Australian Broker Call

Citi rates AMC as Buy (1) -

The company has reported first half results in line with expectations, with FY19 on track for guidance,, which is unchanged.

Citi observes major headwinds from FY18 have reversed in the first half and, should current prices hold, lower input costs may provide a significant boost in the first half of FY20.

As the Bemis transaction will be completed in the second quarter of 2019 the broker expects this to trigger consensus upgrades.

Buy rating retained. Target is raised to $16.10 from $15.00.

Target price is $16.10 Current Price is $14.71 Difference: $1.39
If AMC meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $15.59, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

Credit Suisse rates AMC as Downgrade to Neutral from Outperform (3) -

First half results demonstrate to Credit Suisse that operations are on track. The broker maintains FY20 and FY21 estimates unchanged.

FY19 estimates for earnings per share are reduced by -3% because of the delay in the closure of the Bemis transaction, relative to earlier expectations.

The recent rally in the share price has closed out excessive near-term returns, in the broker's view, although fundamentals appears solid.

Credit Suisse downgrades to Neutral from Outperform and raises the target to $14.90 from $14.80.

Target price is $14.90 Current Price is $14.71 Difference: $0.19
If AMC meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $15.59, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

Deutsche Bank rates AMC as Buy (1) -

Amcor delivered roughly in-line, though slightly above market consensus if one wants to be really finicky about it, with FY guidance reaffirmed. Deutsche Bank has responded by sticking to its Buy rating and $16.15 price target.

The analysts point out, earnings benefited from a profit on asset sales of US$33m, but this was largely offset by restructuring costs of -US$28m. Equally noteworthy, management expects to close the all-important Bemis transaction in the June quarter.

Target price is $16.15 Current Price is $14.71 Difference: $1.44
If AMC meets the Deutsche Bank target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $15.59, suggesting upside of 6.0% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

Macquarie rates AMC as Outperform (1) -

First half results were slightly ahead of Macquarie's estimates. More neutral raw material inputs are expected in the current year and the broker is pleased that guidance is reiterated for both rigids and flexibles.

This is combined with a relatively defensive earnings growth profile and Bemis synergies. The broker suggests the share price is lagging on an Australian dollar earnings basis and is a beneficiary of Australian dollar weakness.

Outperform rating maintained and the target is raised to $16.25 from $16.13.

Target price is $16.25 Current Price is $14.71 Difference: $1.54
If AMC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $15.59, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

Morgan Stanley rates AMC as Overweight (1) -

First half results were ahead of Morgan Stanley's expectations. FY19 guidance is unchanged.

The result demonstrates the headwinds from FY18 have eased and the broker's focus is now on the proposed Bemis transaction. Morgan Stanley estimates mid to high single-digit value accretion from the acquisition.

Overweight. Target is raised to $16.10 from $15.20. Cautious industry view.

Target price is $16.10 Current Price is $14.71 Difference: $1.39
If AMC meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $15.59, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

Morgans rates AMC as Hold (3) -

Amcor's result met the broker once adjusted for adverse currency moves. Flexibles delivered a reasonable result while Rigid Plastics returned to growth after a tough FY18, the broker notes. Emerging market earnings stood out in rising 9% after falling -9% the same period last year while developed market earnings were flat.

The Bemis acquisition is on track to be completed by June, with regulatory approvals gradually being ticked off. The broker is cautious on the Bemis deal given dilution and integration risks and thus retains Hold. Increased peer multiples lead to a target price increase to $14.14 from $13.78.

Target price is $14.14 Current Price is $14.71 Difference: minus $0.57 (current price is over target).
If AMC meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.59, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

Ord Minnett rates AMC as Accumulate (2) -

First half net profit was ahead of Ord Minnett's forecasts. The broker believes the outlook for Amcor is promising as the business benefits from an easing of raw material headwinds and restructuring as well as the recently-acquired Bemis.

The highlight of the result was cash generation, with underlying operating cash flow rising 27%. Accumulate rating and $15.50 target maintained.

Target price is $15.50 Current Price is $14.71 Difference: $0.79
If AMC meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $15.59, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

Morgans rates AMS as Initiation of coverage with Add (1) -

Stockbroker Morgans has initiated coverage of Atomos, video technology company that designs, develops and commercialises video monitor recorders, currently still unprofitable, but about to end a period of "significant" investment in hardware, technology and resources.

The analysts believe from here onwards the cost base has been established and growth should see only relatively-low further incremental investments, while revenue growth should take off. The combination of the two should virtually guarantee lift off in operational margin.

Morgans has initiated with an Add rating in combination with a $0.78 price target.

