Australian Broker Call

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November 21, 2019

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COMPANIES DISCUSSED IN THIS ISSUE

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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1).

Last Updated: 05:00 PM

Your daily news report on the latest recommendation, valuation, forecast and opinion changes.

This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.

For more info about the different terms used by stockbrokers, as well as the different methodologies behind similar sounding ratings, download our guide HERE

Today's Upgrades and Downgrades
ALQ - ALS LIMITED Downgrade to Neutral from Buy Citi
MIN - MINERAL RESOURCES Downgrade to Hold from Accumulate Ord Minnett
NXT - NEXTDC Downgrade to Hold from Accumulate Ord Minnett
SEK - SEEK Downgrade to Hold from Add Morgans
VHT - VOLPARA HEALTH TECHNOLOGIES Downgrade to Lighten from Hold Ord Minnett
ADI  APN INDUSTRIA REIT

REITs

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Overnight Price: $2.95

Macquarie rates ADI as No Rating (-1) -

APN Industria REIT is acquiring a car dealership in Epping, Melbourne, funded by an institutional placement at $2.88. The broker estimates the acquisition/raising is only mildly dilutive by FY23 when rental upside kicks in.

The broker is advising and thus is currently restricted from making a recommendation.

Current Price is $2.95. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 17.60 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 5.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.28.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 18.30 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 6.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.44.

Market Sentiment: 0.0

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

ALL  ARISTOCRAT LEISURE LIMITED

Gaming

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Overnight Price: $34.14

Citi rates ALL as Buy (1) -

FY19 result was strong and high quality, Citi observes. Digital earnings proved resilient and expectations for RAID have been upgraded further.

The company also made progress in adjacent market opportunities in FY19, which Citi estimates could contribute US$59m in incremental earnings (EBIT) between FY19 and FY21. This is equivalent almost half of the Americas earnings growth.

Buy rating maintained. Target rises to $39.50 from $37.90.

Target price is $39.50 Current Price is $34.14 Difference: $5.36
If ALL meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $37.29, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 67.00 cents and EPS of 163.50 cents.
At the last closing share price the estimated dividend yield is 1.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.5, implying annual growth of 44.6%.

Current consensus DPS estimate is 65.4, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 75.00 cents and EPS of 187.10 cents.
At the last closing share price the estimated dividend yield is 2.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.7, implying annual growth of 9.6%.

Current consensus DPS estimate is 71.4, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 19.7.

Market Sentiment: 0.9

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


Credit Suisse rates ALL as Neutral (3) -

Credit Suisse upgrades operating earnings estimates (EBITDA) by 1% and envisages 15% growth in earnings per share in FY20. Management expects North American margins will moderate from FY20 and, therefore, the broker's earnings upgrade is muted.

The Raid game delivered around US$110m in revenue in FY19 and Credit Suisse expects it will grow to US$350m by FY24.

Credit Suisse confronts a "valuation wall". Despite the excellent fundamentals, the broker suspects investors may start abandoning DCF valuations and move to more comparative valuations.

Neutral maintained. Target rises to $35.00 from $33.40.

Target price is $35.00 Current Price is $34.14 Difference: $0.86
If ALL meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $37.29, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 65.00 cents and EPS of 161.00 cents.
At the last closing share price the estimated dividend yield is 1.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.5, implying annual growth of 44.6%.

Current consensus DPS estimate is 65.4, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 71.00 cents and EPS of 177.00 cents.
At the last closing share price the estimated dividend yield is 2.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.7, implying annual growth of 9.6%.

Current consensus DPS estimate is 71.4, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 19.7.

Market Sentiment: 0.9

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


Macquarie rates ALL as Outperform (1) -

Aristocrat Leisure's FY19 profit came in 2% ahead of Macquarie. The broker has increased forecast earnings and lifted its target to $37.50 from $34.50.

The company's generation of excess operating cash flow is supporting rapid deleveraging, the broker notes, opening the door for capital management and/or acquisitions which the broker believes is not priced into the stock on a 20x forward multiple. Outperform retained.

Target price is $37.50 Current Price is $34.14 Difference: $3.36
If ALL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $37.29, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 64.00 cents and EPS of 162.00 cents.
At the last closing share price the estimated dividend yield is 1.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.5, implying annual growth of 44.6%.

Current consensus DPS estimate is 65.4, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 71.00 cents and EPS of 180.00 cents.
At the last closing share price the estimated dividend yield is 2.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.7, implying annual growth of 9.6%.

Current consensus DPS estimate is 71.4, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 19.7.

Market Sentiment: 0.9

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


Morgan Stanley rates ALL as Overweight (1) -

FY19 earnings were ahead of Morgan Stanley's estimates. Management expects further incremental gains in outright sales in North America with expansion in gaming operations.

Morgan Stanley retains an Overweight rating. Target is $35. Industry view: Cautious.

Target price is $35.00 Current Price is $34.14 Difference: $0.86
If ALL meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $37.29, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 EPS of 152.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.5, implying annual growth of 44.6%.

Current consensus DPS estimate is 65.4, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 EPS of 163.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.7, implying annual growth of 9.6%.

Current consensus DPS estimate is 71.4, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 19.7.

Market Sentiment: 0.9

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


Morgans rates ALL as Add (1) -

FY19 results were ahead of Morgans' forecasts. The broker asserts the strong balance sheet and high free-cash flow provide significant scope for accretive acquisitions, likely to be in the digital space.

With good momentum and a 10% upside risk to the target, revised to $36.91 from $31.95, the broker retains an Add rating.

Target price is $36.91 Current Price is $34.14 Difference: $2.77
If ALL meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $37.29, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 65.00 cents and EPS of 161.00 cents.
At the last closing share price the estimated dividend yield is 1.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.5, implying annual growth of 44.6%.

Current consensus DPS estimate is 65.4, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 68.00 cents and EPS of 169.00 cents.
At the last closing share price the estimated dividend yield is 1.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.7, implying annual growth of 9.6%.

Current consensus DPS estimate is 71.4, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 19.7.

Market Sentiment: 0.9

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


Ord Minnett rates ALL as Buy (1) -

FY19 net profit was ahead of Ord Minnett's forecasts. The broker is confident of another 12 months of land-based dominance for Aristocrat Leisure as the adoption of its games continues and a promising digital strategy plays out.

