Australian Broker Call

Deutsche Bank rates ANZ as Hold (3) -

Second half cash net profit was better than Deutsche Bank forecast. The highlight was the outperformance of the institutional division while the Australian retail banking division underperformed.

The broker suggests continued cost control going forward could provide upside. Hold rating and $29 target maintained.

Target price is $29.00 Current Price is $25.51 Difference: $3.49
If ANZ meets the Deutsche Bank target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $29.06, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Citi rates BHP as Buy (1) -

With regard BHP's special dividend and share buyback announcement, the broker notes the buyback should be 5% accretive to FY19 earnings and 3% to FY20. However now that the company's net debt position is inside the company's target range, more operating cash flow can be returned to shareholders, the broker suggest, through increased buybacks.

Buy and $37.50 target retained.

Target price is $37.50 Current Price is $33.11 Difference: $4.39
If BHP meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $37.11, suggesting upside of 12.1% (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: 0.7

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

Credit Suisse rates BHP as Neutral (3) -

BHP has concluded the sale process of the US onshore business. Proceeds will be delivered to investors far earlier than Credit Suisse expected. A buyback of ASX-listed stock will occur immediately, with the balance to be returned via a special dividend payable January 30, 2019.

Credit Suisse observes macro sentiment is weighing on resources-exposed equities despite strong underlying commodity prices and cash flow. The longer this dynamic continues the longer the broker expects buybacks and capital returns will feature.

Credit Suisse maintains a Neutral rating and $35 target.

Target price is $35.00 Current Price is $33.11 Difference: $1.89
If BHP meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $37.11, suggesting upside of 12.1% (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: 0.7

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

Deutsche Bank rates BHP as Hold (3) -

Deutsche Bank considers the return of $10.4bn particularly friendly to Australian shareholders because of the tax component. An off-market buyback will commence immediately and a special dividend will be applicable to all shares on issue in January 2019.

Deutsche Bank retains a hold rating and $36 target.

Target price is $36.00 Current Price is $33.11 Difference: $2.89
If BHP meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $37.11, suggesting upside of 12.1% (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: 0.7

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

Morgans rates BHP as Add (1) -

BHP will split the US$10.4bn in proceeds from the sale of the shale assets between an off-market share buyback and a special dividend. Morgans also expects the company to maintain its high ordinary dividend in the short to medium term.

The broker considers the outcome great for investors and maintains an Add rating. Target is raised to $40.66 from $40.02.

Target price is $40.66 Current Price is $33.11 Difference: $7.55
If BHP meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $37.11, suggesting upside of 12.1% (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: 0.7

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

Ord Minnett rates BHP as Accumulate (2) -

BHP has concluded the sale of US onshore assets and will return the US$10.4bn in proceeds via a buyback and special dividend. There will be no on-market buyback of LSE-listed stock.

Ord Minnett was surprised by the large special component and lack of UK buyback. Accumulate rating and $38 target.

Target price is $38.00 Current Price is $33.11 Difference: $4.89
If BHP meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $37.11, suggesting upside of 12.1% (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: 0.7

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

Citi rates BKL as Initiation of coverage with Sell (5) -

While there is strong demand from China for Blackmores' products, Citi believes an FY19 PE of 28x to be too rich under the circumstances. Greater marketing spend has seen Swisse outperform and if Blackmores needs to ramp up its own spending, this will impact on near term profitability, the broker notes.

Then there's an ever evolving Chinese regulatory environment to be fearful of. The broker believes China will account for more than 50% of Blackmores' earnings growth over the next decade, but for now initiates coverage with a Sell rating and $100 target.

Target price is $100.00 Current Price is $123.34 Difference: minus $23.34 (current price is over target).
If BKL meets the Citi target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $113.00, suggesting downside of -8.4% (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

Ord Minnett rates CSL as Upgrade to Accumulate from Hold (2) -

Ord Minnett believes Seqirus, the company's flu vaccine, will be able to price Flucelvax at a premium to egg-based vaccines. This opportunity has come after CSL gained regulatory approval for its new manufacturing process that should deliver a doubling of output in FY20.