Target price is $0.78

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

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

First half results revealed a decline in earnings from continuing operations of -16%. Citi forecasts underlying EBIT for the non-network business towards the mid point of management's guidance range of $390-430m.

Citi revises FY19 estimates to reflect the fact Aurizon has chosen to account for the implementation of the UT5 decision in FY19, rather than extend the regulatory uncertainty further. The broker expects an 18% lift in underlying EBIT in FY20.

As a result of the clearer outlook for the network earnings, the broker lifts its rating to Neutral from Sell and raises the target to $4.40 from $3.80.

Target price is $4.40 Current Price is $4.53 Difference: minus $0.13 (current price is over target).
If AZJ meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.46, suggesting downside of -1.5% (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

Credit Suisse rates AZJ as Outperform (1) -

Aurizon has elected not to pursue a judicial review of the final UT5 regulatory decision. The company is still in discussions with customers about alternative arrangements to the UT5 framework.

Credit Suisse believes the upcoming announcement of the final UT5 decision is unlikely to transform the company's regulatory situation.

The broker reiterates an Outperform rating and raises the target to $4.90 from $4.75.

Target price is $4.90 Current Price is $4.53 Difference: $0.37
If AZJ meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting downside of -1.5% (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

Deutsche Bank rates AZJ as Hold (3) -

Underlying, the interim report was largely as expected, comments Deutsche Bank. FY19 results remain in transition as the company adjusts to the UT5 settings this year. Hold rating retained. Target lost -10c to $4.30.

Target price is $4.30 Current Price is $4.53 Difference: minus $0.23 (current price is over target).
If AZJ meets the Deutsche Bank target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.46, suggesting downside of -1.5% (ex-dividends)

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

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

First half results were ahead of expectations. The company has resolved the uncertainty around UT5 which Macquarie notes delivers a strong FY20 outlook, while lowering FY19 estimates.

The broker considers the stock is trading at fair value and surprise on the upside is limited and downgrades to Neutral from Outperform. Target is reduced 4.5% to $4.45.

Target price is $4.45 Current Price is $4.53 Difference: minus $0.08 (current price is over target).
If AZJ meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.46, suggesting downside of -1.5% (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 AZJ as Hold (3) -

While Aurizon's earnings appeared to fall -16% from the same period last year, the calculation is impacted by the company's approach to revenue recognition of the UT5 final decision, the broker notes. Cash flow was actually stronger then the broker expected.

Volumes were nevertheless lower than expected but management has reaffirmed FY19 coal haulage guidance. Lower costs helped support the result.

The stock appears attractive on a 70% franked 5% plus yield, the broker suggests, but Hold retained on risk from competition with coal contracts expiring through to FY23. Target rises to $4.53 from $4.33.

Target price is $4.53 Current Price is $4.53 Difference: $0
If AZJ meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting downside of -1.5% (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

Ord Minnett rates AZJ as Sell (5) -

First half net profit was below Ord Minnett's forecasts because of a weaker contribution from the below-rail segment.

Still, the broker suggests the worst may well be over in terms of the below-rail risk associated with the UT5 decision.

Ord Minnett, nevertheless, suspects investors could be underestimating the likely earnings pressures from the above-rail segment.

The broker maintains a Sell rating and increases the target to $4.00 from $3.85.

Target price is $4.00 Current Price is $4.53 Difference: minus $0.53 (current price is over target).
If AZJ meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.46, suggesting downside of -1.5% (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

UBS rates AZJ as Neutral (3) -

Aurizon's first half underlying result largely met the broker but delivered a -19% fall in net profit arising from Network timing adjustments.

UBS revises forecasts to reflect the adjustment issues, expecting a -7% fall in net profit in FY19, and slight rises in FY20/21 forecasts, averaging out to 6% growth over the period. The FY19 volume forecasts are heavily dependent on weather.

Aurizon retained a 100% dividend payout. Neutral rating retained. Price target steady at $4.60.

Target price is $4.60 Current Price is $4.53 Difference: $0.07
If AZJ meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting downside of -1.5% (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 BEN as Downgrade to Sell from Neutral (5) -

Citi was disappointed with the first half result, which was weak despite a low bad debt expense. Revenue challenges are starting to mount, in the broker's view.

Meanwhile cost growth is unable to adjust to the slower revenue environment. The broker lowers FY19-21 cash estimates for earnings per share by -5-11%.

Rating is downgraded to Sell from Neutral and the target lowered to $9.50 from $11.25.

Target price is $9.50 Current Price is $9.90 Difference: minus $0.4 (current price is over target).
If BEN meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.60, suggesting downside of -3.0% (ex-dividends)

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

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

Credit Suisse downgrades earnings estimates by up to -10% across the forecast horizon on the back of the first half results.

