Australian Broker Call

UBS rates A2M as Buy (1) -

UBS observes the company has performed strongly in the second half, benefiting from a shift to online channels during the coronavirus outbreak in China.

Recently, NZ infant milk formula export volumes have been soft but the broker believes this is more likely a reflection of inventory management and supply chain changes.

Buy rating retained. Target is NZ$18.50.

Current Price is $17.05. Target price not assessed.

Current consensus price target is $17.34, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

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: 0.1

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

Credit Suisse rates AD8 as Neutral (3) -

Previous revenue guidance has been withdrawn. The impact of the pandemic has been minimal so far, with March quarter revenue up 14% in US dollar terms, and the current backlog remains strong.

However, Credit Suisse is concerned that there could be a delayed impact and this could be large, given the exposure to group gatherings and amid customer ability to defer expenditure.

Neutral rating maintained, although the broker continues to desire the stock, believing there is a market share opportunity and an attractive structural shift that should lead to a robust margin. Target is reduced to $4.50 from $6.70.

Target price is $4.50 Current Price is $5.16 Difference: minus $0.66 (current price is over target).
If AD8 meets the Credit Suisse target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.47, suggesting upside of 44.7% (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

Morgan Stanley rates AD8 as Overweight (1) -

The company has withdrawn guidance as segments such as concerts, theatre and sports have been significantly affected by the pandemic.

While the impact is likely to the downside, Morgan Stanley notes the order backlog from April is currently higher than average. Malaysian manufacturing is closed but China is back to full operations.

The broker retains an Overweight rating. Target is $9.20. Industry view is In-Line.

Target price is $9.20 Current Price is $5.16 Difference: $4.04
If AD8 meets the Morgan Stanley target it will return approximately 78% (excluding dividends, fees and charges).

Current consensus price target is $7.47, suggesting upside of 44.7% (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 ALL as Buy (1) -

The company is benefitting from improved monetisation of its social casino and online games, Ord Minnett observes, and is expected to emerge from the current crisis with its digital business in a sound position.

The broker has become increasingly positive on the stock and reiterates a Buy rating. Target is raised to $30.30 from $30.00.

Target price is $30.30 Current Price is $21.75 Difference: $8.55
If ALL meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $31.10, suggesting upside of 43.0% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates AST as Upgrade to Outperform from Neutral (1) -

Macquarie considers the valuation compelling, although growth may be limited in the current transmission investment phase.

The industry has limited direct sensitivity to the pandemic and the stock is seen as defensive with a sustainable dividend.

Rating is upgraded to Outperform from Neutral and the target lowered to $1.87 from $1.90.

Target price is $1.87 Current Price is $1.77 Difference: $0.1
If AST meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.79, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in March.

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

Citi rates ASX as Sell (5) -

Volumes on the ASX unsurprisingly surged in March, to a record level in cash terms. But this will not be emulated from hereon, Citi warns. ASIC's cap on volumes and the RBA's intervention into the three-year bond market will serve to mute overall volumes, as will an April easing of volatility.

The broker has lifted its earnings forecasts and its target to $71.70 from $70.10, but as this is still well below the current share price, Sell retained.

Target price is $71.70 Current Price is $77.51 Difference: minus $5.81 (current price is over target).
If ASX meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $73.98, suggesting downside of -4.6% (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

Credit Suisse rates ASX as Neutral (3) -

Strong activity trends were reported in March, which Credit Suisse expects will support high single-digit revenue growth in FY20.

Earnings are expected to benefit from the market volatility created by the pandemic.

The broker considers ASX the most defensive stock amongst diversified financials.

While the valuation is challenging, given a lower growth outlook beyond FY20, Credit Suisse believes the stock deserves a safety premium.

Neutral reiterated. Target is $73.

Target price is $73.00 Current Price is $77.51 Difference: minus $4.51 (current price is over target).
If ASX meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $73.98, suggesting downside of -4.6% (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

Macquarie rates AUB as Outperform (1) -

Macquarie expects fees and commissions to be affected to the extent of being down -10-15% in FY20, based on feedback from the broker industry.

