candidate. Citi assesses this will have minimal long-term financial implications.

Buy rating and $334 target maintained.

Target price is $334.00 Current Price is $285.69 Difference: $48.31
If CSL meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $312.53, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 303.66 cents and EPS of 686.66 cents.
At the last closing share price the estimated dividend yield is 1.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 673.8, implying annual growth of N/A.

Current consensus DPS estimate is 299.6, implying a prospective dividend yield of 1.0%.

Current consensus EPS estimate suggests the PER is 42.4.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 361.72 cents and EPS of 821.23 cents.
At the last closing share price the estimated dividend yield is 1.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 755.1, implying annual growth of 12.1%.

Current consensus DPS estimate is 334.9, implying a prospective dividend yield of 1.2%.

Current consensus EPS estimate suggests the PER is 37.8.

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

Market Sentiment: 0.4

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


Macquarie rates CSL as Neutral (3) -

Macquarie reiterates that it recognises CSL's diversified revenue streams and favourable balance sheet but considers the risks associated with lower plasma volumes due to the virus are skewed to the downside in FY21.

With multiples remaining elevated at 40x, the broker retains Neutral. Target falls to $302 from $311 on a higher AUD.

Target price is $302.00 Current Price is $285.69 Difference: $16.31
If CSL meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $312.53, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 303.66 cents and EPS of 674.31 cents.
At the last closing share price the estimated dividend yield is 1.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 673.8, implying annual growth of N/A.

Current consensus DPS estimate is 299.6, implying a prospective dividend yield of 1.0%.

Current consensus EPS estimate suggests the PER is 42.4.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 348.32 cents and EPS of 736.83 cents.
At the last closing share price the estimated dividend yield is 1.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 755.1, implying annual growth of 12.1%.

Current consensus DPS estimate is 334.9, implying a prospective dividend yield of 1.2%.

Current consensus EPS estimate suggests the PER is 37.8.

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

Market Sentiment: 0.4

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


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

CSL will exercise its right to acquire Vitaeris. The existing strategic partnership has a phase III program investigating clazakizumab, which is a monoclonal antibody for preventing kidney transplant rejection.

Morgan Stanley incorporates around $20 a share related to upside from the transplant programs, including clazakizumab and Berinert, in its bull case.

Equal-weight rating maintained with a target price of $288. Industry view: In-line.

Target price is $288.00 Current Price is $285.69 Difference: $2.31
If CSL meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $312.53, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 294.15 cents and EPS of 661.36 cents.
At the last closing share price the estimated dividend yield is 1.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 673.8, implying annual growth of N/A.

Current consensus DPS estimate is 299.6, implying a prospective dividend yield of 1.0%.

Current consensus EPS estimate suggests the PER is 42.4.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 346.09 cents and EPS of 777.02 cents.
At the last closing share price the estimated dividend yield is 1.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 755.1, implying annual growth of 12.1%.

Current consensus DPS estimate is 334.9, implying a prospective dividend yield of 1.2%.

Current consensus EPS estimate suggests the PER is 37.8.

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

Market Sentiment: 0.4

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


UBS rates CSL as Buy (1) -

CSL will exercise its right to acquire Vitaeris for an undisclosed price, having entered a strategic partnership in 2017. UBS notes the cost will not materially change FY20 profit expectations, although additional R&D expenses are estimated to be between $30-50m in FY21.

The broker retains a Buy rating and reduces the target to $335 from $342. UBS is yet to incorporate any earnings associated with the commercialisation of the partnership's trial treatment, Clazakizumab, currently in a phase III trial.

Target price is $335.00 Current Price is $285.69 Difference: $49.31
If CSL meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $312.53, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 314.08 cents and EPS of 684.73 cents.
At the last closing share price the estimated dividend yield is 1.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 673.8, implying annual growth of N/A.

Current consensus DPS estimate is 299.6, implying a prospective dividend yield of 1.0%.

Current consensus EPS estimate suggests the PER is 42.4.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 334.92 cents and EPS of 739.80 cents.
At the last closing share price the estimated dividend yield is 1.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 755.1, implying annual growth of 12.1%.

Current consensus DPS estimate is 334.9, implying a prospective dividend yield of 1.2%.

Current consensus EPS estimate suggests the PER is 37.8.

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

Market Sentiment: 0.4

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

DMP  DOMINO'S PIZZA ENTERPRISES LIMITED

Food, Beverages & Tobacco

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Overnight Price: $64.48

Citi rates DMP as Sell (5) -

While Domino's Pizza did not provide quantitative guidance, it has indicated disruptions from the pandemic are now easing. Sales have started to improve as sporting events get going and entertaining increases.

The company is also confident regarding a better summer in Europe as more people stay at home. Advertising expenditure is increasing as the business looks to benefit from distressed media prices.

Citi suspects support for franchisees could dent FY20 earnings by around -$4-6m. Sell maintained. Target is $47.80.

Target price is $47.80 Current Price is $64.48 Difference: minus $16.68 (current price is over target).
If DMP meets the Citi target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.33, suggesting downside of -12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 121.10 cents and EPS of 172.30 cents.
At the last closing share price the estimated dividend yield is 1.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.3, implying annual growth of 27.9%.

