Australian Broker Call

Citi rates ALG as Buy (1) -

Following the trading halt, the company has announced Main Event will close all its US centres until at least the end of March. As a result guidance for sales growth of 1.5-2.5% in FY20 is no longer achievable.

Citi notes key ratings agencies consider the balance sheet at Main Event to be highly leveraged. Given the fixed cost nature of the business it means a breach is possible, but the broker suspects lenders may adjust for coronavirus and look through the short-term events.

Buy rating maintained. Target is $1.74.

Target price is $1.74 Current Price is $0.20 Difference: $1.54
If ALG meets the Citi target it will return approximately 770% (excluding dividends, fees and charges).

Current consensus price target is $1.43, suggesting upside of 615.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

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

UBS upgrades to Buy from Neutral as the valuation appears highly attractive for the long-term growth trajectory. A commercialisation of the relationship with Dassault is a material near-term catalyst.

While the broker believes the company is unlikely to achieve FY20 guidance, demand for the product is unchanged and sales momentum is expected to be maintained into FY21. Target is reduced to $37.50 from $39.00.

Target price is $37.50 Current Price is $25.24 Difference: $12.26
If ALU meets the UBS target it will return approximately 49% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

Morgan Stanley rates APT as Overweight (1) -

Afterpay has finalised its agreement with the California Department of Business Oversight and settled the outstanding regulatory issue. Morgan Stanley considers this a modest positive.

Importantly, the company can and will charge late fees under its new license in California, giving customers a 10-day period of grace. Overweight rating and $46.50 target maintained. Industry view is In-Line.

Target price is $46.50 Current Price is $13.08 Difference: $33.42
If APT meets the Morgan Stanley target it will return approximately 256% (excluding dividends, fees and charges).

Current consensus price target is $37.65, suggesting upside of 187.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

UBS rates APT as Sell (5) -

The Californian Department of Business Oversight and Afterpay have settled their dispute. Afterpay's Californian operations will continue, with loans and future extensions of credit conducted under a licence issued to its US affiliate.

UBS considers the quantum of the settlement immaterial, but illustrative of the regulatory uncertainties surrounding the company's business model.

While the business remains a higher risk investment and there are significant regulatory risks, the share price has fallen -53% since recent highs and is now approaching the broker's target.

Funding risks appear low. Nevertheless, a Sell rating and $17.90 target are maintained.

Target price is $17.90 Current Price is $13.08 Difference: $4.82
If APT meets the UBS target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $37.65, suggesting upside of 187.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

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

Ord Minnett materially lowers oil price forecasts to US$42/bbl in 2020 and US$45/bbl in 2021 although, while spot oil prices suggest further downside risk, does not believe the US$30/bbl Brent price is sustainable.

Overall, the energy sector is considered attractive for investors looking for long-term returns and companies with strong balance sheets and limited growth should be the priority, in the broker's view.

Hence preferences include Beach Energy, upgraded to Accumulate from Hold. Target is reduced to $2.15 from $2.45.

Target price is $2.15 Current Price is $1.14 Difference: $1.01
If BPT meets the Ord Minnett target it will return approximately 89% (excluding dividends, fees and charges).

Current consensus price target is $2.24, suggesting upside of 96.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

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

Coca-Cola Amatil has withdrawn its 2020 and medium-term earnings guidance for mid single-digit growth, given the uncertainty around the duration and impact of coronavirus.

In Australasia the company is experiencing strong growth in the grocery channel. Meanwhile in Indonesia foot traffic is down and volumes in Bali have been affected by the decline in tourism.

At this stage, the company expects to avoid significant disruption to the supply chain. Morgan Stanley expects the business should prove relatively resilient over the medium term.

Equal-weight. Target is $12.00. Cautious industry view.

Target price is $12.00 Current Price is $9.04 Difference: $2.96
If CCL meets the Morgan Stanley target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $11.57, suggesting upside of 28.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Morgans rates CCL as Hold (3) -

Coca-Cola Amatil has withdrawn FY20 guidance. On the one hand the company is benefiting from consumer stockpiling, but on the other it is losing sales due to cancelled events, crowdless sport and a general stay-at-home trend. Fortunately the second half is always better for Coke, given the summer in Australia, but in Indonesia the biggest sales period is Ramadan in the first half, the broker notes.