The broker believes the vaccine business will deliver FY20 EBIT comfortably in excess of the US$200 guidance. Rating is upgraded to Accumulate from Hold and the target is raised to $215 from $201.

Target price is $215.00 Current Price is $192.65 Difference: $22.35
If CSL meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $215.33, suggesting upside of 11.8% (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: 0.4

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

Morgans rates CTD as Hold (3) -

Morgans is satisfied with the company's response to the VGI report, which it suggests contained a number of inaccuracies. The report overshadowed a strong trading update by the company and the potential growth opportunities that exist.

While the report is likely to overhang the stock in the short term, Morgans believes the market will increasingly focus on the valuation.

The broker changes its methodology to a blended valuation, which means the target is reduced to $23.30 from $32.00. The broker retains a Hold rating, with upside implied if sentiment improves sooner than expected.

Target price is $23.30 Current Price is $20.81 Difference: $2.49
If CTD meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $30.16, suggesting upside of 44.9% (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

Morgan Stanley rates CTX as Underweight (5) -

The company has downgraded earnings estimates, highlighting risks around the retail fuel business over the next 1-2 years. Morgan Stanley believes the convenience strategy is sensible but, until it is de-risked, suspects it will be hard for the market to pay for it.

Caltex has implied convenience retail operating earnings (EBIT) for the second half of $127m. The company described the downgrade as a mix of margin and volume.

Morgan Stanley estimates gross margin has dropped to around 12.5c per litre from 14c, although this ultimately depends on volume and cost assumptions which are yet to be disclosed.

Underweight and $26 target retained. Industry view: Attractive.

Target price is $26.00 Current Price is $27.42 Difference: minus $1.42 (current price is over target).
If CTX 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 $32.51, suggesting upside of 18.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Deutsche Bank rates CWN as Hold (3) -

The trading update was weaker than Deutsche Bank expected as the main gaming floor revenue was down -0.6%. Non-gaming revenue growth was also slightly below expectations at 3.5%.

Crown Melbourne particularly disappointed the broker. Hold rating maintained. Target is reduced 7% to $12.30.

Target price is $12.30 Current Price is $11.88 Difference: $0.42
If CWN meets the Deutsche Bank target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $13.44, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

Macquarie rates CWN as Neutral (3) -

The company's trading update has indicated a slowdown in the domestic business, which Macquarie suggests highlights a risk to VIP growth through the remainder of the financial year.

The broker reduces FY19 estimates for operating earnings by -2% and considers Crown Resorts appropriately priced. Target is reduced to $13.60 from $14.10. Neutral maintained.

Target price is $13.60 Current Price is $11.88 Difference: $1.72
If CWN meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $13.44, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

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

The first quarter trading update disappointed Morgan Stanley, with main gaming floor revenue down -0.6% and non-gaming revenue up 3.5%. VIP turnover, while positive, was lower than the broker expected.

While the update was disappointing, the stock has been underperforming relative to the ASX200 since September and the share buyback is expected to provide some support.

Morgan Stanley retains an Equal-weight rating, Cautious industry view and $13.50 target.

Target price is $13.50 Current Price is $11.88 Difference: $1.62
If CWN meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $13.44, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

Ord Minnett rates CWN as Hold (3) -

VIP turnover and main gaming floor revenue in the year to date has disappointed Ord Minnett. The broker reduces its estimates for first half VIP turnover growth to 13% from 15%.

The broker remains hesitant regarding the stock, despite an attractive balance sheet, because of softness in domestic gaming and a lack of valuation support.

Ord Minnett maintains a Hold rating and reduces the target to $13.45 from $13.70.

