Australian Broker Call

Citi rates ALU as Initiation of coverage with Neutral (3) -

Citi initiates coverage with a Neutral rating and $37.40 target. The broker considers the medium-term outlook is solid and the business is well-placed to meet its FY25 target of US$500m in earnings.

Altium generates around 40% of revenue from new license sales and this is expected to show weakness in the first half. Hence the broker considers consensus forecasts are too optimistic. Yield is also expected to be negatively affected by discounting.

Target price is $37.40 Current Price is $34.14 Difference: $3.26
If ALU meets the Citi target it will return approximately 10% (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: 0.4

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

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

Credit Suisse assesses Amcor is approaching fair value. The investment case remains the same and the revenue streams have proven largely defensive throughout the pandemic.

The main risk is exchange rates, in the broker's opinion. Hence, the rating is downgraded to Neutral from Outperform. Target is lowered to $15.65 from $16.90.

Target price is $15.65 Current Price is $13.76 Difference: $1.89
If AMC meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $16.29, suggesting upside of 18.4% (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: 0.6

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

Morgans rates AMS as Add (1) -

Atomos notes its top-line was impacted by the pandemic with sales in the second half-to-date down -60% year on year. The saving grace has been a simultaneous reduction in costs, leading to savings of circa $8m annually, notes Morgans.

The company recently went for a $13m capital raising to strengthen its balance sheet. The broker points at a strong pipeline of new releases that will ensure sales growth and expects revenues to rebound and margins to improve in the second half of FY21.

Morgans retains its Add rating with target price increased to $1.02 from $0.758.

Target price is $1.02 Current Price is $0.52 Difference: $0.5
If AMS meets the Morgans target it will return approximately 96% (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

Macquarie rates APA as Neutral (3) -

US local distribution companies (LDC) are trading at a lower enterprise value than APA Group, the broker notes, which would make any acquisition potentially accretive.

However, this is a "well trodden path" for US LDCs. The US growth outlook is better than in Australia's regulated market as pipeline renewals will continue for coming years, the broker points out.

There is an opportunity for APA to deploy excess cash from the sale of the Wallumbilla-Gladstone pipeline. Longer term the shift to renewable energy is a threat, the broker warns, but not at this stage. Neutral retained, target falls to $11.36 from $11.37.

Target price is $11.36 Current Price is $11.30 Difference: $0.06
If APA meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $11.48, suggesting upside of 1.6% (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

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

Credit Suisse increases gold price forecasts for 2020-22, again. Fundamentals underpinning the gold sector include low and negative yields, a weakening US dollar and expectations that significant fiscal stimulus from various governments will ultimately be highly inflationary.

Alacer Gold's rating is upgraded to Outperform from Neutral and the target is raised to $9.40 from $8.60.

Target price is $9.40 Current Price is $9.05 Difference: $0.35
If AQG meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $9.57, suggesting upside of 5.7% (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: 0.7

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

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

Macquarie believes Aventus Group is well placed to benefit from the reopening of the economy and a residential rebound. Peer disclosure implies rental abatements of 32-37% over the lockdowns and the broker has applied the same assumption for Aventus.

The broker also suggests Aventus' higher quality portfolio implies upside risk. Gearing is elevated, but asset values are relatively defensive, the broker notes, and on an 8% plus yield and -12% discount to net tangible asset value.

The broker sees the stock as a sustainable longer term discretionary play. Upgrade to Outperform from Neutral, target rises to $2.57 from $2.43.

Target price is $2.57 Current Price is $2.16 Difference: $0.41
If AVN meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.25, suggesting upside of 4.3% (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 BGL as Outperform (1) -

Bellevue Gold has intersected high-grade gold mineralisation at the Government Well prospect, 7km to the north of the Bellevue Gold Project, the broker reports, and will release an upgraded resource for Bellevue in the coming weeks.

Bellevue results continue to impress the broker and opportunities to fast-track development of the project are firming. Outperform retained, target rises to $1.20 from 90c.

