Australian Broker Call

Macquarie rates AMI as Outperform (1) -

Macquarie found the second quarter result mixed with production short on expectations and sales ahead. FY20 guidance has been maintained.

The broker expects production to improve as the Peak processing upgrade comes online and base metal capacity is increased.

Gaining access to the high-grade Kairos zone should sweeten gold grades as well, in the broker's view.

Outperform rating maintained. Target is $0.65.

Target price is $0.65 Current Price is $0.48 Difference: $0.17
If AMI meets the Macquarie target it will return approximately 35% (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

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

December quarter production delivered on 2019 guidance. Credit Suisse was pleased with the commissioning of sulphide production although this was at the lower end of guidance.

The 2020 guidance, for 310-360,000 ounces, at the high end is below the broker's current 2020 sulphide forecast.

Nevertheless, Credit Suisse is not concerned about its current modelling of 2020 production as there is potential upside from oxide.

Rating is downgraded to Neutral from Outperform on valuation. Target is unchanged at $7.20.

Target price is $7.20 Current Price is $6.96 Difference: $0.24
If AQG meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $8.63, suggesting upside of 24.0% (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: 0.7

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

Macquarie rates AQG as Outperform (1) -

2019 production was in line with expectations. 2020 production guidance of 310-360,000 ounces is materially weaker than Macquarie expected while cost forecasts (AISC) of US$735-785/oz are higher.

Macquarie lowers 2019 estimates for earnings per share by -13% and 2020 by -28%. This lowers the target -5% to $9.20. Outperform maintained.

Target price is $9.20 Current Price is $6.96 Difference: $2.24
If AQG meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $8.63, suggesting upside of 24.0% (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: 0.7

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

UBS rates AQG as Buy (1) -

Alacer Gold has reported Dec Q production, 2020 guidance and a ten-year production plan. The broker finds the latter the most material, as it implies a potential $2 per share valuation increase on the broker's current $8.90 base case.

This is not priced in, so the broker suggests Alacer has the capacity to outperform peers over time as this plan is de-risked. Buy and $9.50 target retained.

Target price is $9.50 Current Price is $6.96 Difference: $2.54
If AQG meets the UBS target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $8.63, suggesting upside of 24.0% (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: 0.7

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

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

The company will exit its 45% stake in BIC Contracting that operates in the Middle East. Weakening market conditions in the region were cited as well as a desire to focus on opportunities in the main geographies of Australasia and Asia-Pacific.

Cost of the exit is higher than Credit Suisse expected, with a P&L post-tax impact of around -$1.8bn in 2019 and a cash impact of -$700m in 2020. The final dividend for 2019 has been cancelled.

The decision to exit removes an overhang from a known issue and Credit Suisse believes the extent of the sell off in the shares provides a buying opportunity. Rating is upgraded to Outperform from Neutral. Target is reduced to $35 from $36.

Target price is $35.00 Current Price is $28.98 Difference: $6.02
If CIM meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $35.23, suggesting upside of 21.5% (ex-dividends)

The company's fiscal year ends in December.

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 CIM as Neutral (3) -

The company will exit the Middle East, noting an accelerated deterioration in local market conditions. No final dividend will be declared for 2019. Macquarie assumes a dividend will be paid in the first half of 2020 as retained earnings recover.

The broker needs to witness delivery of improved cash conversion and positive construction growth in the core business in order to re-rate the stock. The company will report its 2019 results on February 4.

Target is reduced to $32.49 from $35.00 and a Neutral rating is maintained.

Target price is $32.49 Current Price is $28.98 Difference: $3.51
If CIM meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $35.23, suggesting upside of 21.5% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates CIM as Neutral (3) -

Cimic's exit of its Middle East business comes at a cost that will deny shareholders a dividend. The broker "conservatively" assumes Cimic will not pay the next dividend either in order to restrengthen its balance sheet.

The broker is far from sad to see the long troubled Middle East business go. Cimic is a dominant player in the Australian infrastructure construction market for which the outlook is considered rosy. Target falls to $30.41 from $35.80, Neutral retained.