Target price is $13.45 Current Price is $11.88 Difference: $1.57
If CWN meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $13.44, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

Macquarie rates DOW as Outperform (1) -

The company has reiterated guidance at its AGM for net profit of $335m, which represents 13% growth.

Macquarie believes a recent pull back in the shares provides a value opportunity, with above-market earnings growth expected amid a sub-market PE ratio.

Outperform rating and $8.01 target maintained.

Target price is $8.01 Current Price is $6.83 Difference: $1.18
If DOW meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $7.95, suggesting upside of 16.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.7

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

Macquarie rates FBU as No Rating (-1) -

Fletcher Building has divested its international roof tile business and confirmed the divestment process for Formica is progressing well and a sale should be completed in FY19.

No decision has been made as yet on the use of proceeds from either sale. Once sales are completed the capital structure and capital requirements will be reviewed.

Macquarie cannot provide a target price or recommendation due to research restrictions.

Current Price is $5.51. Target price not assessed.

Current consensus price target is $6.36, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: -0.2

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

Ord Minnett rates FLT as Buy (1) -

In the wake of the AGM update, Ord Minnett adjusts earnings estimates lower, having underestimated the rolling impact of lower agent numbers in Australia during the first two quarters of FY19.

The broker remains bullish on a 12-month view and retains a Buy rating. Target is reduced to $64.12 from $65.27.

Target price is $64.12 Current Price is $45.03 Difference: $19.09
If FLT meets the Ord Minnett target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $54.47, suggesting upside of 21.0% (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

Macquarie rates ILU as Neutral (3) -

Macquarie's outlook for near-term production has improved but assumptions for price realisation are lowered going forward. 2018 and 2019 earnings forecasts have increased by 8% and 1% respectively.

The broker is forecasting production from Jacinth Ambrosia, amid declining grades, will fall in 2022. Neutral retained. Target is reduced to $8.70 from $9.00.

Target price is $8.70 Current Price is $8.18 Difference: $0.52
If ILU meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $11.22, suggesting upside of 37.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Citi rates JHG as Neutral (3) -

In the wake of Janus Henderson's quarterly report, the broker has trimmed earnings forecasts to reflect greater than expected net outflows, slightly offset by improvement in costs. With investment performance remaining depressed in certain areas, the broker suggest the outflow surprise will keep investors cautious.

Neutral and $36.35 target retained.

Target price is $36.35 Current Price is $32.88 Difference: $3.47
If JHG meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $43.34, suggesting upside of 31.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.4

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

Credit Suisse rates JHG as Underperform (5) -

September quarter earnings per share were above Credit Suisse forecasts, driven by non-operating income and minorities.

Outflows deteriorated and the broker notes this is the 10th quarter of outflows in the last three years. Outflows were primarily from equities and fixed income products.

Credit Suisse maintains an Underperform rating and $39 target.

Target price is $39.00 Current Price is $32.88 Difference: $6.12
If JHG meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $43.34, suggesting upside of 31.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.4

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

Morgan Stanley rates JHG as Overweight (1) -

September quarter earnings per share were slightly below Morgan Stanley's estimates. Underlying operating income was ahead of estimates on better revenue.

The broker considers the result acceptable, given subdued multiples. Return of capital remains a priority and the business is 50% through its US$100m buyback.

Overweight. In-Line industry view maintained. Target is $50.

Target price is $50.00 Current Price is $32.88 Difference: $17.12
If JHG meets the Morgan Stanley target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $43.34, suggesting upside of 31.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.4

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

Macquarie rates KAR as Outperform (1) -

The company's focus is on the Bauna oilfield, which it tried to acquire in late 2016. Macquarie observes Karoon Gas is in a strong cash position to support potential acquisition of the field.

Management has also received proposals supporting the development of Neon. The broker assesses the market is not attributing any upside to the development of this field, and any positive news regarding a potential sell down or financial decision will generate a re-rating of the stock.

Macquarie's Outperform rating is maintained. Target is $1.40.

