Australian Broker Call

Morgans rates APA as Upgrade to Add from Hold (1) -

Morgans forecasts around 1% growth in operating earnings at the first half, with growth hampered by lower CPI, re-contracting and no substantial incremental earnings from growth projects.

Nevertheless, the recent decline in the share price back to the lower end of recent ranges provides a buying opportunity in the broker's opinion.

Rating is upgraded to Add from Hold. Target is reduced to $8.58 from $8.67.

Target price is $8.58 Current Price is $8.11 Difference: $0.47
If APA meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.95, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Citi rates ASX as Upgrade to Neutral from Sell (3) -

Citi observes strong secondary capital raisings have nudged up earnings per share. The first half recorded total capital raisings of $44.8m, up 22%.

The cash market has been lacklustre in the first half and the broker notes exit momentum has been similarly weak.

Citi lifts FY18 estimates for earnings per share by 0.5% and the target to $55.30 from $54.90. Rating is upgraded to Neutral from Sell.

Target price is $55.30 Current Price is $56.06 Difference: minus $0.76 (current price is over target).
If ASX meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $52.29, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.5

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

UBS rates AWE as Neutral (3) -

CERCG has lodged a bidders statement, maintaining a 73c all-cash offer for AWE. Mineral Resources' ((MIN)) cash/scrip offer implies 83c on last price, the broker notes, and the board has recommended this be accepted.

Neutral and 83c target retained.

Target price is $0.83 Current Price is $0.99 Difference: minus $0.16 (current price is over target).
If AWE meets the UBS target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.70, suggesting downside of -29.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Macquarie rates BAP as Outperform (1) -

Macquarie suggests the margin upside is under appreciated, underpinning earnings upgrades in the medium to longer term. Expansion potential in Asia also offers material upside while the broker considers the online trade/EV risk overstated.

Outperform. Target is raised to $6.60 from $6.25.

Target price is $6.60 Current Price is $5.87 Difference: $0.73
If BAP meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.59, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

UBS rates BIN as Initiation of Coverage: Buy (1) -

UBS has initiated coverage on waste manager and recycler Bingo Industries with a Buy rating and $3.10 price target. The company offers a strong growth profile from acquisitions, site upgrades and increased market share in both the building and commercial waste sectors, the broker suggests.

The potential introduction of a landfill levy in Qld poses a risk, but the broker expects such an introduction would be gradual. The quality of Bingo's earnings is lower than peers but this is reflected in a PE discount, the broker notes.

Target price is $3.10 Current Price is $2.72 Difference: $0.38
If BIN meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Morgan Stanley rates BPT as Overweight (1) -

Morgan Stanley suggests Beach Energy is set to become the fourth-largest listed, pure E&P company by market cap in Australia. The broker expects the turnaround in the Cooper Basin is just beginning and will be accretive over time.

Meanwhile, the onshore Otway gas discovery looks encouraging and further updates are expected over coming months. The broker suspects the market is underestimating the free cash being generated, which should lead to higher debt reduction and increased equity value over time.

Overweight. Price target is raised to $1.70 from $1.30. Industry view is In-Line.

Target price is $1.70 Current Price is $1.35 Difference: $0.35
If BPT meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $1.21, suggesting downside of -10.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

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

Morgan Stanley notes the market's conviction that an upgrade to FY18 guidance will be forthcoming. The company is due to report first half earnings on February 14 and Morgan Stanley expects EBIT of US$1.129bn.

The broker envisages upside risk to Seqirus numbers, given the US flu season is early and severe. Equal-weight rating and In-Line industry view are retained. Target is raised to $132 from $127.

Target price is $132.00 Current Price is $150.10 Difference: minus $18.1 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $150.34, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.6

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

Credit Suisse rates CTX as Outperform (1) -

Credit Suisse wonders, with silence from BP since the ACCC blocked its acquisition of the Woolworths ((WOW)) petrol business, whether there is an opportunity for Caltex to renew its partnership with Woolworths.

The broker considers Caltex cheap on an "as is" basis and believes the real value lies in some form of asset divestments or break up. Woolworths' volumes are highly important and in a break up the broker suggests they are worth far more than the market is factoring in at present.

Outperform rating. Target is $40.80.