Target price is $1.20 Current Price is $0.99 Difference: $0.21
If BGL meets the Macquarie target it will return approximately 21% (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

Macquarie rates CGF as Neutral (3) -

The Australian annuity market is facing various challenges in a lower-for-longer interest rate world, the broker suggests, which is benefiting equities as the alternative.

While a longer term theme of an ageing population is supportive, the US experience suggests the attractiveness of annuities for retail investors could decline.

The broker forecasts longer term earnings growth for Challenger, and lifts its target to $4.80 from $4.50, but retains Neutral for now.

Target price is $4.80 Current Price is $5.11 Difference: minus $0.31 (current price is over target).
If CGF meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.59, suggesting downside 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

Ord Minnett rates CLH as Lighten (4) -

Ord Minnett adjusts earnings forecasts following the delayed release of the first half result. Collection House has breached debt covenants and entered into a standstill agreement with lenders until September 2020.

The broker assesses the stock will likely remain in suspension until a recapitalisation process is finalised. Lighten rating and $1 target retained.

Target price is $1.00 Current Price is $1.09 Difference: minus $0.09 (current price is over target).
If CLH meets the Ord Minnett target it will return approximately minus 8% (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: -1.0

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

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

UBS initiates coverage on Centuria Capital with a Buy rating and $2.34 target. This will expand the breadth of the broker's real estate coverage.

The company is considered well-positioned to take advantage of strong demand for yield income. Rapid growth is expected to continue.

Nevertheless, UBS considers the best leverage to growth in the real estate sector is through investing in the fund managers.

Target price is $2.34 Current Price is $1.91 Difference: $0.43
If CNI meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

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

Macquarie rates COE as Outperform (1) -

After a presentation from Cooper Energy, the broker believes commissioning issues at Sole will be overcome, production and cash flow will turn around and the balance sheet will de-lever, supported by lower borrowing costs.

There is also potential upside from projects in Otway and Gippsland. Target rises to 60c from 50c, Outperform retained.

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

Current consensus price target is $0.55, suggesting upside of 34.1% (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 CPU as Downgrade to Sell from Neutral (5) -

Challenges are expected to prevail in the short term but potential positives remain down the track, Citi ascertains. The broker believes a rebound in earnings is unlikely until FY22.

Revenue growth in US mortgage servicing is expected to slow materially amid an inability to collect fees during forbearance as well as lower margin income.

The broker downgrades to Sell from Neutral. Target is lowered to $12.00 from $12.40.

Target price is $12.00 Current Price is $12.89 Difference: minus $0.89 (current price is over target).
If CPU 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 $12.19, suggesting downside of -5.4% (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: -0.1

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

Credit Suisse rates CSL as Outperform (1) -

Collection costs in the plasma industry are rising. Credit Suisse forecasts the Behring FY21 gross margin will contract -130 basis points, to 58.5%.

Factoring in higher collection costs, Credit Suisse lowers earnings estimates by -2-3% in FY21-22 and assesses, compared with history, CSL screens cheaply on a PE relative basis.

Outperform maintained. Target is reduced to $323 from $329.

Target price is $323.00 Current Price is $284.19 Difference: $38.81
If CSL meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $311.67, suggesting upside of 9.7% (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

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

Credit Suisse increases gold price forecasts for 2020-22, again. Fundamentals underpinning the gold sector include low and negative yields, a weakening US dollar and expectations that significant fiscal stimulus from various governments will ultimately be highly inflationary.

Evolution Mining's rating is upgraded to Outperform from Neutral and the target is raised to $5.65 from $4.85.

Target price is $5.65 Current Price is $5.51 Difference: $0.14
If EVN meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.99, suggesting downside of -9.4% (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

Macquarie rates FBU as Neutral (3) -

Fletcher Building has reached a covenant agreement with its lenders which brings additional headroom out to the December 2021 test date, the broker reports.

In return, the company agrees not to pay a dividend until it returns to compliance with normal covenant levels. Management expects to be in compliance by June 2020.

The broker is reviewing its forecasts as a result. For now, Neutral and NZ$4.03 target retained.