Net profit forecasts have been reduced by -20% as the cancellation of the MGA Whittles transaction and the acquisition of 40% of BizCover are included.

Still, the broker considers the multi-sector exposure and diversified broker network is defensive in the current environment. Outperform. Target is reduced to $11.35 from $11.71.

Target price is $11.35 Current Price is $9.46 Difference: $1.89
If AUB meets the Macquarie 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: 1.0

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

Ord Minnett rates BOQ as Hold (3) -

Bank of Queensland is due to report its first half result on April 8. Ord Minnett forecasts a cash net profit of $148m, down -3% versus the second half of FY19.

The bank has already flagged the potential for a lower dividend. Hold maintained. Target is reduced to $5.70 from $7.90.

Target price is $5.70 Current Price is $5.14 Difference: $0.56
If BOQ meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $6.11, suggesting upside of 19.0% (ex-dividends)

The company's fiscal year ends in August.

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

Credit Suisse rates CBA as Neutral (3) -

Credit Suisse, again, reduces earnings estimates and allows for a further increase in bad debts for the banks.

Dividend forecasts are reduced further. Neutral rating maintained. Target is $65.

Target price is $65.00 Current Price is $61.87 Difference: $3.13
If CBA meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $62.71, suggesting upside of 1.4% (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 CIP as Hold (3) -

FY20 guidance has been updated, with free funds from operations revised to 19.1-19.5c. FY20 distribution guidance is reaffirmed at 18.7c.

While the business will not be immune to the impact of the pandemic, Morgans believes the portfolio is well-positioned. Hold maintained. Target is reduced to $2.96 from $3.28.

Target price is $2.96 Current Price is $2.80 Difference: $0.16
If CIP meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting upside of 12.4% (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

Morgan Stanley rates COL as Upgrade to Overweight from Underweight (1) -

Morgan Stanley is more confident in the improved top-line prospects of supermarkets. Medium-term support is predicated on a view that the current disruption (panic buying) will be followed by a broader recession.

This should be supportive of the supermarkets' share of consumption. Coles is considered best placed to weather the disruption and its lower PE and higher pay-out ratio are likely to be increasingly attractive, in the broker's view.

Rating is upgraded to Overweight from Underweight and the target raised to $17.75 from $14.50. Industry view: Cautious.

Target price is $17.75 Current Price is $16.00 Difference: $1.75
If COL meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $16.69, suggesting upside of 4.3% (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

UBS rates CSL as Buy (1) -

CSL and Takeda have formed a broad alliance to develop a potential plasma-derived therapy for treating coronavirus. In addition to pooling resources, the alliance will collaborate with government and experts to include clinical trials.

UBS does not envisage this will be a short-term endeavour. The broker maintains a Buy rating and $342 target.

Target price is $342.00 Current Price is $311.99 Difference: $30.01
If CSL meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $310.73, suggesting downside of -0.4% (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

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

Caltex is shutting down its refinery for the short term and will re-open once margins improve. Morgan Stanley assumes margins of US$7/bbl for the latter part of 2020, increasing to a mid-cycle level of around US$10/bbl in 2021.

However, the lower margins go, the more the broker wonders about the long-term sustainability of refining in Australia.

Australian wholesale volume estimates are reduced by -25% for the first half of 2020 and -20% for the second half. This is to simulate a severe drop across the jet fuel business.

Morgan Stanley also understands there is limited flexibility regarding operating costs although reduces cost estimates marginally for 2020. Target is reduced to $27 from $34. Industry view is In-Line. Equal-weight.

Target price is $27.00 Current Price is $24.65 Difference: $2.35
If CTX meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $29.43, suggesting upside of 19.4% (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 CTX as Accumulate (2) -

The Lytton Refinery turnaround and inspection has been brought forward to May and extended. Capital expenditure guidance has been lowered to $250m from $300m for 2020.

Ord Minnett notes diesel volumes have been fairly stable in Australia while jet fuel was negatively impacted. Convenience retail volumes fell in the first quarter although retail fuel margins offset the volume weakness.