The broker believes the bank will struggle to achieve earnings growth in the near term, given revenue pressures.

Credit Suisse downgrades to Underperform from Neutral and reduces the target to $10.00 from $11.50.

Target price is $10.00 Current Price is $9.90 Difference: $0.1
If BEN meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $9.60, suggesting downside of -3.0% (ex-dividends)

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 BEN as Sell (5) -

Deutsche Bank saw a disappointing interim report, with financial performance, underlying, below expectations. Not helping matters, the analysts note the low BDD/GLA (8bps) provided some support to the bottom line, but they believe this is unsustainable.

The analysts also are left with some serious valuation questions around the Homesafe portfolio. Sell rating retained. Price target drops to $9 (-50c).

Target price is $9.00 Current Price is $9.90 Difference: minus $0.9 (current price is over target).
If BEN meets the Deutsche Bank target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.60, suggesting downside of -3.0% (ex-dividends)

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

Macquarie rates BEN as Underperform (5) -

Recent results highlight a lack of revenue growth and challenging operating settings, in Macquarie's view, as property prices continue to fall and competition for mortgages remains intense. First half cash profit was slightly below forecasts.

To avoid a reduction in revenue in the second half the broker incorporates an additional 10 basis points in mortgage re-pricing, which is not considered a sustainable long-term strategy.

Underperform rating maintained. Target is reduced to $10.00 from $10.25.

Target price is $10.00 Current Price is $9.90 Difference: $0.1
If BEN meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $9.60, suggesting downside of -3.0% (ex-dividends)

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

Morgan Stanley rates BEN as Underweight (5) -

First half results disappointed Morgan Stanley, particularly margins, which are expected to narrow again in the second half, given increased front book mortgage discounts and headwinds from BBSW.

While deposit pricing should improve, the broker cannot envisage this becoming a significant positive. Morgan Stanley trims estimates for cash earnings per share by -5% for FY20 and FY21.

Underweight maintained. Industry view: In-Line. Target price reduced to $9.40 from $10.10.

Target price is $9.40 Current Price is $9.90 Difference: minus $0.5 (current price is over target).
If BEN 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 $9.60, suggesting downside of -3.0% (ex-dividends)

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

Ord Minnett rates BEN as Lighten (4) -

First half net profit was slightly ahead of Ord Minnett's forecasts. The broker notes a challenging half-year because of very subdued business loan trends and a step up in margin pressures.

Lower house prices also affected Homesafe earnings. Ord Minnett reduces cash earnings estimates by around -2% in FY19 and a more material -5% for FY20.

Lighten rating maintained. Target is reduced to $9.80 from $10.60.

Target price is $9.80 Current Price is $9.90 Difference: minus $0.1 (current price is over target).
If BEN meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.60, suggesting downside of -3.0% (ex-dividends)

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

Morgan Stanley rates BOQ as Underweight (5) -

Morgan Stanley envisages challenges at the retail bank because of stalling volumes and narrowing margins. The broker factors in a higher risk of a bear case playing out.

The bank has twice re-priced standard variable mortgages by over 10 basis points in the past eight months, but the broker does not envisage the pressure on margins diminishing.

Underweight rating retained. Industry view is In-Line. Price target reduced to $8.90 from $9.50.

Target price is $8.90 Current Price is $10.00 Difference: minus $1.1 (current price is over target).
If BOQ meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.17, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in August.

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

Macquarie rates CGF as Outperform (1) -

Challenger had pre-released its first half profit result and updated FY19 guidance with a good old fashioned profit warning, and today's release of the financial details are in-line with the pre-release, comment analysts at Macquarie.

Compositionally, however, the analysts believe the financial performance is even worse than pre-warned. They specifically highlight domestic annuity sales and sales in Japan. As Macquarie continues to see "value" at present level, the Outperform rating remains in place. Target $10.60.

Target price is $10.60 Current Price is $7.48 Difference: $3.12
If CGF meets the Macquarie target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $7.95, suggesting upside of 6.3% (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

Macquarie rates CLW as Underperform (5) -

First half results were in line with Macquarie's forecasts. The positive update from the results was the extension of the Inghams portfolio lease term.

FY19 guidance is maintained and the broker notes no further acquisitions are captured in this guidance.

The company has indicated unlisted capital could be a potential source for childcare assets.

Underperform rating maintained. Target is reduced to $3.78 from $3.83.

Target price is $3.78 Current Price is $4.53 Difference: minus $0.75 (current price is over target).
If CLW meets the Macquarie target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.12, suggesting downside of -9.1% (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

Ord Minnett rates CLW as Upgrade to Hold from Lighten (3) -

First half results were ahead of estimates.The company has extended its lease to Inghams for the portfolio of chicken processing facilities to 25 years from 16 years.