Current Price is $3.66. Target price not assessed.

Current consensus price target is $3.59, suggesting downside of -1.9% (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: 0.0

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

Macquarie rates GEM as Underperform (5) -

G8 Education now moves from a period of free child care and JobKeeper back to government child care subsidy and co-payments, with a "transition payment" in between, which, the broker suggests, provides a "material" buffer against occupancy shifts.

However, demand for child care will likely be volatile ahead, the broker warns, while supply remains an ever present issue. Quality of assets is thus key. Given the uncertainties, the broker retains Underperform. Target rises to 80c from 78c.

Target price is $0.80 Current Price is $0.98 Difference: minus $0.18 (current price is over target).
If GEM meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.24, suggesting upside of 26.3% (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

Credit Suisse rates GNC as Outperform (1) -

The improving crop outlook along with a lower cost structure makes Graincorp an interesting proposition, Credit Suisse asserts.

The broker expects a positive reaction to the June crop forecasts from government forecaster ABARES, as upside is predicated on the outlook for winter rain.

A strengthening Australian dollar is a marginal headwind to trading performance. Credit Suisse retains an Outperform rating and $4.72 target.

Target price is $4.72 Current Price is $4.25 Difference: $0.47
If GNC meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.57, suggesting upside of 7.4% (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

Morgans rates GNC as Hold (3) -

The 2020/21 east coast winter grain crop is forecasted by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) to be above average at 20.2mt.

If this proves to be correct, Graincorp will have to shell out -$39.5m to pay its insurer under the crop production contract, reports Morgans, which may rise up to -$76m.

Morgans notes the crop production contract, while shielding it from a poor season, can also put a cap on the upside. FY21 will be impacted by low carry-in grain due to the impact of last year’s drought.

Overall, FY21 operating income is expected to increase by 11.7%. Morgans holds onto its Hold rating with target price increased to $4.25 from $3.56.

Target price is $4.25 Current Price is $4.25 Difference: $0
If GNC meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $4.57, suggesting upside of 7.4% (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

Citi rates HVN as Buy (1) -

The strength of sales continues to surprise Citi, with growth likely peaking for Australian franchisees in April and May at around 35%. A moderation in June is expected as pandemic restrictions ease.

Most retailers have flagged elevated costs from trading through the pandemic period, given staffing, cleaning and supply chain costs, although the broker points out Harvey Norman has not quantified costs.

Citi maintains a Buy rating and raises the target to $4.50 from $3.70.

Target price is $4.50 Current Price is $3.69 Difference: $0.81
If HVN meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $3.98, suggesting upside of 7.8% (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 HVN as Neutral (3) -

Normally, Credit Suisse would not hold Harvey Norman during a period of declining house prices but current circumstances are far from normal.

The broker suspects stronger domestic expenditure is likely to support household goods sales for the remainder of 2020.

The broker remains happy to hold the stock into the FY20 result and monitor developments on immigration and housing risks. Neutral maintained. Target is $4.17.

Target price is $4.17 Current Price is $3.69 Difference: $0.48
If HVN meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.98, suggesting upside of 7.8% (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

Macquarie rates HVN as Outperform (1) -

The lockdown period saw Harvey Norman trade as a "discretionary staple", the broker suggests, and following yesterday's trading update the broker believes the company is well placed to continue to outperform through the crisis. Offshore results suggest strong online traction during store closures.

Despite recent share price strength, valuation remains -20% below the stock's relative long term average PE, the broker notes. Outperform retained, target rises to $4.20 from $3.80.

Target price is $4.20 Current Price is $3.69 Difference: $0.51
If HVN meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.98, suggesting upside of 7.8% (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

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

Harvey Norman has revealed strong trading up to May 31. Australian franchisee sales have been significantly ahead of Morgan Stanley's forecasts and trading in other markets has been resilient despite store closures.

The company has also announced a fully franked special dividend of $0.06 will be payable June 29.

Morgan Stanley retains an Equal-weight rating, $3.00 target and Cautious industry view.