Accumulate retained. Target is lowered to $26.00 from $26.50.

Target price is $26.00 Current Price is $24.65 Difference: $1.35
If CTX meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $29.43, suggesting upside of 19.4% (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

Macquarie rates DCN as Underperform (5) -

March quarter production was in line with Macquarie's estimates. Operations are currently unaffected by the pandemic.

The company recently released a revised three-year mine plan and is in the process of completing a recapitalisation.

The broker notes the stock has not traded since it went into voluntary suspension late January. Underperform maintained. Target is $0.70.

Target price is $0.70 Current Price is $1.40 Difference: minus $0.7 (current price is over target).
If DCN meets the Macquarie target it will return approximately minus 50% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Morgan Stanley rates DXS as Overweight (1) -

Dexus has entered a joint venture with GIC to buy 50% of Melbourne's Rialto Tower for $644m. Dexus will take a 10% stake in the joint venture. Hence its outlay is only small, at $64m.

Dexus will manage the entire building, enabling leasing and management fees. The actual earnings impact on FY21 estimates is minimal but Morgan Stanley likes the deal.

Overweight rating and $11 target maintained. Industry view is In-Line.

Target price is $11.00 Current Price is $9.13 Difference: $1.87
If DXS meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $12.10, suggesting upside of 32.5% (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

Citi rates FLT as Buy (1) -

Flight Centre's balance sheet crisis is over, the broker suggests, thanks to a $700m equity raising, $200m of additional debt facilities, a potential $60m asset sale, and cost savings from a -50% reduction in global store footprint.

The result is significant dilution for existing equity holders, but investors can now look through lost near term revenue to a normalising of conditions.

However, the broker has now pushed out "normal" another twelve months to FY23. Target falls to $12.50 on dilution from a pre-trading halt $22.70. Buy retained at the new level.

Target price is $12.50 Current Price is $9.99 Difference: $2.51
If FLT meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $21.44, suggesting upside of 114.6% (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

Credit Suisse rates FLT as Outperform (1) -

Credit Suisse believes the company can manage expected cash outflows over the near term. A permanent cost reduction of around -$500m per annum is estimated to be sufficient to offset a -15% reduction in revenue.

While acknowledging there is no strong basis for estimating long-term travel demand, a -15% permanent reduction is assessed as "very high in any historical context".

Credit Suisse reduces the target to $13.61 from $22.49 after incorporating the impact of the capital raising. Outperform maintained.

Target price is $13.61 Current Price is $9.99 Difference: $3.62
If FLT meets the Credit Suisse target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $21.44, suggesting upside of 114.6% (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

Macquarie rates FLT as No Rating (-1) -

The company has announced a $700m equity raising at $7.20 a share, a -27% discount to the last traded price.

A plan has been outlined to reduce monthly operating costs and more than 50% of global leisure shops will be closed.

The company has indicated it is already witnessing a revival of Chinese business amid elevated corporate demand.

Macquarie cannot advise a rating or target at present.

Current Price is $9.99. Target price not assessed.

Current consensus price target is $21.44, suggesting upside of 114.6% (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

Morgan Stanley rates FLT as Overweight (1) -

Total transaction value in March was -70-80% below the usual and April is expected to be -90% lower. In response Flight Centre is targeting a -71% reduction in cash operating expenditure by the end of July.

The company has also announced a $700m underwritten capital raising at $7.20 a share. Morgan Stanley estimates around 18 months of zero revenue cash burn. This equates to 13 months before liquidity covenants are tested and incorporates a full working capital unwind.

Despite the caveats, the broker believes liquidity has improved and retains an Overweight rating pending price discovery. Target is reduced to $16 from $42. Industry view is Cautious.

Target price is $16.00 Current Price is $9.99 Difference: $6.01
If FLT meets the Morgan Stanley target it will return approximately 60% (excluding dividends, fees and charges).

