Australian Broker Call

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July 15, 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
CAR - CARSALES.COM Downgrade to Reduce from Add Morgans
DTL - DATA#3 Downgrade to Hold from Add Morgans
STO - SANTOS Upgrade to Outperform from Neutral Macquarie
AGL  AGL ENERGY LIMITED

Infrastructure & Utilities

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Overnight Price: $20.22

Morgans rates AGL as Hold (3) -

The broker has increased its AGL Energy target to $18.33 from $17.85 to account for higher electricity prices. Despite higher prices, the broker sees a challenging FY20 for the company given the Loy Yang outage and regulation of default electricity offers. Hold retained.

Target price is $18.33 Current Price is $20.22 Difference: minus $1.89 (current price is over target).
If AGL 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 $19.21, suggesting downside of -5.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 116.00 cents and EPS of 155.00 cents.
At the last closing share price the estimated dividend yield is 5.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 154.3, implying annual growth of -36.2%.

Current consensus DPS estimate is 116.0, implying a prospective dividend yield of 5.7%.

Current consensus EPS estimate suggests the PER is 13.1.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 103.00 cents and EPS of 138.00 cents.
At the last closing share price the estimated dividend yield is 5.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 135.8, implying annual growth of -12.0%.

Current consensus DPS estimate is 109.0, implying a prospective dividend yield of 5.4%.

Current consensus EPS estimate suggests the PER is 14.9.

Market Sentiment: -0.4

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: $29.12

Citi rates ALL as Buy (1) -

Citi stopped covering in 2018 and at the time had labeled Aristocrat Leisure a "Conviction Buy". The broker has returned with a Buy rating and $35 price target. Growth for the medium term outlook should be secured via the land based operations, argue the analysts, while acknowledging the move into Digital adds a degree of uncertainty in the short term.

"High quality, above market growth" that's how Citi describes the investment opportunity offered by Aristocrat Leisure. Underlying lays high single-digit organic growth, supported by the fact a large chunk of the revenues are now recurring.

In Digital, Citi estimates the company's market share is circa 2% of a US$69bn mobile market that is growing at an estimated 13% per annum over the next three years. On the broker's calculations, the Digital operations are presently discounted by investors, which offers a sufficient margin of safety, in its view. Interesting detail: the last price target in our admin was $36 last year.

Target price is $35.00 Current Price is $29.12 Difference: $5.88
If ALL meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $32.19, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Citi forecasts a full year FY19 dividend of 50.00 cents and EPS of 110.30 cents.
At the last closing share price the estimated dividend yield is 1.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 128.7, implying annual growth of 12.8%.

Current consensus DPS estimate is 52.5, implying a prospective dividend yield of 1.8%.

Current consensus EPS estimate suggests the PER is 22.6.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 52.00 cents and EPS of 135.80 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.3, implying annual growth of 15.2%.

Current consensus DPS estimate is 59.2, implying a prospective dividend yield of 2.0%.

Current consensus EPS estimate suggests the PER is 19.6.

Market Sentiment: 0.9

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

AMP  AMP LIMITED

Insurance

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Overnight Price: $1.81

Citi rates AMP as Sell (5) -

Citi had downgraded to Sell/High Risk from Neutral in May, with a price target of $1.90 and both key elements remain unchanged after yet another update on AMP. Forecasts have been slightly amended for marking-to-market, but overall the analysts believe the market is no longer interested in short term earnings and changes in earnings.

Citi analysts now believe all that matters is what strategy will be announced to reshape the once mighty AMP. Citi thinks a substantial cost-out program is under way. The analysts remain sceptical whether such a move will be sufficient to offset declining revenues.

Whatever management and the board come up with, Citi retains the view that any successful turnaround can only occur via a long and arduous road to reinvent the company. Hence the Sell rating.

Target price is $1.90 Current Price is $1.81 Difference: $0.09
If AMP meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.10, 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 10.00 cents and EPS of 22.90 cents.
At the last closing share price the estimated dividend yield is 5.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.3, implying annual growth of 1730.0%.

Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 6.6%.

Current consensus EPS estimate suggests the PER is 9.9.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 11.00 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 6.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.3, implying annual growth of -5.5%.

Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 7.7%.

Current consensus EPS estimate suggests the PER is 10.5.