Current consensus DPS estimate is 110.4, implying a prospective dividend yield of 1.7%.

Current consensus EPS estimate suggests the PER is 37.2.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 132.70 cents and EPS of 189.80 cents.
At the last closing share price the estimated dividend yield is 2.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 198.1, implying annual growth of 14.3%.

Current consensus DPS estimate is 138.3, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 32.5.

Market Sentiment: -0.1

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


Credit Suisse rates DMP as Underperform (5) -

Credit Suisse found no surprises in the update. The main unknown is the willingness of franchisees to invest, as opening of new stores is the primary determinant of the company's earnings growth.

Credit Suisse downgrades earnings estimates for FY20, to mainly reflect additional costs related to the pandemic. There was not enough in the update to shift investor sentiment and the broker retains an Underperform rating.

Whether the acceleration in delivery stemming from the pandemic is sustained is considered uncertain. Target is reduced to $51.86 from $53.21.

Target price is $51.86 Current Price is $64.48 Difference: minus $12.62 (current price is over target).
If DMP meets the Credit Suisse target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.33, suggesting downside of -12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 128.00 cents and EPS of 178.00 cents.
At the last closing share price the estimated dividend yield is 1.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.3, implying annual growth of 27.9%.

Current consensus DPS estimate is 110.4, implying a prospective dividend yield of 1.7%.

Current consensus EPS estimate suggests the PER is 37.2.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 142.00 cents and EPS of 202.00 cents.
At the last closing share price the estimated dividend yield is 2.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 198.1, implying annual growth of 14.3%.

Current consensus DPS estimate is 138.3, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 32.5.

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) -

Domino's Pizza did not provide a trading update yesterday but did note its system has dealt with the virus exceptionally well, featuring increased demand and no supply chain issues.

The company will take advantage of the return of TV sport, the broker reports, by increasing ad-spend in order to retain new customers.

With consumer behaviour now beginning to normalise in A&NZ, franchisee support payments will begin to unwind. Outperform and $66.10 target retained.

Target price is $66.10 Current Price is $64.48 Difference: $1.62
If DMP meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $56.33, suggesting downside of -12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 66.70 cents and EPS of 182.00 cents.
At the last closing share price the estimated dividend yield is 1.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.3, implying annual growth of 27.9%.

Current consensus DPS estimate is 110.4, implying a prospective dividend yield of 1.7%.

Current consensus EPS estimate suggests the PER is 37.2.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 146.50 cents and EPS of 209.00 cents.
At the last closing share price the estimated dividend yield is 2.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 198.1, implying annual growth of 14.3%.

Current consensus DPS estimate is 138.3, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 32.5.

Market Sentiment: -0.1

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


Morgans rates DMP as Downgrade to Hold from Add (3) -

Domino’s Pizza stores are now open for business with carry-out back to normal levels and store rollout being ramped up. Morgans points towards an increase in delivery growth during the pandemic-led lockdown, driven by new customers.

Reinforced by the increase in delivery, store rollout will be an important part of the group's strategy, highlights the broker. The target increases to $63.22 from $55.57.

Although the group has been a very well-placed domestic consumer discretionary stock during and post-pandemic, Morgans downgrades its ratings to Hold from Add due to the recent share price strength.

Target price is $63.22 Current Price is $64.48 Difference: minus $1.26 (current price is over target).
If DMP meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.33, suggesting downside of -12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 116.00 cents and EPS of 165.00 cents.
At the last closing share price the estimated dividend yield is 1.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.3, implying annual growth of 27.9%.

Current consensus DPS estimate is 110.4, implying a prospective dividend yield of 1.7%.

Current consensus EPS estimate suggests the PER is 37.2.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 134.00 cents and EPS of 191.00 cents.
At the last closing share price the estimated dividend yield is 2.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 198.1, implying annual growth of 14.3%.

Current consensus DPS estimate is 138.3, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 32.5.

Market Sentiment: -0.1

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


Ord Minnett rates DMP as Accumulate (2) -

The webcast provided no trading update but Ord Minnett notes pandemic support will be unwound by July. Delivery has grown strongly and has mostly offset any weakness in takeaway.

The rolling out of stores is ramping back up and Australasian franchisee unit economics are improving because of operating leverage.

Accumulate rating and $57.50 target maintained.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $57.50 Current Price is $64.48 Difference: minus $6.98 (current price is over target).
If DMP 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 $56.33, suggesting downside of -12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 EPS of 162.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.3, implying annual growth of 27.9%.

Current consensus DPS estimate is 110.4, implying a prospective dividend yield of 1.7%.

Current consensus EPS estimate suggests the PER is 37.2.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 EPS of 200.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 198.1, implying annual growth of 14.3%.

Current consensus DPS estimate is 138.3, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 32.5.

Market Sentiment: -0.1

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


UBS rates DMP as Neutral (3) -

Management provided no trading update in its webcast. From the qualitative comments, UBS assesses franchisee support has largely finished whilst the rolling out of stores had slowed but is now back to plan.

Strong growth has occurred in delivery as markets have re-opened. Longer term, there are benefits from the accelerating shift to online, and the trading down in terms of restaurant choice as the economy slows.