Target price is $3.00 Current Price is $3.69 Difference: minus $0.69 (current price is over target).
If HVN meets the Morgan Stanley target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.98, suggesting upside of 7.8% (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

Ord Minnett rates HVN as Hold (3) -

Harvey Norman has indicated strong sales growth in franchising operations in the five months to May. A special dividend has also been declared after the interim dividend was cancelled in April because of pandemic-related uncertainty.

Ord Minnett remains cautious about the outlook as sales have likely been brought forward and the consumer environment is uncertain. Hold retained. Target is raised to $3.75 from $3.00.

Target price is $3.75 Current Price is $3.69 Difference: $0.06
If HVN meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.98, suggesting upside of 7.8% (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

Citi rates IDX as Buy (1) -

The company has announced the acquisition of Ascot Radiology for NZ$50m and also highlighted an improvement in market conditions. As expected, revenue declined significantly in April followed by improvement in May and June.

Citi expects the acquisition will be 4.5% accretive to FY21. The broker increases FY20 estimates for earnings per share by 18% and raises the target to $4.90 from $4.85. Buy maintained.

Target price is $4.90 Current Price is $4.11 Difference: $0.79
If IDX meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.42, suggesting upside of 7.6% (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 IDX as Downgrade to Neutral from Outperform (3) -

The company provided a strong trading update, with Credit Suisse noting the resilience of end markets. The company has acquired Ascot Radiology in New Zealand for $48m which, while not cheap, is a sensible acquisition, in the broker's opinion.

Revenue has recovered from the April trough and is approaching pre-pandemic levels. Credit Suisse makes material upgrades to estimates but downgrades to Neutral from Outperform on valuation grounds. Target rises to $4.30 from $3.15.

Target price is $4.30 Current Price is $4.11 Difference: $0.19
If IDX meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.42, suggesting upside of 7.6% (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 IDX as Outperform (1) -

An update from Integral Diagnostics revealed improving volume trends as restrictions ease, albeit variations across the Tasman given more substantial measures originally placed in NZ, the broker notes.

Revenue declined from pre-virus levels by -24-50% in April, improving to -5-16% in May, and now positive in June to date.

The company also announced the acquisition of Ascot Radiology in NZ, which the broker sees as consistent with management's growth strategy as it expands the service offering in Auckland. Target rises to $4.90 from $4.55, Outperform retained.

Target price is $4.90 Current Price is $4.11 Difference: $0.79
If IDX meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.42, suggesting upside of 7.6% (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 IDX as Buy (1) -

While April experienced a material decrease in patient volumes, the company noted a meaningful pick up in May. The recovery continues into June. This has provided confidence to execute on the acquisition of NZ-based Ascot Radiology.

Ord Minnett assesses the practice fits well with the company's existing NZ business and offers a high degree of sub-specialisation. Ord Minnett retains a Buy rating and $4.61 target.

Target price is $4.61 Current Price is $4.11 Difference: $0.5
If IDX meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.42, suggesting upside of 7.6% (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 IPH as Upgrade to Add from Hold (1) -

IPH announced the acquisition of New Zealand based Baldwins Intellectual Property for circa $7.4m, considered a strategically sound move by Morgans.

The broker also expects patent filing activity in the second half to be down with a weak final quarter. Overall, FY20 operating income is expected to go down by -1.5% to $114.5m while FY21-22 forecasts stand reduced.

Despite this, the company is well-positioned and operates in a defensive sector, notes the broker.

Morgans upgrades its rating to Add from Hold. Target decreased to $8.69 from $9.78.

Target price is $8.69 Current Price is $7.81 Difference: $0.88
If IPH meets the Morgans target it will return approximately 11% (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

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

The outlook for housing appears better than UBS feared but a downturn is still expected. House prices, the largest driver of retail sales, are expected to fall -5-10% and FY21 household goods sales are expected to fall -4%.

Following recent outperformance, JB Hi-Fi is downgraded to Neutral from Buy as the share appears to be factoring in large upgrades for FY20/21, the broker comments. Target is raised to $44 from $40.