Target price is $30.41 Current Price is $28.98 Difference: $1.43
If CIM meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $35.23, suggesting upside of 21.5% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates CWN as Neutral (3) -

Citi remains cautious on the outlook for the Australian casino industry, see also the broker's update from November 18, 2019. On a three year horizon, the analysts are willing to call out "value" for investors willing to be patient, and take a three year view beyond the current poor free cash flow environment.

Crown Resorts is the sector favourite as it is expected to offer a 7.4% free cash flow yield with a net cash balance sheet by FY22. On a twelve month view, the rating remains Neutral with a $13 price target, up from $12.80.

Target price is $13.00 Current Price is $12.04 Difference: $0.96
If CWN meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $12.13, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

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 DOW as Buy (1) -

While the downgrade to guidance is disappointing, Citi maintains a Buy rating and expects most of the issues will be contained to FY20.

Contracting is inherently risky but the broker expects the re-positioning of the business away from fixed-price construction will reduce risk in FY21 and beyond.

Moreover, the sale of the mining and/or laundries business could be a positive catalyst. Target is reduced to $8.00 from $8.80.

Target price is $8.00 Current Price is $7.60 Difference: $0.4
If DOW meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $8.01, suggesting upside of 5.4% (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

Credit Suisse rates DOW as Downgrade to Underperform from Neutral (5) -

The company has reduced FY20 net profit guidance to $300m from $365m, representing a -18% reduction. The downgrade stems from the issues being faced by the ECM and mining businesses.

A small number of loss-making ECM construction contracts and lower forecast revenue as well as a delay in two mining projects contributed.

As management has historically taken pride in meeting guidance, Credit Suisse suspects the downgrade to profit is likely to be taken poorly by investors and it may take a while for confidence to recover.

Rating is downgraded to Underperform from Neutral and the target lowered to $7 from $8.

Target price is $7.00 Current Price is $7.60 Difference: minus $0.6 (current price is over target).
If DOW meets the Credit Suisse target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.01, suggesting upside of 5.4% (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

Macquarie rates DOW as Outperform (1) -

The company has revised down FY20 net profit guidance by -18%. ECM is the largest driver of the downgrade, with a -$43m pre-tax impact from underperforming projects and a -$20m impact from lower revenue.

Macquarie asserts that buying the stock after a large sell-off in the past has proven profitable on a 12-month view and retains an Outperform rating. Target is reduced to $7.88 from $8.65. A well performing mining business also improves sale prospects, the broker adds.

Target price is $7.88 Current Price is $7.60 Difference: $0.28
If DOW meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $8.01, suggesting upside of 5.4% (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

UBS rates DOW as Neutral (3) -

Yet again Downer EDI has suffered underperformance in its Engineering, Construction and Maintenance (ECM) business, leading to a significant earnings guidance downgrade and concerns over EC&M projects going forward, the broker notes. Investors will be focused on the company's review of the division, and its future.

On the positive side, Downer is progressing the sale of its Laundries and Mining businesses, with more detail expected at its result next month. The broker foresees a more capital-light urban services model that targets a more stable earnings base and reliable cash flows. Neutral retained, target falls to $7.69 from $8.15.

Target price is $7.69 Current Price is $7.60 Difference: $0.09
If DOW meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $8.01, suggesting upside of 5.4% (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

Morgans rates GDG as Add (1) -

Inflows in the December quarter of $85m were up 43% and represented the second highest quarter on record for the company. Morgans increases forecasts for FY20 and FY21 earnings per share by 2-8%.

The broker believes the company is on track to deliver a compound earnings growth story over time. Add rating maintained. Target is increased to $0.97 from $0.83.

Target price is $0.97 Current Price is $0.90 Difference: $0.07
If GDG meets the Morgans 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: 1.0

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

Citi rates GXY as Neutral (3) -

Production and sales were largely in line with pre-reported volumes. Because of weak market conditions, the company is scaling back Mount Cattlin operations and now expects to produce 90-105,000t of spodumene concentrate in 2020.