The broker believes the valuation remains full. Neutral rating and $50.80 target maintained.

Target price is $50.80 Current Price is $64.48 Difference: minus $13.68 (current price is over target).
If DMP meets the UBS target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.33, suggesting downside of -12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 120.20 cents and EPS of 171.80 cents.
At the last closing share price the estimated dividend yield is 1.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.3, implying annual growth of 27.9%.

Current consensus DPS estimate is 110.4, implying a prospective dividend yield of 1.7%.

Current consensus EPS estimate suggests the PER is 37.2.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 136.40 cents and EPS of 194.90 cents.
At the last closing share price the estimated dividend yield is 2.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 198.1, implying annual growth of 14.3%.

Current consensus DPS estimate is 138.3, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 32.5.

Market Sentiment: -0.1

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

FMG  FORTESCUE METALS GROUP LTD

Iron Ore

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Overnight Price: $14.93

UBS rates FMG as Buy (1) -

UBS expects the iron ore price will remain elevated until there is more clarity around Brazilian supply. The broker notes the Fortescue Metals' share price is up 35% in the year to date compared with the iron ore price up 6%.

Supply/demand remains in balance. UBS lifts the target to $14.50 from $11.50 to reflect a long-run iron ore price of US$65/DMT and 90% realisation. Buy rating maintained.

Target price is $14.50 Current Price is $14.93 Difference: minus $0.43 (current price is over target).
If FMG meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.29, suggesting downside of -17.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 256.03 cents and EPS of 227.75 cents.
At the last closing share price the estimated dividend yield is 17.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 212.2, implying annual growth of N/A.

Current consensus DPS estimate is 221.9, implying a prospective dividend yield of 14.9%.

Current consensus EPS estimate suggests the PER is 7.0.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 241.14 cents and EPS of 196.49 cents.
At the last closing share price the estimated dividend yield is 16.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.0, implying annual growth of -30.3%.

Current consensus DPS estimate is 179.3, implying a prospective dividend yield of 12.0%.

Current consensus EPS estimate suggests the PER is 10.1.

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

GEM  G8 EDUCATION LIMITED

Childcare

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Overnight Price: $1.06

UBS rates GEM as Buy (1) -

The move away from the previous support package by the government is a positive, UBS asserts. Unless occupancy drops materially G8 Education should be better off, as one of the broker's key concerns was a prolonged relief package whereby the business was essentially operating at break even.

Oversupply amid a soft macro economic backdrop remains of concern, although large and better-funded operators should emerge as strong competitors. The valuation remains compelling and the broker retains a Buy rating. Target is raised to $1.40 from $1.30.

Target price is $1.40 Current Price is $1.06 Difference: $0.34
If GEM meets the UBS target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $1.23, suggesting upside of 16.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 81.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.9, implying annual growth of -78.8%.

Current consensus DPS estimate is 2.8, implying a prospective dividend yield of 2.6%.

Current consensus EPS estimate suggests the PER is 36.6.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 3.10 cents and EPS of 4.40 cents.
At the last closing share price the estimated dividend yield is 2.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.2, implying annual growth of 148.3%.

Current consensus DPS estimate is 7.0, implying a prospective dividend yield of 6.6%.

Current consensus EPS estimate suggests the PER is 14.7.

Market Sentiment: 0.0

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

GOR  GOLD ROAD RESOURCES LIMITED

Gold & Silver

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Overnight Price: $1.50

Ord Minnett rates GOR as Initiation of coverage with Accumulate (2) -

Gold Road Resources has a new, large and long-life gold operation in its Gruyere project. The company holds 50% of the project, with the operator, US-listed Gold Fields, the other half.

Ord Minnett envisages potential to add value by increasing production rates. The broker initiates coverage with an Accumulate rating and $1.95 target.

Target price is $1.95 Current Price is $1.50 Difference: $0.45
If GOR meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.67.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

Market Sentiment: 0.3

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

GPT  GPT GROUP

Infra & Property Developers

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Overnight Price: $4.46

Morgan Stanley rates GPT as Underweight (5) -

GBT has devalued its direct retail portfolio by -8.8%. The main locations are Casuarina, Charlestown and Highpoint.

Morgan Stanley was not surprised and notes the company will undertake a full revaluation again in June.

GPT will, going forward, pay its distribution out of free cash flow and defer a record date to the results announcement in future.

Underweight rating. Target is $4.20. Industry view is In-Line.

Target price is $4.20 Current Price is $4.46 Difference: minus $0.26 (current price is over target).
If GPT 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 $4.58, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 19.50 cents and EPS of 25.80 cents.
At the last closing share price the estimated dividend yield is 4.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.8, implying annual growth of -36.4%.

Current consensus DPS estimate is 22.6, implying a prospective dividend yield of 5.1%.

Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 23.50 cents and EPS of 30.30 cents.
At the last closing share price the estimated dividend yield is 5.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.8, implying annual growth of 10.4%.

Current consensus DPS estimate is 26.1, implying a prospective dividend yield of 5.9%.

Current consensus EPS estimate suggests the PER is 14.0.