Target price is $40.80 Current Price is $35.57 Difference: $5.23
If CTX meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $36.27, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Deutsche Bank rates DOW as Buy (1) -

Deutsche Bank is confident the company will re-rate in 2018, catch up to its peers and the high valuations across the broader ASX. Hence, the broker retains a Buy rating and $7.96 target.

The business has underperformed peers over 2017 because of concerns about Spotless and low earnings growth. Deutsche Bank suggests this also occurred in mid 2015 because the business was less cyclically exposed and it became more appealing over 2016 from a relative perspective.

Target price is $7.96 Current Price is $6.74 Difference: $1.22
If DOW meets the Deutsche Bank target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $7.34, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

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

Ord Minnett believes the company's significant change in marketing strategy incorporates a view that low-grade ore discounts are partly structural.

Hence, the broker raises expectations for the long-term iron ore price discount to -20% from -17%, which lowers the valuation and target to $5.50 from $6.35.

In theory, this suggests a potential premium gain for the company from the new higher specification product may be more than offset by a greater penalty for the remaining product.

Given the uncertainty, Ord Minnett downgrades the rating to Hold from Accumulate.

Target price is $5.50 Current Price is $5.05 Difference: $0.45
If FMG meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.48, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.4

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

Citi rates IAG as Neutral (3) -

Citi raises FY18 estimates for earnings per share by 4% and FY19 by 2%. The broker considers the outlook bright, with price rises expected to exceed claims inflation.

The broker maintains a Neutral rating and raises the target to $7.25 from $7.00.

Target price is $7.25 Current Price is $7.28 Difference: minus $0.03 (current price is over target).
If IAG meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.91, suggesting downside of -5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Ord Minnett rates JBH as Upgrade to Accumulate from Hold (2) -

Ord Minnett reviews JB Hi-Fi following the strong performance of the stock, noting Australia's consumer sector has been stronger than expected and the launch of Amazon has been underwhelming thus far.

JB Hi-Fi has also responded to the competitive threat of Amazon better than expected. Rating is upgraded to Accumulate from Hold and the target to $31.50 from $23.00.

Target price is $31.50 Current Price is $28.96 Difference: $2.54
If JBH meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $27.08, suggesting downside of -6.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

Morgans rates LAU as Add (1) -

The company is expected to benefit from the fundamentals that are supporting a positive outlook for Australia's horticultural industry. Export demand is expected to remain strong.

Morgans initiates coverage on the stock with an Add rating and $0.51 target. Lindsay Australia operates an integrated refrigerated transport, cold logistics and rural supply business involved in each stage of the food production chain.

The company has recently completed a capital expenditure program, including fleet renewal and the replacement of its logistics, maintenance & tracking system.

Target price is $0.51 Current Price is $0.44 Difference: $0.07
If LAU meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

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

Given a continuation of the strong performance of Grand Cote operations and successful ramp up of the Tyssedal furnace, Morgans now eliminates the discount to valuation and raises the target to $1.18 from $0.94.

As the share price is now close to valuation, the broker suggests investors should consider taking some profits, although the commodity cycle remains favourable for the business. Rating is downgraded to Hold from Add.

Target price is $1.18 Current Price is $1.13 Difference: $0.05
If MDL meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.0

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

Ord Minnett rates MFG as Buy (1) -

Funds under management growth was 14% over the first half, driven by $3.5bn of net inflows and $4bn of investment performance. FUM at the end of 2017 was 5% ahead of Ord Minnett's estimates, with retail in line and institutions tracking well ahead of expectations.

Ord Minnett suggests the stock offers compelling value and a Buy rating is retained. Target is raised to $30.35 from $29.18.

Target price is $30.35 Current Price is $27.81 Difference: $2.54
If MFG meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $29.01, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Citi rates MPL as Neutral (3) -

Citi upgrades forecasts for earnings per share by 4% in FY18 to include the April 2018 premium rate increase of 3.88%. The approved rate increase is the lowest for 17 years but not quite as low as the broker expected.

Pressure on participation appears likely to continue and Citi suspects affordability issues are unlikely to abate quickly.

Neutral retained. Target is raised to $3.25 from $2.95.

Target price is $3.25 Current Price is $3.32 Difference: minus $0.07 (current price is over target).
If MPL meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.03, suggesting downside of -8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Morgans rates MPL as Hold (3) -

The company has announced a government-approved price increase from April 1 of around 3.9%. The reduced increase is largely in line with Morgans' expectations.