Market Sentiment: -0.3

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


Macquarie rates AMP as No Rating (-1) -

AMP has advised the RBNZ has blocked the proposed sale of AMP Life in its current form, and this has the immediate effect that no dividend will be paid out for this half. Macquarie analysts also believe the RBNZ blockage implies a heightened risk that AMP will need to raise capital to strengthen the balance sheet.

Macquarie has placed its rating for AMP Under Review (previously: Neutral). The analysts expect AMP to increase provisions for advice remediation, which, they suggest, could be the catalyst for a fresh raising.

Current Price is $1.81. Target price not assessed.

Current consensus price target is $2.10, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 12.50 cents and EPS of 13.60 cents.
At the last closing share price the estimated dividend yield is 6.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.3, implying annual growth of 1730.0%.

Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 6.6%.

Current consensus EPS estimate suggests the PER is 9.9.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 14.50 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 8.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.3, implying annual growth of -5.5%.

Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 7.7%.

Current consensus EPS estimate suggests the PER is 10.5.

Market Sentiment: -0.3

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


Morgans rates AMP as Hold (3) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements. Heading into reporting season the broker sees risks tilted to the downside.

AMP target falls to $2.25 from $2.30. Hold retained.

Target price is $2.25 Current Price is $1.81 Difference: $0.44
If AMP meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.10, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 14.30 cents and EPS of 16.70 cents.
At the last closing share price the estimated dividend yield is 7.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.3, implying annual growth of 1730.0%.

Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 6.6%.

Current consensus EPS estimate suggests the PER is 9.9.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 15.50 cents and EPS of 13.70 cents.
At the last closing share price the estimated dividend yield is 8.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.3, implying annual growth of -5.5%.

Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 7.7%.

Current consensus EPS estimate suggests the PER is 10.5.

Market Sentiment: -0.3

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

APT  AFTERPAY TOUCH GROUP LIMITED

Business & Consumer Credit

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Overnight Price: $23.79

Morgans rates APT as Add (1) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

Afterpay Touch target rises to $28.85 from $23.43. Add retained.

Target price is $28.85 Current Price is $23.79 Difference: $5.06
If APT meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 881.11.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 0.00 cents and EPS of 20.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 118.36.

Market Sentiment: 1.0

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

ASX  ASX LIMITED

Wealth Management & Investments

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Overnight Price: $86.07

Morgans rates ASX as Reduce (5) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

ASX target rises to $68.24 from $57.10. Reduce retained.

Target price is $68.24 Current Price is $86.07 Difference: minus $17.83 (current price is over target).
If ASX meets the Morgans target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $64.15, suggesting downside of -25.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 227.00 cents and EPS of 252.00 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 34.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 255.7, implying annual growth of 6.4%.

Current consensus DPS estimate is 229.6, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 33.7.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 234.00 cents and EPS of 260.00 cents.
At the last closing share price the estimated dividend yield is 2.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 262.7, implying annual growth of 2.7%.

Current consensus DPS estimate is 234.1, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 32.8.

Market Sentiment: -0.7

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

CAR  CARSALES.COM LIMITED

Automobiles & Components

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Overnight Price: $13.72

Morgans rates CAR as Downgrade to Reduce from Add (5) -

Following a strong share price performance, stockbroker Morgans has decided it's time to downgrade Carsales to Reduce from Add, representing a double-step downgrade in its ratings universe.

Looking towards FY20, Morgans finds the company's growth is most likely to consist of single-digit percentage growth and in this context the current valuation is seen as overly rich.

Morgans retains a positive view on Carsales' long-term prospects, but succumbs to the observation that, short-term, the valuation seems to have moved well-ahead of fundamentals. Price target $12.49 (unchanged). Forecasts have been left untouched.

Target price is $12.49 Current Price is $13.72 Difference: minus $1.23 (current price is over target).
If CAR 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 $14.04, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 44.00 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 3.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.4, implying annual growth of -4.8%.

Current consensus DPS estimate is 45.0, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 26.7.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 45.00 cents and EPS of 59.00 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.2, implying annual growth of 15.2%.

Current consensus DPS estimate is 48.1, implying a prospective dividend yield of 3.5%.

Current consensus EPS estimate suggests the PER is 23.2.

Market Sentiment: 0.6

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

CGF  CHALLENGER LIMITED

Wealth Management & Investments

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Overnight Price: $6.73

Morgans rates CGF as Hold (3) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

Challenger's price target falls to $7.37 from $7.39. Hold retained.