Market Sentiment: 0.6

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


UBS rates GPT as Buy (1) -

The company's update highlighted a decline in retail valuations but resilient office revaluations. Distribution policy has been adjusted to more closely align with free cash flow.

The company still intends to pay a distribution for the period to June 2020. Retail valuations are down -8.8% since March 31. Office fund assets were marked down -0.4%. UBS maintains a Buy rating and $4.70 target.

Target price is $4.70 Current Price is $4.46 Difference: $0.24
If GPT meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.58, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 19.00 cents and EPS of 29.20 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.8, implying annual growth of -36.4%.

Current consensus DPS estimate is 22.6, implying a prospective dividend yield of 5.1%.

Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 26.20 cents and EPS of 32.80 cents.
At the last closing share price the estimated dividend yield is 5.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.8, implying annual growth of 10.4%.

Current consensus DPS estimate is 26.1, implying a prospective dividend yield of 5.9%.

Current consensus EPS estimate suggests the PER is 14.0.

Market Sentiment: 0.6

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

IGO  IGO LIMITED

Nickel

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Overnight Price: $5.31

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

Citi has become more constructive about the pick up in China. The rally in copper is expected to continue against a backdrop of stronger Chinese activity and higher oil prices.

Base metal stocks are, however, downgraded against the recent rally. The cheapest entry point is behind the market but the broker still envisages value as a rebound in base metals is not fully priced in.

Rating is downgraded to Neutral from Buy and the target is raised to $5.70 from $5.60.

Target price is $5.70 Current Price is $5.31 Difference: $0.39
If IGO meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.31, suggesting downside of -0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 12.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 2.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.9, implying annual growth of 100.9%.

Current consensus DPS estimate is 11.8, implying a prospective dividend yield of 2.2%.

Current consensus EPS estimate suggests the PER is 20.5.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 18.00 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 3.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.6, implying annual growth of 10.4%.

Current consensus DPS estimate is 15.4, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 18.6.

Market Sentiment: 0.3

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

KGN  KOGAN.COM LTD

Retailing

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Overnight Price: $12.38

UBS rates KGN as Neutral (3) -

UBS found the update robust although there is very little room for error. Execution has been strong and the market supportive.

However, the broker suggests the increase in the gross margin stemming from lower promotional intensity and better sourcing is not sustainable.

UBS assesses, given the strong top line, the market will increasingly look at Kogan.com on a revenue/gross profit multiple. Neutral maintained. Target is raised to $12.10 from $8.50.

Target price is $12.10 Current Price is $12.38 Difference: minus $0.28 (current price is over target).
If KGN meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 23.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 1.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.69.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 26.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 2.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.52.

Market Sentiment: 0.0

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

MME  MONEYME LIMITED

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Overnight Price: $1.34

Ord Minnett rates MME as Buy (1) -

Ord Minnett observes revenue is tracking ahead of prospectus. The broker retains strong growth forecasts for FY21 and FY22 but subdued credit conditions, combined with funding constraints, have led to a reduction in earnings assumptions.

However, sentiment in the sector has improved and the broker increases the target to $1.53 from $1.20. Buy rating retained.

Target price is $1.53 Current Price is $1.34 Difference: $0.19
If MME 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:

Ord Minnett forecasts a full year FY20 EPS of 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 335.00.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 EPS of 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.88.

Market Sentiment: 1.0

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

NHF  NIB HOLDINGS LIMITED

Insurance

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Overnight Price: $4.70

Macquarie rates NHF as Neutral (3) -

Structural and one-off (closed borders) headwinds are building for the international inbound students market, the broker notes, impacting on nib Holdings' skew towards Indian students which has supported volume growth above industry averages since FY17. This is now normalising.

Lower volumes, APRA scrutiny of price rises and virus impact could impose further margin pressure in FY21, the broker warns. Neutral and $4.80 target retained.

Target price is $4.80 Current Price is $4.70 Difference: $0.1
If NHF meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.17, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 15.00 cents and EPS of 27.10 cents.
At the last closing share price the estimated dividend yield is 3.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.9, implying annual growth of -24.3%.

Current consensus DPS estimate is 17.3, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 18.9.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 17.00 cents and EPS of 29.70 cents.
At the last closing share price the estimated dividend yield is 3.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.3, implying annual growth of 9.6%.

Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 17.2.

Market Sentiment: 0.2

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

OZL  OZ MINERALS LIMITED

Copper

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Overnight Price: $10.43

Citi rates OZL as Buy (1) -

Citi has become more constructive about the pick up in China. The rally in copper is expected to continue against a backdrop of stronger Chinese activity and higher oil prices.

Base metal stocks are, however, downgraded against the recent rally. The cheapest entry point is behind the market but the broker still envisages value as a rebound in base metals is not fully priced in.

Citi removes the High Risk from its Buy rating for OZ Minerals. Target is raised to $11.40 from $10.70.

Target price is $11.40 Current Price is $10.43 Difference: $0.97
If OZL meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $10.12, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 20.00 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 1.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 75.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.8, implying annual growth of -59.0%.

Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 1.4%.

Current consensus EPS estimate suggests the PER is 50.1.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 9.00 cents and EPS of 85.80 cents.
At the last closing share price the estimated dividend yield is 0.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.9, implying annual growth of 245.7%.