The shame is the company had been looking at a long awaited return to earnings growth. Now the situation is unclear. However, the broker believes the company's diversity of channels to market means that overall, it shouldn’t be too badly impacted, especially compared to other companies and industries. Hold retained, target falls to $10.87 from $12.35.

Target price is $10.87 Current Price is $9.04 Difference: $1.83
If CCL meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $11.57, suggesting upside of 28.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Ord Minnett rates CCL as Accumulate (2) -

Coca-Cola Amatil has withdrawn 2020 earnings guidance. Ord Minnett points out December accounts for 25% of earnings (EBIT) for Australian beverages, creating an opportunity for a recovery.

Meanwhile, the negative effect on Indonesia is amplified because of Ramadan. The broker retains an Accumulate rating and lowers the target to $12.50 from $14.00.

Target price is $12.50 Current Price is $9.04 Difference: $3.46
If CCL meets the Ord Minnett target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $11.57, suggesting upside of 28.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

UBS rates CCL as Upgrade to Neutral from Sell (3) -

Coca-Cola Amatil has withdrawn guidance, given the uncertainty. The main regions most likely to be impacted are Australia and Indonesia, particularly in the lead up to the Ramadan and Easter trading months.

While the earnings impact from coronavirus is uncertain, UBS reduces 2020 estimates for earnings per share by -4%. The broker considers the risk/reward balanced and notes the balance sheet is also strong.

Rating is upgraded to Neutral from Sell and the target lowered to $10 from $12.

Target price is $10.00 Current Price is $9.04 Difference: $0.96
If CCL meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $11.57, suggesting upside of 28.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Citi rates CCX as Upgrade to Buy from Sell (1) -

Australian retail analysts at Citi have just released an 61 pages tome on the sector, trying to assess the impact from the covid-19 fall-out in combination with a cheaper Aussie dollar and consumers stockpiling.

As a general rule of thumb, earnings estimates have gone down by between -11%-19% for most non-food retailers, while groceries saw increases by 3%-5%. Share price valuations have now fallen to levels Citi suggests are looking "appealing".

As investors will now be eagle-eyed for any balance sheet risks, the analysts highlight balance sheet risks for the sector are limited given most retailers are well capitalised. City Chic has been upgraded to Buy from Sell.

Current Price is $1.59. Target price not assessed.

Market Sentiment: 1.0

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

Ord Minnett rates CGF as Sell (5) -

The company has attempted to de-risk its investment portfolio, which will likely put pressure on margins in Ord Minnett's view.

Challenger has stated it is well capitalised and has additional financial flexibility to draw down $150m in debt on top of the $250m already drawn and held as cash.

Still Ord Minnett is cautious,  worried about the backing of fixed liabilities with uncertain assets.

Sell rating maintained. Target is reduced to $4.70 from $7.50.

Target price is $4.70 Current Price is $4.33 Difference: $0.37
If CGF meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.95, suggesting upside of 37.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

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

Ord Minnett materially lowers oil price forecasts to US$42/bbl in 2020 and US$45/bbl in 2021 although, while spot oil prices suggest further downside risk, does not believe the US$30/bbl Brent price is sustainable.

Overall, the energy sector is considered attractive for investors looking for long-term returns and companies with strong balance sheets and limited growth should be the priority, in the broker's view.

The broker downgrades to Accumulate from Buy and reduces the target to $0.60 from $0.64.

Target price is $0.60 Current Price is $0.41 Difference: $0.19
If COE meets the Ord Minnett target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $0.62, suggesting upside of 50.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Citi rates COH as Neutral (3) -

The company has announced an adverse decision on its US patent infringement case. Cochlear will seek a review of last resort in a petition for re-hearing. The judgement will have no impact on the business operations as the patent in question has expired.

Citi had already assumed the company would have to pay the -US$268m. The actual number will depend on the review and a decision regarding the plaintiffs' application for pre-judgement interest

Regardless, Citi considers the balance sheet is fine. The broker reduces the target to $192 from $196 and retains a Neutral rating. The broker now assumes a suspension of dividends in FY21 in order to repay additional debt.