Target price is $1.40 Current Price is $1.14 Difference: $0.26
If KAR meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Ord Minnett rates KDR as Buy (1) -

The company has announced an offtake agreement with Mitsui for lithium hydroxide supply. Mitsui will purchase an agreed amount that is less than 15% of total output for two years, with a further two-year extension option.

The company has also confirmed a US$100m debt package. Ord Minnett estimates these deals, along with the Tesla offtake agreement, cover around 30% of funding requirements, while 35% of annual output is now under offtake agreements.

Speculative Buy rating maintained and the target is $2.80.

Target price is $2.80 Current Price is $1.31 Difference: $1.49
If KDR meets the Ord Minnett target it will return approximately 114% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for 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 KLL as Outperform (1) -

The company has continued to advance the Beyondie project, delivering an expanded feasibility study and reserve.

Macquarie expects the company to lock away the offtake agreements over the second quarter of FY19 and that should strengthen the discussions regarding debt that are already underway.

The broker maintains an Outperform rating and $0.75 target.

Target price is $0.75 Current Price is $0.39 Difference: $0.36
If KLL meets the Macquarie target it will return approximately 92% (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 LLC as Hold (3) -

Lend Lease has a development pipeline worth $71bn, comprised mainly of high-quality projects, and Ord Minnett observes considerable embedded margins will be realised over the next 10-15 years.

Nevertheless, in the short term, earnings weakness is envisaged from a softening residential market, in addition to lower profitability in the Australian engineering business.

The broker maintains a Hold rating and reduces the target to $18.50 from $19.75.

Target price is $18.50 Current Price is $17.27 Difference: $1.23
If LLC meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $21.04, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Citi rates NAB as Buy (1) -

NAB's earnings result was a little under forecasts but revenue growth was in line and should compare well with peers, the broker suggests. Bad debts were a little higher but still at cyclical lows, while the dividend was unchanged.

Investors were initially sceptical of the bank's restructuring plans but NAB is hitting every key target, the broker notes. Citi nevertheless trims its price target to $31.00 from $32.25 on ongoing execution risk but retains Buy, noting the current share price offers reasonable risk/reward and NAB's weighting towards commercial banking and away from retail puts it in a better position than peers in the challenging FY19.

Target price is $31.00 Current Price is $25.17 Difference: $5.83
If NAB meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $29.31, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in September.

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

Credit Suisse rates NAB as Neutral (3) -

Credit Suisse lauds the delivery of another clean result which met its expectations. The decision not to re-price mortgages leaves the bank at a disadvantage for revenue in the short term, the broker suggests, that is likely to manifest in an inferior margin outcome in the first half.

The broker was not so pleased with the continued uncertainty regarding the divestment benefits stemming from the disposal of MLC and the impact on the dividend. Neutral rating and $29 target maintained.

Target price is $29.00 Current Price is $25.17 Difference: $3.83
If NAB meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $29.31, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in September.

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

Deutsche Bank rates NAB as Buy (1) -

Second half cash net profit slightly missed Deutsche Bank's forecasts. The bank has reiterated a flat outlook for the next two years.

Capital position was slightly ahead of expectations and the broker believes the CET1 trajectory is looking more comfortable.

Buy rating and $30 target maintained.

Target price is $30.00 Current Price is $25.17 Difference: $4.83
If NAB meets the Deutsche Bank target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $29.31, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in September.

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 NAB as Outperform (1) -

The second half was broadly in line with expectations. Macquarie observes the core franchise is continuing to perform ahead of peers. The broker expects the bank to follow peers in repricing mortgages, providing a $145m earnings benefit in FY19.

Credit quality remains sound and is considered to be better than peers while the capital position is at the bottom end of the peer group.

 Macquarie suspects NAB is likely to rely on discounted distribution reinvestment plans to support its capital position. Outperform rating maintained. Target is $28.50.