Ord Minnett estimates the asset's capitalisation rate should firm to 6.5% from 7.25% on acquisition. This adds $0.07 to the net tangible assets per security and increases the weighted average lease expiry.

As a result, Ord Minnett raises the rating to Hold from Lighten and the target to $4.25 from $4.10.

Target price is $4.25 Current Price is $4.53 Difference: minus $0.28 (current price is over target).
If CLW 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 $4.12, suggesting downside of -9.1% (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

UBS rates CLW as Neutral (3) -

Charter Hall Long WALE REIT's first half result was in line with the broker. Guidance was unchanged.

UBS notes the REIT outperformed the sector, suggesting the market is accepting the new agri-logistics asset class or appreciates the long WALE earnings-per-share accretive acquisitions.

The broker increases its net asset valuation by 2%. Neutral rating retained. Target price rises to $4.33 from $4.25.

Target price is $4.33 Current Price is $4.53 Difference: minus $0.2 (current price is over target).
If CLW meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.12, suggesting downside of -9.1% (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

Macquarie rates COE as Outperform (1) -

Interim results missed Macquarie's forecasts because of higher costs and PRRT. The broker envisages upside for the stock through the re-pricing of the Sole foundation contracts by 2024.

Outperform rating maintained and the target is raised to $0.60 from $0.55.

The next major catalysts are the drilling of Elanora and Annie in the Otway Basin, a sell down of Cooper Basin interests and the Sole/Manta PRRT consolidation.

Target price is $0.60 Current Price is $0.51 Difference: $0.09
If COE meets the Macquarie target it will return approximately 18% (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 COE as Add (1) -

Cooper Energy's result fell short of the broker due to previously flagged maintenance interruptions. The key focus nevertheless is on the Sole project, the broker suggests, which is now 86% complete and on time and budget.

Exploration is about to commence in the Otway. Add and 59c target retained.

Target price is $0.59 Current Price is $0.51 Difference: $0.08
If COE meets the Morgans target it will return approximately 16% (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 CRN as Initiation of coverage with Buy (1) -

UBS has initiated coverage on metallurgical coal-miner Coronado Global Resources with a Buy rating and $3.60 target.

Coronado is the 5th largest global metallurgical coal producer by volume to the export market, with around 60% of its product sourced from Australia and 40% from the US.

UBS notes the stock is trading at a discount to net present value and 2.8x 2019 forecast earnings - a discount to global rivals - thanks to liquidity issues, share overhang and investor uncertainty.

The company has net cash of $US125m and has announced plans to return all free cash flow generated, unless an acquisition takes place or the company has an unforeseen need to build cash.

Target price is $3.60 Current Price is $3.27 Difference: $0.33
If CRN meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Macquarie rates DHG as Outperform (1) -

Macquarie believes Domain faces a challenging half-year as the federal and NSW elections compound a weaker housing market more broadly.

Ahead of the first half results on February 15, the broker lowers estimates for earnings per share by -15-17%.

The target is reduced -18% to $2.50. Outperform rating maintained.

Target price is $2.50 Current Price is $2.09 Difference: $0.41
If DHG meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $2.77, suggesting upside of 32.7% (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 EVN as Sell (5) -

Heavy rainfall represents a tangible risk for production at the company's Ernest Henry mine operation, highlight Deutsche Bank analysts. Under a scenario whereby the operation's production rate is halved over the March quarter, this would impact FY19 EPS forecast by -5%, the analysts explain. Sell. Target $3.30.

Target price is $3.30 Current Price is $3.72 Difference: minus $0.42 (current price is over target).
If EVN meets the Deutsche Bank target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.43, suggesting downside of -7.9% (ex-dividends)

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

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

Ahead of Flight Centre's result release, Morgans notes recent data points to slowing demand for travel. The travel agent will not be immune to weaker discretionary spending and the broker notes weakness comes at a time cost pressures are mounting.

The broker has decided to "err on the side of conservatism" and shift its forecast to the lower end of guidance, and downgrade to Hold from Add. Target falls to $47.75 from $51.00.

Target price is $47.75 Current Price is $42.88 Difference: $4.87
If FLT meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $54.07, suggesting upside of 26.1% (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

Credit Suisse rates GPT as Neutral (3) -

2018 results were in line with Credit Suisse expectations. Although the broker is positive about the company's office & logistics portfolio, downside risk is observed for the retail portfolio, as increased competition is expected to affect the weaker assets.

Valuation is rolled forward to FY19. Neutral rating is maintained and the target raised to $5.90 from $5.34.

Target price is $5.90 Current Price is $5.85 Difference: $0.05
If GPT meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.68, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in December.

