Australian Broker Call

Macquarie rates ABC as Underperform (5) -

Today the company released a 3Q20 trading update, without a formal FY20 guidance. Macquarie is of the view it's all mixed and murky and in light of this, the share price is seen as too fully priced.

The broker's FY20 profit forecast of $96.6m sits some -3% below market consensus of $99.7m. The analysts find that, while detached demand (circa 20% of group sales) is improving and engineering (circa 28%) is showing promising signs, multi-residential remains the worry, and an operational headwind (circa 10%)

The broker retains an Underperform rating with a price target of $2.20.

Target price is $2.20 Current Price is $3.16 Difference: minus $0.96 (current price is over target).
If ABC meets the Macquarie target it will return approximately minus 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.55, suggesting downside of -19.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Macquarie rates AZJ as Outperform (1) -

Macquarie notes technology and policy are challenging the proposition that coal haulage will last forever. The broker assesses Aurizon Holdings is a finite business in this regard as around 41% of the operating earnings (EBITDA) entail thermal coal.

This is particularly the issue for above-rail volume, with 58% thermal, as below rail there is lower risk, where 69% of volumes are metallurgical coal.

While this is a sunset industry it is expected to be a long sunset, the broker suggests, as metallurgical coal replacement technology is only commencing and thermal coal, whilst declining faster, will take another 15-20 years before the decline really accelerates.

The broker retains an Outperform rating and $4.70 target.

Target price is $4.70 Current Price is $4.26 Difference: $0.44
If AZJ meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.19, suggesting upside of 27.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates BOQ as Neutral (3) -

Bank of Queensland's H2 report was better-than-expected, or should that be not-as-bad-as-feared? Macquarie analysts, in an initial response, believe this might set up the share price for a positive re-rating in the aftermath.

The impairment charge proved in-line with the broker's forecast. The 12c dividend missed Macquarie's estimate of 14c.

Beyond the near-term, plenty of risks and uncertainties remain, so the broker suggests it's still best to remain cautious. Neutral retained. Target is $5.50.

Target price is $5.50 Current Price is $6.40 Difference: minus $0.9 (current price is over target).
If BOQ meets the Macquarie target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.91, suggesting downside of -12.2% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Macquarie rates CGF as Outperform (1) -

Challenger released the 1Q21 flows report and Macquarie, in an initial assessment, notes sales represent a "strong beat" while excess capital deployment is ahead of schedule.

The company also reaffirmed guidance for FY21. Macquarie finds its positive view, carried by macro-themes such as an aging population, is supported by today's market update.

Outperform rating and $4.50 target retained.

Target price is $4.50 Current Price is $4.20 Difference: $0.3
If CGF meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.35, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates CNU as Neutral (3) -

The NZ Commerce Commission has released final input methodology, broadly ratifying draft findings. Macquarie assesses Chorus appears to have some modest gains in the parameters for calculating the weighted average cost of capital.

The broker adds that, any determination of the company's fundamental value will vary materially depending on the input methodologies and ultimately on the maximum allowable revenue that the USB network is allowed to earn. This will not be finalised until the third or fourth quarter of 2021.

Hence, there remains an element of uncertainty and Macquarie retains a Neutral rating and NZ$7.65 target.

Current Price is $8.17. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: -0.3

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

UBS rates CNU as Sell (5) -

New Zealand's Commerce Commission (ComCom) released its final fibre input methodology (IM) report but UBS notes no material changes and considers the report to be valuation neutral for Chorus.

Even though the company provides short term dividend growth, the broker chooses to maintain its Sell rating as the stock trades at a circa 30% premium to the broker's price target. 

UBS maintains its Sell rating with a target price of NZ$6.75.

Current Price is $8.17. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: -0.3

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

Macquarie rates DXS as Neutral (3) -

Dexus Property Group has extended the buyback for an additional 12 months. There is 90% remaining on the 5% buyback announced in October 2019, Macquarie points out. The broker notes the company has a track record of not completing buybacks.

While the stock is now trading at a -15% discount to net tangible assets, which should increase the attractiveness of a buyback, there are two offsetting factors Macquarie assesses. The first is an FY21 yield of 5.2% that falls to 4.6% in FY22. The second is there is likely to be downside risk to asset values.

Neutral rating and $8.80 target maintained.

Target price is $8.80 Current Price is $9.20 Difference: minus $0.4 (current price is over target).
If DXS meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.35, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates EBO as Buy (1) -

EBOS Group's first-quarter of FY21 was robust, observes UBS, with group revenue up 6.5% versus last year and net profit increased by 15%. In terms of divisions, animal care was a strong contributor followed by healthcare. 

No guidance for FY21 was provided but management reiterated its dividend payout ratio of more than 60% of the net profit. UBS has increased its earnings forecasts by 4-5% for FY21-23.

