Australian Broker Call

Morgans rates ADH as Add (1) -

Morgans has issued a call to action on Adairs after the homewares retailer reported its FY20 first-half result well above expectations on all major line items. The company maintains full-year guidance, suggesting a skew to the first half, and the broker is plumping for the top end of the range.

The broker says strong product execution delivered a beat in like for like sales, and continued gains in market share.

The company is now lighter on capital, yielding a higher return on investment, and lower risk (the broker believes earnings risk is now to the upside).

Target price rises to $3.30 from $2.42 and Add rating is retained, the broker noting the stock is yielding 6.3% on a price-earnings multiple of 11.7x FY21.

Target price is $3.30 Current Price is $2.61 Difference: $0.69
If ADH meets the Morgans target it will return approximately 26% (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

UBS rates ADH as Buy (1) -

Adairs posted a solid result ahead of UBS estimates. Sales rose 8.6%, with online up 30%. Costs were also up, due to investment in people and capacity, but these should moderate, the broker suggests, as the new supply chain model is integrated.

FY guidance was reiterated, but a trading update for early FY20 was strong.

The broker has lifted earnings forecasts and its target to $2.75 from $2.60. Buy retained.

Target price is $2.75 Current Price is $2.61 Difference: $0.14
If ADH meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates AFG as Outperform (1) -

First half net profit was ahead of Macquarie's estimates. The broker observes profitability is benefiting from the shift in mix to AFG Securitisation. This loan book was up 23% on the prior half-year.

Outperform retained. Target rises to $3.26 from $2.76.

Target price is $3.26 Current Price is $3.01 Difference: $0.25
If AFG meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Citi rates ALG as Buy (1) -

The underlying net loss in the first half was broadly in line with Citi's forecast. Citi observes Main Event is going from strength to strength, with the main driver of earnings being the rolling out of stores.

The broker believes the guidance for the Dreamworld operation is conservative, anticipating the decline in Chinese tourists will be more than offset by locals.

Buy rating maintained. Target rises to $1.74 from $1.73.

Target price is $1.74 Current Price is $1.18 Difference: $0.56
If ALG meets the Citi target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $1.50, suggesting upside of 26.8% (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 ALG as Hold (3) -

First half results were considered in line with expectations, overall, although the company posted a normalised loss of -$16.5m which was -40% worse than Ord Minnett's forecast.

Operating metrics were mostly trending positive and Main Event sales in the second quarter were observed to be solid.

The broker suggests a partnership at Main Event could be positive, although the inability to find a suitable partner may pose a de-rating risk. Hold maintained. Target rises to $1.35 from $1.15.

Target price is $1.35 Current Price is $1.18 Difference: $0.17
If ALG meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.50, suggesting upside of 26.8% (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

UBS rates ALG as Neutral (3) -

Operationally, Ardent Leisure's result showed signs of improvement across Main Event and Theme Parks, UBS notes, but a large uplift in D&A and interest cost led to a big miss on earnings.

Theme Parks had their best Christmas period in years, however subsequent wet weather and the upcoming coroner's decision on the Dreamworld tragedy will drag, while virus impact could go either way depending on wether domestic traffic picks up to offset lost international tourism.

Neutral retained, target rises to $1.40 from $1.28.

Target price is $1.40 Current Price is $1.18 Difference: $0.22
If ALG meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.50, suggesting upside of 26.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Citi rates ASB as Buy (1) -

First half results beat Citi's estimates. FY20-22 forecasts for earnings per share are upgraded by 7-27% amid increased conviction around medium-term shipbuilding margins.

The broker assesses execution risk is relatively low at this point, given the company's US programs are mature and two commercial ferries have been de-risked following the recent launch.

Buy rating maintained. Target rises to $5.05 from $4.40.

Target price is $5.05 Current Price is $4.13 Difference: $0.92
If ASB meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.72, suggesting upside of 14.2% (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 AWC as Overweight (1) -

Morgan Stanley assesses the potential expansion of the company's Western Australian refineries is value accretive. Nevertheless, the broker suspects expansions will not proceed, given the current market.

Target is raised to $2.45 from $2.40. Overweight rating is retained despite the near-term commodity headwinds. In-Line industry view maintained.

Target price is $2.45 Current Price is $2.16 Difference: $0.29
If AWC meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.08, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: -0.3

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

Citi rates BIN as Neutral (3) -

Citi forecasts FY20 underlying operating earnings (EBITDA) of $164m. The revisions take account of the stalling of the on-market buyback, which the broker suspects is not accretive at current share prices.