Target price is $192.00 Current Price is $176.50 Difference: $15.5
If COH meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $194.63, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgan Stanley rates COH as Overweight (1) -

Opportunities to accumulate the stock have historically been derived from short-term fundamental weakness and the latest correction is likely to be such, Morgan Stanley asserts.

The long term is unchanged and the broker suspects FY22 will not be much different to the situation before the outbreak.

The broker assesses the business operates in an under penetrated and growing market and Cochlear has a dominant position. High returns are driven by asset turnover and less by leverage.

Overweight retained. Target is reduced to $219 from $251. Industry view: In Line.

Target price is $219.00 Current Price is $176.50 Difference: $42.5
If COH meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $194.63, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates COH as Sell (5) -

The US Court of Appeals has affirmed the US District Court award against Cochlear, with -US$268m in damages to the plaintiffs. UBS notes Cochlear undertook an independent assessment of potential damages in FY14, resulting in a -$21.3m provision.

The company intends to seek a review and re-hearing. Given the patent has expired there will be no disruption to activities. Damages will be funded through committed bank loan facilities and management is confident of arranging an increase in facilities when and if required.

While gearing will be higher, the broker does not believe it is yet stretched. UBS downgrades FY20 net profit estimates by -2%. Sell rating maintained. Target is reduced to $158 from $165.

Target price is $158.00 Current Price is $176.50 Difference: minus $18.5 (current price is over target).
If COH meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $194.63, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates CSL as Buy (1) -

UBS now includes a -5% reduction in total plasma collections from March 2020 in its base case through to the end of the first half of FY21 and a 2% increase in costs per litre.

Overall, as the company's products are either life-saving or significantly life preserving, the broker does not expect demand will fall significantly. The most relevant issue is a potential disruption to supply.

UBS maintains a Buy rating and reduces the target to $342 from $365.

Target price is $342.00 Current Price is $280.61 Difference: $61.39
If CSL meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $316.30, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

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

Ord Minnett materially lowers oil price forecasts to US$42/bbl in 2020 and US$45/bbl in 2021 although, while spot oil prices suggest further downside risk, does not believe the US$30/bbl Brent price is sustainable.

Overall, the energy sector is considered attractive for investors looking for long-term returns and companies with strong balance sheets and limited growth should be the priority, in the broker's view.

The broker downgrades to Hold from Buy, largely because its preferences are elsewhere. Target is reduced to $0.39 from $0.47.

Target price is $0.39 Current Price is $0.15 Difference: $0.24
If CVN meets the Ord Minnett target it will return approximately 160% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

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

Credit Suisse assumes the Melbourne and Perth domestic revenues take a sharp hit in the second half before recovering to pre-coronavirus levels during FY22. Estimates are reduced by -64% for FY20 and -27% for FY21.

There is a risk as to whether the building site at Crown Sydney, slated to open at the end of 2020, is shut down to protect workers. Still, even if there is a delay, it may still allow the venue to open in time for Chinese New Year 2021.

On depressed earnings, the leverage ratio rises to 2.0x FY20 but there are still untapped debt facilities. Credit Suisse assumes Crown Resorts forgoes declaring dividends in the second half and FY21.

Rating is upgraded to Outperform from Neutral and the target reduced to $11 from $12.

Target price is $11.00 Current Price is $6.49 Difference: $4.51
If CWN meets the Credit Suisse target it will return approximately 69% (excluding dividends, fees and charges).

Current consensus price target is $11.14, suggesting upside of 71.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates CWN as Hold (3) -

Ord Minnett cuts FY20 net profit forecasts by -72.5%. The broker expects constrained earnings growth.

Hold rating maintained. Target is reduced to $8.60 from $11.20.

Target price is $8.60 Current Price is $6.49 Difference: $2.11
If CWN meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $11.14, suggesting upside of 71.7% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Credit Suisse rates ECX as Outperform (1) -

While the company has experienced a stable operating environment in the year to date, the coronavirus outbreak implies some risk going forward.

While forecasting risk is high, Credit Suisse notes cost reductions will provide benefits and there are assets underpinning the business in the event of customer stress, along with an improving balance sheet.