Current consensus price target is $21.44, suggesting upside of 114.6% (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

Credit Suisse rates HT1 as Neutral (3) -

The company has provided detailed cost initiatives aimed at offsetting some of the impact of the pandemic on the advertising market. This includes removal of -$10.5m of operating costs related to marketing, travel, entertainment and bonuses.

While the initiatives are based on a stressed scenario, Credit Suisse believes the Australian Radio Network, where rating strength has continued into 2020, will do better than the radio market and only models around a -$10m reduction in costs for FY20.

The balance sheet remains an area of strength, the broker points out. With ready access to capital this has been a key reason why the stock has outperformed traditional media peers over the past month.

Neutral rating maintained. Target is reduced to $1.25 from $1.60.

Target price is $1.25 Current Price is $1.24 Difference: $0.01
If HT1 meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.33, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates HT1 as Neutral (3) -

The company has announced initiatives to reduce the cost base in 2020 by around -12%. Macquarie estimates there is enough liquidity to operate for 18 months or more, even in a materially declining revenue environment.

Neutral rating maintained. Target is reduced to $1.15 from $1.55.

Target price is $1.15 Current Price is $1.24 Difference: minus $0.09 (current price is over target).
If HT1 meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.33, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

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 HUB as Outperform (1) -

HUB24 has indicated that it expects flows to slow in the June quarter. Credit Suisse finds this unsurprising, given financial advisers are likely to focus on servicing clients rather than switching platforms.

The slowdown is expected to be short lived and Credit Suisse expects earnings growth to return strongly in FY22. The company is expected to gain market share given its leading product.

Funds under administration in the March quarter were down -5% which was better than forecast. Outperform rating and $10.20 target maintained.

Target price is $10.20 Current Price is $8.99 Difference: $1.21
If HUB meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $11.26, suggesting upside of 25.2% (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

Macquarie rates HUB as Underperform (5) -

While current volatility is making forecasting difficult, Macquarie believes the structural headwinds from the cuts to the cash rate will prove difficult to offset in FY21.

The broker's base case for a recession implies further market declines and a higher risk of retail withdrawals from platforms.

Underperform maintained. Target is reduced to $7.60 from $8.95.

Target price is $7.60 Current Price is $8.99 Difference: minus $1.39 (current price is over target).
If HUB meets the Macquarie target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.26, suggesting upside of 25.2% (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

Credit Suisse rates MFG as Underperform (5) -

Funds under management in March were down -7% and down -4% for the quarter. Credit Suisse observes the company is facing a slowdown in flows and lower performance fees as a result of absolute high benchmarks.

The broker is most concerned about the retail outflows in March which could signal further downside to forecasts.

Over the medium term however, the broker believes this business has the best prospects in the sector. Underperform maintained. Target is reduced to $36.50 from $38.00.

Target price is $36.50 Current Price is $47.98 Difference: minus $11.48 (current price is over target).
If MFG meets the Credit Suisse target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.58, suggesting downside of -7.1% (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

Morgans rates MME as Add (1) -

Morgans lowers FY20 and FY21 forecasts by -16% and -32% respectively, allowing for more conservative estimates around potential impairments and the possibility of slower loan growth.

However, the business is considered prudently positioned if an economic downturn persists. Target is reduced to $1.72 from $2.01. Add maintained.

Target price is $1.72 Current Price is $0.82 Difference: $0.9
If MME meets the Morgans target it will return approximately 110% (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

Ord Minnett rates MME as Buy (1) -

Against moderating discretionary expenditure and higher risk settings, Ord Minnett envisages rising risks of execution in achieving revenue forecasts.

That said, the company is considered well placed to grow market share. Obtaining a larger funding agreement, at lower rates, remains necessary to facilitate growth in the broker's view.

Buy retained. Target is reduced to $1.20 from $1.35.

Target price is $1.20 Current Price is $0.82 Difference: $0.38
If MME meets the Ord Minnett target it will return approximately 46% (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

Ord Minnett rates MP1 as Hold (3) -

The update for the third quarter was broadly in line with Ord Minnett's expectations. This highlights the resilience of the business model and the broker expects further opportunities will emerge post the crisis.