The broker reiterates a Buy rating and raises the target to $37.50 from $34.25.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $37.50 Current Price is $34.14 Difference: $3.36
If ALL meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $37.29, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 EPS of 146.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.5, implying annual growth of 44.6%.

Current consensus DPS estimate is 65.4, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 EPS of 160.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.7, implying annual growth of 9.6%.

Current consensus DPS estimate is 71.4, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 19.7.

Market Sentiment: 0.9

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


UBS rates ALL as Buy (1) -

FY19 profit beat UBS estimates. Aristocrat Leisure expects incremental gains in outright sales in North American adjacencies and expansion in gaming operations.

The company has indicated it continues to hold Australasian share and margins have expanded, supported by a favourable commercial mix towards recurring revenue/bundle offers. The EMEA installed base grew 23% over FY19.

Aristocrat  Leisure intends to continue with its dividend policy in conjunction with managing debt payments. There is also potential for bolt-on acquisitions.

UBS expects a minimum $1.0bn profit in FY20. The broker retains a Buy rating and raises the target to $39.60 from $34.10 target.

Target price is $39.60 Current Price is $34.14 Difference: $5.46
If ALL meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $37.29, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 66.00 cents and EPS of 164.00 cents.
At the last closing share price the estimated dividend yield is 1.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.5, implying annual growth of 44.6%.

Current consensus DPS estimate is 65.4, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 72.00 cents and EPS of 180.00 cents.
At the last closing share price the estimated dividend yield is 2.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.7, implying annual growth of 9.6%.

Current consensus DPS estimate is 71.4, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 19.7.

Market Sentiment: 0.9

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

ALQ  ALS LIMITED

Mining Sector Contracting

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Overnight Price: $8.90

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

While Citi envisages potential upside risk to FY20 net profit guidance, the stock is trading at a 20x FY20 PE so the rating is downgraded to Neutral from Buy.

The broker assumes a recovery in exploration expenditure going forward but acknowledges there are downside risks to that view. Target is raised to $8.90 from $7.90.

Target price is $8.90 Current Price is $8.90 Difference: $0
If ALQ meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $8.83, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 23.50 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 2.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.7, implying annual growth of 25.6%.

Current consensus DPS estimate is 23.7, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 22.4.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 26.50 cents and EPS of 45.20 cents.
At the last closing share price the estimated dividend yield is 2.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.5, implying annual growth of 12.1%.

Current consensus DPS estimate is 26.2, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 20.0.

Market Sentiment: 0.2

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


Credit Suisse rates ALQ as Neutral (3) -

First half underlying net profit was ahead of Credit Suisse estimates, driven by stronger margins in life sciences and industrial divisions. This offset a weak commodities performance.

The broker suggests the FY20 net profit guidance of $185-195m is wider than usual and probably signals the company is cautious amid macroeconomic and geopolitical uncertainty. Neutral rating maintained. Target rises to $8.60 from $8.40.

Target price is $8.60 Current Price is $8.90 Difference: minus $0.3 (current price is over target).
If ALQ meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.83, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 23.58 cents and EPS of 40.32 cents.
At the last closing share price the estimated dividend yield is 2.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.7, implying annual growth of 25.6%.

Current consensus DPS estimate is 23.7, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 22.4.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 27.03 cents and EPS of 44.74 cents.
At the last closing share price the estimated dividend yield is 3.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.5, implying annual growth of 12.1%.

Current consensus DPS estimate is 26.2, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 20.0.

Market Sentiment: 0.2

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


Macquarie rates ALQ as Outperform (1) -

ALS' first half result beat Macquarie's forecast and FY guidance is also above prior expectation. The result for Lifestyle & Industrial was stronger than expected for the third half in a row, the broker notes, offsetting commodity price weakness and highlighting the benefits of diversification.

The broker increases forecasts and raises its target to $9.64 from $8.25. While yesterday's share price response increased the stock's multiple the broker believes valuation is not undemanding. Outperform retained.

Target price is $9.64 Current Price is $8.90 Difference: $0.74
If ALQ meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $8.83, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 23.60 cents and EPS of 39.40 cents.
At the last closing share price the estimated dividend yield is 2.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.7, implying annual growth of 25.6%.

Current consensus DPS estimate is 23.7, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 22.4.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 25.60 cents and EPS of 43.40 cents.
At the last closing share price the estimated dividend yield is 2.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.5, implying annual growth of 12.1%.

Current consensus DPS estimate is 26.2, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 20.0.

Market Sentiment: 0.2

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


Morgans rates ALQ as Hold (3) -

First half net profit beat guidance and forecasts, which Morgans notes was thanks to strong life sciences. Commodities were affected by weaker sample flows which caused a moderation in division margins.

Morgans notes margins in commodities have fallen -200 basis points since the second half peak. The broker struggles to justify the stock's premium rating and maintains a Hold rating. Target is raised to $8.10 from $7.81.

Target price is $8.10 Current Price is $8.90 Difference: minus $0.8 (current price is over target).
If ALQ meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.83, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 24.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 2.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.7, implying annual growth of 25.6%.

Current consensus DPS estimate is 23.7, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 22.4.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 25.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 2.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.5, implying annual growth of 12.1%.

Current consensus DPS estimate is 26.2, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 20.0.

Market Sentiment: 0.2

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


UBS rates ALQ as Neutral (3) -

First half net profit was up 5% and slightly ahead of estimates. The result was assisted by investment costs that were taken below the line. Initial FY20 net profit guidance is $185-195m.

Life sciences earnings (EBIT) were stronger while commodities earnings were lower than the broker expected. UBS upgrades FY20 net profit estimates by 3%.

Neutral rating maintained. Target is raised to $8.90 from $7.80.

Target price is $8.90 Current Price is $8.90 Difference: $0
If ALQ meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $8.83, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 24.00 cents and EPS of 39.00 cents.
At the last closing share price the estimated dividend yield is 2.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.7, implying annual growth of 25.6%.

Current consensus DPS estimate is 23.7, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 22.4.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 27.00 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 3.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.5, implying annual growth of 12.1%.

Current consensus DPS estimate is 26.2, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 20.0.