Target price is $28.50 Current Price is $25.17 Difference: $3.33
If NAB meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $29.31, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates NAB as Underweight (5) -

The bank delivered on cost growth guidance in FY18 and the transformation targets are unchanged. Still, management believes the banking environment will not become easier in the short term.

Morgan Stanley retains FY19 cash profit estimates and expects underlying revenue and expenses growth of around 3% and 1.5% respectively.

As the outlook is uncertain and there is a probability of weaker revenue growth, with little margin for error on costs, capital or the dividend the broker retains an Underweight rating.

Industry view: In-line. Price target is raised to $26.50 from $26.30.

Target price is $26.50 Current Price is $25.17 Difference: $1.33
If NAB meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $29.31, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Morgans rates NAB as Add (1) -

The bank's cash earnings in FY18 were better than Morgans forecast and the composition of the result was also broadly in line with expectations.

The broker notes good margin management and discipline has meant the bank has not increased its variable home loan rates in Australia, unlike the other major banks.

Strong loan growth for small-medium enterprises, institutional banking and the New Zealand division are driving overall loan growth, considered particularly valuable amid a backdrop of slowing Australian home loan growth.

Morgans maintains an Add rating and reduces the target to $31.50 from $32.50.

Target price is $31.50 Current Price is $25.17 Difference: $6.33
If NAB meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $29.31, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in September.

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 NAB as Accumulate (2) -

The highlight of the FY18 result for Ord Minnett was the net interest margin in the second half. The broker expects better revenue trends should become more apparent once bank reporting season is completed.

Ord Minnett's Accumulate rating reflects the bank's tilt to small business banking, which provides leverage to an improved credit growth environment and insulates it from pressures in retail banking.

The broker believes an improved capital position and supportive valuation means the historical valuation gap to peers should be narrowing. Target is reduced to $31.80 from $32.20.

Target price is $31.80 Current Price is $25.17 Difference: $6.63
If NAB meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $29.31, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Morgans rates ORE as Add (1) -

Production in the September quarter was affected by the planned shutdown for maintenance and the low evaporation in the winter months. The company reports that lithium prices have weakened over the short term but anticipates the December half will be in line with the June half.

Morgans eliminates the target premium to valuation as the market remains concerned about new supply. The broker maintains an Add rating and reduces the target to $5.68 from $6.99.

Target price is $5.68 Current Price is $4.25 Difference: $1.43
If ORE meets the Morgans target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $5.42, suggesting upside of 27.4% (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

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

At the AGM, the new CEO has outlined key priorities. Morgan Stanley believes these are sensible steps to address the strategic issues facing the company.

The intention is to rebuild the executive team and sustain quality growth, while the business looks for both organic and acquisition opportunities. Another priority is to leverage the strong Perpetual brand, including new distribution channels.

Equal-weight rating. Target is $48. Industry view: In-line.

Target price is $48.00 Current Price is $34.38 Difference: $13.62
If PPT meets the Morgan Stanley target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $40.54, suggesting upside of 17.9% (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 REA as Upgrade to Accumulate from Lighten (2) -

Ord Minnett notes the share price has fallen -23% since peaking in August following the weak update from Domain ((DHG)). This formed the basis for a Lighten rating, exacerbated by global de-rating of technology stocks.

Ord Minnett now believes the correction has run its course and there is greater-than-expected growth in depth penetration, amid a soft property market.

While lowering first quarter estimates because of a steeper decline in listings, the broker envisages potential upside to its numbers. Rating is upgraded to Accumulate. Target is steady at $79.

Target price is $79.00 Current Price is $73.02 Difference: $5.98
If REA meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $87.19, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Deutsche Bank rates RHP as Initiation of coverage with Buy (1) -

Deutsche Bank initiates coverage with a Buy rating and $1.65 target. The rating is based on the company's leverage to accelerating growth in SaaS and cloud adoption.