Outperform rating maintained. Target is reduced to $1.15 from $1.85.

Target price is $1.15 Current Price is $0.73 Difference: $0.42
If ECX meets the Credit Suisse target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $1.79, suggesting upside of 144.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

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

The company's update signals it is tracking to plan, with corporate debt reduced by-$15m to $225m gross. There are no material changes to the fleet, which Morgan Stanley notes was resilient during the GFC, and the current credit quality is similar to back then.

The company has reaffirmed it will exit the Right2Drive and CarLoans business, but it may be harder in the current environment. Equal-weight rating. Industry view is In-Line. Target is $1.70.

Target price is $1.70 Current Price is $0.73 Difference: $0.97
If ECX meets the Morgan Stanley target it will return approximately 133% (excluding dividends, fees and charges).

Current consensus price target is $1.79, suggesting upside of 144.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

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

The company has withdrawn FY20 guidance because of uncertainty over future occupancy, revenue and costs. Despite no material impact to date, a high degree of uncertainty is envisaged for the balance of FY20.

Morgan Stanley notes net debt was $106m as of March 2020 and there are undrawn and committed facilities of $216m.

Equal-weight rating maintained. Target is $1.50. In-Line industry view.

Target price is $1.50 Current Price is $1.13 Difference: $0.37
If EHE meets the Morgan Stanley target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $2.05, suggesting upside of 81.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

Australian retail analysts at Citi have just released an 61 pages tome on the sector, trying to assess the impact from the covid-19 fall-out in combination with a cheaper Aussie dollar and consumers stockpiling.

As a general rule of thumb, earnings estimates have gone down by between -11%-19% for most non-food retailers, while groceries saw increases by 3%-5%. Share price valuations have now fallen to levels Citi suggests are looking "appealing".

As investors will now be eagle-eyed for any balance sheet risks, the analysts highlight balance sheet risks for the sector are limited given most retailers are well capitalised. Flight Centre has been upgraded to Buy from Neutral, while noting financial and operating leverage is relatively high for the business.

Current Price is $15.04. Target price not assessed.

Current consensus price target is $28.87, suggesting upside of 91.9% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

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

Australian retail analysts at Citi have just released an 61 pages tome on the sector, trying to assess the impact from the covid-19 fall-out in combination with a cheaper Aussie dollar and consumers stockpiling.

As a general rule of thumb, earnings estimates have gone down by between -11%-19% for most non-food retailers, while groceries saw increases by 3%-5%. Share price valuations have now fallen to levels Citi suggests are looking "appealing".

As investors will now be eagle-eyed for any balance sheet risks, the analysts highlight balance sheet risks for the sector are limited given most retailers are well capitalised. JB Hi-Fi has been upgraded to Neutral from Sell.

Current Price is $29.46. Target price not assessed.

Current consensus price target is $38.57, suggesting upside of 30.9% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Ord Minnett rates NST as Upgrade to Buy from Hold (1) -

Ord Minnett upgrades to Buy from Hold, reducing the target to $13.50 from $14.00, amid a strong outlook for the US-dollar gold price and weak outlook for the Australian dollar.

The company has confirmed that Pogo has turned the corner and operating metrics have reached an inflection point. The broker expects a strong performance from Jundee, Pogo and the Super Pit.

However, Ord Minnett also notes gold equities have not provided the expected safe haven in the current climate as investors have sought liquidity. 

Target price is $13.50 Current Price is $11.77 Difference: $1.73
If NST meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $12.63, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

Ord Minnett materially lowers oil price forecasts to US$42/bbl in 2020 and US$45/bbl in 2021 although, while spot oil prices suggest further downside risk, does not believe the US$30/bbl Brent price is sustainable.

Overall, the energy sector is considered attractive for investors looking for long-term returns and companies with strong balance sheets and limited growth should be the priority, in the broker's view.

The broker downgrades to Hold from Accumulate, largely because of preferences elsewhere. Target is reduced to $3.65 from $7.20.

