Australian Broker Call

Citi rates A2M as Buy (1) -

Stockpiling played a significant role in the better-than-expected March quarter, Citi assesses. Nevertheless, the broker is positive about the sales outlook, given the recruitment of new consumers that have driven market share gains.

The broker also considers the upgraded margin guidance of 31-32% for FY20 operating earnings is conservative. Citi retains a Buy rating and raises the target to $21.50 from $19.20.

Target price is $21.50 Current Price is $18.60 Difference: $2.9
If A2M meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $19.36, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Credit Suisse rates A2M as Neutral (3) -

Revenue was ahead of expectations in the March quarter, underpinned by pantry stockpiling via the online and re-seller channels.

Management has signalled little visibility on the timing and extent to which this may unwind across the June quarter. Credit Suisse lifts FY20-21 revenue estimates by 1-2%.

The broker also takes the opportunity to include the company's recent top up of its equity stake in Synlait Milk ((SM1)). Neutral rating. Target is raised to NZ$17.65 from NZ$16.38.

Current Price is $18.60. Target price not assessed.

Current consensus price target is $19.36, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Macquarie rates A2M as Outperform (1) -

A2 Milk has reported strong revenue growth in its third quarter trading update, in particular infant nutrition in China and Australia.

This was supported by increased stocking of products via online and re-seller channels arising from consumer behaviour in response to the pandemic outbreak.

Margin guidance is also strong, Macquarie notes, at 31-32%. The broker suspects customer acquisition and market share gains during this period could be sticky and maintains an Outperform rating. Target rises to $20.50 from $18.70.

Target price is $20.50 Current Price is $18.60 Difference: $1.9
If A2M meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $19.36, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Morgans rates A2M as Hold (3) -

A2 Milk is one of the few companies to benefit from the virus, the broker notes, and it has upgraded FY20 earnings guidance. The broker has moved to the top end of this range given a track record of conservatism, which suggests 35% growth. Solid growth can still be achieved in FY21, although the FY20 spurt likely won't be repeated, the broker notes.

Target rises to $18.41 from $17.10 but on 31.3x FY21 earnings at the traded price, the broker retains Hold.

Target price is $18.41 Current Price is $18.60 Difference: minus $0.19 (current price is over target).
If A2M meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.36, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Ord Minnett rates A2M as Lighten (4) -

Despite the strong execution and  tailwinds from stockpiling as well as the potential upside to earnings forecasts, Ord Minnett believes the share price incorporates expectations of further upgrades amid a lack of valuation support.

The broker increases estimates for earnings per share in FY20 by 8.4% and FY21 by 4.8%. Ord Minnett maintains what it describes as a "so-far-ineffective" Lighten rating and raises the target to $17.03 from $16.11.

Target price is $17.03 Current Price is $18.60 Difference: minus $1.57 (current price is over target).
If A2M 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 $19.36, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

UBS rates A2M as Buy (1) -

Revenue and earnings margins were ahead of expectations in the March quarter. UBS notes upside from price increases while input costs are easing, although the latter will be more of a FY21 benefit.

There is some risk to short-term demand as pantry stockpiling unwinds and it remains unclear if this is factored into FY20 guidance for underlying revenue growth of 2-5%.

Buy rating retained. Target is raised to NZ$22.00 from NZ$18.50.

Current Price is $18.60. Target price not assessed.

Current consensus price target is $19.36, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

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

Morgan Stanley updates traffic forecasts, noting commercial vehicle traffic for the supply of essential goods is providing somewhat of a floor to revenue. Nevertheless, recovery scenarios remain highly uncertain.

On the downside, the broker contemplates incremental policy action, slower economic growth and increases in working from home. Morgan Stanley expects the company to focus on preserving cash flexibility.

Equal-weight rating, Cautious industry view. Target is reduced to $6.38 from $7.92.