Port sales accelerated to 11% and total services to 12% quarter on quarter. The broker notes Megaport has been a beneficiary of the move to work from home. Hold maintained. Target is $11.10.

Target price is $11.10 Current Price is $10.49 Difference: $0.61
If MP1 meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $11.98, suggesting upside of 14.2% (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 MP1 as Upgrade to Buy from Neutral (1) -

The company has delivered the acceleration UBS was looking for in the second quarter result. The broker is a strong believer in the long-term structural shift to the cloud.

Moreover, the current period of self-isolation could accelerate the uptake of the cloud and multi-cloud services.

UBS expects a maiden quarterly positive operating earnings result in the fourth quarter of FY21, which is likely to be a major turning point for the business.

Rating is upgraded to Buy from Neutral and the target raised to $11.90 from $11.75.

Target price is $11.90 Current Price is $10.49 Difference: $1.41
If MP1 meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $11.98, suggesting upside of 14.2% (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

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

Morgan Stanley is more confident in the improved top-line prospects of supermarkets. Medium-term support is predicated on a view that the current disruption (panic buying) will be followed by a broader recession.

This should be supportive of the supermarkets' share of consumption. Morgan Stanley downgrades to Equal-weight from Overweight as the stock has materially outperformed peers.

Industry view: Cautious. Target is reduced to $2.90 from $2.95.

Target price is $2.90 Current Price is $2.83 Difference: $0.07
If MTS meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.87, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in April.

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

Morgans rates NTD as Hold (3) -

The company's NZ business ceased trading almost entirely on March 25, given the lockdown. The South African business is in a similar situation.

The flow-through of this impact to earnings will be buffered by government assistance. Morgans makes a further round of downgrades to reflect the likely impact on demand.

A range of measures will be adopted to preserve cash and the balance sheet remains robust. Hold maintained. Target is reduced to $0.26 from $0.41.

Target price is $0.26 Current Price is $0.25 Difference: $0.01
If NTD meets the Morgans target it will return approximately 4% (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

Morgans rates OEL as Downgrade to Reduce from Add (5) -

The company's risk profile has greatly increased, Morgans assesses, given the unprecedented conditions. The company is seeking to raise $17.5m, more than its current market capitalisation, to try and put its balance sheet back on firmer ground.

If the current conditions persist, the broker finds little earnings potential over the remainder of 2020 and 2021.

While the broker is positive about the portfolio, the pressure on the balance sheet and the major headwinds for oil have affected confidence. Rating is downgraded to Reduce from Add and the target lowered to 0.4c from 5.5c.

Target price is $0.00 Current Price is $0.01 Difference: minus $0.006 (current price is over target).
If OEL meets the Morgans target it will return approximately minus 60% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Citi rates ORG as Buy (1) -

Origin Energy has retained its distribution guidance from its APLNG stake, which was under threat from the oil price collapse. APLNG contracts have a long lag to oil prices, the broker notes.

The company has also reiterated energy markets guidance, albeit with the caveat of a possible jump in bad debts, which in the context of the number of companies simply withdrawing guidance should be considered a positive, the broker suggests.

Management has made no mention of the credit rating impact, although the broker suspects the ratings agencies would be prepared to look through any temporary breach of debt to earnings covenants. Buy and $5.95 target retained.

Target price is $5.95 Current Price is $4.91 Difference: $1.04
If ORG meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $6.49, suggesting upside of 32.1% (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

Morgans rates ORG as Hold (3) -

The company has reaffirmed FY20 energy markets guidance but this excludes any potential impact from increases to bad debts. The APLNG distribution guidance has also been reaffirmed at $1.1-1.3bn.

Nevertheless, Morgans believes investors need to apply a degree of caution as the oil market remains very out of balance and the large slump in demand has not yet been countered by reductions in supply.

There is also significant downside risk in the electricity market from lower demand and weaker prices. Hold maintained. Target is raised to $4.77 from $4.75.

