Australian Broker Call

Morgans rates ADH as Add (1) -

The company issued a profit warning and Stockbroker Morgans has been completely taken by surprise, as also suggested by the title above today's research update: head scratcher.

The analysts find it difficult to reconcile best in sector like-for-like sales growth of 7%-plus throughout most of calendar 2019; then to be followed up by Friday's profit warning.

The broker does point out after the share price shellacking, the shares are seen offering a 10% yield. However, until like-for-like sales turn around, the analysts do not think the shares will re-rate anytime soon.

Add rating retained. Price target drops to $1.73 from $2.25 on conservatively lowered forecasts.

Target price is $1.73 Current Price is $1.48 Difference: $0.25
If ADH meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

UBS rates ADH as Buy (1) -

Adairs has cut its FY19 earnings guidance by -8-12%, citing flat sales in June (from 9% growth in the prior half), margin pressure from the currency and higher distribution centre costs.

The broker notes soft sales have been experienced across the industry since the election and consumer confidence remains subdued.

The broker retains Buy on valuation post sell-off, dropping its target to $2.25 from $2.60.

Target price is $2.25 Current Price is $1.48 Difference: $0.77
If ADH meets the UBS target it will return approximately 52% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Deutsche Bank rates AMC as Buy (1) -

The combination Amcor-Bemis has started selling off non-core assets and Deutsche Bank analysts suggest with the proceeds from these divestments management could announce a share buyback of up to US$1bn as early as the full year result in August.

In addition, the analysts believe there is upside surprise potential from merger synergies. Deutsche Bank retains the $19 price target alongside its Buy recommendation, while projecting 3 year EPS CAGR of 11%.

Target price is $19.00 Current Price is $15.80 Difference: $3.2
If AMC meets the Deutsche Bank target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $16.74, suggesting upside of 5.9% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

Macquarie rates APA as Neutral (3) -

The broker notes APA Group's generation performance has been stronger than expected, thanks to larger contributions from Badgingarra and Darling Downs. But more influentially, the broker has cut its bond rate assumptions to set a discount rate of 2.43%.

APA carries some $9.5bn of debt, of which $0.7bn is due in FY20. As this was long-dated the broker expects -300-400 basis points of downward repricing. The lower discount rate leads to a target price increase to $11.55 from $9.49. Neutral retained.

Target price is $11.55 Current Price is $11.53 Difference: $0.02
If APA meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $9.63, suggesting downside of -16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

Citi rates AX1 as Neutral (3) -

Citi remains a supporter of the company's growth strategies, and this time around the analysts explain their positive view on the company's latest venture in the form of children's footwear. The company has opened its first story, The Trybe, at Melbourne’s Highpoint Shopping Centre.

Arguing this section is less vulnerable to online competition than adult footwear, Citi believes the years ahead could see the company opening 50 to 72 of such stores, albeit at lower profitability compared to other footwear categories already operated by the company.

Also, the analysts believe this is lower risk diversification compared with expanding overseas. The current FY20 PE multiple of 13x (representing a -2% discount to Australian specialty retail peers) is seen as appropriate. Neutral. Target $1.61.

Target price is $1.61 Current Price is $1.37 Difference: $0.24
If AX1 meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Macquarie rates CIA as Outperform (1) -

Champion Iron's phase 2 feasibility study portrays attractive metrics for expansion, the broker notes, with an internal rate of return in excess of 30%. The final hurdle is to secure financing by mid-2020.

Were the broker to input current spot iron ore prices into its valuation, earnings would jump 170%. Outperform and $4.00 target retained.

Target price is $4.00 Current Price is $3.10 Difference: $0.9
If CIA meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

This company reports in CAD. 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 CSL as Buy (1) -

CSL had earlier flagged that transitioning to its own distribution channel in China would have a one-off impact on FY20 financials. On Friday the company quantified this impact in the form of a decline in albumin sales by -US$340-US$370m.

Citi analysts estimate the impact on net profits will be around -6% with the impact on cash flows to be much lower, also because CSL will continue to collect outstanding receivables from existing distributors despite the accountancy change/delay. Buy. Target unchanged at $236.60.

Target price is $236.60 Current Price is $213.18 Difference: $23.42
If CSL meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $209.96, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.4

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

Credit Suisse rates CSL as Neutral (3) -

The broker calculates the financial impact CSL has cited as a result of its move to direct distribution in China represents a -6% drop in FY20 profit forecast. The transition should occur in the second and third quarters and the broker has made no change to FY21 assumptions.

The move will allow CSL to have greater control over its product, the broker suggests, improve its participation in the Chinese supply chain and allow the company to work directly with clinicians. Neutral and $199 target retained.