Target price is $7.37 Current Price is $6.73 Difference: $0.64
If CGF meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $7.31, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 33.60 cents and EPS of 53.90 cents.
At the last closing share price the estimated dividend yield is 4.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.4, implying annual growth of -4.8%.

Current consensus DPS estimate is 34.2, implying a prospective dividend yield of 5.1%.

Current consensus EPS estimate suggests the PER is 13.1.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 33.70 cents and EPS of 50.70 cents.
At the last closing share price the estimated dividend yield is 5.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.8, implying annual growth of 2.7%.

Current consensus DPS estimate is 33.5, implying a prospective dividend yield of 5.0%.

Current consensus EPS estimate suggests the PER is 12.7.

Market Sentiment: 0.0

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

CPU  COMPUTERSHARE LIMITED

Diversified Financials

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Overnight Price: $16.41

Morgans rates CPU as Hold (3) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

Computershare target falls to $17.56 from $17.92. Hold retained.

Target price is $17.56 Current Price is $16.41 Difference: $1.15
If CPU meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $16.76, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 62.62 cents and EPS of 100.03 cents.
At the last closing share price the estimated dividend yield is 3.82%.
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 101.5, implying annual growth of N/A.

Current consensus DPS estimate is 56.6, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 67.95 cents and EPS of 100.45 cents.
At the last closing share price the estimated dividend yield is 4.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 102.2, implying annual growth of 0.7%.

Current consensus DPS estimate is 69.5, implying a prospective dividend yield of 4.2%.

Current consensus EPS estimate suggests the PER is 16.1.

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

Market Sentiment: -0.1

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

CSL  CSL LIMITED

Pharmaceuticals & Biotech/Lifesciences

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Overnight Price: $221.36

UBS rates CSL as Buy (1) -

The Trump Administration has withdrawn its proposed rebate rule which was intended to stop the practice of pharmacy benefit manager rebates from January 1, 2020. UBS suggests the most likely reason was the cost of implementation.

UBS continues to expect around 15% of the company's global immunoglobulin sales will be exposed to potential reform of the international pricing index, the only remaining comprehensive drug pricing reform available in the US.

A -18% price reduction is estimated, which would reduce valuation by around -6%. No changes are made to forecasts because of the significant uncertainty. Buy rating and $223 target maintained.

Target price is $223.00 Current Price is $221.36 Difference: $1.64
If CSL meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $212.40, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

UBS forecasts a full year FY19 dividend of 264.32 cents and EPS of 575.70 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 38.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 605.0, implying annual growth of N/A.

Current consensus DPS estimate is 273.9, implying a prospective dividend yield of 1.2%.

Current consensus EPS estimate suggests the PER is 36.6.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 275.06 cents and EPS of 608.77 cents.
At the last closing share price the estimated dividend yield is 1.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 646.3, implying annual growth of 6.8%.

Current consensus DPS estimate is 295.7, implying a prospective dividend yield of 1.3%.

Current consensus EPS estimate suggests the PER is 34.3.

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

Market Sentiment: 0.5

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

DTL  DATA#3 LIMITED

IT & Support

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Overnight Price: $2.55

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

Data#3 has released revised guidance suggesting FY19 profit will be up 28%, 11% ahead of Morgans' forecast. The broker had flagged upside were there to be no election slowdown, and neither the NSW or federal elections produced a slowdown.

The broker rates the company highly but after a 52% rally over twelve months, downgrades to Hold. Target rises to $2.48 from $2.25.

Target price is $2.48 Current Price is $2.55 Difference: minus $0.07 (current price is over target).
If DTL meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 10.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 3.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.25.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 11.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 4.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.62.

Market Sentiment: 0.0

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

GDG  GENERATION DEVELOPMENT GROUP LIMITED

Wealth Management & Investments

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Overnight Price: $0.52

Morgans rates GDG as Add (1) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

Generation Development target unchanged at 83c. Add retained.

Target price is $0.83 Current Price is $0.52 Difference: $0.31
If GDG meets the Morgans target it will return approximately 60% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 2.00 cents and EPS of 2.10 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.76.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 2.00 cents and EPS of 2.70 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.26.

Market Sentiment: 1.0

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

HLO  HELLOWORLD LIMITED

Travel, Leisure & Tourism

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Overnight Price: $4.73

Ord Minnett rates HLO as Buy (1) -

Ord Minnett has re-examined earnings estimates and, while not expecting numbers wildly in excess of its forecast for FY19, considers it unlikely the company will disappoint.