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

Deutsche Bank rates GPT as Hold (3) -

Deutsche Bank found the interim performance in line with expectations, but FY guidance seems a bit low, leading to the analysts suggesting management might be too conservative.

Supporting the analysts' suspicion is their observation GPT has an established track record of initially providing too conservative guidance. They see strong growth on the horizon for FY20 on the back of the completion of Sydney Olympic Park and Sunshine Plaza, plus the acquisition of the Eclipse Tower.

Hold rating retained on valuation, the analysts explain. Target moves to $5.61 from $5.39.

Target price is $5.61 Current Price is $5.85 Difference: minus $0.24 (current price is over target).
If GPT meets the Deutsche Bank target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.68, suggesting downside of -2.9% (ex-dividends)

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

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

Macquarie downgrades to Neutral from Outperform after the 2018 result. The target is raised to $5.99 from $5.95.

While attracted to the earnings growth in 2019 and the strong balance sheet, which is supported by the potential sale of MLC, the broker points to the difficult retail environment and limited shareholder returns.

The broker observes the company is increasing its weighting to logistics but retail will still remain over 40% of capital.

Target price is $5.99 Current Price is $5.85 Difference: $0.14
If GPT meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.68, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates GPT as Hold (3) -

2018 net profit was slightly below Ord Minnett's forecasts although the broker does not fundamentally change its view on the trajectory of the business.

The retail portfolio is moderating, given a slowing housing market. However, GPT is favourably exposed to an elongated office market cycle in Melbourne.

The broker maintains a Hold rating and $5.50 target.

Target price is $5.50 Current Price is $5.85 Difference: minus $0.35 (current price is over target).
If GPT 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 $5.68, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates GPT as Neutral (3) -

GPT's 2018 result met the broker, thanks largely to growth in the office portfolio.

Guidance for 2019 growth (4%) fell short of UBS's 4.5%. UBS expects the potential disposal of MLC will lower debt costs alleviating growth pressures. UBS expects the group to retain excess liquidity from any sale and puts gearing at 26%.

Neutral rating retained, the broker believing there are better options in the sector. Target price steady at $5.60.

Target price is $5.60 Current Price is $5.85 Difference: minus $0.25 (current price is over target).
If GPT meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.68, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates IFL as Neutral (3) -

Credit Suisse observes the business is facing uncertainty from proposed industry reforms amid the impact of RC-induced brand damage and remediation costs.

The broker's analysis reinforces the view that the uncertainty generated is material, including the risks around the ANZ P&I acquisition.

Despite valuation appeal, Credit Suisse does not envisage an appropriate risk/reward trade at current levels and maintains a Neutral rating. Target is raised to $5.30 from $4.60.

Target price is $5.30 Current Price is $5.28 Difference: $0.02
If IFL meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.15, suggesting downside of -2.5% (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 IPL as Neutral (3) -

Likely losses at the Phosphate Hill facility as a result of the floods in North Queensland, coupled with the unplanned outages announced last month, suggest to Citi that Incitec Pivot will be even more reliant on firmer commodity prices in FY19.

The company has announced the closure of the rail line between Townsville and Phosphate Hill, calculated to cost $10m per week, as a result of the flooding and has begun a progressive shutdown of plants within the facility.

Citi maintains a Neutral rating and $3.65 target.

Target price is $3.65 Current Price is $3.33 Difference: $0.32
If IPL meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.94, suggesting upside of 18.2% (ex-dividends)

The company's fiscal year ends in September.

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

Deutsche Bank rates IPL as Buy (1) -

Heavy rainfall in North Queensland has resulted in the progressive shutdown of Incitec Pivot's Phosphate Hill DAP plant. Deutsche Bank analysts observe the company has had a number of "mishaps" in the current financial year; most out of its control.

On the assumption these impacts won't be repeated in FY20, Deutsche Bank is sticking with its Buy rating. Target is $4.80.

Target price is $4.80 Current Price is $3.33 Difference: $1.47
If IPL meets the Deutsche Bank target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $3.94, suggesting upside of 18.2% (ex-dividends)

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

Citi rates JBH as Sell (5) -

First half results were ahead of Citi's estimates, reflecting a stronger gross margin for The Good Guys and sales growth at JB Hi-Fi.

Citi considers management's guidance conservative, although accepts there are reasons to be cautious.

Citi maintains a Sell rating and raises the target to $21.10 from $20.20. The broker continues to envisage downside risk to medium-term consensus forecasts.