Target price is $6.38 Current Price is $5.71 Difference: $0.67
If ALX meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.84, suggesting upside of 19.7% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates ALX as Add (1) -

During the March quarter, Atlas Arteria's traffic numbers fell -16% and toll revenues -13% while in the second half of the month of March, traffic fell -67%. The broker assumes traffic will remains depressed until September and only recover slowly, back to normal in FY22. The company has suspended its interim dividend and withdrawn dividend guidance thereafter.

Atlas fortunately has $340m in cash, which could be used to reduce debt or perhaps make some payments to shareholders, the broker suggests, but value still lies at the current price. On traffic assumptions and adjustments for currency, target falls to $7.21 from $8.12. Add retained.

Target price is $7.21 Current Price is $5.71 Difference: $1.5
If ALX meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $6.84, suggesting upside of 19.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

UBS rates ALX as Neutral (3) -

Atlas Arteria has reported a weighted average decline in toll revenue of -7% for the first quarter with traffic down -9%. The current rate of decline is broadly in line with UBS expectations for four months of disruptions.

The broker assesses there is sufficient liquidity and covenant headroom at the APRR level. The broker expects no dividends for the first half of 2020. Neutral rating and $5.55 target maintained.

Target price is $5.55 Current Price is $5.71 Difference: minus $0.16 (current price is over target).
If ALX meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.84, suggesting upside of 19.7% (ex-dividends)

The company's fiscal year ends in December.

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 ARF as Neutral (3) -

Despite uncertainty over the short term, Credit Suisse believes the child care sector will be well supported given the government's commitment to workforce participation.

The broker does not believe the company is likely to breach covenants while capital initiatives in the near term could include deferring new development or cutting the dividend.

FY20 and FY21 estimates for earnings per share are revised down by -5.4% and -7.1% respectively. Neutral maintained. Target is reduced to $2.19 from $2.95.

Target price is $2.19 Current Price is $2.17 Difference: $0.02
If ARF meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.21, suggesting upside of 2.0% (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

Morgans rates AVG as Hold (3) -

Australian Vintage has crushed 22% more grapes for its 2020 vintage than a drought-impacted 2019. Slightly below the company's expectations, but still not bad given ongoing drought and smoke taint. Management described the March quarter as "pleasing".

The company is doing a good job, the broker suggests, but evolving its sales mix to higher margin products takes time and brand investment Despite a material discount to net asset value, the broker retains Hold. Target rises to 50c from 48c.

Target price is $0.50 Current Price is $0.43 Difference: $0.07
If AVG meets the Morgans target it will return approximately 16% (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

Citi rates BPT as Buy (1) -

Production was ahead of forecasts in the March quarter while sales were in line. Citi continues to believe the equity is cheap based on a longer-term investment horizon, while the balance sheet appears sturdy.

Buy retained with a High Risk, given the tactical issues around purchasing the stock against a volatile oil price. Target is reduced to $1.69 from $1.73.

Target price is $1.69 Current Price is $1.31 Difference: $0.38
If BPT meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $1.74, suggesting upside of 32.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Credit Suisse rates BPT as Outperform (1) -

March quarter production was in line with Credit Suisse estimates. The broker assesses the balance sheet is solid and there is no need for an equity raising.

The Otway campaign is expected to be pushed back six months, delaying an uptick in production into FY22.

The broker points out some deferral of capital expenditure and production, while affecting earnings, is not necessarily destructive of value if there is a more bullish oil price view from FY22.

Moreover, the re-pricing risk of Lattice may be overplayed. Credit Suisse retains an Outperform rating. Target is reduced to $1.73 from $1.78.

Target price is $1.73 Current Price is $1.31 Difference: $0.42
If BPT meets the Credit Suisse target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $1.74, suggesting upside of 32.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Macquarie rates BPT as Outperform (1) -

March quarter revenue was weaker than Macquarie expected, driven by a lower realised oil price and lower-than-forecast production.

While guidance has been maintained, Beach Energy expects key metrics to come in at the lower end of ranges.