Citi notes the outlook for pricing remains weak with realisations in the first quarter of 2020 expected in the mid US$400/t region. Neutral/High Risk rating maintained. Target is raised to $1.20 from $1.00.

Target price is $1.20 Current Price is $1.11 Difference: $0.09
If GXY meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 1.4% (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: 0.1

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

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

Costs disappointed Morgan Stanley in the December quarter, affected by the DMS trials that were called off. 2020 production guidance is lower than previously outlined.

The broker notes industry wide de-stocking is still required, making recent movements in lithium stocks premature. The company did not provide guidance on 2020 shipments, which the broker suspects will be dependent on market demand.

Equal-weight rating retained. Target is $0.95. Industry View: In-Line.

Target price is $0.95 Current Price is $1.11 Difference: minus $0.16 (current price is over target).
If GXY meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.13, suggesting upside of 1.4% (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: 0.1

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

Ord Minnett rates GXY as Accumulate (2) -

The company has decided to run Mount Cattlin at 50% capacity with spot spodumene prices at just US$450/t.

Ord Minnett decreases its valuation by -7% because of lower spodumene prices and Mount Cattlin production, leading to a reduction in the target to $1.30 from $1.40.

The Sal de Vida project in Argentina still makes up around 70% of valuation and FID is due early in the second half of 2020. Accumulate rating maintained.

Target price is $1.30 Current Price is $1.11 Difference: $0.19
If GXY meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 1.4% (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: 0.1

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

UBS rates GXY as Neutral (3) -

Galaxy Resources reported Dec Q production down -14% from the prior quarter but up 28% from last year. Sales missed guidance, down -49% from the prior quarter and -25% from last year. Costs exceeded the broker's forecast by 5%.

The miner will focus on value over volume by scaling back production and meeting contract obligations with stockpiles. Lithium demand is expected to improve after Chinese NY, the broker notes, but remain tempered. Galaxy nonetheless remains confident in Chinese EV growth.

The broker retains neutral and a $1.00 target.

Target price is $1.00 Current Price is $1.11 Difference: minus $0.11 (current price is over target).
If GXY meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.13, suggesting upside of 1.4% (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: 0.1

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

Macquarie rates KLL as Outperform (1) -

The completion of Beyondie had progressed to 24% by the end of December with more than $200m of the $216m in projected costs being committed. Phase 1 commissioning is on track for late 2020.

Incorporating the cash flow statement and forecasts for the third quarter, means Macquarie's FY20 estimates for earnings per share fall -55%. An Outperform rating and $0.95 target are maintained.

Target price is $0.95 Current Price is $0.51 Difference: $0.44
If KLL meets the Macquarie target it will return approximately 86% (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 MPL as Lighten (4) -

Insurers are signalling rising claims inflation, announcing reserve increases relating to FY19 provisions which are expected to impact profitability in the first half of FY20.

Ord Minnett awaits comments from insurers regarding their ability to deal with the pressure on gross margins in the short term in the absence of reforms by the government.

Lighten rating maintained. Target is reduced to $2.90 from $3.05.

Target price is $2.90 Current Price is $3.16 Difference: minus $0.26 (current price is over target).
If MPL meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.99, suggesting downside of -5.5% (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 MRM as Equal-weight (3) -

Morgan Stanley notes some stabilisation in the business over the past few years and signs of a recovery in offshore oil and gas. Still, the operating environment remains challenging and will continue to put pressure on service providers such as MMA Offshore.

Morgan Stanley envisages the business returning to positive earnings in FY22 on the back of improved utilisation and day rates.

Equal-weight retained. Industry-view In-Line. Target is reduced to $0.18 from $0.31.

Target price is $0.18 Current Price is $0.18 Difference: $0
If MRM meets the Morgan Stanley target it will return approximately 0% (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 NHF as Hold (3) -

Ord Minnett prefers nib Holdings over Medibank Private ((MPL)) largely because of valuation. Given the recent underperformance the broker suggests some value is emerging.