Current consensus DPS estimate is 19.4, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 14.5.

Market Sentiment: 0.6

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

PAN  PANORAMIC RESOURCES LIMITED

Nickel

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Overnight Price: $0.08

Macquarie rates PAN as Neutral (3) -

Panoramic Resources has now repaid all its debt to be debt-free, the broker notes, post capital raising. The company has sufficient funding to complete the underground preproduction and ventilation development work at Savannah North.

The broker expects a Savannah restart decision to be made later this year to enable first production in 2021. However, the broker suspects this will be dependent on nickel prices, and a restart would also require further funding.

Neutral retained. Target falls to 9c from 12c on the raising.

Target price is $0.09 Current Price is $0.08 Difference: $0.01
If PAN meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.35.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.89.

Market Sentiment: 0.5

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

SFR  SANDFIRE RESOURCES NL

Copper

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Overnight Price: $5.20

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

Citi has become more constructive about the pick up in China. The rally in copper is expected to continue against a backdrop of stronger Chinese activity and higher oil prices.

Base metal stocks are, however, downgraded against the recent rally. The cheapest entry point is behind the market but the broker still envisages value as a rebound in base metals is not fully priced in.

Rating is downgraded to Neutral/High Risk from Buy/High Risk. Target is raised to $5.60 from $5.50.

Target price is $5.60 Current Price is $5.20 Difference: $0.4
If SFR meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.45, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 12.00 cents and EPS of 38.00 cents.
At the last closing share price the estimated dividend yield is 2.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.3, implying annual growth of -36.7%.

Current consensus DPS estimate is 13.0, implying a prospective dividend yield of 2.5%.

Current consensus EPS estimate suggests the PER is 12.6.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 9.00 cents and EPS of 37.00 cents.
At the last closing share price the estimated dividend yield is 1.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.4, implying annual growth of 39.0%.

Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 3.0%.

Current consensus EPS estimate suggests the PER is 9.1.

Market Sentiment: 0.4

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


Credit Suisse rates SFR as Outperform (1) -

A legal challenge by groups opposing the resource development in Montana has been lodged regarding the Black Butte project.

While unable to speculate on the outcome, Credit Suisse notes that the project contributes around $0.65 per share or around 11% to group valuation.

Generally, the broker points out the legal challenge highlights the risks around paying up for undeveloped assets.

Regardless, Credit Suisse has long been cautious about Black Butte which is considered of modest grade and with limited exploration upside.

Outperform rating and $5.70 target retained.

Target price is $5.70 Current Price is $5.20 Difference: $0.5
If SFR meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.45, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 10.89 cents and EPS of 44.74 cents.
At the last closing share price the estimated dividend yield is 2.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.3, implying annual growth of -36.7%.

Current consensus DPS estimate is 13.0, implying a prospective dividend yield of 2.5%.

Current consensus EPS estimate suggests the PER is 12.6.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 9.52 cents and EPS of 38.06 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.4, implying annual growth of 39.0%.

Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 3.0%.

Current consensus EPS estimate suggests the PER is 9.1.

Market Sentiment: 0.4

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

SGM  SIMS METAL MANAGEMENT LIMITED

Steel & Scrap

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Overnight Price: $8.96

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

UBS assesses limited visibility and volatile trading have driven the stock to trade at, or below, net tangible assets. However, scrap markets are expected to improve as the US economy re-opens.

UBS upgrades to Buy from Neutral as a result. In addition, the push into cloud recycling offers the opportunity for more stable volumes. Target is reduced to $10.20 from $10.80.

Target price is $10.20 Current Price is $8.96 Difference: $1.24
If SGM meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.75, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 6.00 cents and EPS of minus 38.00 cents.
At the last closing share price the estimated dividend yield is 0.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -20.1, implying annual growth of N/A.

Current consensus DPS estimate is 7.2, implying a prospective dividend yield of 0.8%.

Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 9.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 1.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.8, implying annual growth of N/A.

Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 0.9%.

Current consensus EPS estimate suggests the PER is 43.1.

Market Sentiment: 0.3

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

SKI  SPARK INFRASTRUCTURE GROUP

Infrastructure & Utilities

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Overnight Price: $2.21

UBS rates SKI as Neutral (3) -

The Australian Energy Regulator has determined its final proposal for the SA Power Networks. This confirms revenue will reduce -5.5% over 2020-25 relative to the prior period, mostly because of lower allowed rates of return. The outcome is better than expected.

UBS revises forecasts, noting that while TransGrid growth is a net positive in the long run, it will also reduce Spark Infrastructure's distributions over FY20-23. Target is raised to $2.10 from $2.05. Neutral maintained.

Target price is $2.10 Current Price is $2.21 Difference: minus $0.11 (current price is over target).
If SKI meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.19, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 14.00 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 6.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 73.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.6, implying annual growth of 19.4%.

Current consensus DPS estimate is 13.8, implying a prospective dividend yield of 6.2%.

Current consensus EPS estimate suggests the PER is 39.5.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 13.00 cents and EPS of 1.00 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 221.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.3, implying annual growth of -41.1%.

Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 5.6%.