Macquarie assesses the gas business is essentially covering operating costs and, hence, the technical break-even on cash flow is not exposed to oil.

Additionally, there is a net cash position and additional liquidity on the balance sheet. Outperform rating and $1.90 target maintained.

Target price is $1.90 Current Price is $1.31 Difference: $0.59
If BPT meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $1.74, suggesting upside of 32.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Ord Minnett rates BPT as Accumulate (2) -

Beach Energy's production and sales were ahead of expectations in the March quarter. Guidance has been reiterated for production, earnings and capital expenditure, albeit at the low end of the range.

Beach Energy has issued a notice of termination to the Ocean Onyx rig contract which was due to commence offshore drilling in the Otway Basin.

The company does not expect this to commence until FY21. Ord Minnett reiterates an Accumulate rating with a $2.15 target.

Target price is $2.15 Current Price is $1.31 Difference: $0.84
If BPT meets the Ord Minnett target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $1.74, suggesting upside of 32.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Citi rates CGF as Downgrade to Neutral from Buy (3) -

March quarter sales were largely in line with expectations and appear resilient. This reflects the trend of strong Japanese and institutional sales, offset by weak domestic retail sales.

Citi assesses there is still likely to be a high risk of defaults in the investment portfolio. Moreover, the company is in a dilemma in that it has likely locked in around half of its investment losses and cannot re-invest while it is somewhat capital constrained.

Rating is downgraded to Neutral from Buy and the target lowered to $4.60 from $5.45.

Target price is $4.60 Current Price is $4.29 Difference: $0.31
If CGF meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.31, suggesting upside of 23.8% (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 CGF as Neutral (3) -

Retail annuity sales of $593m in the March quarter were down -10% but supported by a 280% increase in Japanese sales.

The company expects this contribution will moderate in the June quarter and Credit Suisse also notes a state of emergency was declared in Japan last week that could affect sales.

The broker assumes questions around an equity raising are centred on the company potentially undergoing further distribution arrangements, such as partnering with a domestic industry fund. However, the lack of any update implies such an agreement is not yet in train.

Neutral rating maintained. Target is $4.25.

Target price is $4.25 Current Price is $4.29 Difference: minus $0.04 (current price is over target).
If CGF meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.31, suggesting upside of 23.8% (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 CGF as Neutral (3) -

FY20 guidance has been reaffirmed for normalised net profit of $500-550m. Guidance reflects the impact of changes to the life portfolio and lower funds management earnings following the equity market sell-off.

While the stock is beginning to test PE valuations witnessed in the GFC, Macquarie continues to envisage short-term risk to the downside and the potential for a capital raising. Neutral. Target is reduced to $4.50 from $5.50.

Target price is $4.50 Current Price is $4.29 Difference: $0.21
If CGF meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.31, suggesting upside of 23.8% (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 CGF as Hold (3) -

Ord Minnett considers Challenger one of the most leveraged stocks to a recovery in risk asset values, although retains concerns about the business model and the possibility that further downgrades will be required to the property portfolio.

The company has assessed the pandemic exacerbates the impact of the Royal Commission in that it affects adviser ability to take on board new clients. The focus is also being diverted to superannuation redemption changes. Hold rating retained. Target is $4.00.

Target price is $4.00 Current Price is $4.29 Difference: minus $0.29 (current price is over target).
If CGF meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.31, suggesting upside of 23.8% (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

UBS rates CGF as Neutral (3) -

Retail annuity sales fell -10% in the March quarter. UBS anticipates a recovery in sales in 2021 and improved margins if the business re-allocates back into higher risk/return assets.

However, normalise pre-tax profit is expected to contract -18% in FY21. Neutral rating and $4.90 target maintained.

Target price is $4.90 Current Price is $4.29 Difference: $0.61
If CGF meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.31, suggesting upside of 23.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates COE as Add (1) -

Cooper Energy posted a good March quarter result, the broker suggests, but teething issues are dragging on the Orbost plant and limiting Sole production. The company has until early FY21 to sort this out before contracts come into play. The Sole/Orbost ramp-up is key.