Market Sentiment: 0.2

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

APE  AP EAGERS LIMITED

Automobiles & Components

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Overnight Price: $9.56

Macquarie rates APE as Outperform (1) -

AP Eagers has suffered a decline in profit growth in the second half to date due to lower new vehicle sales and fewer cost saving opportunities compared to the prior period, Macquarie notes. Integration of Automotive Holdings is nevertheless progressing to plan and synergies have already been booked.

Expectations of a cyclical recovery have not yet been justified but the broker believes signs of stabilisation should soon emerge, supporting investor sentiment. The broker blames quant selling for recent de-rating and sees an attractive entry point.

Outperform retained, target falls to $14.00 from $15.60.

Target price is $14.00 Current Price is $9.56 Difference: $4.44
If APE meets the Macquarie target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $12.80, suggesting upside of 33.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 36.00 cents and EPS of 43.50 cents.
At the last closing share price the estimated dividend yield is 3.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.2, implying annual growth of -15.0%.

Current consensus DPS estimate is 36.6, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 21.6.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 44.90 cents and EPS of 62.80 cents.
At the last closing share price the estimated dividend yield is 4.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.5, implying annual growth of 18.8%.

Current consensus DPS estimate is 39.9, implying a prospective dividend yield of 4.2%.

Current consensus EPS estimate suggests the PER is 18.2.

Market Sentiment: 0.8

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

CGC  COSTA GROUP HOLDINGS LIMITED

Agriculture

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Overnight Price: $2.50

Citi rates CGC as Neutral (3) -

One of the company's most lucrative produce categories, mushrooms, has had a challenging year, Citi observes. The issue is one of affordability and additional supply in 2020 makes a meaningful price recovery unlikely.

The broker forecasts group operating earnings of $127m, below the company's target of $150m, partly attributable to a limited recovery in mushrooms. Citi retains a Neutral rating and reduces the target to $2.80 from $2.90.

Target price is $2.80 Current Price is $2.50 Difference: $0.3
If CGC meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.90, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Citi forecasts a full year FY19 dividend of 6.50 cents and EPS of 8.70 cents.
At the last closing share price the estimated dividend yield is 2.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.6, implying annual growth of -74.6%.

Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 1.7%.

Current consensus EPS estimate suggests the PER is 29.1.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 7.50 cents and EPS of 10.90 cents.
At the last closing share price the estimated dividend yield is 3.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.6, implying annual growth of 46.5%.

Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 3.0%.

Current consensus EPS estimate suggests the PER is 19.8.

Market Sentiment: 0.2

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

COH  COCHLEAR LIMITED

Medical Equipment & Devices

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Overnight Price: $222.44

UBS rates COH as Sell (5) -

UBS has calculated that Cochlear has lost market share, falling to 51.5% in FY19. This is not surprising as Advanced Bionics launched the 3.0 Tesla MRI-compatible product early in the year and Cochlear only responded later.

Hence, the broker expects some improvement in sales growth in FY20. Despite the outlook for sustained earnings growth, UBS believes the current share price is factoring in unrealistic sales and retains a Sell rating. Target is raised to $185 from $173.

Target price is $185.00 Current Price is $222.44 Difference: minus $37.44 (current price is over target).
If COH meets the UBS target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $198.24, suggesting downside of -10.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 365.00 cents and EPS of 513.00 cents.
At the last closing share price the estimated dividend yield is 1.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 517.8, implying annual growth of 8.0%.

Current consensus DPS estimate is 366.2, implying a prospective dividend yield of 1.6%.

Current consensus EPS estimate suggests the PER is 43.0.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 402.00 cents and EPS of 563.00 cents.
At the last closing share price the estimated dividend yield is 1.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 566.0, implying annual growth of 9.3%.

Current consensus DPS estimate is 398.7, implying a prospective dividend yield of 1.8%.

Current consensus EPS estimate suggests the PER is 39.3.

Market Sentiment: -0.6

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

LLC  LENDLEASE GROUP

Infra & Property Developers

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Overnight Price: $19.04

Ord Minnett rates LLC as Buy (1) -

From the company's AGM update, Ord Minnett has ascertained that the engineering & services division will be sold by the February result. This should allow the shares to re-rate materially, in the broker's view.

Lendlease Group is exploring potential capital partners and funding solutions for Barangaroo South to optimise its investment returns. Pre-sales have been strong for the first tower, which will commence construction in the first half of 2020.

Buy rating and $22.50 target maintained.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $22.50 Current Price is $19.04 Difference: $3.46
If LLC meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $20.19, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 EPS of 141.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 135.1, implying annual growth of 63.0%.

Current consensus DPS estimate is 66.7, implying a prospective dividend yield of 3.5%.

Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 EPS of 121.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 137.8, implying annual growth of 2.0%.

Current consensus DPS estimate is 70.9, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 13.8.

Market Sentiment: 0.8

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

MIN  MINERAL RESOURCES LIMITED

Iron Ore

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Overnight Price: $13.93

Morgan Stanley rates MIN as Overweight (1) -

The company's AGM presentation has flagged a maiden reserve for Yilgarn and increased the focus on iron ore.

The main item that provoked Morgan Stanley's interest is the lower alumina content in the Yilgarn reserve, which may sustain the asset longer in a lower-price environment.

Lithium guidance has increased with Mount Marion at 370,000t for FY20. Iron ore guidance is now 15mt and in line with expectations.

Target is $18.20. Overweight rating. Industry view: Attractive.

Target price is $18.20 Current Price is $13.93 Difference: $4.27
If MIN meets the Morgan Stanley target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $16.30, suggesting upside of 17.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 87.60 cents and EPS of 175.00 cents.
At the last closing share price the estimated dividend yield is 6.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 171.1, implying annual growth of 96.7%.

Current consensus DPS estimate is 93.8, implying a prospective dividend yield of 6.7%.

Current consensus EPS estimate suggests the PER is 8.1.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 47.70 cents and EPS of 95.00 cents.
At the last closing share price the estimated dividend yield is 3.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 130.7, implying annual growth of -23.6%.

Current consensus DPS estimate is 63.4, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 10.7.