Target price is $3.65 Current Price is $2.49 Difference: $1.16
If OSH meets the Ord Minnett target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $6.26, suggesting upside of 151.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Morgans rates PAR as Upgrade to Hold from Reduce (3) -

Paradigm Biopharmaceutical has fallen -70% since the market high which Morgans puts down to the virus but also the fact investors had overpriced the stock to unsustainable levels beforehand. While delays are not uncommon in the life sciences sector, recent lags to timelines have also added to investor concerns.

Those timelines can only now be pushed out, the broker warns, given health regulators have other more pressing matters to deal with right now. The broker also remains concerned around Paradigm's intellectual property and substitution risk given a number of alternative and novel treatments in the pipeline. Morgans upgrades to Hold from Reduce on the share price fall, but is not at this stage a buyer.

Target unchanged at $2.16 with the warning this is one for speculative investors only.

Target price is $2.16 Current Price is $1.31 Difference: $0.85
If PAR meets the Morgans target it will return approximately 65% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates PGL as Downgrade to Neutral from Buy (3) -

UBS downgrades to Neutral from Buy because of revised forecasts stemming from the likely economic impact of coronavirus on Australian small-medium enterprises and an expected increase in non-performing loans that will drive higher impairment charges.

Target is reduced to $0.90 from $3.05, reflecting material downgrades to FY20-22 earnings and heightened near-term risks to the balance sheet.

Target price is $0.90 Current Price is $0.75 Difference: $0.15
If PGL meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.5

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

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

UBS upgrades to Buy from Neutral as the valuation now appears less demanding. The broker suggests the company has a strong long-term growth outlook and its earnings are defensive under economic pressures derived from coronavirus.

The balance sheet is net cash. No changes are made to earnings estimates or the target of $29.30.

Target price is $29.30 Current Price is $15.93 Difference: $13.37
If PME meets the UBS target it will return approximately 84% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates PMV as Upgrade to Buy from Sell (1) -

Australian retail analysts at Citi have just released an 61 pages tome on the sector, trying to assess the impact from the covid-19 fall-out in combination with a cheaper Aussie dollar and consumers stockpiling.

As a general rule of thumb, earnings estimates have gone down by between -11%-19% for most non-food retailers, while groceries saw increases by 3%-5%. Share price valuations have now fallen to levels Citi suggests are looking "appealing".

As investors will now be eagle-eyed for any balance sheet risks, the analysts highlight balance sheet risks for the sector are limited given most retailers are well capitalised. Premier Investments has been upgraded to Buy from Sell.

Current Price is $12.27. Target price not assessed.

Current consensus price target is $20.25, suggesting upside of 65.1% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

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

The earnings outlook is considerably uncertain as international capacity in the second half is reduced by -90% and domestic capacity by -60%. Citi models a U-shaped recovery, with demand and operating conditions bouncing back through FY21.

The airline is expected to suspend the dividend in the second half in order to preserve the balance sheet.

Given the slump in the share price and valuations, Citi upgrades to Buy/High Risk and reduces the target to $3.70 from $6.70. The broker envisages no material risks to the balance sheet.

Target price is $3.70 Current Price is $2.58 Difference: $1.12
If QAN meets the Citi target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $5.04, suggesting upside of 95.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgan Stanley rates QAN as Overweight (1) -

Qantas has announced further capacity reductions, resulting in significant cuts to Morgan Stanley's earnings expectations.

While near-term conditions are deteriorating, the broker envisages significant valuation upside further afield.

Qantas has announced that international capacity will decline by -90% in April/May and domestic capacity by -60%. Morgan Stanley forecasts an FY20 loss of -$213m. A -38% reduction in fuel expense is assumed.

Overweight rating. Target is reduced to $5.60 from $6.50. Industry view is In-Line.

Target price is $5.60 Current Price is $2.58 Difference: $3.02
If QAN meets the Morgan Stanley target it will return approximately 117% (excluding dividends, fees and charges).

Current consensus price target is $5.04, suggesting upside of 95.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgan Stanley rates SEK as Overweight (1) -

Morgan Stanley envisages sharply lower Zhaopin earnings in the first and second quarter but expects a return to positive growth in FY21.

The broker remains fundamentally positive on the company and its investment in China and Zhaopin.

Overweight retained. Industry view: Attractive. Target is $21.