Target price is $4.77 Current Price is $4.91 Difference: minus $0.14 (current price is over target).
If ORG meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.49, suggesting upside of 32.1% (ex-dividends)

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 OSH as Underperform (5) -

Oil Search is seeking US$700m in an equity raising "priced in the low $2's", although Credit Suisse suspects it may need more than this to avert the risk of an overhang on the share price if oil prices weaken.

The broker acknowledges it is difficult to price the equity given the heightened volatility but cannot rule out an equity raising priced around $2/share or below. This would provide a potential -12% dilution.

Underperform rating maintained and the target is raised to $2.47 from $2.23.

Target price is $2.47 Current Price is $2.73 Difference: minus $0.26 (current price is over target).
If OSH meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.12, suggesting upside of 14.1% (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: 0.1

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

Ord Minnett rates OSH as Hold (3) -

The stock has entered a trading halt pending a capital raising. Ord Minnett estimates a US$1bn capital raising would resolve much of the risk to the balance sheet.

Prior to a capital raising and using base case forecasts, the broker estimates gearing would peak in 2023 at 46%.

Hold rating and $3.50 target retained.

Target price is $3.50 Current Price is $2.73 Difference: $0.77
If OSH meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting upside of 14.1% (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: 0.1

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

Macquarie rates PAN as Neutral (3) -

The company has secured $8m in additional debt funding from a major shareholder. This will be reduced to $4.6m if the Horizon Gold ((HRN)) share sale to Zeta Resources is approved.

Macquarie notes this has eased the short-term funding pressure while the Savannah North development ramps up.

Neutral rating maintained. Target is $0.13.

Target price is $0.13 Current Price is $0.12 Difference: $0.01
If PAN meets the Macquarie target it will return approximately 8% (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

Citi rates QBE as Buy (1) -

The broker has marked to market and made other adjustments pertaining to QBE Insurance forecasts, leading to earnings cuts of -64% in FY20 and -13% in FY21. Target falls to $10.40 from $16.70.

QBE believes pre-virus momentum in premium rate rises can continue. The broker thinks possibly, but perhaps with lower intensity.

But to some extent the business is at the mercy of the authorities and the courts, the broker notes, if, in short, the company is told what it has to do rather than what it might otherwise do regarding claims. Buy retained on an oversold share price.

Target price is $10.40 Current Price is $8.85 Difference: $1.55
If QBE meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $13.00, suggesting upside of 46.9% (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: 0.8

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

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

Reece has announced a $600m equity raising to reduce net debt and improve liquidity, and provide some optionality for growth, Citi notes. The broker sees the move as logical, but has slashed earnings forecasts to reflect subsequent dilution and lower revenue in the new construction market.

At the moment, sales both domestically and in the US are holding up well, management noted, but risk is dependent on the duration of the shutdown. Target falls to $8.85 from $10.50. Upgrade to Neutral from Sell.

Target price is $8.85 Current Price is $8.50 Difference: $0.35
If REH meets the Citi target it will return approximately 4% (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 RHC as Neutral (3) -

UBS assesses the recently-announced government viability agreement for private hospital operators has provided some relief for the sector. Forecasts are refined, with a -10% decline in earnings per share in FY20 and 27% increase in FY21 now expected.

However, the broker does not assume the period will generate supernormal profits for Ramsay Health Care and also flags the likely negative impact on private health insurance participation from higher unemployment in Australia.

Neutral rating and $60 target maintained.

Target price is $60.00 Current Price is $61.19 Difference: minus $1.19 (current price is over target).
If RHC meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $64.63, suggesting upside of 5.6% (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

Citi rates RSG as Buy (1) -

Resolute Mining has pre-announced a solid March production report, highlighted by positive news on the Syama ramp-up. Buy and $1.60 target retained.

While the virus poses a risk to production and share price volatility, the broker suggests Resolute is well positioned in the face of the challenge as it has faced external challenges before, has ore stockpiles to draw on, and has lower risk operations in the form of Mako being open-cut and Syama being highly automated.

