Australian Broker Call

Credit Suisse rates 360 as Outperform (1) -

Credit Suisse welcomes the launch of the new membership plan, believing this is a potential step change for the business. There are three levels in the plan and full roll-out has now been completed.

The growth trajectory has moderated, unsurprisingly, the broker notes, but an improvement in 2020 cash flow is still expected.

Credit Suisse envisages scope for a material re-rating and retains an Outperform rating and $4.80 target.

Target price is $4.80 Current Price is $3.03 Difference: $1.77
If 360 meets the Credit Suisse target it will return approximately 58% (excluding dividends, fees and charges).

The company's fiscal year ends in November.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

Ord Minnett rates ABP as Accumulate (2) -

Ord Minnett notes the strong storage track record and, importantly, the company has delivered strong operating metrics over the past decade.

The company has repositioned its portfolio so that 92% of investment assets are now deployed in the key sectors of office and self storage.

Ord Minnett assesses there are good opportunities to continue growing the business accretively and maintains an Accumulate rating. Target is raised to $3.10 from $2.90.

Target price is $3.10 Current Price is $2.59 Difference: $0.51
If ABP meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $2.81, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Credit Suisse rates AD8 as Neutral (3) -

FY20 revenue is guided at US$20.4m. The most pronounced impact from the pandemic was felt throughout May while June sales and orders have recovered to some extent.

Credit Suisse would like to be an owner of the business because of the structural shift and a market share opportunity that should lead to robust margins.

However, a challenged environment for revenue is expected in the short term.

The broker would be more positive if there was more certainty about the shape of the cycle. Neutral maintained. Target rises to $5.40 from $4.50.

Target price is $5.40 Current Price is $5.30 Difference: $0.1
If AD8 meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.90, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Morgan Stanley rates AD8 as Overweight (1) -

Audinate Group's FY20 result is mostly in-line, reports Morgan Stanley, with revenue and operating income a little less than the broker's forecasts. Costs were also in line and cash at $29.3m points to the company reaching cash flow breakeven. 

Metrics like original equipment manufacturers (OEM) adoption and user certifications have strengthened, highlights the broker.

There is uncertainty in the outlook near-term due to capital expenditure exposure but this has already been considered in the broker’s FY21 estimates. 

FY22 revenue growth estimates will be driven by growth normalisation in audio and software with minimal video contribution. The broker expects 26-31% top-line growth over the medium term.

Morgan Stanley retains its Overweight rating with a target price of $7.50. Industry view: In-line.

Target price is $7.50 Current Price is $5.30 Difference: $2.2
If AD8 meets the Morgan Stanley target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $6.90, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

UBS rates AD8 as Buy (1) -

While conditions are tough, UBS observes the company is making the right strategic steps to emerge stronger.

Moreover, the broker continues to believe there is an opportunity to strengthen the competitive position.

US dollar revenue forecasts are marginally increased. This is slightly offset by FX revisions. All up, FY21 estimates are increased by 7% while FY22 estimates are reduced by -8%.

Buy rating maintained. Target is raised to $7.80 from $7.30.

Target price is $7.80 Current Price is $5.30 Difference: $2.5
If AD8 meets the UBS target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $6.90, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Ord Minnett rates AQR as Initiation of coverage with Accumulate (2) -

Ord Minnett believes long WALE A-REITs are a way to play the current environment, given stable earnings and distribution spreads. 

With the dividend earnings uncertainty surrounding traditional shopping centre landlords, service stations have become a preferred retail asset class.

Ord Minnett believes there is strong valuation upside for APN Convenience and initiates coverage with an Accumulate rating and $3.72 target.

Target price is $3.72 Current Price is $3.50 Difference: $0.22
If AQR meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Citi rates AWC as Neutral (3) -

Alumina Ltd has updated the market with a 2Q20 earnings release.

Compared to Q1, bauxite earnings were up US$11m to US$131m, with alumina earnings down -US105m to US$88m. The former benefiting from higher volumes and lower energy prices, while the latter was down on realised price.

The Q2 cash costs for Alumina Ltd were US$188/t compared to US$199/t in Q1, showing the benefit of a low in caustic prices.

Due to a better than forecast cost performance, Citi upgrades CY20 profit to US$195m from US$146m.

Neutral is maintained. The target price is increased to $1.80 from $1.60.

Target price is $1.80 Current Price is $1.73 Difference: $0.07
If AWC meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.87, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Credit Suisse rates AWC as Upgrade to Outperform from Neutral (1) -

Credit Suisse upgrades to Outperform from Neutral believing the positive indicators are exceeding the negatives. Assets are performing and unit costs are down in the June quarter.

Commentary signalling the aluminium sector is turning the corner in Europe and North America suggests the rise in inventory outside of China may start to slow.