Market Sentiment: 0.5

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


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

Ord Minnett was particularly interested in the update at the AGM that indicated half of the net proceeds from the recent sale of a 60% stake in the Wodgina project will be invested in FY20.

Given the state of lithium markets, the broker points out returns are healthy in the iron ore business, although the division is attracting more capital than previously expected.

Forecasts are updated for a higher-than-expected capital expenditure allowance in FY20. The broker awaits several catalysts and downgrades to Hold from Accumulate in the interim. Target is lowered to $14.40 from $15.60.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $14.40 Current Price is $13.93 Difference: $0.47
If MIN meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $16.30, suggesting upside of 17.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 EPS of 166.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 171.1, implying annual growth of 96.7%.

Current consensus DPS estimate is 93.8, implying a prospective dividend yield of 6.7%.

Current consensus EPS estimate suggests the PER is 8.1.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 EPS of 172.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 130.7, implying annual growth of -23.6%.

Current consensus DPS estimate is 63.4, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 10.7.

Market Sentiment: 0.5

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

NGI  NAVIGATOR GLOBAL INVESTMENTS LIMITED

Wealth Management & Investments

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Overnight Price: $2.81

Macquarie rates NGI as Outperform (1) -

Navigator Global enjoyed some $300m of inflows onto its platform over the past month and anticipates more in the March quarter, suggesting the tide has turned. Cost rationalisation undertaken in the first half leads the broker to increase forecast earnings.

Target rises to $3.39 from $3.28. On a 9x multiple and 9% yield the broker retains Outperform.

Target price is $3.39 Current Price is $2.81 Difference: $0.58
If NGI meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 24.03 cents and EPS of 20.74 cents.
At the last closing share price the estimated dividend yield is 8.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.55.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 24.18 cents and EPS of 20.89 cents.
At the last closing share price the estimated dividend yield is 8.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.45.

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

Market Sentiment: 1.0

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

NXT  NEXTDC LIMITED

Cloud services

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Overnight Price: $6.42

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

The company's rival AirTrunk has announced a $1bn-plus investment in a new hyper-scale data centre in North Sydney, its second Sydney data centre. This creates direct competition for NextDC, being in the same availability zone as its existing S2 and planned S3 data centres.

While NextDC should continue to benefit from increased demand there may be pricing pressure on its wholesale business in Sydney as a result, the broker suspects. Rating is downgraded to Hold from Accumulate. Target is steady at $7.

Target price is $7.00 Current Price is $6.42 Difference: $0.58
If NXT meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $7.81, suggesting upside of 21.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 642.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.9, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 214.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.8, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 0.8

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

ORG  ORIGIN ENERGY LIMITED

NatGas

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Overnight Price: $8.30

Citi rates ORG as Buy (1) -

Citi believes everything the company can control is going reasonably well. The broker remains comfortable with the retail positioning over the medium term, as competition eases and smaller operators lose share in a semi-regulated environment

 However, an uncertain energy policy has increased the risk profile of allocating capital to generation.

The priority for Origin Energy in the near term appears to be paying out dividends at a higher end of the pay-out ratio of 30-50% and increasing the headroom on the balance sheet. Buy rating and $8.42 target maintained.

Target price is $8.42 Current Price is $8.30 Difference: $0.12
If ORG meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $8.42, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 41.10 cents and EPS of 58.70 cents.
At the last closing share price the estimated dividend yield is 4.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.0, implying annual growth of -17.2%.

Current consensus DPS estimate is 33.6, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 14.6.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 50.30 cents and EPS of 62.80 cents.
At the last closing share price the estimated dividend yield is 6.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.6, implying annual growth of 4.6%.

Current consensus DPS estimate is 38.9, implying a prospective dividend yield of 4.7%.

Current consensus EPS estimate suggests the PER is 13.9.

Market Sentiment: 0.6

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


Macquarie rates ORG as Outperform (1) -

Origin Energy reiterated energy market guidance at its investor day and increased its APLNG volume target by 3% on flat costs.

Clearly the dividend paid to Origin for its stake in APLNG will be up on last period, the broker notes, hence the dividend to shareholders will be at the upper end of the 30-50% of free cash flow range.

While cash flow remains the theme, energy markets continue to face a challenged outlook, the broker suggests. Target falls to $8.81 from $9.12, Outperform retained.

Target price is $8.81 Current Price is $8.30 Difference: $0.51
If ORG meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.42, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 35.00 cents and EPS of 56.10 cents.
At the last closing share price the estimated dividend yield is 4.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.0, implying annual growth of -17.2%.

Current consensus DPS estimate is 33.6, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 14.6.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 38.00 cents and EPS of 52.80 cents.
At the last closing share price the estimated dividend yield is 4.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.6, implying annual growth of 4.6%.

Current consensus DPS estimate is 38.9, implying a prospective dividend yield of 4.7%.

Current consensus EPS estimate suggests the PER is 13.9.

Market Sentiment: 0.6

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


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

APLNG has increased FY20 production guidance to 690-710PJ with a consequent reduction in the break-even level.

Meanwhile, Morgan Stanley observes, at the investor briefing, Origin Energy appeared less enthused about growth in retail compared with its peers, focusing on value preservation, innovation and efficiency.

Equal-weight rating. Target is $7.77. Industry view is Cautious.

Target price is $7.77 Current Price is $8.30 Difference: minus $0.53 (current price is over target).
If ORG meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.42, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 30.00 cents and EPS of 56.00 cents.
At the last closing share price the estimated dividend yield is 3.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.0, implying annual growth of -17.2%.

Current consensus DPS estimate is 33.6, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 14.6.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 42.90 cents and EPS of 61.00 cents.
At the last closing share price the estimated dividend yield is 5.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.6, implying annual growth of 4.6%.

Current consensus DPS estimate is 38.9, implying a prospective dividend yield of 4.7%.

Current consensus EPS estimate suggests the PER is 13.9.

Market Sentiment: 0.6

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


Ord Minnett rates ORG as Hold (3) -

Ord Minnett observes, having achieved its capital structure target, Origin Energy is now intent on capital discipline and cash generation. This should support distributions over the medium term.