The FY20 result appears to be about cost reductions and, as a result, the market appears to have discounted the stock. Despite this, Ord Minnett is comfortable in the ability of the company to deliver. Buy rating and $6.14 target maintained.

Target price is $6.14 Current Price is $4.73 Difference: $1.41
If HLO meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 18.00 cents and EPS of 32.10 cents.
At the last closing share price the estimated dividend yield is 3.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.74.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 19.00 cents and EPS of 35.30 cents.
At the last closing share price the estimated dividend yield is 4.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.40.

Market Sentiment: 0.5

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

IAG  INSURANCE AUSTRALIA GROUP LIMITED

Insurance

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Overnight Price: $8.43

Morgans rates IAG as Hold (3) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

Insurance Australia Group target rises to $7.61 from $7.13. Hold retained.

Target price is $7.61 Current Price is $8.43 Difference: minus $0.82 (current price is over target).
If IAG meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.86, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 39.70 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.2, implying annual growth of 7.8%.

Current consensus DPS estimate is 35.8, implying a prospective dividend yield of 4.2%.

Current consensus EPS estimate suggests the PER is 19.5.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 35.40 cents and EPS of 43.90 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.4, implying annual growth of 2.8%.

Current consensus DPS estimate is 34.2, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 19.0.

Market Sentiment: -0.1

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

KSL  KINA SECURITIES LIMITED

Wealth Management & Investments

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Overnight Price: $1.37

Morgans rates KSL as Add (1) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

Kina Securities target rises to $1.45 from $1.42. Add retained.

Target price is $1.45 Current Price is $1.37 Difference: $0.08
If KSL meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 10.30 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 7.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.91.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 14.30 cents and EPS of 52.00 cents.
At the last closing share price the estimated dividend yield is 10.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.63.

This company reports in PGK. 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

LNK  LINK ADMINISTRATION HOLDINGS LIMITED

Wealth Management & Investments

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Overnight Price: $5.03

Morgans rates LNK as Add (1) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

Link Administration target falls to $6.78 from $6.84. Add retained.

Target price is $6.78 Current Price is $5.03 Difference: $1.75
If LNK meets the Morgans target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $7.05, suggesting upside of 40.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 18.50 cents and EPS of 37.20 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.0, implying annual growth of 29.6%.

Current consensus DPS estimate is 18.3, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 17.90 cents and EPS of 35.50 cents.
At the last closing share price the estimated dividend yield is 3.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.3, implying annual growth of -1.9%.

Current consensus DPS estimate is 18.9, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 13.9.

Market Sentiment: 0.8

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

LVT  LIVETILES LIMITED

Cloud services

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Overnight Price: $0.53

UPDATED

Citi rates LVT as Buy (1) -

The company's June quarter update revealed strong Annualised Recurring Revenue (ARR) numbers but Citi analysts nevertheless make the point the growth reported was below expectations.

The analysts seem to blame larger customers as they require a longer sales cycle, making a larger contribution when finally committing. Irrespective, the analysts remain disappointed, retaining the Buy/High Risk rating. Target 94c.

Target price is $0.94 Current Price is $0.53 Difference: $0.41
If LVT meets the Citi target it will return approximately 77% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Citi forecasts a full year FY19 dividend of 0.00 cents.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 0.00 cents.

Market Sentiment: 1.0

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

MAI  MAINSTREAM GROUP HOLDINGS LTS

Diversified Financials

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Overnight Price: $0.49

Morgans rates MAI as Add (1) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

Mainstream Group target falls to 73c from 80c. Add retained.

Target price is $0.73 Current Price is $0.49 Difference: $0.24
If MAI meets the Morgans target it will return approximately 49% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 1.70 cents and EPS of 1.50 cents.
At the last closing share price the estimated dividend yield is 3.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.67.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 2.20 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 4.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.33.

Market Sentiment: 1.0

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

MPL  MEDIBANK PRIVATE LIMITED

Insurance

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Overnight Price: $3.58

Citi rates MPL as Neutral (3) -

Neutral rating retained as Citi adjusts EPS forecasts (slightly) upon marking-to-market led by stronger bonds (lower yields) and stronger equities. The analysts cannot help but conclude this stock looks expensive given the industry's challenged outlook.