Target price is $44.00 Current Price is $40.44 Difference: $3.56
If JBH meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $37.33, suggesting downside of -7.7% (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

Credit Suisse rates KGN as Neutral (3) -

The company will conduct a $115m equity raising, which surprised Credit Suisse. The intention is to provide additional flexibility to pursue acquisitions but, the broker points out, this is temporarily dilutive, being conducted in anticipation of a transaction.

The recent acquisition of Matt Blatt and its immediate re-launch as a pure online retailer demonstrates to the broker the availability of quality brands and the opportunity to benefit from consolidation of the sector.

Neutral maintained. Target is reduced to $11.72 from $11.82.

Target price is $11.72 Current Price is $13.18 Difference: minus $1.46 (current price is over target).
If KGN meets the Credit Suisse target it will return approximately minus 11% (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: 0.0

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

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

Credit Suisse increases gold price forecasts for 2020-22, again. Fundamentals underpinning the gold sector include low and negative yields, a weakening US dollar and expectations that significant fiscal stimulus from various governments will ultimately be highly inflationary.

The broker prefers the large gold stocks such as Northern Star and believes it offers the best value. Rating is upgraded to Outperform from Neutral and the target is raised to $14.70 from $13.00.

Target price is $14.70 Current Price is $13.88 Difference: $0.82
If NST meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $13.63, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in July.

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 OZL as Overweight (1) -

Morgan Stanley assesses the downside risks have eased and the market is now looking at the medium-longer term growth. There are several opportunities which could add significant value over time, in the broker's view.

These include expansion at Prominent Hill, West Musgrave and the block cave at Carrapateena. Overweight retained. Target is raised to $12.60 from $10.00. Industry view: In Line.

Target price is $12.60 Current Price is $10.28 Difference: $2.32
If OZL meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $10.49, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in December.

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 PGL as Neutral (3) -

After a largely normal March quarter, the wheels fell off for Prospa Group in April-May as underwriting was tightened, the broker notes. Net originations were well down and while hardship has now peaked it remains above 30%, with 5500 customers on deferrals of various degree.

The good news is cost are expected to be -32% lower in the quarter and the broker believes Prospa is doing all the right things under the circumstances, but uncertainty means no FY20 guidance, and the broker remaining on Neutral with a 94c target for now until the outlook becomes clearer.

Target price is $0.94 Current Price is $1.26 Difference: minus $0.32 (current price is over target).
If PGL meets the Macquarie target it will return approximately minus 25% (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: 0.0

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

UBS rates PGL as Neutral (3) -

The update was positive relative to UBS expectations. Given the more tempered approach to lending, the broker reduces revenue forecasts as well as credit impairments.

While around 33% of customers are on pandemic relief packages most are expected to be removed by the end of July.

However, greater evidence of the sustainability of the current economic recovery is required to support a more positive view.

Neutral retained. Target is raised to $1.40 from $0.90.

Target price is $1.40 Current Price is $1.26 Difference: $0.14
If PGL meets the UBS target it will return approximately 11% (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

Ord Minnett rates RWC as Accumulate (2) -

Ord Minnett increases sales and earnings estimates for the Americas following positive updates from retail distributors.

This is broadly offset by lower margins in Europe, the Middle East and Africa following a difficult April and slower recovery in May.

Accumulate retained. Target is raised to $3.50 from $3.20.

Target price is $3.50 Current Price is $3.03 Difference: $0.47
If RWC meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.20, 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

Macquarie rates S32 as Downgrade to Underperform from Neutral (5) -

Commodity price weakness is continuing to increase downside risk against Macquarie's forecasts and now currency is becoming a major headwind. The majority of South32's commodities are trading below the broker's FY21 forecasts and all are below for FY22.

Under current spot prices, earnings would fall in excess of -60% from the broker's forecast. Hence a downgrade to Underperform from Neutral. Target unchanged at $1.90.