Target falls to 56c from 59c, Add retained.

Target price is $0.56 Current Price is $0.39 Difference: $0.17
If COE meets the Morgans target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $0.54, suggesting upside of 37.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Ord Minnett rates COE as Accumulate (2) -

Production from operating assets in the Cooper and Otway Basins was in line with forecasts and guidance although revenue fell somewhat short of expectations.

Still, Ord Minnett is positive on the stock as the share price is well below valuation. The broker notes a majority of forward sales are under fixed-price contracts, which implies some earnings and cash-flow protection. Accumulate rating and $0.60 target maintained.

Target price is $0.60 Current Price is $0.39 Difference: $0.21
If COE meets the Ord Minnett target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $0.54, suggesting upside of 37.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

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

Macquarie assesses CSR has the strongest balance sheet in the sector while the valuation is attractive. Market conditions remain choppy, nevertheless, and housing market data is expected to get worse over coming months.

While the risks are elevated, the broker considers the valuation and balance sheet compensate and upgrades to Outperform from Neutral. Target is reduced to $4.10 from $4.80.

Target price is $4.10 Current Price is $3.17 Difference: $0.93
If CSR meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $3.91, suggesting upside of 23.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Morgan Stanley rates DTC as Overweight (1) -

March quarter cash receipts were up strongly. The market has responded positively to the company's resilience in the face of lock-downs and delayed signings, Morgan Stanley notes.

Damstra Holdings has also guided to FY20 revenue growth of 30-40% and expects operating earnings will be ahead of prospectus.

Morgan Stanley considers the overachievement on margins in the first half and a recurring revenue base offer a high degree of certainty for FY20.

Morgan Stanley retains an Overweight rating and $1.70 target. Industry view: In Line.

Target price is $1.70 Current Price is $0.88 Difference: $0.82
If DTC meets the Morgan Stanley target it will return approximately 93% (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 ECX as Outperform (1) -

Credit Suisse considers the government's $15bn Structured Finance Support Fund will be a valuable support and offset potential customer stress.

This will enable the company to provide forbearance to lease customers under financial stress, taking a large amount of risk off the table, in the broker's view.

Earnings will still decline in the near term and EclipX will need to manage the balance sheet as there is a temporarily elevated level of fleet inventory.

Still, a high proportion of annuity revenue and cost reductions should mean the company can weather disruptions return to growth in the second half of FY21, Credit Suisse assesses.

Outperform rating maintained. Target is reduced to $1.10 from $1.15.

Target price is $1.10 Current Price is $0.57 Difference: $0.53
If ECX meets the Credit Suisse target it will return approximately 93% (excluding dividends, fees and charges).

Current consensus price target is $1.44, suggesting upside of 151.8% (ex-dividends)

The company's fiscal year ends in September.

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 GNC as Resume Coverage with Outperform (1) -

Macquarie expects a strong earnings recovery in the next 2-3 years estimating operating earnings (EBITDA) of around $153m through the cycle. The broker resumes coverage with an Outperform rating and $4.35 target.

The de-merger is expected to enable GrainCorp to pursue an independent operating strategy and attract investors with different priorities.

Now that it is better capitalised, the business is also readily able to pursue longer-term growth ambitions. The next catalyst is the first half result on May 14.

Target price is $4.35 Current Price is $3.40 Difference: $0.95
If GNC meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $5.76, suggesting upside of 69.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Credit Suisse rates HUB as Outperform (1) -

The company has reaffirmed an expected slowdown in flows in June with lower markets and the cash rate reduction providing headwinds. Still, Credit Suisse is pleased there is also evidence of higher transaction activity and cash allocations.

The broker envisages a significant opportunity for HUB24 to gain market share over the longer term, given its leading product. Outperform rating and $10.20 target maintained.