The company is pursuing a number of exploration opportunities in the integrated gas business that could underpin future growth. Ord Minnett's Hold rating and $8.25 target are maintained.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $8.25 Current Price is $8.30 Difference: minus $0.05 (current price is over target).
If ORG meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.42, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 EPS of 68.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.0, implying annual growth of -17.2%.

Current consensus DPS estimate is 33.6, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 14.6.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 EPS of 77.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.6, implying annual growth of 4.6%.

Current consensus DPS estimate is 38.9, implying a prospective dividend yield of 4.7%.

Current consensus EPS estimate suggests the PER is 13.9.

Market Sentiment: 0.6

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


UBS rates ORG as Buy (1) -

The investor briefing was broadly positive, UBS observes. Of note, cash distributions from APLNG have grown and the improving productivity allowed APLNG to upgrade its FY20 production guidance by 1%.

UBS expects the company will deliver a dividend yield of around 4-5% over the next three years. Buy rating and $9.10 target maintained.

Target price is $9.10 Current Price is $8.30 Difference: $0.8
If ORG meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.42, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 35.00 cents and EPS of 51.00 cents.
At the last closing share price the estimated dividend yield is 4.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.0, implying annual growth of -17.2%.

Current consensus DPS estimate is 33.6, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 14.6.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 37.00 cents and EPS of 58.00 cents.
At the last closing share price the estimated dividend yield is 4.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.6, implying annual growth of 4.6%.

Current consensus DPS estimate is 38.9, implying a prospective dividend yield of 4.7%.

Current consensus EPS estimate suggests the PER is 13.9.

Market Sentiment: 0.6

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

PGL  PROSPA GROUP LTD

Business & Consumer Credit

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Overnight Price: $2.05

UBS rates PGL as Buy (1) -

The company has downgraded its first half earnings forecasts. As a result, UBS estimates first half asset yield will be around 35% vs prior expectations of 41%. Operating costs have suffered from some one-off items, the broker notes.

However, UBS is surprised that it took until November to realise the half-year was running well behind prospectus, given that the largest driver of the miss to expectations results from originations in May-June.

Hence, the broker suspects there is lower earnings visibility than previously assessed. Buy rating maintained. Target is reduced to $3.10 from $5.15.

Target price is $3.10 Current Price is $2.05 Difference: $1.05
If PGL meets the UBS target it will return approximately 51% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 186.36.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 341.67.

Market Sentiment: 1.0

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

SEK  SEEK LIMITED

Jobs & Skilled Labour Services

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Overnight Price: $21.84

Morgans rates SEK as Downgrade to Hold from Add (3) -

Revenue momentum in the company's Chinese online employment business, Zhaopin, is weakening, as the impact of the US/China trade war spreads to the small-medium enterprise sector.

Zhaopin's short-term labour hire business is growing strongly but not enough to offset the effect of falling job advertisements. As a precautionary measure, Morgans lowers forecasts for China.

The share price is now trading in excess of the target and the rating is downgraded to Hold from Add. Target is reduced to $21.82 from $22.31.

Target price is $21.82 Current Price is $21.84 Difference: minus $0.02 (current price is over target).
If SEK meets the Morgans target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.40, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 26.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.6, implying annual growth of -9.2%.

Current consensus DPS estimate is 38.9, implying a prospective dividend yield of 1.8%.

Current consensus EPS estimate suggests the PER is 46.9.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 36.00 cents and EPS of 55.00 cents.
At the last closing share price the estimated dividend yield is 1.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.4, implying annual growth of 12.4%.

Current consensus DPS estimate is 39.3, implying a prospective dividend yield of 1.8%.

Current consensus EPS estimate suggests the PER is 41.7.

Market Sentiment: 0.3

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

SVW  SEVEN GROUP HOLDINGS LIMITED

Diversified Financials

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Overnight Price: $19.10

Credit Suisse rates SVW as Outperform (1) -

The company was incrementally more upbeat on the industrials business at the AGM, although Credit Suisse suspects the real story will unfold from FY20 with a step-up in both domestic infrastructure activity and new mining kit deliveries.

In the meantime, the broker believes investors can obtain exposure at a 12.5x FY20 forecast PE, with the industrial businesses virtually ungeared.

Outperform rating retained. Target is raised to $21.70 from $19.80.

Target price is $21.70 Current Price is $19.10 Difference: $2.6
If SVW meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $21.66, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 42.00 cents and EPS of 151.00 cents.
At the last closing share price the estimated dividend yield is 2.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 145.3, implying annual growth of 123.5%.

Current consensus DPS estimate is 42.0, implying a prospective dividend yield of 2.2%.

Current consensus EPS estimate suggests the PER is 13.1.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 42.00 cents and EPS of 173.00 cents.
At the last closing share price the estimated dividend yield is 2.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 161.7, implying annual growth of 11.3%.

Current consensus DPS estimate is 42.0, implying a prospective dividend yield of 2.2%.

Current consensus EPS estimate suggests the PER is 11.8.

Market Sentiment: 0.9

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

SYD  SYDNEY AIRPORT HOLDINGS LIMITED

Infrastructure & Utilities

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Overnight Price: $8.86

Ord Minnett rates SYD as Hold (3) -

Passenger numbers rose 1.6% in October, although international underwhelmed Ord Minnett, growing just 0.3%. International, which accounts for around 70% of group revenue, has experienced decelerating growth rates over the past three months.

The broker believes the stock is trading on elevated multiples and remains fully valued, maintaining a Hold rating and $7.80 target.

Target price is $7.80 Current Price is $8.86 Difference: minus $1.06 (current price is over target).
If SYD meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.22, suggesting downside of -7.2% (ex-dividends)

Forecast for FY19:

Current consensus EPS estimate is 16.8, implying annual growth of 1.6%.

Current consensus DPS estimate is 39.0, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 52.7.

Forecast for FY20:

Current consensus EPS estimate is 19.5, implying annual growth of 16.1%.

Current consensus DPS estimate is 40.4, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 45.4.

Market Sentiment: 0.3

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

TNE  TECHNOLOGYONE LIMITED

IT & Support

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Overnight Price: $8.85

Macquarie rates TNE as Neutral (3) -

A solid result from TechnologyOne slightly beat the broker on profit while revenue was in line. The business continues to grow strongly in its core local council and education verticals, the broker notes, but is also gaining momentum in other markets including government, health and community services.