The broker expects the group's strong performance to continue through FY21 with a more favourable Australian community pharmacy funding agreement. 

EBOS has acquired Cryomed Australia, a medical devices distributor, for a consideration of $14.1m. The broker expects this to be immediately earnings per share accretive.

Buy rating retained. Target rises to NZ$28.30 from NZ$27.20.

Current Price is $24.60. Target price not assessed.

Current consensus price target is $24.29, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

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

As coronavirus cases increase in the northern hemisphere, Credit Suisse extends the rate of recovery assumed for travel bookings by six months. The broker no longer expects a meaningful recovery in travel in the second half of FY21 but notes the company has ample liquidity for 2021.

As a result of the diminished potential for a recovery in the short term, the rating is downgraded to Neutral from Outperform. The target is raised to $15.31 from $14.01 because of changes to modelling of the corporate segment.

Target price is $15.31 Current Price is $14.39 Difference: $0.92
If FLT meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $13.53, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Morgans rates GDG as Add (1) -

Generation Development Group has completed a $35m capital raising to fund two strategic growth initiatives, explains Morgans.

The first is the acquisition of a 37% stake in Lonsec, a leading qualitative research firm for around $20m, which seems a reasonable price to the broker.

The second is the launch of an annuity product to address longevity risk. It seems logical to the analyst to launch a differentiated product (a market-linked annuity with higher returns) that is capital light (investment and longevity risk are not borne by the company), and which has a large addressable market.

Morgans lowers EPS estimates for FY21, FY22 and FY23 by -60%, -55% and -30%, respectively. Annuity product development costs more than offset the Lonsec accretion near term, calculates the broker. However, the price target rises on an uplift to medium-term growth assumptions.

The Add rating is is unchanged and the target price is increased to $0.97 from $0.94.

Target price is $0.97 Current Price is $0.73 Difference: $0.24
If GDG meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates HUB as Buy (1) -

Hub24's first-quarter net flows were up 10% year on year and 6% better than Citi's estimated circa $1.29bn. While the rate of growth of flows is not back to levels seen during the third quarter, Citi sees this as a strong start when considering Stage 4 lockdowns in Melbourne. 

Hub24's bulk transition of Clearview Wealth ((CVW)) is on track to be completed in FY21 and the broker sees upside risks to its FY21 net flow forecast of $6bn.

Even as HUB24’s share price had a strong run recently, Citi believes there is potential for the price to react positively to a better than expected start to the year.

Citi maintains its Buy rating with a target price of $17.55.

Target price is $17.55 Current Price is $21.22 Difference: minus $3.67 (current price is over target).
If HUB meets the Citi target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.27, suggesting downside of -11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Credit Suisse rates HUB as Underperform (5) -

HUB24 reported funds under administration of $19bn in the first quarter, up 10.4%. Inflows were positive. Credit Suisse assesses the company is now on track to deliver $5.5-6.0bn of flows per annum on an ongoing basis.

The broker reiterates an Underperform rating as, while the company is executing on the growth strategy and management is confident in the outlook, this is considered as now factored in.

Furthermore, suggests the broker, there is no accounting in current multiples for the emerging risk of a cash administration fee should the Reserve Bank of Australia cut interest rates. Target increases to $18.70 from $16.30.

Target price is $18.70 Current Price is $21.22 Difference: minus $2.52 (current price is over target).
If HUB meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.27, suggesting downside of -11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

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

Flows continue to meet or beat Macquarie's expectations. Platform margins are likely to remain under pressure, nevertheless, although a large step change is unlikely.

Trading volumes were elevated in the second half of FY20, because of heightened market volatility. The broker is now forecasting a normalisation of trading volumes.

The recent performance suggests the valuation is stretched but sustained flow momentum is expected to support the share price for the remainder of FY21.

Macquarie upgrades to Neutral from Underperform. Target is raised to $22.50 from $9.60, because of the compounding impact of upgrades to earnings per share in outer years, a higher terminal growth rate and lower discount rate.

Target price is $22.50 Current Price is $21.22 Difference: $1.28
If HUB meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $19.27, suggesting downside of -11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Citi rates JHG as Buy (1) -

Consolidation activity and the potential for it (Trian took a 9.9% stake in Janus and the Morgan Stanley/Eaton Vance deal) has helped Janus Henderson Group's share price, observes Citi.

While the broker finds it hard to determine if potential M&A interest in Janus will occur, there is a risk some of the price support will dissipate.

Janus Henderson will be releasing its third-quarter result on October 29. The broker expects the group's net fund outflows to moderate to -US$4.8bn in the third quarter although pockets of underperformance are likely to persist.

While improvement in the core business remains patchy, Citi retains its Buy rating with the target price raised to $44.20 from $36.