Target price is $21.10 Current Price is $22.74 Difference: minus $1.64 (current price is over target).
If JBH meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.74, suggesting upside of 8.8% (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

Credit Suisse rates JBH as Underperform (5) -

First half results were in line and Credit Suisse suspects the muted share price reaction is reflecting a soft macro environment. While making near-term earnings upgrades, the broker suspects an earnings re-set coming through in FY20 and FY21.

If guidance reflects management's expectations that earnings (EBIT) at The Good Guys will improve in the second half, the corollary is a -4% fall in EBIT from the JB Hi-Fi Australia brand, taking the mid point of net profit guidance as a reference.

The broker justifies its bearish view in that small consumer electronics is one of the most vulnerable categories to online disruption. Underperform rating maintained. Target rises to $21.12 from $21.03.

Target price is $21.12 Current Price is $22.74 Difference: minus $1.62 (current price is over target).
If JBH meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.74, suggesting upside of 8.8% (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

Deutsche Bank rates JBH as Hold (3) -

Putting everything into context, Deutsche Bank believes JB Hi-Fi delivered a "strong" performance in H1, while FY guidance doesn't look too demanding. But there are also signs the weak consumer is having an impact on the business, state the analysts.

Deutsche Bank highlights like-for-like (LFL) sales growth in the core JB Hi-Fi business has slowed to a level which will make operating deleverage difficult to avoid and TGG sales were very soft in January. They see no catalyst for the share price on the horizon. Hold. Target price $24 (unchanged).

Target price is $24.00 Current Price is $22.74 Difference: $1.26
If JBH meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $24.74, suggesting upside of 8.8% (ex-dividends)

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

Macquarie rates JBH as Outperform (1) -

Macquarie considers the first half result credible, in the wake of a challenging discretionary retail environment. FY19 net profit guidance of $237-245m is slightly ahead of expectations.

The company has reiterated its group sales target of $7.1bn. Within this, Australia is weaker, offset by additional sales in New Zealand.

Macquarie reiterates an Outperform rating and reduces the target to $28.80 from $29.00.

Target price is $28.80 Current Price is $22.74 Difference: $6.06
If JBH meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $24.74, suggesting upside of 8.8% (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

Morgan Stanley rates JBH as Overweight (1) -

Morgan Stanley lifts estimates by 2-3% across FY19-21 to reflect a faster turnaround at The Good Guys and lower D&A, as spending shifts to operating expenditure from capital expenditure.

The broker suggests first half earnings growth highlights the company's resilience and believes JB Hi-Fi can continue to win market share and expand profitability even in a weaker consumer environment.

Overweight rating maintained. Industry view: Cautious. Target is $28.

Target price is $28.00 Current Price is $22.74 Difference: $5.26
If JBH meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $24.74, suggesting upside of 8.8% (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

Morgans rates JBH as Hold (3) -

JB Hi-Fi's result was in line with expectation, featuring 4.2% sales growth. FY sales guidance has been reiterated and maiden profit guidance is also in line with forecasts.

On a 10.8x PE and 6% yield the stock looks attractive, the broker concedes, but a more modest growth profile is arguably factored into this valuation. Given the board recently elected to maintain a 65% payout ratio there appears no scope for capital management. Hold retained, target rises to $24.37 from $24.11.

Target price is $24.37 Current Price is $22.74 Difference: $1.63
If JBH meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $24.74, suggesting upside of 8.8% (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

Ord Minnett rates JBH as Accumulate (2) -

First half net profit was ahead of Ord Minnett's forecasts because of higher earnings from The Good Guys and lower depreciation and amortisation charges.

Based on the broker's estimates, guidance for FY19 net profit requires only a 2% rise in earnings (EBIT) in the second half to achieve the high-end of the $237-245m range.

The broker maintains an Accumulate rating and reduces the target to $27 from $28.

Target price is $27.00 Current Price is $22.74 Difference: $4.26
If JBH meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $24.74, suggesting upside of 8.8% (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 JBH as Neutral (3) -

JB Hi-Fi's first-half net profit after tax (NPAT) beat the broker by 4% but the company reported weaker than expected sales in January (up 3%) and greater volatility and reduced visibility, which led the company to report second-half NPAT guidance between -6% and +4%.

The broker retains a Neutral rating on valuation grounds but notes reduced visibility, coupled with growing headwinds from a moderating housing market and competition from Amazon, are increasing 4th quarter risk.

Target price rises to $23.50 from $23.20.

Target price is $23.50 Current Price is $22.74 Difference: $0.76
If JBH meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $24.74, suggesting upside of 8.8% (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

Citi rates ORI as Sell (5) -

Orica's joint-venture partner at the Burrup plant, Yara International, has decided to write down the asset by 13% for its 50% stake. Citi suspects a similar write-down is likely at Orica's upcoming first half result.