That said, the broker acknowledges the global outlook is uncertain and volatility is still expected. Target is raised to $2.00 from $1.65.

Target price is $2.00 Current Price is $1.73 Difference: $0.27
If AWC meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.87, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Macquarie rates AWC as Underperform (5) -

Production, costs and cash flow for the AWAC joint venture were in line with Macquarie's expectations in the June quarter.

The broker upgrades 2020 estimates for Alumina Ltd by 12% to reflect the removal of the tax provision and to incorporate the quarterly result.

Macquarie assesses spot alumina prices have improved earnings momentum but the dividend yield is comparatively unattractive.

Underperform rating maintained. Target is raised to $1.30 from $1.20.

Target price is $1.30 Current Price is $1.73 Difference: minus $0.43 (current price is over target).
If AWC meets the Macquarie target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.87, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Morgan Stanley rates AWC as Overweight (1) -

Alumina Ltd’s second quarter and first half production numbers are in-line with Morgan Stanley’s estimates. Realised prices were weaker by -5% for the second quarter and -2% lower for the first half, reports the broker.

Net distributions calculated by the broker for the quarter at US$35m include a -US$21m impact from the recently announced tax prepayments. There is no change in the company’s guidance.

Morgan Stanley reaffirms its Overweight rating with a target price of $2. Industry view: Attractive.

Target price is $2.00 Current Price is $1.73 Difference: $0.27
If AWC meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.87, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

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

AWAC JV partner Alcoa has reported better-than-expected production results from the June quarter. Ord Minnett lifts the valuation for Alumina Ltd as a result.

Better operating results in the next 1-2 years should support a higher dividend as well, in the broker's view.

The stock presents value now and the rating is upgraded to Accumulate from Hold. Target is raised to $2.10 from $1.80.

Target price is $2.10 Current Price is $1.73 Difference: $0.37
If AWC meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.87, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

UBS rates AWC as Buy (1) -

Alcoa, 60% partner in the AWAC JV, reported a June quarter loss of -US2c per security. This was ahead of expectations and a result of higher realised prices and lower costs.

A realised price of US$252/t was reported for the quarter, down -10% sequentially, while costs fell to US$188/t. UBS expects costs will rise in the September quarter because of the commencement of a new gas contract from July 1.

Buy rating and $2 target maintained.

Target price is $2.00 Current Price is $1.73 Difference: $0.27
If AWC meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.87, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Citi rates BLX as Buy (1) -

Beacon Lighting Group provided a market update that featured a FY20 profit that exceeded Citi's forecasts by 14%. The broker believes the company will continue to outperform the broader retail sector.

The demographic of its customers are less prone to job losses. Tailwinds are provided via support for the building sector from packages like HomeBuilder, and the company's products are less reliant on the need for consumers to 'go out'.

Citi believes the current PE multiple is undemanding and is at a -8% discount to Australian housing retail peers. The broker upgrades FY20 profit forecast by 14%, and reduces FY21 and FY22 by -1% and -2%, respectively.

Citi retains its Buy rating with a target price of $1.40.

Target price is $1.40 Current Price is $1.13 Difference: $0.27
If BLX meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates BLX as Add (1) -

Beacon Lighting has upgraded guidance amid strong sales momentum and now expects net profit to be $19m. This is 13% ahead of Morgans' forecasts and implies 17% growth in FY20.

The broker lifts FY20-22 forecasts by 10-13%. Sales and earnings momentum are expected to be favourable throughout the first half of FY21, particularly in light of the acceleration experienced at the end of June.

The broker retains an Add rating and raises the target to $1.40 from $1.35.

Target price is $1.40 Current Price is $1.13 Difference: $0.27
If BLX meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates BWX as Buy (1) -

BWX released preliminary revenue and earnings for FY20, along with a $50m equity raising.

The revenue was 23% above Citi's forecasts and earnings exceeded forecasts by 11%.

The company is guiding to 'at least' 10% sales and earnings growth in FY21, which the broker considers conservative, partly due to the increasing rollout of Sukin stores in America.

BWX is targeting both organic growth and potential acquisitions with the funds from the capital raise.

The broker raises FY20 earnings by 11% to reflect the earnings beat, while reducing FY21 earnings by -3% to reflect the conservative guidance.

Buy rating maintained. Target price $4.20.

Target price is $4.20 Current Price is $3.66 Difference: $0.54
If BWX meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates CLW as Downgrade to Accumulate from Buy (2) -

Ord Minnett believes long WALE A-REITs are a way to play the current environment, given stable earnings and distribution spreads.

Yet, Charter Hall Long WALE displays some earnings risk and has less valuation upside compared to others in the segment, according to the broker.