The business model is also light on capital and generating cash. The company has a strong relationship and alignment with the fastest growing cloud platform.

Deutsche Bank suggests the company presents an attractive target for global IT distributors.

Target price is $1.65 Current Price is $1.25 Difference: $0.4
If RHP meets the Deutsche Bank target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Market Sentiment: 0.5

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

Deutsche Bank rates SGR as Buy (1) -

The trading update is positive, in Deutsche Bank's view, as domestic revenue growth of 6.7% was well above forecasts, notwithstanding flat VIP turnover.

The broker suggests the domestic comparables will get easier but VIP will become more challenging.

Buy rating maintained. Target is $6.20.

Target price is $6.20 Current Price is $4.77 Difference: $1.43
If SGR meets the Deutsche Bank target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $6.08, suggesting upside of 27.5% (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 SGR as Outperform (1) -

Domestic revenue growth surprised Macquarie, ahead of expectations at over 7% in the year to date. The stock remains the broker's top pick among the Australasian casino operators.

The attractive growth outlook is underpinned by The Star Sydney and Sovereign Resort, with a temporary room opened in August. Outperform rating maintained. Target is reduced to $5.95 from $6.15.

Target price is $5.95 Current Price is $4.77 Difference: $1.18
If SGR meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $6.08, suggesting upside of 27.5% (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

Morgan Stanley rates SGR as Overweight (1) -

First quarter domestic revenue was up 6.7% and stronger Morgan Stanley expected. The performance of the temporary Sovereign Room was particularly pleasing for management.

Morgan Stanley believes the pullback in the share price, which has underperformed the ASX 200 by -4% since September, is not warranted in the light of the update.

Overweight and $6.00 target retained. Industry view: Cautious.

Target price is $6.00 Current Price is $4.77 Difference: $1.23
If SGR meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $6.08, suggesting upside of 27.5% (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

Deutsche Bank rates SHL as Buy (1) -

Management has noted that German reimbursement changes introduced in the June quarter continued to have an impact on reducing public referrals from doctors in the September quarter. Diagnostic services organic revenue growth was 13.5%.

The impact was somewhat mitigated by higher volumes of privately insured referrals. Deutsche Bank maintains a Buy rating and $28.10 target.

Target price is $28.10 Current Price is $22.75 Difference: $5.35
If SHL meets the Deutsche Bank target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $26.24, suggesting upside of 15.4% (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

Morgans rates SIL as Add (1) -

First quarter cash flow was below expectations, which Morgans suggests highlights higher integration costs and lower revenue from a few joint-venture partners. The broker considers the partner problems encountered in the quarter are largely one-off.

The broker moderates forecast practice acquisitions to 15 from 30 in FY19. This results in reductions to net profit estimates of -13.1%.

Add rating maintained. Target is lowered to $1.10 from $1.43.

Target price is $1.10 Current Price is $0.75 Difference: $0.35
If SIL meets the Morgans target it will return approximately 47% (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 SVW as Accumulate (2) -

Ord Minnett is now more confident regarding the stock, in the wake of the sell-off on the back of market concerns that forecasts were getting close to peak levels.

The broker does not believe this is the case, particularly in light of medium-term growth opportunities. WesTrac is particularly expected to benefit from strong aftermarket demand.

Ord Minnett believes a buying opportunity has been opened up. Accumulate rating and $24.07 target maintained.

Target price is $24.07 Current Price is $17.97 Difference: $6.1
If SVW meets the Ord Minnett target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $23.47, suggesting upside of 30.6% (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 WGN as Underperform (5) -

The company has announced the first half results have been affected by project delays and wet weather. Earnings will be skewed to the second half and Macquarie remains cautious about FY20, given the limited visibility on earnings.

Volumes in pre-cast and concrete have been slower, while transport and quarry work have increased. Given the higher margins in the former segments, the broker envisages the overall impact on margins will be negative.