Target price is $1.90 Current Price is $2.18 Difference: minus $0.28 (current price is over target).
If S32 meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.38, suggesting upside of 9.2% (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: 0.6

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

Credit Suisse rates SIQ as Outperform (1) -

First quarter novated leasing revenue revealed ongoing outperformance compared with new car sales and was broadly in line with the prior corresponding quarter. Credit Suisse notes salary packaging has been resilient.

Cost containment measures have been implemented. The guidance update for the first half, with around $32m in net profit expected, is a clear positive, in the broker's view.

Outperform rating maintained. Target is raised to $7.50 from $5.90.

Target price is $7.50 Current Price is $6.43 Difference: $1.07
If SIQ meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $7.51, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in December.

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 SIQ as Outperform (1) -

With varied performance across the March and June quarters there is uncertainty in Smartgroup's outlook, the broker suggests. The company has seen increased inquiries in recent weeks, but these remain below historical levels.

A range of cost cutting measures has been implemented. The broker nonetheless increases FY20 forecast earnings by 30% to reflect improving trends and lower costs.

Target rises to $6.97 from $5.76, Outperform retained on a capital-light, low-debt business model with a stable customer base.

Target price is $6.97 Current Price is $6.43 Difference: $0.54
If SIQ meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $7.51, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in December.

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 SIQ as Add (1) -

Smartgroup Corp had a flat FY20 first quarter with operating income down -37.4% over April/May. The company has guided towards a first-half net profit of circa $32m.

Morgans expects earnings to improve after the second quarter, although points out temporary costs and lower insurance earnings will adversely impact the company.

Overall, the broker is positive about the company with factors like a strong balance sheet and lease volume recovery working in its favour.

The broker maintains its Add rating based on hopes of recovery in the short term. Target price increased to $7.20 from $6.95.

Target price is $7.20 Current Price is $6.43 Difference: $0.77
If SIQ meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $7.51, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in December.

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 SKI as Hold (3) -

The Australian Energy Regulator’s (AER) final decision allows SA Power Networks (SAPN) to recover $3.914bn in revenues over 2020-25. This applies to SAPN's regulated revenue (which forms 75% of SAPN’s total revenue). SAPN in turn constitutes a substantial amount of Spark Infrastructure's group revenue.

The regulator’s decision was weaker than expected by Morgans, with first-year revenue reduced to the tune of -9%. The broker expects a substantial amount of SAPN’s asset base to reach end of life, necessitating heavy replacement capex that will put downward pressure on credit metrics. 

FY22 operating cashflows, operating income and dividends are expected to fall. Morgans reiterates its Hold rating with target price decreased to $2.03 from $2.05

Target price is $2.03 Current Price is $2.09 Difference: minus $0.06 (current price is over target).
If SKI 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 $2.19, suggesting upside of 4.5% (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 SXY as Outperform (1) -

A presentation from Senex Energy revealed Surat CSG operations have performed very well, surpassing management expectations, and there is potential for further production growth and reserves upside.

The broker believes Senex has lowered its risk profile with the re-focus on Queensland CSG, and project delivery has been exceeding expectations.

Outperform retained on 30% upside to the broker's net asset valuation-based target price, which is raised to 35c from 29c.

Target price is $0.35 Current Price is $0.26 Difference: $0.09
If SXY meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $0.36, suggesting upside of 37.8% (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

UBS rates TPM as Neutral (3) -

UBS believes the merger with Vodafone Hutchison Australia should solve a number of problems for both companies and is considered highly complementary.

For TPG Telecom a merger is less risky than a stand-alone mobile network roll-out and solves the NBN "earnings hole". On the other hand, for Vodafone Australia, the merger leverages the fibre infrastructure and solves balance sheet issues.

At the current share price, UBS believes the risks are balanced and retains a Neutral rating. Target is reduced to $8.00 from $8.40.

Target price is $8.00 Current Price is $8.05 Difference: minus $0.05 (current price is over target).
If TPM meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.09, suggesting upside of 0.5% (ex-dividends)

The company's fiscal year ends in July.