A Hold rating is maintained while the target is cut to $6.06 from $6.27. Both insurers have indicated margins are under pressure and the broker seeks more information on the sources of the pressures.

Target price is $6.06 Current Price is $5.49 Difference: $0.57
If NHF meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.80, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Macquarie rates NSR as Underperform (5) -

The company has received a non-binding proposal from Gaw Capital Partners. No price was disclosed.

Macquarie notes improving residential markets have, historically, not benefited the company's portfolio and there is limited upside for investors.

The broker considers part of the rationale for any acquirer would be cost reduction opportunities.

Underperform retained. Target is $1.54.

Target price is $1.54 Current Price is $2.16 Difference: minus $0.62 (current price is over target).
If NSR meets the Macquarie target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.79, suggesting downside of -17.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgan Stanley rates NSR as Overweight (1) -

The company has confirmed receipt of a non-binding indicative proposal from Gaw Capital Partners. This is a private equity manager focused on real estate which has acquired office and hospitality assets in Australia.

Morgan Stanley notes the share price has increased 13% so far in 2020. The broker has a positive view on the stock, predicated upon the operations deriving gains from a housing recovery.

Overweight rating and $2 target maintained. Industry view is In-Line.

Target price is $2.00 Current Price is $2.16 Difference: minus $0.16 (current price is over target).
If NSR meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.79, suggesting downside of -17.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Citi rates NWL as Buy (1) -

The company continues to attract high flows which Citi believes reflects the strength of its platform from a technological and functional perspective.

While pricing is expected to decline, the broker considers guidance remains conservative and there is upside risk to near-term earnings from better-than-expected flows.

Buy rating maintained. Target is raised to $9.65 from $9.60.

Target price is $9.65 Current Price is $8.20 Difference: $1.45
If NWL meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $7.96, suggesting downside of -2.9% (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

Credit Suisse rates NWL as Underperform (5) -

The company has signalled momentum continued in the second quarter but the upgrade to net flows will have minimal effect on profitability because of pricing pressure and ongoing investment.

Credit Suisse believes consensus earnings forecasts are too high and, given potential for negative sentiment on the cash administration fee if there is an RBA rate cut, an Underperform rating is reiterated. Target is $7.40.

Target price is $7.40 Current Price is $8.20 Difference: minus $0.8 (current price is over target).
If NWL 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 $7.96, suggesting downside of -2.9% (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

Macquarie rates NWL as Underperform (5) -

Opportunities to increase market share are robust, Macquarie assesses, but the company will struggle to meet expectations particularly in FY21 and FY22.

Hence the Underperform rating. Target is reduced to $6.00 from $6.20.

Margin compression appears to be accelerating and offsetting higher funds under administration.

Given back books are progressively moving to lower pricing, Macquarie notes the revenue being generated now is not a true reflection of the long-run yield.

Target price is $6.00 Current Price is $8.20 Difference: minus $2.2 (current price is over target).
If NWL meets the Macquarie target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.96, suggesting downside of -2.9% (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

Morgans rates NWL as Hold (3) -

Morgans assesses the business is attractive, benefiting from strong leadership, high cash generation and industry tailwinds. However, there are short-term pressures around pricing and the potential for a lower official cash rate.

Quarterly net inflows were $2.9bn, up 94.1% on the prior quarter and 228% on the previous corresponding quarter but, excluding the ANZ Private transition, net inflows were up 22% and 103% respectively.

The broker maintains a Hold rating as the stock is trading within valuation ranges. Target is reduced to $8.05 from $8.19.

Target price is $8.05 Current Price is $8.20 Difference: minus $0.15 (current price is over target).
If NWL meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.96, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

UBS rates NWL as Sell (5) -

Netwealth reported a record $2.9bn net inflows in the Dec Q, made up of $1.1bn from ANZ Private and a doubling of underlying flows from six months ago. Add in a strong market to kick off 2020 and the company has raised its funds under management outlook. Target rises to $7.65 from $7.50.

However FY20 profit guidance is unchanged, the broker notes, due to pricing pressures and accelerated reinvestment. As new competitors continue to pose downside risk, the broker retains Sell.