Current consensus EPS estimate suggests the PER is 67.0.

Market Sentiment: 0.3

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

SVW  SEVEN GROUP HOLDINGS LIMITED

Diversified Financials

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Overnight Price: $17.94

UBS rates SVW as Buy (1) -

Seven Group has acquired a strategic stake, 10%, in Boral ((BLD)) for $360m. UBS notes Seven Group has realised value with previous strategic investments and Boral provides increased leverage to Australian infrastructure construction, which should be supported by economic stimulus.

Still, there are issues over Boral's US strategy, management turnover and capital structure, although the broker expects Seven Group would be aware of these. Buy rating maintained. Target rises to $19.00 from $14.35.

Target price is $19.00 Current Price is $17.94 Difference: $1.06
If SVW meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $16.61, suggesting downside of -7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 42.00 cents and EPS of 129.00 cents.
At the last closing share price the estimated dividend yield is 2.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 127.4, implying annual growth of 96.0%.

Current consensus DPS estimate is 42.0, implying a prospective dividend yield of 2.3%.

Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 40.00 cents and EPS of 133.00 cents.
At the last closing share price the estimated dividend yield is 2.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 130.9, implying annual growth of 2.7%.

Current consensus DPS estimate is 41.3, implying a prospective dividend yield of 2.3%.

Current consensus EPS estimate suggests the PER is 13.7.

Market Sentiment: 0.8

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

TYR  TYRO PAYMENTS LIMITED

Business & Consumer Credit

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Overnight Price: $4.18

Ord Minnett rates TYR as Accumulate (2) -

Trading rose 11% in the year to June 5 and transaction value is up 16%. Ord Minnett believes the company is well on its way to achieving a forecast $20bn transaction value in FY20.

The recovery has been supported by the gradual removal of pandemic restrictions as well as strong stimulus responses from governments.

Ord Minnett retains an Accumulate rating and $3.90 target.

Target price is $3.90 Current Price is $4.18 Difference: minus $0.28 (current price is over target).
If TYR meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.47, suggesting downside of -17.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 83.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.4, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 104.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.2, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 0.2

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

VCX  VICINITY CENTRES

REITs

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Overnight Price: $1.76

Macquarie rates VCX as Downgrade to Neutral from Outperform (3) -

Macquarie has returned from research restriction following Vicinity Centres' capital raising to downgrade to Neutral from Outperform.

The prior rating was based on a belief the market was more pessimistic than the broker's -20-30% decline in asset value forecast, but the stock has since re-rated on the reopening theme.

Downside protection is provided by the raising vis a vis gearing, but the broker believes further upside is limited by asset value decline to come. Target $1.75 (was $1.70).

Target price is $1.75 Current Price is $1.76 Difference: minus $0.01 (current price is over target).
If VCX meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.62, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 7.70 cents and EPS of 12.50 cents.
At the last closing share price the estimated dividend yield is 4.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.7, implying annual growth of 62.6%.

Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 5.2%.

Current consensus EPS estimate suggests the PER is 12.0.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 10.20 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 5.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.3, implying annual growth of -16.3%.

Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 5.2%.

Current consensus EPS estimate suggests the PER is 14.3.

Market Sentiment: 0.0

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

WES  WESFARMERS LIMITED

Apparel & Footwear

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Overnight Price: $43.82

Citi rates WES as Sell (5) -

Wesfarmers has revealed strong sales growth for Bunnings and Officeworks, up 19% and 28% respectively over the second half to date. Kmart delivered 4.1% growth, with elevated discounting required.

The spike in sales during April and May has come with additional costs, which Citi notes diminishes the operating leverage typically associated with better trends.

As activity resumes and restrictions ease Citi expects sales growth in FY21 will normalise back to pre-pandemic levels. Sell rating maintained. Target rises to $38.20 from $36.60.

Target price is $38.20 Current Price is $43.82 Difference: minus $5.62 (current price is over target).
If WES meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.96, suggesting downside of -11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 153.00 cents and EPS of 173.20 cents.
At the last closing share price the estimated dividend yield is 3.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 168.9, implying annual growth of -1.2%.

Current consensus DPS estimate is 141.6, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 157.00 cents and EPS of 173.10 cents.
At the last closing share price the estimated dividend yield is 3.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 159.0, implying annual growth of -5.9%.

Current consensus DPS estimate is 146.5, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 27.6.

Market Sentiment: -0.1

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


Credit Suisse rates WES as Neutral (3) -

Credit Suisse was surprised by the trading update for the retail divisions. Quality and earnings resilience were apparent but valuation support was not.

Surplus funds signal an acquisition is a probability, which would be likely to draw a negative market reaction initially, in the broker's view.

Risks remain balanced and Credit Suisse retains a Neutral rating. Target is raised to $38.25 from $35.32.

Target price is $38.25 Current Price is $43.82 Difference: minus $5.57 (current price is over target).
If WES meets the Credit Suisse target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.96, suggesting downside of -11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 159.00 cents and EPS of 176.00 cents.
At the last closing share price the estimated dividend yield is 3.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 168.9, implying annual growth of -1.2%.