To date the company is not seeing any significant competitive threats from newer SaaS players. Target increases to $9.60 from $7.80 on both earnings forecast increases and a lower risk free rate assumption. Neutral retained.

Target price is $9.60 Current Price is $8.85 Difference: $0.75
If TNE meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $8.15, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 12.50 cents and EPS of 19.90 cents.
At the last closing share price the estimated dividend yield is 1.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.5, implying annual growth of 11.2%.

Current consensus DPS estimate is 12.8, implying a prospective dividend yield of 1.4%.

Current consensus EPS estimate suggests the PER is 43.2.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 17.00 cents and EPS of 21.80 cents.
At the last closing share price the estimated dividend yield is 1.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.3, implying annual growth of 13.7%.

Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 1.7%.

Current consensus EPS estimate suggests the PER is 38.0.

Market Sentiment: -0.3

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


UBS rates TNE as Sell (5) -

FY19 results were ahead of UBS estimates. The quality was below expectations, although the outlook is considered positive.

UBS calculates TechnologyOne will have to reduce its FY20 operating expenditure by -5% in order to achieve 10% pre-tax profit growth.

This is based on FY20 estimated revenue growth of 6%. UBS maintains a Sell rating. Target is raised to $7.25 from $7.00.

Target price is $7.25 Current Price is $8.85 Difference: minus $1.6 (current price is over target).
If TNE meets the UBS target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.15, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 13.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 1.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.5, implying annual growth of 11.2%.

Current consensus DPS estimate is 12.8, implying a prospective dividend yield of 1.4%.

Current consensus EPS estimate suggests the PER is 43.2.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 14.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 1.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.3, implying annual growth of 13.7%.

Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 1.7%.

Current consensus EPS estimate suggests the PER is 38.0.

Market Sentiment: -0.3

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

VHT  VOLPARA HEALTH TECHNOLOGIES LIMITED

Medical Equipment & Devices

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Overnight Price: $1.78

Morgans rates VHT as Speculative Buy (1) -

First half results revealed annual recurring revenue of NZ$15.7m, underpinning key guidance measures for the full year.

The main catalyst is the publication of the DENSE results and a pending decision from the US FDA with regard to the mandatory provision of breast density information.

Morgans maintains a Speculative Buy (Add) rating and raises the target to $2.17 from $1.97.

Target price is $2.17 Current Price is $1.78 Difference: $0.39
If VHT meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 5.59 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.87.

Forecast for FY21:

Morgans forecasts a full year FY21 EPS of minus 3.22 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 55.31.

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


Ord Minnett rates VHT as Downgrade to Lighten from Hold (4) -

Ord Minnett observes break-even has been pushed out further and downgrades to Lighten from Hold. First half results were in line with expectations while a step up in costs meant an operating loss of -NZ$7.9m.

Looking towards FY21 and beyond the outlook is less certain, in the broker's view. Sales of core products have not quite met expectations to date. Target is reduced to $1.62 from $1.71.

Target price is $1.62 Current Price is $1.78 Difference: minus $0.16 (current price is over target).
If VHT meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in March.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 7.76 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.93.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 EPS of minus 4.64 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 38.36.

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

VRT  VIRTUS HEALTH LIMITED

Healthcare services

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Overnight Price: $4.07

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

Morgan Stanley notes the underlying performance over the four months to October was slightly ahead of the prior year. The broker expects flat operating earnings (EBITDA) in FY20 and revenue growth of 2.8%.

The company appears to have gained market share in the first quarter, with growth in low-cost services while premium services declined by -2%

Rating is Equal-weight and the target is $4.44. Industry view is In-Line.

Target price is $4.44 Current Price is $4.07 Difference: $0.37
If VRT meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.60, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 20.60 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 5.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.7, implying annual growth of -16.0%.

Current consensus DPS estimate is 21.9, implying a prospective dividend yield of 5.4%.

Current consensus EPS estimate suggests the PER is 13.7.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 EPS of 32.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.3, implying annual growth of 12.1%.

Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 5.7%.

Current consensus EPS estimate suggests the PER is 12.2.

Market Sentiment: 0.3

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


UBS rates VRT as Buy (1) -

The company has signalled that the financial performance for the first four months of FY20 is slightly ahead of the prior corresponding period. Improvements were noted across Ireland, the UK and Singapore.

The company has commenced a restructuring program, which will result in around -$1m of one-off costs in the first half. UBS reduces estimates for earnings per share by -7-8% over FY20-22.

Buy rating maintained. Target is reduced to $4.70 from $5.00.

Target price is $4.70 Current Price is $4.07 Difference: $0.63
If VRT meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.60, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 21.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 5.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.7, implying annual growth of -16.0%.

Current consensus DPS estimate is 21.9, implying a prospective dividend yield of 5.4%.

Current consensus EPS estimate suggests the PER is 13.7.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 22.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 5.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.3, implying annual growth of 12.1%.

Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 5.7%.

Current consensus EPS estimate suggests the PER is 12.2.

Market Sentiment: 0.3

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

WBC  WESTPAC BANKING CORPORATION

Banks

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Overnight Price: $25.17

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

AUSTRAC has launched a civil action against Westpac for systemic non-compliance with anti-money laundering and counter-terrorism financing laws. Morgan Stanley notes investors are aware of the issue but the new allegations could create an overhang for the stock.

The broker points out there is a wide range of outcomes, every -$500m equates to around -11 basis points of CET1 capital, and forecasts a -$250m penalty in FY20. AUSTRAC has noted Westpac disclosed issues with its reporting and has co-operated, lifting controls.

Equal-weight rating maintained. Target is $25.50. Industry view: In Line.

Target price is $25.50 Current Price is $25.17 Difference: $0.33
If WBC meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $27.84, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 160.00 cents and EPS of 188.00 cents.
At the last closing share price the estimated dividend yield is 6.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 204.2, implying annual growth of -11.6%.

Current consensus DPS estimate is 161.7, implying a prospective dividend yield of 6.4%.

Current consensus EPS estimate suggests the PER is 12.3.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 160.00 cents and EPS of 193.00 cents.
At the last closing share price the estimated dividend yield is 6.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 206.9, implying annual growth of 1.3%.