Burrup is valued at US$570m on Orica's books, around US $230m above Yara's new valuation. Upside may arrive for Orica, in the broker's view, in the form of reduced depreciation expenses for Burrup.

Sell rating and $16 target maintained.

Target price is $16.00 Current Price is $18.13 Difference: minus $2.13 (current price is over target).
If ORI meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.79, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in September.

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

Deutsche Bank rates ORI as Hold (3) -

JV partner Yarra has written down its value of the Burrup plant and Deutsche Bank believes Orica is now likely to do the same, seen as the major risk right now. The analysts point out Orica’s book value of the Burrup plant is $800m, which compares to Yara’s written down book value of US$340m.Hold. Target $17.20.

Target price is $17.20 Current Price is $18.13 Difference: minus $0.93 (current price is over target).
If ORI meets the Deutsche Bank target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.79, suggesting downside of -1.9% (ex-dividends)

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

Morgans rates PPS as Add (1) -

Praemium's result was close to the broker in profit terms despite the December stock market meltdown denting revenues. In a tough environment, the company has begun to implement efficiency measures in the UK, and is optimistic about its new Universal Managed Account solution to be released in the second half.

The broker notes Praemium's SMA platform is widely regarded as one of the best around, but given an elevated PE a high level of revenue growth is required to sustain the stock price. Add and 87c target retained.

Target price is $0.87 Current Price is $0.62 Difference: $0.25
If PPS meets the Morgans target it will return approximately 40% (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

Ord Minnett rates SHL as Hold (3) -

Ahead of the first half results on February 20, Ord Minnett raises the target to $24.10 from $23.80 and maintains a Hold rating.

Excluding the impact of the Aurora Diagnostics acquisition, the broker forecasts earnings growth of 4.3% in FY19 and expects the quantum of earnings to be weighted to the second half.

Target price is $24.10 Current Price is $23.68 Difference: $0.42
If SHL meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $25.37, suggesting upside of 7.1% (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

Morgan Stanley rates SIG as Underweight (5) -

The company's strategic review has identified around $100m in potential cost reductions, which is expected to lift FY23 operating earnings (EBITDA) back to FY19 levels.

Morgan Stanley notes lower FY20 guidance and reduces forecasts accordingly. Underweight retained. Industry view: In-Line. Target is raised to $0.47 from $0.49.

Target price is $0.47 Current Price is $0.59 Difference: minus $0.12 (current price is over target).
If SIG meets the Morgan Stanley target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.52, suggesting downside of -12.3% (ex-dividends)

The company's fiscal year ends in January.

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

UBS rates SIG as Neutral (3) -

Sigma has completed it strategic review and expects a major business restructure to yield cost efficiencies of $100 million a year and earnings growth of more than 10% per year between FY21 and FY23, well ahead of UBS's forecasts.

The company reiterates FY19 guidance and expresses interest in continuing discussion on an API merger (regardless of the transformation commitment). UBS believes the ACCC is a major hurdle.

Otherwise, the details of the review were scant and UBS is keeping its powder dry given Sigma is due to report next month and is trading on a price-earnings multiple of 23.8x. Neutral rating retained. Target price steady at 58c.

Target price is $0.58 Current Price is $0.59 Difference: minus $0.01 (current price is over target).
If SIG meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.52, suggesting downside of -12.3% (ex-dividends)

The company's fiscal year ends in January.

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

Credit Suisse rates SKI as Underperform (5) -

An adverse court decision regarding tax has meant the company is immediately moving to a cash taxpayer. Credit Suisse calculates the impact reduces free cash flow by around -11%.

The broker also calculates the tax announcement implies dividends of, at most, $0.16 per share while retaining cash for growth expenditure.

Underperform rating maintained. Target is reduced to $2.10 from $2.15.

Target price is $2.10 Current Price is $2.24 Difference: minus $0.14 (current price is over target).
If SKI meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.32, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Deutsche Bank rates SKI as Hold (3) -

Deutsche Bank analysts note Spark Infrastructure has announced the Federal Court has ruled in favour of the ATO in relation to the tax treatment of certain cash contributions and gifted assets for Victoria Power Networks for the tax years 2008 to 2011. SKI holds a 49% interest in VPN. Hold. Target $2.15.

Target price is $2.15 Current Price is $2.24 Difference: minus $0.09 (current price is over target).
If SKI meets the Deutsche Bank target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.32, suggesting upside of 3.8% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Macquarie rates SKI as Neutral (3) -

The Federal Court has ruled in favour of the Australian Taxation Office over gifted assets and cash contributions. The company's historical tax losses are lost, which brings forward tax payable to 2019.