Current consensus DPS estimate is 141.6, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 161.00 cents and EPS of 168.00 cents.
At the last closing share price the estimated dividend yield is 3.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 159.0, implying annual growth of -5.9%.

Current consensus DPS estimate is 146.5, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 27.6.

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) -

An update from Wesfarmers revealed above-expectation sales growth for Bunnings of 19% year on year on the lockdown DIY theme, and 28% for Officeworks on the work-from-home theme. Kmart is also now seeing a return to apparel demand as winter sets in.

Outperform retained, target rises to $44.50 from $39.40.

Target price is $44.50 Current Price is $43.82 Difference: $0.68
If WES meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $38.96, suggesting downside of -11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 75.00 cents and EPS of 175.00 cents.
At the last closing share price the estimated dividend yield is 1.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 168.9, implying annual growth of -1.2%.

Current consensus DPS estimate is 141.6, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 129.00 cents and EPS of 161.00 cents.
At the last closing share price the estimated dividend yield is 2.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 159.0, implying annual growth of -5.9%.

Current consensus DPS estimate is 146.5, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 27.6.

Market Sentiment: -0.1

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


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

Wesfarmers has highlighted sales growth of 19.2% at Bunnings for the second half to May. This includes the month where its 53 NZ stores were closed to the general public.

While an additional -$90m in costs is flagged for the second half, earnings leverage is likely to be significant, in Morgan Stanley's view.

The broker also notes Officeworks is trading strongly, albeit with less leverage given the shift in mix.

Morgan Stanley retains an Equal-weight rating and $36.50 target. Cautious industry view.

Target price is $36.50 Current Price is $43.82 Difference: minus $7.32 (current price is over target).
If WES meets the Morgan Stanley target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.96, suggesting downside of -11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 150.00 cents and EPS of 133.00 cents.
At the last closing share price the estimated dividend yield is 3.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 168.9, implying annual growth of -1.2%.

Current consensus DPS estimate is 141.6, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 136.00 cents and EPS of 119.00 cents.
At the last closing share price the estimated dividend yield is 3.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 159.0, implying annual growth of -5.9%.

Current consensus DPS estimate is 146.5, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 27.6.

Market Sentiment: -0.1

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


Morgans rates WES as Hold (3) -

Wesfarmers reported stronger than expected sales growth for all its retail businesses for the second half to May. The major highlights include Bunnings which grew 19.2% and Officeworks which was up 27.8%. Target improved but still saw a decline of -1.8%.

Morgans notes strong online sales across all retail businesses and has increased FY20 operating income estimate by 1% to $2,905m.

The broker retains its Hold rating with target increased to $38.80 from $37.

Target price is $38.80 Current Price is $43.82 Difference: minus $5.02 (current price is over target).
If WES meets the Morgans target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.96, suggesting downside of -11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 153.10 cents and EPS of 175.00 cents.
At the last closing share price the estimated dividend yield is 3.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 168.9, implying annual growth of -1.2%.

Current consensus DPS estimate is 141.6, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 152.30 cents and EPS of 173.00 cents.
At the last closing share price the estimated dividend yield is 3.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 159.0, implying annual growth of -5.9%.

Current consensus DPS estimate is 146.5, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 27.6.

Market Sentiment: -0.1

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


Ord Minnett rates WES as Lighten (4) -

Strong sales growth occurred in the five months to May for Bunnings and Officeworks. Ord Minnett notes sales momentum also improved in Kmart and Target.

The broker increases underlying estimates for earnings per share by 6.3% in FY20 and 1.2% in FY21, based on the stronger earnings from Bunnings and Officeworks.

Lighten rating maintained. Target rises to $37 and $35.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $37.00 Current Price is $43.82 Difference: minus $6.82 (current price is over target).
If WES meets the Ord Minnett target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.96, suggesting downside of -11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 141.00 cents and EPS of 173.00 cents.
At the last closing share price the estimated dividend yield is 3.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 168.9, implying annual growth of -1.2%.

Current consensus DPS estimate is 141.6, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 dividend of 149.00 cents and EPS of 163.00 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 159.0, implying annual growth of -5.9%.

Current consensus DPS estimate is 146.5, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 27.6.

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) -

Wesfarmers provided a strong retail trading update with all divisions ahead of UBS estimates. The broker upgrades estimates for earnings per share by 11% in FY20 and 12% in FY21.

Despite the momentum, a Neutral rating is maintained because the valuation appears full. The broker considers the likely medium-term structural benefits are more than priced in. Target is raised to $39.50 from $33.80.

Target price is $39.50 Current Price is $43.82 Difference: minus $4.32 (current price is over target).
If WES meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.96, suggesting downside of -11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 160.00 cents and EPS of 177.00 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 168.9, implying annual growth of -1.2%.

Current consensus DPS estimate is 141.6, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 141.00 cents and EPS of 156.00 cents.
At the last closing share price the estimated dividend yield is 3.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 159.0, implying annual growth of -5.9%.

Current consensus DPS estimate is 146.5, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 27.6.