Target price is $10.20 Current Price is $9.43 Difference: $0.77
If HUB meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $11.02, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgans rates HUB as Add (1) -

Hub24 reported a -4.6% fall in funds under management in the March quarter but up 32% year on year. Net inflows were 8% higher in the March quarter and up 762% year on year, although management expects a softening in the June quarter. Advertising on the platform increased 28% year on year.

The broker agrees flows will soften as market volatility persists, but the best indicator is advisor growth, and this remains strong. Longer term the broker expects Hub24 to scale successfully and achieve solid earnings growth. Add retained, target rises to $11.08 from $9.42.

Target price is $11.08 Current Price is $9.43 Difference: $1.65
If HUB meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $11.02, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

UBS rates LYC as Buy (1) -

Lynas Corp has been selected for a phase 1 US Department of Defence tender for a heavy rare earth separation facility. In time this could lead to a sizeable funding contribution to a new downstream business unit for the company, UBS assesses.

Secondly, it reinforces the underlying strategic value of the business as the only non-Chinese producer of rare earths.

Once the recovery from the pandemic begins, the broker believes global supply chains may be aligned towards a greater diversity of sources and the company is well-placed to benefit. Buy and $2.70 target retained.

Target price is $2.70 Current Price is $1.64 Difference: $1.06
If LYC meets the UBS target it will return approximately 65% (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 MGX as Outperform (1) -

Shipments at Koolan Island were greater than Macquarie expected in the March quarter and the company expects a further increase in the June quarter.

Accelerated waste stripping is expected to continue for a further 18 months and $20m is being spent on a building a new airstrip to enable direct flights from Perth.

The broker assesses earnings upgrade momentum is strong and retains an Outperform rating and $1.00 target.

Target price is $1.00 Current Price is $0.61 Difference: $0.39
If MGX meets the Macquarie target it will return approximately 64% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Ord Minnett rates MYR as Downgrade to Hold from Accumulate (3) -

Myer has extended store closures until at least May 11, while noting online sales growth has been strong. Ord Minnett assesses the shape of a recovery in sales is uncertain.

Despite the valuation support the broker finds the risk/reward proposition less attractive and downgrades to Hold from Accumulate. Target is steady at $0.20.

Target price is $0.20 Current Price is $0.19 Difference: $0.01
If MYR meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $0.29, suggesting upside of 54.4% (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 NEA as Overweight (1) -

Nearmap has guided to a -30% reduction in costs and breaking even on free cash flow on exit of FY20. Morgan Stanley assesses the company is confident there is no additional capital required for the near term.

More detail is expected with an update on performance by the end of May, and the broker will be looking for confirmation of the aforementioned break-even and clarity on the cash balance as well as a reduction in churn.

Overweight rating reiterated. In-Line industry view. Target is reduced to $2.00 from $2.30.

Target price is $2.00 Current Price is $1.26 Difference: $0.74
If NEA meets the Morgan Stanley target it will return approximately 59% (excluding dividends, fees and charges).

Current consensus price target is $1.90, suggesting upside of 50.8% (ex-dividends)

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 ORE as Buy (1) -

Production was down -11% in the March quarter because of the temporary shutdown of plant and the pandemic restrictions in Argentina. Construction on stage 2 of Olaroz is currently suspended.

Citi incorporates the Advantage transaction in its model which results in a marginal reduction in the target. Buy/High Risk. Target falls to $3.00 from $3.10.

Target price is $3.00 Current Price is $2.14 Difference: $0.86
If ORE meets the Citi target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $2.67, suggesting upside of 25.0% (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 ORE as Outperform (1) -

Production guidance has been withdrawn because of the disruptions stemming from the pandemic and no price guidance has been provided, Credit Suisse notes, given the market uncertainty. Production is being moderated to meet demand.

The broker observes the picture is bleak, assessing any demand recovery may not be forthcoming until 2021.

The broker points out, the fact Olaroz is at the bottom of the cost curve and now cash negative indicates just how weak and unsustainable current prices are. Outperform maintained. Target is reduced to $2.50 from $4.45.