Target price is $21.00 Current Price is $14.65 Difference: $6.35
If SEK meets the Morgan Stanley target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $23.00, suggesting upside of 57.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates SEK as Neutral (3) -

UBS notes activity in China is improving with some of the labour force returning to work. However, it is unclear just how the escalating global impact may still affect the domestic environment.

UBS notes Seek's gearing is above domestic online peers but this excludes Zhaopin, which is net cash.

The broker assesses the company has options to improve headroom by cutting the distribution and/or seeking covenant relief. Equity injections are considered a last resort.

UBS retains a Neutral rating. Target is $22.75.

Target price is $22.75 Current Price is $14.65 Difference: $8.1
If SEK meets the UBS target it will return approximately 55% (excluding dividends, fees and charges).

Current consensus price target is $23.00, suggesting upside of 57.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates SGR as Hold (3) -

Ord Minnett reduces profit forecasts by -69.2%, noting changes are significant and uncertainty remains elevated.

The company is exposed to high fixed costs. On the other hand, there are $1.7bn in funding facilities available, JV partners provide liquidity and capital expenditure is reducing.

Hold rating maintained. Target is reduced to $2.25 from $4.40.

Target price is $2.25 Current Price is $1.76 Difference: $0.49
If SGR meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $4.16, suggesting upside of 136.4% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Citi rates SUL as Buy (1) -

Australian retail analysts at Citi have just released an 61 pages tome on the sector, trying to assess the impact from the covid-19 fall-out in combination with a cheaper Aussie dollar and consumers stockpiling.

As a general rule of thumb, earnings estimates have gone down by between -11%-19% for most non-food retailers, while groceries saw increases by 3%-5%. Share price valuations have now fallen to levels Citi suggests are looking "appealing".

As investors will now be eagle-eyed for any balance sheet risks, the analysts highlight balance sheet risks for the sector are limited given most retailers are well capitalised. Buy rating retained for Super Retail, with the analysts highlighting financial and operating leverage is relatively high for the company.

Current Price is $5.60. Target price not assessed.

Current consensus price target is $10.09, suggesting upside of 80.2% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.9

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

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

Ord Minnett materially lowers oil price forecasts to US$42/bbl in 2020 and US$45/bbl in 2021 although, while spot oil prices suggest further downside risk, does not believe the US$30/bbl Brent price is sustainable.

Overall, the energy sector is considered attractive for investors looking for long-term returns and companies with strong balance sheets and limited growth should be the priority, in the broker's view.

The broker downgrades to Accumulate from Buy and reduces the target to $0.34 from $0.38.

Target price is $0.34 Current Price is $0.17 Difference: $0.17
If SXY meets the Ord Minnett target it will return approximately 100% (excluding dividends, fees and charges).

Current consensus price target is $0.42, suggesting upside of 148.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.9

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

Credit Suisse rates SYD as Neutral (3) -

As the Australian government steps up its international controls, Credit Suisse forecasts international traffic in 2020 to be down -50% and domestic down -35%.

This is based on the assumption severe capacity cuts last through to the third quarter of 2020, with a relatively strong improvement in air travel demand in the December quarter.

The broker reduces 2020 dividend estimates by -28%. Neutral maintained. Target is reduced to $5 from $6.

Target price is $5.00 Current Price is $5.05 Difference: minus $0.05 (current price is over target).
If SYD meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.19, suggesting upside of 42.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Ord Minnett rates TAH as Lighten (4) -

Ord Minnett observes Tabcorp faces a tough situation with its wagering business.

The most significant risk is the potential for major racing events to be cancelled as emergency services, required at Australian racecourses, are strained by the need to respond to coronavirus.

The only active major sport in which wagering is provided is the NRL but activities are expected to be suspended shortly.

Lighten maintained. Target is $4.05.

Target price is $4.05 Current Price is $2.61 Difference: $1.44
If TAH meets the Ord Minnett target it will return approximately 55% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 76.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates TNE as Upgrade to Neutral from Sell (3) -

UBS upgrades to Neutral from Sell on valuation grounds. The broker considers the earnings relatively defensive under the deteriorating economic backdrop.

That said, the stock is not considered cheap and the broker considers there are both quality issues and some near-term risks. No changes are made to earnings and the target of $7.25.