Short term, expectations of more cost-out initiatives and potential for capital return are likely to keep the positive momentum going, which is why the rating is not pulled below Neutral, explain the analysts. Target price lifted to $3.60 from $3.30.

Target price is $3.60 Current Price is $3.58 Difference: $0.02
If MPL meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.92, suggesting downside of -18.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Citi forecasts a full year FY19 dividend of 13.50 cents and EPS of 16.90 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 21.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.4, implying annual growth of -2.4%.

Current consensus DPS estimate is 13.4, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 21.8.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 12.30 cents and EPS of 15.20 cents.
At the last closing share price the estimated dividend yield is 3.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.7, implying annual growth of -4.3%.

Current consensus DPS estimate is 12.9, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 22.8.

Market Sentiment: -0.6

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


Morgans rates MPL as Hold (3) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

Medibank Private target rises to $3.23 from $2.74. Hold retained.

Target price is $3.23 Current Price is $3.58 Difference: minus $0.35 (current price is over target).
If MPL meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.92, suggesting downside of -18.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 13.10 cents and EPS of 16.40 cents.
At the last closing share price the estimated dividend yield is 3.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.4, implying annual growth of -2.4%.

Current consensus DPS estimate is 13.4, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 21.8.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 12.60 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 3.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.7, implying annual growth of -4.3%.

Current consensus DPS estimate is 12.9, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 22.8.

Market Sentiment: -0.6

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

MX1  MICRO-X LIMITED

Medical Equipment & Devices

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Overnight Price: $0.28

Morgans rates MX1 as Add (1) -

Micro-X has teamed up with a French aerospace-defence-security company to development airport checkpoint security and counter-terrorism systems. A $10m convertible bond has been issued and additional production capacity has been secured in Adelaide.

This takes Micro-X to a higher risk profile, so the broker has moved to Speculative Buy from Add (which remains as add in FNArena's system). Target falls to 47c from 50c.

Target price is $0.47 Current Price is $0.28 Difference: $0.19
If MX1 meets the Morgans target it will return approximately 68% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.00.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.67.

Market Sentiment: 1.0

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

NBL  NONI B LIMITED

Apparel & Footwear

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Overnight Price: $2.65

Morgans rates NBL as Add (1) -

Noni B has reiterated FY19 guidance of 21% earnings growth, in line with the broker's expectations. Sales in the second half fell -5.5% after falling -3.1% in the first half as the company worked through excess inventory acquired from Specialty Fashion.

FY20 should see a turnaround, the broker suggests. A solid outcome in challenging conditions has the broker retaining Add. Target falls to $3.48 from $4.04.

Target price is $3.48 Current Price is $2.65 Difference: $0.83
If NBL meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 13.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 4.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.13.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 23.00 cents and EPS of 39.00 cents.
At the last closing share price the estimated dividend yield is 8.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.79.

Market Sentiment: 1.0

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

NEA  NEARMAP LTD

Software & Services

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Overnight Price: $3.31

Citi rates NEA as Buy (1) -

Citi had initiated coverage with a maiden Buy/High Risk rating in May and, now the pre-release of FY19 numbers has revealed disappointment, grabs the opportunity to reiterate that call, pointing out growth remains robust and the opportunity in North America remains intact.

The analysts have scaled back their sales forecasts, with EBITDA (operational earnings) lowered for FY20 and FY21. Instead of blaming the company for not meeting their forecast for Annualised Contract Value (ACV) in North America, Citi analysts state they had simply been too bullish.

Nearmap is now projected to spend more on marketing, which is incorporated in fresh forecasts. Target is raised to $4.39 from $4.26.

Target price is $4.39 Current Price is $3.31 Difference: $1.08
If NEA meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $4.25, suggesting upside of 28.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Citi forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 367.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.9, 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 FY20:

Citi forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3310.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.1, 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: 1.0

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


Macquarie rates NEA as Outperform (1) -

FY19 preliminary results were slightly behind Macquarie's estimates, although weakness in the share price suggests this is fully reflected and presents a buying opportunity. Cash flow break-even was delivered in line with guidance.

Deployment of growth capital will underpin penetration of the key US market, in the broker's view. Outperform rating maintained. Target is reduced to $4.16 from $4.22.

Target price is $4.16 Current Price is $3.31 Difference: $0.85
If NEA meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $4.25, suggesting upside of 28.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 472.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.9, 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 FY20:

Macquarie forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 100.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.1, 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: 1.0

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


Morgan Stanley rates NEA as Overweight (1) -

Preliminary indications suggest FY19 results are in line with Morgan Stanley's estimates. Break-even on cash flow, excluding the capital raising, has been achieved. The company will release its results on August 21.