Target price is $199.00 Current Price is $213.18 Difference: minus $14.18 (current price is over target).
If CSL meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $209.96, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.4

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

Deutsche Bank rates CSL as Hold (3) -

Deutsche Bank was negatively surprised by the impact, now quantified by CSL management, of the move to direct distribution in China. The flip side is that while the accountancy adjustment depresses profit growth in FY20, it will then return a boost to FY21 growth.

Deutsche Bank analysts are now forecasting EPS growth of 3% in FY20 and 20% in FY21. Target $209. Rating remains Hold.

Target price is $209.00 Current Price is $213.18 Difference: minus $4.18 (current price is over target).
If CSL meets the Deutsche Bank target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $209.96, suggesting downside of -1.5% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.4

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

Macquarie rates CSL as Outperform (1) -

CSL has revealed that its move to a good supply practice licence, allowing the company to own and sell its products in China, will come with a one-off cost in FY20 as albumin sales are impacted, before normalising in FY21. The impact is not as significant as the broker had assumed.

Robust Ig demand, a competitive advantage in collection centres and continued momentum in higher-margin products should support earnings growth in FY20, the broker suggests. Outperform and $225 target retained.

Target price is $225.00 Current Price is $213.18 Difference: $11.82
If CSL meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $209.96, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.4

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

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

Morgan Stanley had already anticipated, and tried to quantify, the temporary disruption from a change in business model in China. As such, the analysts had to conclude that CSL's update on this matter on Friday implied a lower than forecast impact for FY20.

The analysts have updated their forecasts, now assuming there is hardly any growth left for CSL in FY20 (1%). Equal-weight retained. Target $182. Industry view: In line.

Target price is $182.00 Current Price is $213.18 Difference: minus $31.18 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $209.96, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.4

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

UBS rates CSL as Buy (1) -

CSL's move to direct distribution of albumin in China will lead to lower albumin sales and a one-off financial impact in FY20 and a more modest impact on cash flow. The broker calculates a -6% hit to its previous FY20 forecast.

There is no change to FY21 and the broker believes the move to direct distribution makes sense. Buy and $223 target retained.

Target price is $223.00 Current Price is $213.18 Difference: $9.82
If CSL meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $209.96, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.4

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

Citi rates CTX as Buy (1) -

The company's profit warning takes guidance some -25% below what Citi analysts had penciled in. The analysts also note that the share price reflects a view that current headwinds are structural, which the analysts suggest is "unfair".

Citi remains of the view Caltex's profitability is unsustainably low, an assessment that applies for the industry at large. Having said so, the analysts also add their leading indicators are suggesting investors may have to be patient before a turnaround announces itself.

Buy rating retained as the analysts believe the market will, at some point, start pricing in the future recovery.

Current Price is $24.12. Target price not assessed.

Current consensus price target is $25.79, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Macquarie rates CTX as Outperform (1) -

Caltex's market update cum profit warning has revealed a fist half guidance miss of -30-40% following weakness across all segments. It would appear the company has been hit with rising competition at the same time refining margins are compressed, the broker suggests.

The broker has also used industry feedback to lower its expectations for Convenience. Target is cut to $26.50 from $33.00 but after the share price plunge, the broker considers the stock oversold. Outperform retained.

Target price is $26.50 Current Price is $24.12 Difference: $2.38
If CTX meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $25.79, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

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

Domino's Pizza has been upgraded to Buy from Neutral at Citi with a slightly reduced price target of $44 (was $45.60) on the observation this stock offers excellent exposure to further store roll outs in Europe.

Citi analysts are forecasting 13% EPS CAGR between FY18 and FY22. They do think FY19 guidance seems "stretched", but also that this is already reflected in the share price.

All in all, Citi suggests the risks in Australia are well understood by investors while the upside from European store openings is not yet priced in.

Target price is $44.00 Current Price is $39.27 Difference: $4.73
If DMP meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $42.20, suggesting upside of 7.5% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

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

In response to media reports suggesting Andrew Rennie, the CEO of Domino's Pizza's European business, is the leading candidate to potentially take over the CEO role at the London-listed Domino's Pizza Group, the analysts believe this will be taken negatively by the market as far as Domino's Pizza in Australia is concerned.

The reason is that Rennie is highly regarded among investors, and Domino's Pizza's growth outlook depends heavily on what happens in Europe. Equal-weight. Target $41. Cautious industry view.