Market Sentiment: -0.1

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

Today's Price Target Changes
Company Last Price Broker New Target Prev Target Change
AFG Australian Finance $1.76 Macquarie 1.93 1.95 -1.03%
AMI Aurelia Metals $0.47 Macquarie 0.70 0.50 40.00%
Ord Minnett 0.55 0.45 22.22%
BLD Boral $3.77 Morgan Stanley 3.60 3.00 20.00%
CCX City Chic $2.71 Macquarie 3.25 2.71 19.93%
CQR Charter Hall Retail $3.60 Ord Minnett 3.40 N/A -
CSL CSL $285.69 Macquarie 302.00 311.00 -2.89%
UBS 335.00 342.00 -2.05%
DMP Domino's Pizza $64.48 Credit Suisse 51.86 53.21 -2.54%
Morgans 63.22 55.57 13.77%
FMG Fortescue $14.93 UBS 14.50 11.50 26.09%
GEM G8 Education $1.06 UBS 1.40 1.30 7.69%
GPT GPT Group $4.46 Morgan Stanley 4.20 3.80 10.53%
IGO IGO Co $5.31 Citi 5.70 5.90 -3.39%
KGN Kogan.Com $12.38 UBS 12.10 8.50 42.35%
MME Moneyme $1.34 Ord Minnett 1.53 1.20 27.50%
OZL Oz Minerals $10.43 Citi 11.40 10.70 6.54%
PAN Panoramic Resources $0.08 Macquarie 0.09 0.12 -25.00%
SFR Sandfire $5.20 Citi 5.60 5.50 1.82%
SGM Sims Metal Management $8.96 UBS 10.20 10.80 -5.56%
SKI Spark Infrastructure $2.21 UBS 2.10 2.05 2.44%
SVW Seven Group $17.94 UBS 19.00 14.35 32.40%
VCX Vicinity Centres $1.76 Macquarie 1.75 1.70 2.94%
WES Wesfarmers $43.82 Citi 38.20 36.60 4.37%
Credit Suisse 38.25 35.32 8.30%
Macquarie 44.50 39.40 12.94%
Morgans 38.80 37.00 4.86%
Ord Minnett 37.00 35.00 5.71%
UBS 39.50 33.80 16.86%
Summaries
AFG Australian Finance Outperform - Macquarie Overnight Price $1.76
AMI Aurelia Metals Outperform - Macquarie Overnight Price $0.47
Downgrade to Accumulate from Buy - Ord Minnett Overnight Price $0.47
ARF Arena Reit Outperform - Macquarie Overnight Price $2.40
BLD Boral Equal-weight - Morgan Stanley Overnight Price $3.77
CCX City Chic Outperform - Macquarie Overnight Price $2.71
CQR Charter Hall Retail Resume Coverage with Hold - Ord Minnett Overnight Price $3.60
CSL CSL Buy - Citi Overnight Price $285.69
Neutral - Macquarie Overnight Price $285.69
Equal-weight - Morgan Stanley Overnight Price $285.69
Buy - UBS Overnight Price $285.69
DMP Domino's Pizza Sell - Citi Overnight Price $64.48
Underperform - Credit Suisse Overnight Price $64.48
Outperform - Macquarie Overnight Price $64.48
Downgrade to Hold from Add - Morgans Overnight Price $64.48
Accumulate - Ord Minnett Overnight Price $64.48
Neutral - UBS Overnight Price $64.48
FMG Fortescue Buy - UBS Overnight Price $14.93
GEM G8 Education Buy - UBS Overnight Price $1.06
GOR Gold Road Resources Initiation of coverage with Accumulate - Ord Minnett Overnight Price $1.50
GPT GPT Group Underweight - Morgan Stanley Overnight Price $4.46
Buy - UBS Overnight Price $4.46
IGO IGO Co Downgrade to Neutral from Buy - Citi Overnight Price $5.31
KGN Kogan.Com Neutral - UBS Overnight Price $12.38
MME Moneyme Buy - Ord Minnett Overnight Price $1.34
NHF nib Holdings Neutral - Macquarie Overnight Price $4.70
OZL Oz Minerals Buy - Citi Overnight Price $10.43
PAN Panoramic Resources Neutral - Macquarie Overnight Price $0.08
SFR Sandfire Downgrade to Neutral from Buy - Citi Overnight Price $5.20
Outperform - Credit Suisse Overnight Price $5.20
SGM Sims Metal Management Upgrade to Buy from Neutral - UBS Overnight Price $8.96
SKI Spark Infrastructure Neutral - UBS Overnight Price $2.21
SVW Seven Group Buy - UBS Overnight Price $17.94
TYR Tyro Payments Accumulate - Ord Minnett Overnight Price $4.18
VCX Vicinity Centres Downgrade to Neutral from Outperform - Macquarie Overnight Price $1.76
WES Wesfarmers Sell - Citi Overnight Price $43.82
Neutral - Credit Suisse Overnight Price $43.82
Outperform - Macquarie Overnight Price $43.82
Equal-weight - Morgan Stanley Overnight Price $43.82
Hold - Morgans Overnight Price $43.82
Lighten - Ord Minnett Overnight Price $43.82
Neutral - UBS Overnight Price $43.82
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

16

2. Accumulate

4

3. Hold

17

4. Reduce

1

5. Sell

4

Wednesday 10 June 2020

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Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.