Macquarie notes the cash flow impact is negative and, as a result, envisages the dividend growth outlook is, at best, flat. The broker retains a Neutral rating and reduces the target to $2.32 from $2.39.

Target price is $2.32 Current Price is $2.24 Difference: $0.08
If SKI meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.32, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

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

Victoria Power Networks, 49% owned by Spark Infrastructure, has revealed an adverse Federal Court decision, reserving its right to appeal. Morgan Stanley suggests the decision may also have implications for South Australia Power Networks, also 49% owned by the company.

The company is impairing its South Australian investment by around $270m and anticipates becoming a taxpayer from 2019, two years earlier than Morgan Stanley expected.

Spark Infrastructure intends to advise its final determination and distributions on February 26 with its 2018 results. Equal-weight rating maintained with a $2.43 target. Industry view is Cautious.

Target price is $2.43 Current Price is $2.24 Difference: $0.19
If SKI meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.32, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Morgans rates SKI as Hold (3) -

VPN, of which Spark owns 49%, has lost its case against the ATO with regard 2008-11 returns. The decision means Spark will pay tax on VPN unfranked dividends and VPN will pay tax itself, the broker notes. This sets a negative precedent for SA Power Works, of which Spark also owns 49%.

The broker has only limited information for which to model the VPN and SAPN tax obligations, but suffice to say target falls to $2.11 from $2.26. Hold retained.

Target price is $2.11 Current Price is $2.24 Difference: minus $0.13 (current price is over target).
If SKI meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.32, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Ord Minnett rates SKI as Downgrade to Hold from Accumulate (3) -

The Federal Court has found in the Australian Taxation Office's favour regarding the litigation with Victoria Power Networks. Ord Minnett believes the biggest negative is a downgrade to 2019 dividend guidance.

This likely reflects the broader issue, in the broker's view, of distribution network providers funding growth opportunities in unregulated assets while maximising cash returns to investors.

Rating is downgraded to Hold from Accumulate on the target trimmed to $2.50 from $2.55.

Target price is $2.50 Current Price is $2.24 Difference: $0.26
If SKI meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.32, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Morgan Stanley rates SLC as Initiation of coverage with Overweight (1) -

The company is still establishing itself in the telecommunications sector and Morgan Stanley acknowledges it is more appropriate for investors with a higher risk appetite.

The broker envisages greater potential for growth from a low earnings base and the valuation, in the context of such growth, is considered attractive.

Morgan Stanley initiates coverage with an Overweight rating and $2.50 target. Industry view is In-Line.

Target price is $2.50 Current Price is $1.45 Difference: $1.05
If SLC meets the Morgan Stanley target it will return approximately 72% (excluding dividends, fees and charges).

Current consensus price target is $2.72, suggesting upside of 87.6% (ex-dividends)

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

Credit Suisse rates SVW as Outperform (1) -

Despite the share price falling victim to a global bout of reduced risk-taking, Credit Suisse notes the company's end markets are relatively robust.

Credit Suisse forecasts FY19 earnings (EBIT) of $629m and 10% growth in FY20.

After a change in analyst, an Outperform rating is maintained. Target is reduced to $18.00 and $21.25.

Target price is $18.00 Current Price is $17.05 Difference: $0.95
If SVW meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $21.85, suggesting upside of 28.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

Macquarie rates TCL as Outperform (1) -

Interim results were consistent with Macquarie's expectations. Outperform rating. Target is $11.94.

The broker considers FY19 a transition year while noting signs of a tough traffic environment in the second half which will put some pressure on earnings growth.

Target price is $11.94 Current Price is $12.21 Difference: minus $0.27 (current price is over target).
If TCL meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.31, suggesting upside of 0.8% (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

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

Macquarie initiates coverage of Viva Energy with an Outperform rating and $3.25 target. The broker believes the broader portfolio of assets has been poorly understood and the potential risk/reward is under appreciated.

Furthermore, the restructuring of the Coles ((COL)) alliance provides a platform for material upside. Macquarie acknowledges the refining division has been the primary swing on earnings and assumes this will not recover until 2020.

Target price is $3.25 Current Price is $2.30 Difference: $0.95
If VEA meets the Macquarie target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $2.65, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates VOC as Upgrade to Overweight from Equal-weight (1) -

Morgan Stanley has become bullish on the potential for market share gains in the Australian enterprise segment of Vocus. The broker considers Vocus a turnaround story, upgrading to Overweight from Equal-weight.

While the broker acknowledges the enterprise segment is smaller, it is less competitive and offers sustainable higher margins than the consumer segment.

Target is raised to $4.00 from $2.90. Industry view is In-Line.

Target price is $4.00 Current Price is $3.64 Difference: $0.36
If VOC meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.24, suggesting downside of -11.0% (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