Target price is $41.00 Current Price is $39.27 Difference: $1.73
If DMP meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $42.20, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Morgans rates HUB as Initiation of coverage with Hold (3) -

Stockbroker Morgans has initiated coverage with a Hold rating and $14.19 price target. The initial starting point is for significant long-term earnings growth from platform providers, driven largely by structural shifts in the financial advice industry in Australia.

There is a "but", however, and that is that pricing pressure throughout the industry has become apparent and the broker suggests this pressure will continue to flow through on top of higher regulatory costs.

In brief format: pressure on margins is offsetting the strong growth outlook at the top line. Add elevated near-term valuations and Morgans believes there is ever present potential for a sharp sell-off. Such share price weakness will be a more attractive entry point, suggests the broker.

Target price is $14.19 Current Price is $12.87 Difference: $1.32
If HUB meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $13.59, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.2

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

Citi rates MTS as Sell (5) -

On first observation, it appears Metcash's FY19 report missed market consensus by some -3%, though net profit proved 1% better than what Citi analysts had expected. Final dividend of 7c is in line with Citi, but again below market consensus of 7.6c, the analysts report.

The pivotal question now is whether the company can successfully transition from cost outs to actual growth, say the analysts. Citi retains its Sell rating, with a $2.45 price target.

Target price is $2.45 Current Price is $2.84 Difference: minus $0.39 (current price is over target).
If MTS meets the Citi target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.89, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

UBS rates NAN as Initiation of coverage with Buy (1) -

Nanosonics' Trophon product is an automated high level disinfection technology for ultrasound probe reprocessing and is the dominant product globally, capturing 18% of the addressable market. The broker forecasts this to rise to 34% by FY24 and 45% by FY30.

The technology could be used across a myriad of other infection prevention cases, the broker suggests. Coverage initiated with a Buy rating and $6.30 target.

Target price is $6.30 Current Price is $5.87 Difference: $0.43
If NAN meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Morgans rates NWL as Initiation of coverage with Hold (3) -

Stockbroker Morgans has initiated coverage with a Hold rating and $8.86 price target. The initial starting point is for significant long-term earnings growth from platform providers, driven largely by structural shifts in the financial advice industry in Australia.

There is a "but", however, and that is that pricing pressure throughout the industry has become apparent and the broker suggests this pressure will continue to flow through on top of higher regulatory costs.

In brief format: pressure on margins is offsetting strong top line growth profiles. Add elevated near-term valuations and Morgans believes there is ever present potential for a sharp sell-off. Such share price weakness will be a more attractive entry point, suggests the broker.

Target price is $8.86 Current Price is $9.09 Difference: minus $0.23 (current price is over target).
If NWL 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 $8.44, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

UBS rates PME as Initiation of coverage with Neutral (3) -

Pro Medicus provides software solutions to enable viewing and interpretation of medical imaging. The company's success in delivering large scale, complex implementations for high profile US hospitals has positioned the platform as best of breed, the broker notes.

The broker initiates coverage with a Neutral rating and a $24.30 target, seeing Pro Medicus as one of the highest quality companies in its universe with a recurring revenue model that has driven 90% margin increases and forecast long term compound annual growth rate in earnings of 24%, but with a fair valuation.

Target price is $24.30 Current Price is $26.12 Difference: minus $1.82 (current price is over target).
If PME meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Ord Minnett rates S32 as Hold (3) -

Ord Minnett analysts have returned from a site visit to the Illawarra metallurgical coal mine with the observation the Dendrobium Next Domain project is costing more than previously anticipated; up to US$800m instead of the broker's US$500m estimate.

Further disappointment followed in the realisation that project modeling is suggesting an internal rate of return (IRR) of only 11.4%. But new management team is having a positive influence both on overall culture and performance, report the analysts.

Hold rating maintained. Target is $3.60.

Target price is $3.60 Current Price is $3.25 Difference: $0.35
If S32 meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.82, suggesting upside of 17.6% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

UBS rates S32 as Buy (1) -

A visit to South32's Appin coal mine in the Illawarra revealed progress is being made in turning the operation around through additional capex. If successful, the broker suggests the Illawarra could produce in excess of 8mpta going forward at a reduced cost.

In the short term the broker has cut its production assumptions and incorporated higher capex, leading to a target price drop to $3.74 from $4.12. Buy retained.

Target price is $3.74 Current Price is $3.25 Difference: $0.49
If S32 meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.82, suggesting upside of 17.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

Credit Suisse rates SFR as Underperform (5) -

Sandfire's updated reserves and resources for DeGrussa leads to a marginal mine life extension to mid-2022, slightly less than the broker had forecast. There was no update on Monty, at which mining is yet to commence.

Underperform and $6.15 target retained.