Overweight rating, In-Line industry view and $4.20 target maintained.

Target price is $4.20 Current Price is $3.31 Difference: $0.89
If NEA meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $4.25, suggesting upside of 28.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 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 331.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.9, 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 FY20:

Morgan Stanley forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 110.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.1, 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: 1.0

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

NHF  NIB HOLDINGS LIMITED

Insurance

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Overnight Price: $7.95

Morgans rates NHF as Hold (3) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

Nib Holdings target rises to $7.15 from $6.18. Hold retained.

Target price is $7.15 Current Price is $7.95 Difference: minus $0.8 (current price is over target).
If NHF meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.87, suggesting downside of -26.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 24.00 cents and EPS of 36.90 cents.
At the last closing share price the estimated dividend yield is 3.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.0, implying annual growth of 23.6%.

Current consensus DPS estimate is 21.4, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 24.1.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 22.90 cents and EPS of 35.90 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 22.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.6, implying annual growth of -1.2%.

Current consensus DPS estimate is 21.2, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 24.4.

Market Sentiment: -0.1

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

OSH  OIL SEARCH LIMITED

NatGas

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Overnight Price: $7.34

UBS rates OSH as Neutral (3) -

UBS believes the main focus for investors in the upcoming quarterly production results will be commentary on the PNG FEED timeline as well as a resource upgrade for Alaska prior to FEED. The broker expects a resource upgrade for the latter of around 240mmbbl.

The broker reduces FY19 estimates for earnings per share by -0.6% to reflect mark-to-market changes in oil prices and FX. Neutral rating maintained. Target is reduced to $7.65 from $8.00.

Target price is $7.65 Current Price is $7.34 Difference: $0.31
If OSH meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $8.26, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

UBS forecasts a full year FY19 dividend of 18.21 cents and EPS of 39.23 cents.
At the last closing share price the estimated dividend yield is 2.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.9, implying annual growth of N/A.

Current consensus DPS estimate is 19.6, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 16.7.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 24.76 cents and EPS of 48.15 cents.
At the last closing share price the estimated dividend yield is 3.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.3, implying annual growth of 3.2%.

Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 16.2.

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

PPT  PERPETUAL LIMITED

Wealth Management & Investments

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Overnight Price: $41.86

Morgans rates PPT as Hold (3) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

Perpetual target rises to $41.72 from $39.99. Hold retained.

Target price is $41.72 Current Price is $41.86 Difference: minus $0.14 (current price is over target).
If PPT 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 $39.85, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 237.00 cents and EPS of 260.00 cents.
At the last closing share price the estimated dividend yield is 5.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 257.8, implying annual growth of -15.5%.

Current consensus DPS estimate is 243.0, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 228.00 cents and EPS of 268.00 cents.
At the last closing share price the estimated dividend yield is 5.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 268.1, implying annual growth of 4.0%.

Current consensus DPS estimate is 243.9, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 15.6.

Market Sentiment: -0.1

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

QBE  QBE INSURANCE GROUP LIMITED

Insurance

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Overnight Price: $11.81

Morgans rates QBE as Add (1) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

QBE Insurance's target falls to $12.48 from $13.51. Add retained.

Target price is $12.48 Current Price is $11.81 Difference: $0.67
If QBE meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $12.88, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 75.93 cents and EPS of 85.18 cents.
At the last closing share price the estimated dividend yield is 6.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.4, implying annual growth of N/A.

Current consensus DPS estimate is 75.8, implying a prospective dividend yield of 6.4%.

Current consensus EPS estimate suggests the PER is 13.5.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 84.06 cents and EPS of 93.86 cents.
At the last closing share price the estimated dividend yield is 7.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.6, implying annual growth of 11.7%.

Current consensus DPS estimate is 82.5, implying a prospective dividend yield of 7.0%.

Current consensus EPS estimate suggests the PER is 12.1.

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

RHC  RAMSAY HEALTH CARE LIMITED

Healthcare services

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Overnight Price: $72.26

UBS rates RHC as Neutral (3) -

Hospital activity data in May in the UK has been published and UBS estimates NHS e-referrals represent around 79% of the company's total admissions. May volumes decreased -1.9% and the three and six-month rolling growth rates now sit at 0.9% and 3.3% respectively.