However, with private health insurance costs still rising at around 5% per annum the broker envisages downside risks to margins. Morgans believes the risk of disappointment at the upcoming results is relatively low but considers the price full.

Hold rating and target lowered 1% to $2.81.

Target price is $2.81 Current Price is $3.32 Difference: minus $0.51 (current price is over target).
If MPL meets the Morgans target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.03, suggesting downside of -8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

UBS rates MPL as Sell (5) -

The government has approved a 3.88% premium price increase, which is more palatable, the broker suggests, than last year's 4.6%, but still hefty compared to inflation. The broker does not believe any major insurer will see a marketing advantage on price post increase.

Sell and $2.60 target retained.

Target price is $2.60 Current Price is $3.32 Difference: minus $0.72 (current price is over target).
If MPL meets the UBS target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.03, suggesting downside of -8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Morgans rates MX1 as Add (1) -

The December quarter cash flow report was in line with Morgans estimates.

The partnership with Carestream Health has meant the purchase of the first DRX Revolution Nano units in preparation for global launch this year.

The broker retains an $0.88 target and Add rating.

Target price is $0.88 Current Price is $0.41 Difference: $0.47
If MX1 meets the Morgans target it will return approximately 115% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Citi rates NHF as Sell (5) -

Citi incorporates the approved April rate increase of 3.93%, which is marginally higher than expected. The broker upgrades FY18 estimates for earnings per share by 4%.

The broker continues to believe the company is well-run but the stock expensive even though, post the acquisition of GU Health,  the earnings growth profile beyond FY18 appears to be back in double digits.

Sell maintained. Target is raised to $6.00 from $5.25.

Target price is $6.00 Current Price is $6.74 Difference: minus $0.74 (current price is over target).
If NHF meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.95, suggesting downside of -11.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Morgans rates NHF as Hold (3) -

The company has announced a government-approved price increase from April 1 of around 3.9%. The reduced increase is largely in line with Morgans' expectations.

However, with private health insurance costs still rising at around 5% per annum the broker envisages downside risks to margins. Morgans believes the risk of disappointment at the upcoming results is relatively low but considers the price full.

Hold rating and target raised to $6.13 from $5.89 on the rolling forward of valuation.

Target price is $6.13 Current Price is $6.74 Difference: minus $0.61 (current price is over target).
If NHF 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 $5.95, suggesting downside of -11.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Citi rates NST as Neutral (3) -

Considering the supportive environment for gold prices, and the possibility of positive exploration results in February, Citi maintains a Neutral rating for now, despite the stock trading slightly above fair value. Target is $5.50.

December quarter production was in line with expectations. The broker removes Paulsens from forward estimates. The broker notes upside risk to FY18 guidance from higher grades at Jundee and Kalgoorlie.

Target price is $5.50 Current Price is $5.90 Difference: minus $0.4 (current price is over target).
If NST meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.21, suggesting downside of -11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

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

Credit Suisse found the December quarter results uninspiring as there were no exploration results and production was within guidance.

Rating is downgraded to Underperform from Neutral on share price strength. Target is $4.55.

Target price is $4.55 Current Price is $5.90 Difference: minus $1.35 (current price is over target).
If NST meets the Credit Suisse target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.21, suggesting downside of -11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Macquarie rates NST as Neutral (3) -

The December quarter was soft but still broadly in line with Macquarie's expectations, and in line with FY18 guidance. The broker observes good progress on growth projects with exploration delivering positive results.

Macquarie considers the stock fairly valued. Neutral and target raised to $6.10 from $6.00.

Target price is $6.10 Current Price is $5.90 Difference: $0.2
If NST meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting downside of -11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Ord Minnett rates NST as Hold (3) -

December quarter production was -9% below Ord Minnett's estimates. The main reason was lower milled grades across the assets.

Production has ceased at Paulsens but the company has reiterated full year guidance of 525-575,000 ounces.

Hold rating.  Target is raised to $5.40 from $5.20.

Target price is $5.40 Current Price is $5.90 Difference: minus $0.5 (current price is over target).
If NST meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.21, suggesting downside of -11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Citi rates NXT as Buy (1) -

Citi finds the demand drivers for data centres are robust. Recent price weakness is considered an enhanced opportunity and the broker reiterates a conviction Buy call.