Target price is $44.20 Current Price is $38.79 Difference: $5.41
If JHG meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $36.68, suggesting downside of -7.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.8

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

Morgan Stanley rates MTS as Overweight (1) -

Morgan Stanley continues to consider the Australian supermarkets well-placed over the medium term on account of covid-19 tailwinds, better industry structure outlook with Kaufland no longer entering and Aldi slowing its space roll out and an attractive sector valuation in a low yield world.

With food at home trends continuing due to covid-19 induced shopping, Morgan Stanley observes Metcash seems to be outperforming the discount supermarkets.

However, the hardware business remains the driver of earnings growth for the company, comments the broker while incorporating the Total Tools acquisition in its valuation model which lifts its FY21-23 net profit forecasts for Metcash.

The broker continues to view the stock as too cheap and retains its Overweight rating. The target price rises to $3.80 from $3.70. Industry view: Cautious.

Target price is $3.80 Current Price is $2.97 Difference: $0.83
If MTS meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.42, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates NXT as Outperform (1) -

NextDC has entered into a new syndicated facility that should reduce the weighted cost of debt to below 3%.

Macquarie assesses lenders are increasingly willing to support data centre operators and assets that typically generate strong cash flow with long duration contracts and high barriers to entry.

The broker retains an Outperform rating and raises the target to $14.75 from $12.30.

Target price is $14.75 Current Price is $13.60 Difference: $1.15
If NXT meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $13.49, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Credit Suisse rates ORG as Neutral (3) -

Credit Suisse updates forecasts to account for its global oil outlook. The broker also increases FY21 forecasts for APLNG production by 1.7%.

In an absolute sense, the stock appears attractive, Credit Suisse suggests, trading at a -23% discount to the discounted cash flow valuation that incorporates a long-term Brent price of US$60/bbl and an Australian dollar at US$0.70.

However, energy markets are a negative factor as retail competition is increasing and wholesale prices are weak. Neutral maintained. Target is reduced to $4.70 from $5.30.

Target price is $4.70 Current Price is $4.38 Difference: $0.32
If ORG meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.27, suggesting upside of 43.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Citi rates ORI as Buy (1) -

Citi expects Orica's medium-term earnings growth will be underpinned by higher pricing, increased technology sales and better plant utilisation.

The broker believes headwinds will persist in the first half of FY21 with ammonium nitrate volumes remaining soft due to softer mining activity on account of covid-19.

According to Citi's explosives survey, miners expect volumes to normalise in 2021. The broker expects the first-half volume will decrease by -2% versus last year. 

Citi retains its Buy rating with the target price rising to $19.50 from $18.30.

Target price is $19.50 Current Price is $16.50 Difference: $3
If ORI meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $18.18, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in September.

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 SSM as Outperform (1) -

Service Stream has extended its agreement with NBN Co. This is for an additional six month period from the end of December 2020 and there is an option to extend for a further six months to December 2021.

The company will participate in the NBN commercial procurement process to support a longer agreement being secured post this extension.

Separately, Macquarie is encouraged by the federal budget confirmation of $4.5bn in expenditure for the NBN upgrade. Outperform rating and $2.72 target retained.

Target price is $2.72 Current Price is $2.18 Difference: $0.54
If SSM meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates SXY as Buy (1) -

Senex Energy's total group sales volumes in the first quarter of FY21 were 2% higher than Citi’s forecast and showed a 10% increase versus last quarter. Revenue was -18% lower than Citi's estimated $31m driven by softer than expected gas prices and further dragged down by lagged oil-linked contracts.

Oil sales for the period were -25% lower than Citi’s expectations, offset by 8% stronger gas sales. 

The company announced a final investment decision on the Roma North expansion project, leading the broker to increase its valuation by a modest $0.01 per share.

The broker maintains its Buy rating with the target price increasing to $0.40 from $0.38.

Target price is $0.40 Current Price is $0.32 Difference: $0.08
If SXY meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $0.41, suggesting upside of 24.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Credit Suisse rates SXY as Outperform (1) -

Credit Suisse observes Roma North production is stable at 18TJ/d while Atlas has exceeded 25TJ/d.

The broker envisages cash flow from Roma North and the strong ramp up at Atlas, as well as new acreage development and improving gas prices, will more than offset the downside risks.

Credit Suisse retains an Outperform rating and raises the target to $0.43 from $0.42. The company will provide an update on production, exploration and capital management on October 28.

Target price is $0.43 Current Price is $0.32 Difference: $0.11
If SXY meets the Credit Suisse target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $0.41, suggesting upside of 24.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates SXY as Outperform (1) -

First quarter production was in line with expectations with attention now turning to the brownfield expansions. Macquarie notes, as deleveraging progresses, Senex Energy has an increasing number of Queensland opportunities available.