With Australia representing around 79% of FY20 earnings (EBIT) forecasts, the outlook for private hospital volumes and pricing remains a key driver of the stock, the broker believes. Of the two the risk around price remains paramount.

Neutral rating and $68.40 target maintained.

Target price is $68.40 Current Price is $72.26 Difference: minus $3.86 (current price is over target).
If RHC meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $67.16, suggesting downside of -7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

UBS forecasts a full year FY19 dividend of 150.00 cents and EPS of 292.00 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 24.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 287.6, implying annual growth of 2.8%.

Current consensus DPS estimate is 149.4, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 25.1.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 157.00 cents and EPS of 316.00 cents.
At the last closing share price the estimated dividend yield is 2.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 314.3, implying annual growth of 9.3%.

Current consensus DPS estimate is 162.1, implying a prospective dividend yield of 2.2%.

Current consensus EPS estimate suggests the PER is 23.0.

Market Sentiment: 0.0

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

STO  SANTOS LIMITED

NatGas

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Overnight Price: $7.09

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

Macquarie upgrades to Outperform from Neutral following the recent pull back in the shares. Target is raised to $8.20 from $7.60.

Several catalysts are expected to de-risk future large-scale development opportunities over the second half including flow-testing of Dorado-3, MacArthur basin drilling, potential Narrabri approvals and the 2019 investor briefing.

Target price is $8.20 Current Price is $7.09 Difference: $1.11
If STO meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $7.08, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 10.65 cents and EPS of 61.08 cents.
At the last closing share price the estimated dividend yield is 1.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.7, implying annual growth of N/A.

Current consensus DPS estimate is 14.8, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 12.7.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 12.75 cents and EPS of 64.16 cents.
At the last closing share price the estimated dividend yield is 1.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.7, implying annual growth of 3.6%.

Current consensus DPS estimate is 13.5, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 12.3.

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

SUN  SUNCORP GROUP LIMITED

Banks

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Overnight Price: $13.24

Morgans rates SUN as Add (1) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

Suncorp Group target rises to $14.59 from $14.48. Add retained.

Target price is $14.59 Current Price is $13.24 Difference: $1.35
If SUN meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $13.74, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 75.30 cents and EPS of 86.90 cents.
At the last closing share price the estimated dividend yield is 5.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.2, implying annual growth of -8.5%.

Current consensus DPS estimate is 70.8, implying a prospective dividend yield of 5.3%.

Current consensus EPS estimate suggests the PER is 17.6.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 76.30 cents and EPS of 95.30 cents.
At the last closing share price the estimated dividend yield is 5.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 90.4, implying annual growth of 20.2%.

Current consensus DPS estimate is 71.8, implying a prospective dividend yield of 5.4%.

Current consensus EPS estimate suggests the PER is 14.6.

Market Sentiment: 0.1

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

Z1P  ZIP CO LIMITED

Business & Consumer Credit

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Overnight Price: $3.04

Morgans rates Z1P as Add (1) -

The broker has marked its sector valuations to market, accounting for stronger equity prices, lower bond yields and currency movements.

Zip Co target rises to $3.52 from $3.19. Add retained.

Target price is $3.52 Current Price is $3.04 Difference: $0.48
If Z1P meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 112.59.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1520.00.