Target price is $2.50 Current Price is $2.14 Difference: $0.36
If ORE meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.67, suggesting upside of 25.0% (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 ORE as Underperform (5) -

March quarter production was in line with expectations. While the company has withdrawn guidance, Macquarie expects Olaroz will operate in a break-even state for the remainder of 2020.

The company believes the supply chain for lithium will be affected by the pandemic restrictions for up to six months. Recovery in battery and non-battery demand is expected to be delayed until 2021.

Macquarie retains an Underperform rating and reduces the target to $1.80 from $2.00.

Target price is $1.80 Current Price is $2.14 Difference: minus $0.34 (current price is over target).
If ORE meets the Macquarie target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.67, suggesting upside of 25.0% (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 ORE as Equal-weight (3) -

March quarter operations pleased Morgan Stanley with costs and prices better than expected. However, weak demand continues and a market recovery is not expected until 2021.

The company has advised that 35% of Olaroz stage 2 was completed before the shutdown on March 20 and final completion is now likely to be delayed.

Equal-weight rating and In-Line industry view maintained. Target is $2.40.

Target price is $2.40 Current Price is $2.14 Difference: $0.26
If ORE meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.67, suggesting upside of 25.0% (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

Ord Minnett rates ORE as Hold (3) -

The company has withdrawn guidance for FY20 and pushed out a recovery for demand to 2021. Olaroz is in production again, following the declaration of its operations as "essential" but is managing production to suit demand.

Stage 2 works are suspended and the Naraha downstream operation is also delayed. Ord Minnett considers the stock an FY22 story and retains a Hold rating. Target is reduced to $2.30 from $2.55.

Target price is $2.30 Current Price is $2.14 Difference: $0.16
If ORE meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.67, suggesting upside of 25.0% (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

Citi rates RHC as Downgrade to Neutral from Buy (3) -

Ramsay Health Care has raised $1.2bn in a placement and another $200m in the share purchase plan. Citi assesses the raising is -7% dilutive to earnings per share in FY21.

The broker believes the magnitude of the capital raising is more than required but now has a more positive view on the timeframe for health systems to return to normal.

Moreover, there may be opportunities for acquisitions down the track. Rating is downgraded to Neutral from Buy. Target is lowered to $69 from $70.

Target price is $69.00 Current Price is $60.57 Difference: $8.43
If RHC meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $64.05, suggesting upside of 5.8% (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

Credit Suisse rates RHC as Outperform (1) -

The company has raised $1.4bn in equity to de-leverage the balance sheet. Credit Suisse believes Ramsay Health Care will earn zero earnings (EBIT) for at least the next three months, and potentially up to six months, as it partners with governments in Australia, the UK and France.

Credit Suisse assesses a small profit will emerge in Australia from August as the Australian government eases elective surgery restrictions.

The broker downgrades estimates for earnings per share by -48% in FY20 and -36% in FY21. Outperform maintained. Target is reduced to $68.80 from $70.00.

Target price is $68.80 Current Price is $60.57 Difference: $8.23
If RHC meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $64.05, suggesting upside of 5.8% (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

Macquarie rates RHC as Outperform (1) -

Ramsay Health Care has made a $1.2bn institutional placement. Macquarie expects this will provides sufficient liquidity in the short term and also allow a continuation of developments at key Australian sites. Proceeds will also be used to partially repay debt facilities.

The earlier-than-expected resumption of elective procedures in Australia presents upside risk to the broker's forecasts and an Outperform rating is maintained. Target is reduced to $67 from $71.

Target price is $67.00 Current Price is $60.57 Difference: $6.43
If RHC meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $64.05, suggesting upside of 5.8% (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

UBS rates RHC as Neutral (3) -

Ramsay Health Care is raising up to $1.4bn in new equity with proceeds to partially repay debt. UBS assesses the recent announcement by the Australian government regarding the return of some elective surgery is a positive for the company.