Target price is $1.60 Current Price is $0.88 Difference: $0.72
If RSG meets the Citi target it will return approximately 82% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Macquarie rates RSG as Outperform (1) -

First quarter production was in line with expectations. Macquarie moderates the long-term processing outlook for Syama and lowers long-term production rates by -6%.

Outperform and $1.00 target retained.

Target price is $1.00 Current Price is $0.88 Difference: $0.12
If RSG meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Credit Suisse rates RWC as Neutral (3) -

The company is standing aside more than 40% of its UK workforce as some UK distributors close and others modify purchasing activity. Australian and US facilities are operating as normal.

Credit Suisse remains wary of a further worsening in the European region, with some market segments at risk of near total shutdown.

The broker assesses cash flow is reasonable as is liquidity, albeit not excessive. Neutral maintained.

The broker suspects end markets may prove less defensive than previously thought, given the lack of a pipeline and short lead times. Target is reduced to $2.70 from $3.75.

Target price is $2.70 Current Price is $2.53 Difference: $0.17
If RWC meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.29, suggesting upside of 30.1% (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

UBS rates RWC as Buy (1) -

The company has put more than 40% of its UK staff on leave as channel partners there temporarily close or reduce their purchases.

Assuming the UK represents around 60% of the wider EMEA business and the curtailment lasts for the entire quarter, UBS estimates the June half sales could be down -13% in that region.

Meanwhile, Australian and US facilities are operating as normal. UBS notes the strong balance sheet and liquidity.

While some activity is expected to be delayed, the end market is considered relatively resilient. Buy rating maintained. Target is reduced to $3.50 from $3.79.

Target price is $3.50 Current Price is $2.53 Difference: $0.97
If RWC meets the UBS target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $3.29, suggesting upside of 30.1% (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

Macquarie rates SDF as Outperform (1) -

Macquarie expects fees and commissions will be negatively affected to the tune of -10-15% during the current downturn. Forecasts for revenue are cut by -11% for FY21 and operating earnings (EBITA) by -18%.

On the positive side, Steadfast Group has a diversified exposure. Outperform retained. Target is reduced to $3.20 from $3.50.

Target price is $3.20 Current Price is $2.33 Difference: $0.87
If SDF meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $3.66, suggesting upside of 57.0% (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 SEK as Outperform (1) -

Credit Suisse revises earnings estimates to take into account the impact of the pandemic in Australasia and Asia. The decline in billing in recent weeks is broadly consistent with the broker's estimates of job advertising on the company's domestic site.

The performance of Zhaopin provides a small offset, as management has guided to an earlier improvement in billing and better margins than previously expected.

Based on evidence from the GFC, the broker suspects Seek will experience a substantial rebound in volumes once restrictions are lifted. Outperform maintained. Target is reduced to $23.50 from $24.90.

Target price is $23.50 Current Price is $15.15 Difference: $8.35
If SEK meets the Credit Suisse target it will return approximately 55% (excluding dividends, fees and charges).

Current consensus price target is $18.76, suggesting upside of 23.8% (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

Macquarie rates SEK as Neutral (3) -

Volumes in Australasia and Asia are now down around -60%. Macquarie found the update provided additional clarity on current trading and cost initiatives underway, and how this may translate to earnings in FY20.

China appears to be recovering but there is uncertainty over the full impact of the pandemic and when the ultimate recovery plays out.

Macquarie retains a Neutral rating and raises the target to $16.25 from $16.20.

Target price is $16.25 Current Price is $15.15 Difference: $1.1
If SEK meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $18.76, suggesting upside of 23.8% (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

Morgans rates SEK as Add (1) -

The company has announced measures to boost liquidity and cut operating costs to cope with the fall-out from the pandemic.

While Seek has signalled it remains within debt covenants, Morgans believes the most prudent and sensible course of action would be to raise $500m in additional equity to place the balance sheet beyond question.

Forecasts are downgraded and the target is reduced to $15.55 from $20.55. Add maintained.