Market Sentiment: 0.8

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

Today's Price Target Changes
Company Broker New Target Prev Target Change
AGL AGL ENERGY Morgans 18.33 17.85 2.69%
ALL ARISTOCRAT LEISURE Citi 35.00 36.00 -2.78%
AMP AMP Macquarie N/A 2.20 -100.00%
Morgans 2.25 2.30 -2.17%
ANN ANSELL Morgan Stanley 29.44 25.39 15.95%
API AUS PHARMACEUTICAL IND Morgan Stanley 1.32 1.58 -16.46%
APT AFTERPAY TOUCH Morgans 28.85 23.43 23.13%
ASX ASX Morgans 68.24 57.10 19.51%
CGF CHALLENGER Morgans 7.37 7.39 -0.27%
COH COCHLEAR Morgan Stanley 198.00 179.00 10.61%
CPU COMPUTERSHARE Morgans 17.56 17.92 -2.01%
CSL CSL Morgan Stanley 194.00 182.00 6.59%
DTL DATA#3 Morgans 2.48 2.25 10.22%
EHE ESTIA HEALTH Morgan Stanley 2.51 2.63 -4.56%
HLS HEALIUS Morgan Stanley 3.00 2.90 3.45%
IAG INSURANCE AUSTRALIA Morgans 7.61 7.13 6.73%
KSL KINA SECURITIES Morgans 1.45 1.42 2.11%
LNK LINK ADMINISTRATION Morgans 6.78 6.84 -0.88%
MAI MAINSTREAM GROUP HOLDINGS Morgans 0.73 0.80 -8.75%
MPL MEDIBANK PRIVATE Citi 3.60 3.30 9.09%
Morgans 3.23 2.74 17.88%
MX1 MICRO-X Morgans 0.47 0.50 -6.00%
NBL NONI B Morgans 3.48 4.04 -13.86%
NEA NEARMAP Citi 4.39 4.26 3.05%
Macquarie 4.16 4.22 -1.42%
NHF NIB HOLDINGS Morgans 7.15 6.18 15.70%
OSH OIL SEARCH Macquarie 9.00 8.60 4.65%
UBS 7.65 8.00 -4.37%
PPT PERPETUAL Morgans 41.72 39.99 4.33%
QBE QBE INSURANCE Morgans 12.48 13.51 -7.62%
SHL SONIC HEALTHCARE Morgan Stanley 29.20 27.00 8.15%
STO SANTOS Macquarie 8.20 7.60 7.89%
SUN SUNCORP Morgans 14.59 14.48 0.76%
SXY SENEX ENERGY Macquarie 0.55 0.50 10.00%
WPL WOODSIDE PETROLEUM Macquarie 35.10 34.60 1.45%
Z1P ZIP CO Morgans 3.52 3.19 10.34%
Summaries
AGL AGL ENERGY Hold - Morgans Overnight Price $20.22
ALL ARISTOCRAT LEISURE Buy - Citi Overnight Price $29.12
AMP AMP Sell - Citi Overnight Price $1.81
No Rating - Macquarie Overnight Price $1.81
Hold - Morgans Overnight Price $1.81
APT AFTERPAY TOUCH Add - Morgans Overnight Price $23.79
ASX ASX Reduce - Morgans Overnight Price $86.07
CAR CARSALES.COM Downgrade to Reduce from Add - Morgans Overnight Price $13.72
CGF CHALLENGER Hold - Morgans Overnight Price $6.73
CPU COMPUTERSHARE Hold - Morgans Overnight Price $16.41
CSL CSL Buy - UBS Overnight Price $221.36
DTL DATA#3 Downgrade to Hold from Add - Morgans Overnight Price $2.55
GDG GENERATION DEVELOPMENT GROUP Add - Morgans Overnight Price $0.52
HLO HELLOWORLD Buy - Ord Minnett Overnight Price $4.73
IAG INSURANCE AUSTRALIA Hold - Morgans Overnight Price $8.43
KSL KINA SECURITIES Add - Morgans Overnight Price $1.37
LNK LINK ADMINISTRATION Add - Morgans Overnight Price $5.03
LVT LIVETILES Buy - Citi Overnight Price $0.53
MAI MAINSTREAM GROUP HOLDINGS Add - Morgans Overnight Price $0.49
MPL MEDIBANK PRIVATE Neutral - Citi Overnight Price $3.58
Hold - Morgans Overnight Price $3.58
MX1 MICRO-X Add - Morgans Overnight Price $0.28
NBL NONI B Add - Morgans Overnight Price $2.65
NEA NEARMAP Buy - Citi Overnight Price $3.31
Outperform - Macquarie Overnight Price $3.31
Overweight - Morgan Stanley Overnight Price $3.31
NHF NIB HOLDINGS Hold - Morgans Overnight Price $7.95
OSH OIL SEARCH Neutral - UBS Overnight Price $7.34
PPT PERPETUAL Hold - Morgans Overnight Price $41.86
QBE QBE INSURANCE Add - Morgans Overnight Price $11.81
RHC RAMSAY HEALTH CARE Neutral - UBS Overnight Price $72.26
STO SANTOS Upgrade to Outperform from Neutral - Macquarie Overnight Price $7.09
SUN SUNCORP Add - Morgans Overnight Price $13.24
Z1P ZIP CO Add - Morgans Overnight Price $3.04
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

18

3. Hold

12

5. Sell

3

Monday 15 July 2019

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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.