Target price is $7.25 Current Price is $7.21 Difference: $0.04
If TNE meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $8.19, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Credit Suisse rates TWE as Neutral (3) -

As the coronavirus spreads to other continents, Credit Suisse makes further reductions to earnings estimates. A new lower Australian dollar rate of US$0.62 is also incorporated along with reduced dividend payments.

Meanwhile, both liquidity and the balance sheet are considered excellent, with undrawn debt facilities of over $700m.

The broker notes one of the challenges facing the company in the Americas is the oversupply of wine and coronavirus may affect the key selling period of Easter, exacerbating surplus inventory.

Neutral rating maintained. Target is reduced to $10.20 from $10.60.

Target price is $10.20 Current Price is $8.93 Difference: $1.27
If TWE meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $12.44, suggesting upside of 39.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Morgans rates VHT as Add (1) -

Volpara Health Technologies has reaffirmed FY20 annual recurring revenue guidance, subject to closing a number of contracts in the near term. Those contracts should be accelerated now the company's 3D breast image software has been approved by the FDA, management suggests.

That said, the broker has moderated its own average revenue per user assumptions, leading to a target cut to $1.74 to $2.17. Given the big share price fall for Volpara, along with everyone else, the broker retains Speculative Buy, warning this is not one for the faint-hearted.

Target price is $1.74 Current Price is $1.15 Difference: $0.59
If VHT meets the Morgans target it will return approximately 51% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.0

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

Citi rates WES as Sell (5) -

Australian retail analysts at Citi have just released an 61 pages tome on the sector, trying to assess the impact from the covid-19 fall-out in combination with a cheaper Aussie dollar and consumers stockpiling.

As a general rule of thumb, earnings estimates have gone down by between -11%-19% for most non-food retailers, while groceries saw increases by 3%-5%. Share price valuations have now fallen to levels Citi suggests are looking "appealing".

As investors will now be eagle-eyed for any balance sheet risks, the analysts highlight balance sheet risks for the sector are limited given most retailers are well capitalised. The analysts do highlight Wesfarmers is now the sole Sell rated stock in the sector in Australia.

Current Price is $34.94. Target price not assessed.

Current consensus price target is $39.21, suggesting upside of 12.2% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

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

Ord Minnett materially lowers oil price forecasts to US$42/bbl in 2020 and US$45/bbl in 2021 although, while spot oil prices suggest further downside risk, does not believe the US$30/bbl Brent price is sustainable.

Overall, the energy sector is considered attractive for investors looking for long-term returns and companies with strong balance sheets and limited growth should be the priority, in the broker's view.

The broker believes the investment case for Worley has been challenged by the current situation and there is likely to be a material impact on earnings and valuation. Rating is downgraded to Hold from Buy and the target lowered to $8.30 from $17.60.

Target price is $8.30 Current Price is $5.78 Difference: $2.52
If WOR meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $15.38, suggesting upside of 166.0% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

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

Ord Minnett materially lowers oil price forecasts to US$42/bbl in 2020 and US$45/bbl in 2021 although, while spot oil prices suggest further downside risk, does not believe the US$30/bbl Brent price is sustainable.

Overall, the energy sector is considered attractive for investors looking for long-term returns and companies with strong balance sheets and limited growth should be the priority, in the broker's view.

Rating is downgraded to Hold from Accumulate, largely because of preferences elsewhere. Target is reduced to $24.00 from $40.20.

Target price is $24.00 Current Price is $17.60 Difference: $6.4
If WPL meets the Ord Minnett target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $33.32, suggesting upside of 89.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Morgan Stanley rates WTC as Overweight (1) -

Morgan Stanley observes the negative impact from coronavirus is significant while visibility remains low.

The broker believes the risk to earnings is to the downside but remains fundamentally positive on the stock, assessing the global freight disruption is cyclical not structural.

Target is $26. Overweight rating. Industry view is Attractive.

Target price is $26.00 Current Price is $11.93 Difference: $14.07
If WTC meets the Morgan Stanley target it will return approximately 118% (excluding dividends, fees and charges).

Current consensus price target is $26.08, suggesting upside of 118.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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