Current consensus DPS estimate is 164.2, implying a prospective dividend yield of 6.5%.

Current consensus EPS estimate suggests the PER is 12.2.

Market Sentiment: 0.1

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


Ord Minnett rates WBC as Hold (3) -

AUSTRAC has applied for civil penalty orders against Westpac relating to alleged non-compliance with anti-money laundering and counter-terrorism financing laws.

Westpac had previously indicated a significant financial penalty was possible, in its remediation update prior to the latest result, Ord Minnett observes.

However, the scope of AUSTRAC's statement is now much wider. Westpac has indicated it is taking the matter seriously including concerns about customer due diligence in relation to the Philippines and Southeast Asia.

Ord Minnett maintains a Hold rating and $26.70 target.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $26.70 Current Price is $25.17 Difference: $1.53
If WBC meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $27.84, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 160.00 cents and EPS of 202.00 cents.
At the last closing share price the estimated dividend yield is 6.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 204.2, implying annual growth of -11.6%.

Current consensus DPS estimate is 161.7, implying a prospective dividend yield of 6.4%.

Current consensus EPS estimate suggests the PER is 12.3.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 dividend of 160.00 cents and EPS of 200.00 cents.
At the last closing share price the estimated dividend yield is 6.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 206.9, implying annual growth of 1.3%.

Current consensus DPS estimate is 164.2, implying a prospective dividend yield of 6.5%.

Current consensus EPS estimate suggests the PER is 12.2.

Market Sentiment: 0.1

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

WEB  WEBJET LIMITED

Travel, Leisure & Tourism

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Overnight Price: $12.14

Credit Suisse rates WEB as Neutral (3) -

FY20 operating earnings (EBITDA) are expected to be between $157-167m with the first half registering at least $80m. Credit Suisse revises up estimates for earnings per share by 4.4%.

The broker maintains a Neutral rating and raises the target to $12.50 from $11.00, given some pleasing early signs of stabilisation.

Target price is $12.50 Current Price is $12.14 Difference: $0.36
If WEB meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $15.61, suggesting upside of 28.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 29.42 cents and EPS of 73.55 cents.
At the last closing share price the estimated dividend yield is 2.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.3, implying annual growth of 41.1%.

Current consensus DPS estimate is 28.0, implying a prospective dividend yield of 2.3%.

Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 31.85 cents and EPS of 79.62 cents.
At the last closing share price the estimated dividend yield is 2.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 82.6, implying annual growth of 24.6%.

Current consensus DPS estimate is 31.3, implying a prospective dividend yield of 2.6%.

Current consensus EPS estimate suggests the PER is 14.7.

Market Sentiment: 0.4

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


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

Morgan Stanley expects Webjet will trade positively following the trading update at the AGM. The company has guided to FY20 operating earnings (EBITDA) of $157-167m.

Equal-weight rating maintained. Target is $12.40. Industry View is In-Line.

Target price is $12.40 Current Price is $12.14 Difference: $0.26
If WEB meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $15.61, suggesting upside of 28.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 33.40 cents and EPS of 74.00 cents.
At the last closing share price the estimated dividend yield is 2.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.3, implying annual growth of 41.1%.

Current consensus DPS estimate is 28.0, implying a prospective dividend yield of 2.3%.

Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 37.40 cents and EPS of 83.00 cents.
At the last closing share price the estimated dividend yield is 3.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 82.6, implying annual growth of 24.6%.

Current consensus DPS estimate is 31.3, implying a prospective dividend yield of 2.6%.

Current consensus EPS estimate suggests the PER is 14.7.

Market Sentiment: 0.4

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


Morgans rates WEB as Hold (3) -

First half and FY20 earnings guidance are marginally ahead of expectations. Morgans acknowledges impressive headline growth rates but believes this is largely led by acquisitions, although welcomes evidence that cash flow concerns are being addressed.

Forecasts for FY20 and FY21 operating earnings (EBITDA) are upgraded by 1.9% and 1.4% respectively. Management has reiterated its FY22 targets for the WebBeds business. Hold rating maintained. Target is raised to $13.45 from $12.18.

Target price is $13.45 Current Price is $12.14 Difference: $1.31
If WEB meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $15.61, suggesting upside of 28.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 24.00 cents and EPS of 73.00 cents.
At the last closing share price the estimated dividend yield is 1.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.3, implying annual growth of 41.1%.

Current consensus DPS estimate is 28.0, implying a prospective dividend yield of 2.3%.

Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 26.00 cents and EPS of 82.00 cents.
At the last closing share price the estimated dividend yield is 2.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 82.6, implying annual growth of 24.6%.

Current consensus DPS estimate is 31.3, implying a prospective dividend yield of 2.6%.

Current consensus EPS estimate suggests the PER is 14.7.

Market Sentiment: 0.4

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


UBS rates WEB as Buy (1) -

The company's market update was positive, UBS assesses, given the challenging macro backdrop and negative expectations that have been priced into the stock.

The broker continues to assert that Webjet has structural and market share benefits following the integration of the DOTW acquisition. Buy rating and $18.65 target maintained.

Target price is $18.65 Current Price is $12.14 Difference: $6.51
If WEB meets the UBS target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $15.61, suggesting upside of 28.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 28.60 cents and EPS of 74.90 cents.
At the last closing share price the estimated dividend yield is 2.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.3, implying annual growth of 41.1%.

Current consensus DPS estimate is 28.0, implying a prospective dividend yield of 2.3%.

Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 34.80 cents and EPS of 91.30 cents.
At the last closing share price the estimated dividend yield is 2.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 82.6, implying annual growth of 24.6%.

Current consensus DPS estimate is 31.3, implying a prospective dividend yield of 2.6%.

Current consensus EPS estimate suggests the PER is 14.7.

Market Sentiment: 0.4

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

WPL  WOODSIDE PETROLEUM LIMITED

NatGas

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Overnight Price: $33.60

Credit Suisse rates WPL as Outperform (1) -

The company has provided context for the increase in the Scarborough resource at its investor briefing. This upgrade is partially offset by near-term lower LNG spot prices and production estimates, Credit Suisse asserts.

The likelihood that Scarborough proceeds has increased and Credit Suisse believes it is one of the best acquisitions the company has made. Outperform rating maintained. Target rises to $36.00 from $35.24.