The broker upgrades the target to $7.02 from $6.03. The broker slightly lowers FY19 utilisation forecasts for M2 and S2 to reflect a slower ramping up of client billing.

Target price is $7.02 Current Price is $5.81 Difference: $1.21
If NXT meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $6.01, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Ord Minnett rates PAC as Buy (1) -

The company reports strong growth in its key segments of Aperio and GQG. These two boutiques account for around 40% of Ord Minnett's FY18 boutique profit estimates. Outside of the core boutiques, funds under management from ROC Partners and EAM grew by 21% and 91% respectively over the first half.

Ord Minnett considers Pacific Current one of the cheapest asset management businesses on the ASX. The broker retains a Buy rating. Target is raised to $9.50 from $8.23.

Target price is $9.50 Current Price is $7.85 Difference: $1.65
If PAC meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Ord Minnett rates PTM as Sell (5) -

Inflows turned around at the end of FY17 with the company recording net inflows in the first half of around $800m. This turnaround was precipitated by a material movement in the performance of the Platinum International Fund and a management fee reduction of -10% commencing in July 2017.

Ord Minnett acknowledges having been "horribly wrong" with its Sell call for the last eight months but continues with the rating following significant upgrades to estimates. This is because, with the stock trading on an ex--cash FY19 PE of around 21 times and growth in earnings per share of just 10%, it is considered overvalued.

Ord Minnett prefers Magellan Financial ((MFG)). Target is raised to $7.40 from $3.85.

Target price is $7.40 Current Price is $8.45 Difference: minus $1.05 (current price is over target).
If PTM 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 $6.80, suggesting downside of -19.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.5

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

Macquarie rates TWE as Neutral (3) -

Macquarie believes the medium-term story in China is a risk, particularly given the reliance on new regional ranges.

Cost benefits demonstrated in the second half of FY17 provide the broker with some comfort that the company can bridge the earnings gap that will emanate from the poor vintage release in FY18.

The broker acknowledges, given the likelihood of another accretive acquisition, that the short term downside risk is limited. Neutral maintained. Target is raised to $14.64 from $12.89.

Target price is $14.64 Current Price is $17.29 Difference: minus $2.65 (current price is over target).
If TWE meets the Macquarie target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.78, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

Macquarie rates WES as Outperform (1) -

Structural pressures may be prevailing in the retail sector but Macquarie believes investors are being compensated for these risks and retains an outperform view on the consumer.

The broker suggests household discretionary income is subdued in the year ahead but the trajectory is improving. The broker prefers Wesfarmers in the supermarkets. Outperform rating. Target is raised to $45.55 from $43.72.

Target price is $45.55 Current Price is $44.05 Difference: $1.5
If WES meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $41.69, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Morgan Stanley rates WHC as Upgrade to Equal-weight from Underweight (3) -

An extended rally in coal prices has led to significant de-gearing, creating valuation support, Morgan Stanley observes. The broker considers the stock fairly valued and generating significant cash flow even on bear-case coal prices.

This leads the broker to upgrade to Equal-weight from Underweight. The upside risk comes from an expanded Vickery project.

Target rises to $5.05 from $3.75. Industry view: Attractive.

Target price is $5.05 Current Price is $4.85 Difference: $0.2
If WHC meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.54, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

UBS rates WHC as Buy (1) -

Whitehaven knew a cost increase was inevitable at Narrabri, but not quite so soon. The broker suggests the market has overreacted to the news. The company is selling less met coal from Maules Creek than planned, but at high prices.

With a strong balance sheet and healthy free cash flow, the broker sees the potential for material returns to shareholders. Buy retained. Target rises to $5.35 from $4.90.

Target price is $5.35 Current Price is $4.85 Difference: $0.5
If WHC meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.54, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Morgan Stanley rates WOR as Overweight (1) -

WorleyParsons is exposed to the leading edge of the oil and gas expenditure cycle, Morgan Stanley observes, and the recent strategic investment by Dar Group offers downside protection should activity and profitability take longer-than-expected to come through.

Overweight rating retained. Industry view is Cautious. Price target is raised to $16.44 from $12.42.

Target price is $16.44 Current Price is $14.74 Difference: $1.7
If WOR meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $15.29, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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