Target price is $6.15 Current Price is $7.09 Difference: minus $0.94 (current price is over target).
If SFR 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 $7.50, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Macquarie rates SFR as Outperform (1) -

Sandfire has updated its reserve and resource estimates for DeGrussa, suggesting a mine life of no less than four years. Commencement of mining at Monty puts the company on track to beat its FY19 production guidance, the broker notes.

Extending production is a key catalyst, the broker suggests, and to that end Sandfire has a clear focus on exploration. Outperform and $8.00 target retained.

Target price is $8.00 Current Price is $7.09 Difference: $0.91
If SFR meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.50, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Morgan Stanley rates SFR as Overweight (1) -

The company has slightly increased the copper reserve at DeGrussa but Morgan Stanley analysts see it as largely irrelevant; the project's closure date remains mid-2022, as per current forecast.

Morgan Stanley's base case remains no extension to the operation and the company's update does not suggest otherwise, highlight the analysts.

 Overweight rating and $8.65 target. Industry view is Attractive.

Target price is $8.65 Current Price is $7.09 Difference: $1.56
If SFR meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $7.50, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Credit Suisse rates SYR as Outperform (1) -

Syrah has addressed its liquidity challenge by launching a $55.8m equity raise, with an equivalent debt raising to follow subject to shareholder approval.

The broker suggests the value of removing the liquidity issue discount will exceed the dilution impact of the raising and provide ample funding to pursue cash flow positive production.

Target falls to $2.40 from $3.30 on dilution, Outperform retained.

Target price is $2.40 Current Price is $0.83 Difference: $1.57
If SYR meets the Credit Suisse target it will return approximately 189% (excluding dividends, fees and charges).

Current consensus price target is $1.69, suggesting upside of 103.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

Macquarie rates SYR as Outperform (1) -

Syrah has launched a fully underwritten capital raising to provide $55.8m in equity and an equivalent amount in convertible bonds. The funds are to be used to provide flexibility to tailor Balama's ramp-up with graphite demand and to progress the Battery Anode Material project. Increasing production too rapidly may be detrimental to pricing, Syrah suggests.

Graphite pricing remains soft but the BAM project provides 88% of the broker's valuation. Target falls to $1.20 from $2.70 on production cuts and dilution, Outperform retained.

Target price is $1.20 Current Price is $0.83 Difference: $0.37
If SYR meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $1.69, suggesting upside of 103.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

Macquarie rates TLS as Upgrade to Neutral from Underperform (3) -

Macquarie notes Optus has increased its post-paid pricing, suggesting competition in mobile is stabilising. Recent competition will still need to flow through, the broker notes, but Telstra will benefit if mobile returns to growth.

Macquarie has ticked up its mobile growth and thus earnings expectations and reduced its valuation discount rate due to lower bond prices. Target rises to $3.75 from $2.90. Upgrade to Neutral.

Target price is $3.75 Current Price is $3.84 Difference: minus $0.09 (current price is over target).
If TLS meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.48, suggesting downside of -9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

Morgans rates TLS as Add (1) -

Stockbroker Morgans is of the view the tide has finally turned for Telstra, with government intervention now a positive for the company, preventing market entry to Huawei and at the least delaying the merger between TPG Telecom ((TPM)) and Vodafone in Australia ((HTA)).

The broker moves to a different valuation modeling which lifts its price target to $4.47 from $3.62 (Sum-of-the-parts now being used). Apart from the apparent value-gap, Morgans points out the NBN roll-out is now 70% completed, and prices are going up.

Last but not least, the analysts believe 5G will drive revenue and subscriber growth for the mobile operations. Add rating retained. Updated forecasts imply there is no further erosion and the future offers renewed growth in EPS (albeit small at this stage).

Target price is $4.47 Current Price is $3.84 Difference: $0.63
If TLS meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.48, suggesting downside of -9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

Citi rates WHC as Buy (1) -

Citi analysts have reduced coal price forecasts, but they also anticipate a recovery in coal markets with European gas storage confronting the prospect of full storage by late summer. The new near term coal price forecast of US$82/t in CY19 compares with US$87/t previously.

Forecasts for Whitehaven Coal have been reduced by -15% on the EPS level for FY20. Target price retained at $4.75, still accompanied by a Buy rating. Citi is estimating a dividend yield of 10%, including a special dividend of 16c.

Citi calculates the share price at present is reflecting a -25% to the broker's long term thermal and SSCC prices of US$80 and US$95 respectively.

Target price is $4.75 Current Price is $3.73 Difference: $1.02
If WHC meets the Citi target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $5.01, suggesting upside of 34.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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