However, a number of contingencies exist including adequate access to personal protective equipment and presuming no major expansion of COVID-19 infections. Neutral maintained. Target reduced to $62.20 from $63.50.

Target price is $62.20 Current Price is $60.57 Difference: $1.63
If RHC meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $64.05, suggesting upside of 5.8% (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

UBS rates SPK as Neutral (3) -

Spark New Zealand has maintained FY20 guidance and its NZ$0.25 dividend. UBS also believes the FY21 dividends should be maintained as long as the pandemic control measures do not last beyond 2020.

The business will not be immune from an economic slowdown and the broker expects this will constrain medium-term earnings growth. Neutral maintained. Target is NZ$4.20.

Current Price is $4.13. Target price not assessed.

Current consensus price target is N/A

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 SSM as Outperform (1) -

Demand for NBN connections remains strong and Macquarie expects the ramp up of 5G and essential services in water and utilities will continue through the current pandemic restrictions.

Hence, the broker is positive about the company's operations and retains an Outperform rating. Target is steady at $3.05.

Target price is $3.05 Current Price is $1.84 Difference: $1.21
If SSM meets the Macquarie target it will return approximately 66% (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 SYR as Outperform (1) -

Credit Suisse notes cost execution was positive in the March quarter and reduced the rate of cash burn, although that's where the good news ends.

The graphite market was deeply challenged before the pandemic outbreak, requiring growth in demand to improve the supply/demand balance.

This appears materially delayed and may force the company to take more extreme cost reduction measures, the broker asserts.

Outperform rating maintained. Target is reduced to $0.77 from $1.30.

Target price is $0.77 Current Price is $0.21 Difference: $0.56
If SYR meets the Credit Suisse target it will return approximately 267% (excluding dividends, fees and charges).

Current consensus price target is $0.43, suggesting upside of 106.0% (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: 0.0

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

Macquarie rates SYR as Underperform (5) -

March quarter production was broadly in line with expectations while sales were below. Syrah Resources assesses the curtailed production is helping to restore some balance to the market.

Macquarie expects a drawn-out recovery in the battery supply chain and suspects industrial sales will not provide much relief. Target is $0.17. Underperform maintained.

Target price is $0.17 Current Price is $0.21 Difference: minus $0.04 (current price is over target).
If SYR meets the Macquarie target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.43, suggesting upside of 106.0% (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: 0.0

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

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

Sales were lower in the March quarter which Morgan Stanley notes was somewhat offset by higher prices outside of China. Balama remains suspended and is likely to face delays because of the pandemic restrictions.

The cash balance of US$65m at the end of March is in line with expectations. Equal-weight. Target is $0.35. Industry view: In Line.

Target price is $0.35 Current Price is $0.21 Difference: $0.14
If SYR meets the Morgan Stanley target it will return approximately 67% (excluding dividends, fees and charges).

Current consensus price target is $0.43, suggesting upside of 106.0% (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: 0.0

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

Morgans rates VRT as Hold (3) -

The broker was not expecting the government to allow a resumption of IVF treatment quite so soon. A slow return to normal domestically is assumed, although the UK and Ireland remain closed. The broker has increased its cost base assumption for Virtus Health and lowered earnings, but removed its -20% risk discount to its target price.

Target thus rises to $3.04 from $2.72, Hold retained.

Target price is $2.72 Current Price is $2.59 Difference: $0.13
If VRT meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

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 WTC as Overweight (1) -

The company has reaffirmed FY20 guidance and has stated it has no intention to raise any additional debt or equity.

The investment focus will be on new products, discretionary expenditure will be reduced and potential acquisitions deferred.

Morgan Stanley considers this incrementally positive news amid a challenged environment for global freight forwarders.

Target is $24. Overweight rating. Industry view is Attractive.

Target price is $24.00 Current Price is $16.03 Difference: $7.97
If WTC meets the Morgan Stanley target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $21.23, suggesting upside of 32.5% (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