Underperform rating maintained. Target is reduced to $2.60 from $3.35.

Target price is $2.60 Current Price is $3.49 Difference: minus $0.89 (current price is over target).
If WGN meets the Macquarie target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.74, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Citi rates WOW as Buy (1) -

Woolworths' supermarket sales rebounded strongly in the Sep Q from weakness in the prior quarter from the plastic bag brouhaha and Coles' ((WES)) Little Shop triumph. The broker has upgraded its outlook. Woolworths' inflation didn't match that of Coles, but here Little Shop is also blamed.

Big W posted its best sales trend in years and the broker believes Woolworths' run-rate will outstrip that of Coles over the next twelve months. Target rises to $33 from $32, Buy retained.

Target price is $33.00 Current Price is $28.27 Difference: $4.73
If WOW meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $28.75, suggesting upside of 1.7% (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 WOW as Neutral (3) -

The company's performance over the September quarter shows sales revenue from Australian food accelerated. This is in line with Credit Suisse's view that sales growth for the two major supermarkets will converge.

Woolworths has also disclosed that margin/cost pressures continue as retailers deal with slower store-based purchasing. The broker maintains a Neutral rating and reduces the target to $29.17 from $29.36.

Target price is $29.17 Current Price is $28.27 Difference: $0.9
If WOW meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $28.75, suggesting upside of 1.7% (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 WOW as Hold (3) -

Deutsche Bank is comfortable that Woolworths will resume its sales performance, and the first quarter result has confirmed accelerating sales.

This indicates the business has recovered from the disruption in July/August quicker than the broker expected.

The company is positioned to execute well over Christmas and the broker retains a Buy rating. Target is $31.

Target price is $31.00 Current Price is $28.27 Difference: $2.73
If WOW meets the Deutsche Bank target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $28.75, suggesting upside of 1.7% (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 WOW as Underperform (5) -

Comparable food growth in the September quarter slowed to 1.8% but Macquarie acknowledges it improved towards the end of the quarter. Momentum slowed in Australian supermarkets and improved in NZ supermarkets and Big W.

At present, Macquarie envisages little value in Woolworths and retains an Underperform rating. Target is $27.91.

Target price is $27.91 Current Price is $28.27 Difference: minus $0.36 (current price is over target).
If WOW 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 $28.75, suggesting upside of 1.7% (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 WOW as Underweight (5) -

First quarter sales were ahead of Morgan Stanley's expectations. Food like-for-like sales growth was 1.8% and the broker estimates that food trading accelerated in the later weeks of the quarter to 2.3%, from 1.3% initially.

The performance of Big W was also encouraging and in line with the June quarter. The broker does not expect much change in consensus earnings expectations following the update.

Target is $23. Underweight rating. Industry view: Cautious. 

Target price is $23.00 Current Price is $28.27 Difference: minus $5.27 (current price is over target).
If WOW meets the Morgan Stanley target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.75, suggesting upside of 1.7% (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 WOW as Hold (3) -

First quarter sales were slightly below Morgans' expectations but momentum going into the second quarter appears solid, particularly in the Australian food business.

The main positive in the quarterly report was the sales growth at Big W, which the broker suggests builds on some encouraging results over the past 12 months. Online sales growth was also very strong across the business generally.

Minimal changes are made to forecasts. Hold retained. Target reduced to $27.64 from $27.68.

Target price is $27.64 Current Price is $28.27 Difference: minus $0.63 (current price is over target).
If WOW 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 $28.75, suggesting upside of 1.7% (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 WOW as Hold (3) -

The Australian food business like-for-like sales were ahead of forecasts and Ord Minnett notes trends improved over the quarter. Investment in the cost of doing business is a sound use of sales growth, in the broker's opinion.

Hold rating and $30.00 target maintained.

Target price is $30.00 Current Price is $28.27 Difference: $1.73
If WOW meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $28.75, suggesting upside of 1.7% (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