The broker retains an Outperform rating and believes the Surat Basin gas profile is undervalued by the market. Outperform rating retained. Target edges up to $0.42.

Target price is $0.42 Current Price is $0.32 Difference: $0.1
If SXY meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $0.41, suggesting upside of 24.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgans rates SXY as Add (1) -

Senex Energy posted a 'solid' quarterly operational and sales result, according to Morgans. It demonstrates to the broker the company is maintaining consistent gas production from its ramping up of Surat Basin operations.

The company also announced a final investment decision (FID) on the Roma North expansion. First gas is expected in the first quarter FY22.

The broker estimates low-cost growth and a healthy balance sheet leaves room for capital management. It’s also considered the company’s gas marketing strategy offers investors appealing leverage to an eventual recovery in energy prices.

The Add rating is unchanged and the target price is increased to $0.49 from $0.48.

Target price is $0.49 Current Price is $0.32 Difference: $0.17
If SXY meets the Morgans target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $0.41, suggesting upside of 24.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates SXY as Buy (1) -

September quarter production numbers were marginally below Ord Minnett's expectations. Overall, there is no change to the broker's investment view and Senex Energy remains its preferred small-cap energy stock.

Ord Minnett now estimates full year production of 3.3 mmboe. The expansion at Roma North has now been sanctioned, bringing capacity to 24TJ/d from FY22.

Buy rating retained. Target rises to $0.42 from $0.39.

Target price is $0.42 Current Price is $0.32 Difference: $0.1
If SXY meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $0.41, suggesting upside of 24.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

UBS rates TLS as Buy (1) -

After Telstra Corp's AGM, UBS has not made any changes to its earnings forecasts. Noting the company's willingness to temporarily exceed payout parameters in FY21, the broker upgrades its dividend estimate for FY21 and beyond to 16c from 14c.

Telstra caveated it would only maintain a 16c dividend if an operating income of $7.5bn-$8.5bn looks achievable post-NBN. The broker expects about $7.6bn in FY23, on the assumption Telstra's recent price increases hold. 

The broker considers Telstra's financial position supportive and forecasts FY23 free cash flow of more than 20c versus a dividend of 16c.

Buy rating and $3.70 target maintained.

Target price is $3.70 Current Price is $2.89 Difference: $0.81
If TLS meets the UBS target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.44, suggesting upside of 21.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates TWE as Upgrade to Hold from Lighten (3) -

Ord Minnett reduces estimates for earnings per share by -2.5% in FY21 and -9.6% in FY22 because of lower expectations for EMEA, Asia and corporate earnings.

Treasury Wine has had a turbulent year, with challenges from bushfires in the Americas and Australasia and the anti-dumping investigation in China. The broker notes the share price has been volatile and is underperforming the ASX100 index.

Based on valuation, the rating is upgraded to Hold from Lighten. Target is unchanged at $10. The broker envisages the uncertainty around China's plans for tariffs is now better reflected in the target.

Also, the analysts do not think management will proceed with its demerger plans, citing "unsound economics".

Target price is $10.00 Current Price is $9.26 Difference: $0.74
If TWE meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $11.31, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates WAF as Outperform (1) -

Travel restrictions relating to the pandemic have affected underground productivity and this has delayed high-grade feed to the process plant at Sanbrado.

Macquarie expects continued production growth at Sanbrado over the remainder of 2020 and into 2021 as the M1S underground ramps up.

Also, drilling below the underground reserve continues to show promise and a resource update is expected in the December quarter. Outperform rating and $1.30 target retained.

Target price is $1.30 Current Price is $1.08 Difference: $0.22
If WAF meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgan Stanley rates WOW as Upgrade to Overweight from Equal-weight (1) -

Morgan Stanley continues to consider the Australian supermarkets well-placed over the medium term on account of covid-19 tailwinds, better industry structure outlook with Kaufland no longer entering and Aldi slowing its space roll out and an attractive sector valuation in a low yield world.

While Coles ((COL)) has been the broker's preferred major supermarkets exposure since April, Morgan Stanley has switched its preference to Woolworths given its share price underperformance and better operational momentum.

Woolworths' share price has outperformed the ASX200 by circa 1% and underperformed Coles' by circa -22% since February. The broker points out Woolworths started the year with better food momentum than Coles and appears to be growing ahead of Coles in the online and liquor segments.

Moreover, Woolworths is believed to have better leverage to a post-covid reopening via its hotels business. The broker expects earnings growth of 14% in FY21.

Rating has been upgraded to Overweight from Equal-weight with the target rising to $43.50 from $42. Industry view: Cautious.

Target price is $43.50 Current Price is $38.50 Difference: $5
If WOW meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $41.54, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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