Hence, rating is downgraded to Accumulate from Buy. Target is reduced to $4.48 from $5.80.

Target price is $4.48 Current Price is $4.29 Difference: $0.19
If CLW meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.97, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

UBS rates COH as Sell (5) -

UBS upgrades FY20 estimates for earnings per share by 1.2% and downgrades FY21-23 by -2-4%.

With coronavirus infections continuing to rise, particularly in the US, the broker notes downside risk exists should it result in suspension of elective procedures.

The broker maintains a Sell rating and $160.50 target.

Target price is $160.50 Current Price is $190.85 Difference: minus $30.35 (current price is over target).
If COH 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 $186.61, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates DTL as Hold (3) -

The company has guided to pre-tax profit of $34m, up 28%. Morgans expects significant strength in the infrastructure and software licensing divisions, reflecting the increase in demand for remote working.

The broker suggests, in a period of great change, the company has done a commendable job and, in the process, booked another record result.

Hold rating retained. Target is raised to $5.04 from $3.45.

Target price is $5.04 Current Price is $5.15 Difference: minus $0.11 (current price is over target).
If DTL meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgan Stanley rates JHG as Overweight (1) -

Janus Henderson Group will be announcing its second-quarter results and Morgan Stanley earnings forecast is 10% ahead of consensus. The broker’s average assets under management (AUM) estimate for the quarter is down -8% (quarter on quarter).

A strong market recovery will allow the group to prioritise costs and invest in growth opportunities, comments the broker. Earnings estimates for FY20-21 are upgraded by 20% expecting stronger markets and robust flows.

Outlook on flows is improving with retail flows expected to turn positive. The broker wants the group to focus more on ESG products where it is lagging peers.

With the current business mix tilted towards retail, the broker feels there exists an opportunity for the group to become a one-stop shop for institutional clients.

 Morgan Stanley maintains its Overweight rating with the target price increasing to $38.50 from $35.50. Industry view: In-line.

Target price is $38.50 Current Price is $30.63 Difference: $7.87
If JHG meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $31.24, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.5

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

Citi rates MHJ as Buy (1) -

Michael Hill announced a 4Q20 trading update.

Citi estimates that sales momentum has slowed across Australia, New Zealand and Canada. Canada was the worst affected market due to a delayed reopening in Ontario. Despite this, it was a better-than-expected sales performance, according to the broker.

Citi marginally upgrades profit forecasts and expects multiple drivers to support FY21 profitability, while simultaneously warning that risks may emerge should sales momentum materially slow in 1H21.

Buy is maintained. Target price is increased to $0.46 from $0.45.

Target price is $0.46 Current Price is $0.33 Difference: $0.13
If MHJ meets the Citi target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $0.61, suggesting upside of 89.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Macquarie rates MHJ as Outperform (1) -

Sales were "reasonably strong" in the fourth quarter, Macquarie notes, as consumer demand after the depths of the lockdown exceeded expectations.

The company has indicated FY21 has started strongly, albeit it is early days, and the broker expects a resumption of the dividend, certainly in the first half of FY21.

Outperform rating maintained. Target is 75c.

Target price is $0.75 Current Price is $0.33 Difference: $0.42
If MHJ meets the Macquarie target it will return approximately 127% (excluding dividends, fees and charges).

Current consensus price target is $0.61, suggesting upside of 89.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Credit Suisse rates MMS as Neutral (3) -

The recent trading update revealed an improvement in novated lease originations through May and June. Salary packaging has been mostly unaffected by the pandemic containment measures.

To date the trough is not as deep as Credit Suisse feared and the recovery has been faster than expected.

The broker adjusts FY20 estimates to reflect the better performance in the fourth quarter and guidance for FY20 net profit of $69-72m.

Neutral rating maintained. Target is raised to $10.10 from $8.30.

Target price is $10.10 Current Price is $9.36 Difference: $0.74
If MMS meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $9.92, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

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

Ord Minnett assesses the short-term impact on operations from the pandemic has been relatively contained with only a -3-4% decline in occupancy.

The broker believes National Storage could unlock value in the medium term by stabilising its occupancy at 85%.

Furthermore, self-storage should remain a preferred property sector and, given the fragmented nature of the asset class, it remains possible bids could re-emerge from those looking to establish scale in Australia.

Rating is upgraded to Accumulate from Hold and the target lifted to $2.05 from $1.60.

Target price is $2.05 Current Price is $1.87 Difference: $0.18
If NSR meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.70, suggesting downside of -10.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

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

Ord Minnett has remodelled the economic and production assessment of Waihi.

A higher peak production rate, longer mine life and increased resources from Martha and Gladstone open pits are envisaged.

This leads to an upgrade to Accumulate from Hold and the target raised to $4.20 from $3.60.