Target price is $15.55 Current Price is $15.15 Difference: $0.4
If SEK meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $18.76, suggesting upside of 23.8% (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

Ord Minnett rates SEK as Accumulate (2) -

Seek has withdrawn FY20 guidance. Ord Minnett reduces earnings forecasts, assuming a -60% decline in billings. The crisis does not change the longer-term opportunities in the broker's view.

Ord Minnett maintains an Accumulate rating and reduces the target to $22 from $25.

Target price is $22.00 Current Price is $15.15 Difference: $6.85
If SEK meets the Ord Minnett target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $18.76, suggesting upside of 23.8% (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 STO as Upgrade to Overweight from Equal-weight (1) -

The stock has sold off along with the broader energy market but Morgan Stanley suspects Santos is on firm ground, given its actions since 2016.

The company has the balance sheet to withstand a number of years of very low oil prices and has growth options in its assets.

The broker is looking to position in companies that can handle depressed prices over the medium term in case it takes longer for oil to recover.

Rating is upgraded to Overweight from Equal -weighted and the target raised to $5.00 from $4.25. Cautious industry view.

Target price is $5.00 Current Price is $4.45 Difference: $0.55
If STO meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.32, suggesting upside of 19.6% (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: 0.8

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

Citi rates SYD as Sell (5) -

Having delved into Sydney Airport's liquidity position, the broker believes liquidity is reasonable, but cash flow covenants could become a concern depending on the duration of travel restrictions.

Were restrictions to continue beyond six months, the broker warns the company may need to raise capital.

Raising capital would be a better option in the current environment than asset sales, the broker suggests. Sell and $6.83 target retained.

Target price is $6.83 Current Price is $5.24 Difference: $1.59
If SYD meets the Citi target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $6.70, suggesting upside of 27.9% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates SYD as Outperform (1) -

The debt covenants are not particularly onerous, Macquarie observes, based on past disclosures. The broker assesses Sydney Airport is in a better position compared with Auckland Airport.

The dividend will be constrained in 2020, the broker acknowledges, and a resumption of domestic traffic in the second half is critical to expectations.

Target is reduced to $6.78 from $6.95 and an Outperform rating is maintained.

Target price is $6.78 Current Price is $5.24 Difference: $1.54
If SYD meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $6.70, suggesting upside of 27.9% (ex-dividends)

The company's fiscal year ends in December.

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 VVA as Buy (1) -

The company has reduced its workforce by over -90% and cut discretionary expenditure, pausing all non-committed roll-outs.

Ord Minnett prices in a three-month shutdown with no lease abatements in modelling. The latter would offer upside while any prolonged shutdown would offer more downside.

Liquidity appears intact and the broker expects the company will remain a natural consolidator in the industry. Buy retained. Target is reduced to $3.00 from $3.80.

Target price is $3.00 Current Price is $1.37 Difference: $1.63
If VVA meets the Ord Minnett target it will return approximately 119% (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

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

Morgan Stanley is more confident in the improved top-line prospects of supermarkets. Medium-term support is predicated on a view that the current disruption (panic buying) will be followed by a broader recession.

This should be supportive of the supermarkets' share of consumption. Morgan Stanley lifts FY20 estimates for Australian food and liquor.

However, the hotels business is closed as per government requirements and the broker factors in complete closure until June. Hence FY20 revenue forecasts are reduced by -24%.

Equal-weight rating maintained. Target is reduced to $36.00 from $38.50. Industry view: Cautious.

Target price is $36.00 Current Price is $36.10 Difference: minus $0.1 (current price is over target).
If WOW meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.31, suggesting upside of 6.1% (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

Ord Minnett rates XF1 as Hold (3) -

Costs have reduced meaningfully but sales are not growing as much as Ord Minnett would have liked. The business model is dependent on market sentiment and hiring.

However, as the crisis clears, Ord Minnett expects Xref will be uniquely placed to play an important role in re-hiring.

In order to see the business through to FY22 the broker suspects additional capital will be required. Hold maintained. Target is reduced to 21c from 25c.

Target price is $0.21 Current Price is $0.10 Difference: $0.11
If XF1 meets the Ord Minnett target it will return approximately 110% (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