Target price is $7.65 Current Price is $8.20 Difference: minus $0.55 (current price is over target).
If NWL meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.96, suggesting downside of -2.9% (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 RMD as Overweight (1) -

Morgan Stanley suspects the bull case for ResMed is increasingly in play. The US Centre for Medicare & Medicaid Services has changed reimbursement rates for the company's products.

Prices in the next round will be announced mid 2020 and apply from January 1, 2021. This is the company's largest market, representing over 50% of sales.

Morgan Stanley suspects ResMed is better positioned as a large player in the current market and re-supply volumes may shield it from price pressure in 2021.

Overweight rating. Target is raised to $24.30 from $20.30. Industry view: In-Line.

Target price is $24.30 Current Price is $23.62 Difference: $0.68
If RMD meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $21.00, suggesting downside of -11.1% (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

Macquarie rates RSG as Downgrade to Neutral from Outperform (3) -

The company will raise up to $146m from institutions and $25m from its largest shareholder, with up to $25m in the share purchase plan at a -6.4% discount to the last closing price. Funds will be used to retire the US$130m bridging loan.

Macquarie acknowledges this will provide some relief to the balance sheet but the near-term performance of Syama will determine further de-leveraging capacity over 2020.

The dilution drives a reduction in the target to $1.20 from $1.40 and a downgrade to Neutral from Outperform.

Target price is $1.20 Current Price is $1.16 Difference: $0.04
If RSG meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Citi rates SGR as Sell (5) -

Citi remains cautious on the outlook for the Australian casino industry, see also the broker's update from November 18, 2019. On a three year horizon, the analysts are willing to call out "value" for investors willing to be patient, and take a three year view beyond the current poor free cash flow environment.

Star Entertainment is least preferred (favours Crown Resorts) which is expressed through a Sell rating and $4.20 price target, down from $4.30.

Target price is $4.20 Current Price is $4.39 Difference: minus $0.19 (current price is over target).
If SGR meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.73, suggesting upside of 7.6% (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 SXY as Neutral (3) -

The strong ramp up in gas production in the December quarter has been offset by softer prices. Credit Suisse suspects declining LNG netbacks stemming from weak LNG spot pricing will have limited impact on Senex Energy because of term contracting.

The broker reduces long-term pricing for uncontracted volumes to $8/gigajoule, still well above net back estimates of around $5.50/gigajoule. The broker is "warming" to the stock as the ramp up appears ahead of schedule and the higher-quality Atlas ramp up is coming in the next 18 months.

Neutral rating is maintained as a softening gas price could weigh on sentiment and there are risks still prevailing during the ramp up. Target is $0.37.

Target price is $0.37 Current Price is $0.34 Difference: $0.03
If SXY meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $0.45, suggesting upside of 33.5% (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 SXY as Outperform (1) -

Second quarter production and sales were stronger than Macquarie expected, driven by higher gas volumes at Roma North. Catalysts going forward include first sales from Project Atlas and Macquarie expects a rapid ramp up in volumes.

The drilling campaign, to be completed by mid 2020, should lead to a 18PJ/year initial production plateau by the end of FY21. Target is $0.55. Outperform maintained.

Target price is $0.55 Current Price is $0.34 Difference: $0.21
If SXY meets the Macquarie target it will return approximately 62% (excluding dividends, fees and charges).

Current consensus price target is $0.45, suggesting upside of 33.5% (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 SXY as Hold (3) -

The ramp up of Queensland gas assets has been faster than Ord Minnett expected, with Roma North and Atlas now producing a combined 20 terrajoules per day. Revenue in the December quarter was 6% ahead of estimates.

The report also highlighted a growing trend of increasing gas supply to the east coast. The company's Queensland assets are expected to add around 2-3% to gas supply. Hold rating maintained. Target rises to $0.37 from $0.36.

Target price is $0.37 Current Price is $0.34 Difference: $0.03
If SXY meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $0.45, suggesting upside of 33.5% (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