Target price is $4.20 Current Price is $3.32 Difference: $0.88
If OGC meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $3.63, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Macquarie rates PAN as Underperform (5) -

Production was stronger than expected in the June quarter and post the recapitalisation, Macquarie now believes Panoramic Resources should have enough funds to complete the underground pre-production and ventilation development.

Macquarie expects a decision to re-start operations will be made later this year and first production should occur early in 2021, although this will be largely determined by nickel prices.

Underperform maintained. Target is lowered to 7c from 8c.

Target price is $0.07 Current Price is $0.07 Difference: $0
If PAN meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

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

Perpetual has released a business update for Q420, which has led Citi to upgrade to Neutral from Sell.

The broker believes there are increasing signs of a turnaround, with 4Q net outflows moderating and investment performance for most key strategies improving.

Strong growth in FuA in Corporate Trust is encouraging, but much of this is likely to be a one-off event.

Cost growth for FY20 and potentially 1H21 will likely be suppressed. This may be temporary as reduced discretionary spend and salary cuts for executives may reverse over time, according to the broker.

Rating is increased to Neutral from Sell.  The price target increased to $32.00 from $26.10.

Target price is $32.00 Current Price is $31.74 Difference: $0.26
If PPT meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $32.73, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Credit Suisse rates PPT as Neutral (3) -

The company's June quarter update was mostly in line with expectations. Cost management was tighter than expected and cost guidance has improved which should benefit net profit by around 4%.

While the update was better, Credit Suisse points out it also highlighted some weaknesses. There was limited disclosure around the earnings contribution of acquisitions.

Further M&A could be delayed until the uncertainty surrounding the pandemic passes and the broker retains a Neutral rating. Target is raised to $32 from $31.

Target price is $32.00 Current Price is $31.74 Difference: $0.26
If PPT meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $32.73, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Morgan Stanley rates PPT as Overweight (1) -

Perpetual’s June funds under management (FUM) update highlighted better FUM and flows along with strong cost control, factors that Morgan Stanley believes will support share price and consensus earnings estimates.

On the flip side, wealth advisory fees were on the weaker side. After acquiring Trillium, the company continues to look for potential acquisitions, reports the broker.

Morgan Stanley reiterates its Overweight rating with a target price of $42. Industry view: In-line.

Target price is $42.00 Current Price is $31.74 Difference: $10.26
If PPT meets the Morgan Stanley target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $32.73, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Morgans rates PPT as Hold (3) -

Funds under management and administration rose 6-8% sequentially in the June quarter, assisted by improving markets.

Morgans downgrades FY20-21 estimates by -5-7%, as more conservative group margin estimates offset a lift to FUM/FUA assumptions.

The broker now believes there is a valuation argument for the stock but requires further evidence of strategic execution before becoming more positive.

Hold maintained. Target is reduced to $34.22 from $42.96.

Target price is $34.22 Current Price is $31.74 Difference: $2.48
If PPT meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $32.73, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Citi rates QBE as Buy (1) -

Despite a number of transitory uncertainties, Citi sees ongoing improvement in the premium rate environment for QBE. This should lead to underlying margin improvement.

As a result of a stronger capital position after the recent capital raising, Citi forecasts a 'token' interim dividend of 2 cents.

The broker increases EPS estimate for FY20 by 80% and decreases forecasts by -7% for FY21 and FY22.

Buy retained. Target is raised to $11.00 from $10.55.

Target price is $11.00 Current Price is $9.36 Difference: $1.64
If QBE meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $10.52, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.8

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

Macquarie rates SXY as Outperform (1) -

June quarter revenue was 30% ahead of Macquarie's estimates, supported by sales of both Cooper Basin oil and Surat gas.

FY20 estimates are upgraded by 12% and the target is raised to $0.45 from $0.35. Outperform maintained.

The broker envisages 60% upside potential to the price target which could be realised if the company delivers on its growth ambitions in the Surat Basin along with additional customer gas contracts.

Target price is $0.45 Current Price is $0.28 Difference: $0.17
If SXY meets the Macquarie target it will return approximately 61% (excluding dividends, fees and charges).

Current consensus price target is $0.39, suggesting upside of 37.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.9

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

Ord Minnett rates WPR as Upgrade to Buy from Hold (1) -

Ord Minnett believes long WALE A-REITs are a way to play the current environment, given stable earnings and distribution spreads. Waypoint is the preferred stock as it offers an attractive distribution yield with limited earnings risk.

With the dividend earnings uncertainty surrounding traditional shopping centre landlords, service stations have become a preferred retail asset class.

Rating is upgraded to Buy from Hold and the target is raised to $2.95 from $2.80.

Target price is $2.95 Current Price is $2.63 Difference: $0.32
If WPR meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.70, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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