Target price is $36.00 Current Price is $33.60 Difference: $2.4
If WPL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $34.62, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 133.25 cents and EPS of 165.95 cents.
At the last closing share price the estimated dividend yield is 3.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 171.5, implying annual growth of N/A.

Current consensus DPS estimate is 137.6, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 19.6.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 150.69 cents and EPS of 188.84 cents.
At the last closing share price the estimated dividend yield is 4.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 214.3, implying annual growth of 25.0%.

Current consensus DPS estimate is 165.7, implying a prospective dividend yield of 4.9%.

Current consensus EPS estimate suggests the PER is 15.7.

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

Market Sentiment: 0.2

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

Today's Price Target Changes
Company Last Price Broker New Target Prev Target Change
ADI APN INDUSTRIA REIT $2.95 Macquarie N/A 2.88 -100.00%
ALL ARISTOCRAT LEISURE $34.14 Citi 39.50 37.90 4.22%
Credit Suisse 35.00 33.40 4.79%
Macquarie 37.50 34.50 8.70%
Morgans 36.91 31.95 15.52%
Ord Minnett 37.50 34.25 9.49%
UBS 39.60 34.10 16.13%
ALQ ALS LIMITED $8.90 Citi 8.90 7.90 12.66%
Credit Suisse 8.60 8.40 2.38%
Macquarie 9.64 8.25 16.85%
Morgans 8.10 7.81 3.71%
UBS 8.90 7.80 14.10%
APE AP EAGERS $9.56 Macquarie 14.00 15.60 -10.26%
CGC COSTA GROUP $2.50 Citi 2.80 2.90 -3.45%
COH COCHLEAR $222.44 UBS 185.00 173.00 6.94%
MIN MINERAL RESOURCES $13.93 Ord Minnett 14.40 15.60 -7.69%
NGI NAVIGATOR GLOBAL INVESTMENTS $2.81 Macquarie 3.39 3.28 3.35%
ORG ORIGIN ENERGY $8.30 Macquarie 8.81 9.12 -3.40%
PGL PROSPA GROUP $2.05 UBS 3.10 5.15 -39.81%
SEK SEEK $21.84 Morgans 21.82 22.31 -2.20%
SVW SEVEN GROUP $19.10 Credit Suisse 21.70 19.80 9.60%
TNE TECHNOLOGYONE $8.85 Macquarie 9.60 7.80 23.08%
UBS 7.25 7.00 3.57%
VHT VOLPARA HEALTH TECHNOLOGIES $1.78 Morgans 2.17 1.97 10.15%
Ord Minnett 1.62 1.71 -5.26%
VRT VIRTUS HEALTH $4.07 UBS 4.70 5.00 -6.00%
WEB WEBJET $12.14 Credit Suisse 12.50 11.00 13.64%
Morgans 13.45 12.18 10.43%
WPL WOODSIDE PETROLEUM $33.60 Credit Suisse 36.00 35.24 2.16%
Summaries
ADI APN INDUSTRIA REIT No Rating - Macquarie Overnight Price $2.95
ALL ARISTOCRAT LEISURE Buy - Citi Overnight Price $34.14
Neutral - Credit Suisse Overnight Price $34.14
Outperform - Macquarie Overnight Price $34.14
Overweight - Morgan Stanley Overnight Price $34.14
Add - Morgans Overnight Price $34.14
Buy - Ord Minnett Overnight Price $34.14
Buy - UBS Overnight Price $34.14
ALQ ALS LIMITED Downgrade to Neutral from Buy - Citi Overnight Price $8.90
Neutral - Credit Suisse Overnight Price $8.90
Outperform - Macquarie Overnight Price $8.90
Hold - Morgans Overnight Price $8.90
Neutral - UBS Overnight Price $8.90
APE AP EAGERS Outperform - Macquarie Overnight Price $9.56
CGC COSTA GROUP Neutral - Citi Overnight Price $2.50
COH COCHLEAR Sell - UBS Overnight Price $222.44
LLC LENDLEASE Buy - Ord Minnett Overnight Price $19.04
MIN MINERAL RESOURCES Overweight - Morgan Stanley Overnight Price $13.93
Downgrade to Hold from Accumulate - Ord Minnett Overnight Price $13.93
NGI NAVIGATOR GLOBAL INVESTMENTS Outperform - Macquarie Overnight Price $2.81
NXT NEXTDC Downgrade to Hold from Accumulate - Ord Minnett Overnight Price $6.42
ORG ORIGIN ENERGY Buy - Citi Overnight Price $8.30
Outperform - Macquarie Overnight Price $8.30
Equal-weight - Morgan Stanley Overnight Price $8.30
Hold - Ord Minnett Overnight Price $8.30
Buy - UBS Overnight Price $8.30
PGL PROSPA GROUP Buy - UBS Overnight Price $2.05
SEK SEEK Downgrade to Hold from Add - Morgans Overnight Price $21.84
SVW SEVEN GROUP Outperform - Credit Suisse Overnight Price $19.10
SYD SYDNEY AIRPORT Hold - Ord Minnett Overnight Price $8.86
TNE TECHNOLOGYONE Neutral - Macquarie Overnight Price $8.85
Sell - UBS Overnight Price $8.85
VHT VOLPARA HEALTH TECHNOLOGIES Speculative Buy - Morgans Overnight Price $1.78
Downgrade to Lighten from Hold - Ord Minnett Overnight Price $1.78
VRT VIRTUS HEALTH Equal-weight - Morgan Stanley Overnight Price $4.07
Buy - UBS Overnight Price $4.07
WBC WESTPAC BANKING Equal-weight - Morgan Stanley Overnight Price $25.17
Hold - Ord Minnett Overnight Price $25.17
WEB WEBJET Neutral - Credit Suisse Overnight Price $12.14
Equal-weight - Morgan Stanley Overnight Price $12.14
Hold - Morgans Overnight Price $12.14
Buy - UBS Overnight Price $12.14
WPL WOODSIDE PETROLEUM Outperform - Credit Suisse Overnight Price $33.60
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

20

3. Hold

19

4. Reduce

1

5. Sell

2

Thursday 21 November 2019

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Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.