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 VVA as Buy (1) -

The company expects more than 90% of its clubs will be operating at full capacity heading into FY21. Ord Minnett asserts the company has done a good job managing through the crisis and holding onto more than 85% of its members while reducing operating cash burn to nil.

Having previously assumed more onerous shutdown measures, the broker increases estimates for earnings per share for FY21 by 8% and FY22 by 5%. Buy maintained. Target rises to $3.78 from $3.00.

Target price is $3.78 Current Price is $2.62 Difference: $1.16
If VVA meets the Ord Minnett target it will return approximately 44% (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 WOR as Buy (1) -

FY20 sales and earnings may miss expectations but Citi expects after FY21 a sharp rebound is likely. The broker notes its opinion differs with regard to the extent of deferred activity.

The backlog of maintenance activity, easing productivity issues and resurgent oil prices as well as cost reductions are likely to shape the recovery.

Hence, Citi is constructive about the outlook. Buy/High Risk retained. Target rises to $13.65 from $12.20.

Target price is $13.65 Current Price is $9.57 Difference: $4.08
If WOR meets the Citi target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $11.38, suggesting upside of 18.9% (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 WOR as Outperform (1) -

Activity was down -6% in April and May. Management expects the delayed work will ultimately be performed. Cash collection is slightly ahead of expectations and activity is expected to bounce back by the start of 2021.

Credit Suisse notes most of the focus of the briefing was on the opportunity for the company to help customers with energy transition, digitisation, climate change and the circular economy.

Energy transition is expected to be a significant part of the business within 3-5 years. Outperform retained. Target rises to $11.30 from $10.50.

Target price is $11.30 Current Price is $9.57 Difference: $1.73
If WOR meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $11.38, suggesting upside of 18.9% (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

Macquarie rates WOR as Outperform (1) -

Worley's investor day revealed activity is resilient so far, and a cost-out program is underway. The broker has increased earnings forecasts to reflect lower costs, and now applies a PE to discounted cash flow average valuation to better reflect longer term recovery prospects.

The company has acted quickly in managing costs, the broker notes, and has plenty of levers it can yet pull, along with ample liquidity. Target rises to $12.31 from $10.32, Outperform retained.

Target price is $12.31 Current Price is $9.57 Difference: $2.74
If WOR meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $11.38, suggesting upside of 18.9% (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

Morgan Stanley rates WOR as Downgrade to Underweight from Equal-weight (5) -

Morgan Stanley considers the period ahead is uncertain and it is unclear how revenue and margins will adjust.

Worley focused its investor briefing on the transition to new energy, which sets up long-term investment fundamentals but is less likely to be a driver of earnings momentum in the short term.

Hence, relative to other energy coverage, Morgan Stanley downgrades to Underweight from Equal-weight. Target is $8.40. Industry view is Cautious.

Target price is $8.40 Current Price is $9.57 Difference: minus $1.17 (current price is over target).
If WOR meets the Morgan Stanley target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.38, suggesting upside of 18.9% (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

Ord Minnett rates WOR as Hold (3) -

Worley hosted a 2020 investor briefing and reiterated a view that it is now less reliant on oil markets, while the impact of the pandemic on its business appears to be more muted than Ord Minnett expected.

The broker likes the focus on energy transition, although acknowledges the macro environment is challenging. Hold retained. Target rises to $10.85 from $8.30 as earnings forecasts are revised significantly.

Target price is $10.85 Current Price is $9.57 Difference: $1.28
If WOR meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $11.38, suggesting upside of 18.9% (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

UBS rates WOR as Buy (1) -

A new $275m cost reduction program will be realised by December 2021 and the medium-term strategy is to focus on energy transition projects. Currently, chargeable hours are continuing to decline because of the pandemic and oil price volatility.

Worley has responded by reducing its personnel by -8% since January. UBS expects group revenue will decline -15% over FY20-22 so the cost reduction program is consistent with "rightsizing" the business.

Buy rating maintained. Target is raised to $11.75 from $10.82.

Target price is $11.75 Current Price is $9.57 Difference: $2.18
If WOR meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $11.38, suggesting upside of 18.9% (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