Therefore, this is removed from forecasts. Neutral/High Risk rating maintained. Target is raised to $3.30 from $2.80.

Target price is $3.30 Current Price is $3.15 Difference: $0.15
If BIN meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.16, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Morgans rates BIN as Hold (3) -

Bingo Industries' FY20 first-half result broadly met the broker and guidance, although revenue growth missed and margins outpaced.

Morgans changes earnings-per-share forecasts -1% to  +3% across FY20-FY22.  While the view into revenue makeup was a touch opaque, the broker notes the business is generally higher margin than its competitor ((CWY)).

Target price rises to $2.81 from $3.20, and the broker forecasts a broad-based market recovery in FY21, strong organic and inorganic growth and a positive regulatory outlook, although Victoria's West Gate Tunnel Project and landfill levy remain uncertain. The company is forecasting a rise in cash conversion to 100%.

Hold rating retained, the broker believing the share price is overstretched.

Target price is $2.53 Current Price is $3.15 Difference: minus $0.62 (current price is over target).
If BIN meets the Morgans target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.16, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Macquarie rates CLQ as No Rating (-1) -

The net loss of -$10.3m was in line with Macquarie's forecasts. The broker upgrades FY20 estimates by 4%.

Macquarie is currently restricted from making a recommendation.

Current Price is $0.22. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Ord Minnett rates CTX as Hold (3) -

EG Group has made a counter bid to acquire Caltex Australia, effectively proposing $3.9bn for the convenience retail divisions with shareholders retaining the remainder.

Ord Minnett calculates the proposal is below that from Couche-Tard.

The proposal is subject to conditions including due diligence, debt financing and the re-negotiation of a new fuel supply agreement as well as regulatory approvals. Hold rating and $35 target maintained.

Target price is $35.00 Current Price is $34.48 Difference: $0.52
If CTX meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $34.75, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Morgans rates DHG as Reduce (5) -

Domain Holdings' first-half result fell well short of consensus, thanks to the slump in new residential real estate listings.

Average prices disappointed - roughly half that expected - and the broker says second-half earnings are at risk if the trend continues. On the upside, a strong rein was kept on costs.

Morgans believes the downside risks are mounting and maintains a Reduce rating, believing the share price is overbought.

Target price rises to $2.54 from $2.43.

Target price is $2.54 Current Price is $3.50 Difference: minus $0.96 (current price is over target).
If DHG meets the Morgans target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.37, suggesting downside of -3.9% (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

Credit Suisse rates EBO as Upgrade to Neutral from Underperform (3) -

First half results were broadly in line and Credit Suisse was impressed with the integration of the Chemist Warehouse supply contract.

There were a number of margin pressures in evidence and Credit Suisse has some questions about the sustainability of some earnings streams, given the extent of the initiatives required to offset the pressures.

Nevertheless, EBOS appears to be well-positioned for a number of growth opportunities and the broker upgrades to Neutral from Underperform. Target is raised to NZ$22.47 from NZ$21.75.

Current Price is $24.25. Target price not assessed.

Current consensus price target is $24.08, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Citi rates GXY as Neutral (3) -

Citi notes 2019 numbers were affected by a number of non-cash write-downs amid subdued market conditions. Management has noted spodumene sales negotiations for 2020 have slowed because of the coronavirus impact.

Citi points out Galaxy Resources is 100% exposed to Chinese converters. The broker expects more clarity on the execution plan for Sal de Vida towards mid 2020. Neutral/High Risk rating maintained. Target is $1.20.

Target price is $1.20 Current Price is $1.01 Difference: $0.19
If GXY meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.09, suggesting upside of 7.9% (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: 0.1

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

Macquarie rates GXY as Underperform (5) -

The 2019 reported loss of -US$284m was greater than Macquarie's estimates. Write-downs and impairments were the main cause.

The company has retained its plan to reduce production in the near term because of softer demand. While expecting an improvement in lithium prices towards the end of 2020, Macquarie believes the risk is to the downside.

Underperform rating and $0.50 target maintained.

Target price is $0.50 Current Price is $1.01 Difference: minus $0.51 (current price is over target).
If GXY meets the Macquarie target it will return approximately minus 50% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.09, suggesting upside of 7.9% (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: 0.1

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

UBS rates GXY as Neutral (3) -

Galaxy Resources' loss, greater than the broker had forecast, was disappointing but not a shock given a -46% year on year decline in lithium prices. Ongoing price deterioration led to inventory write-downs, and no dividend was declared as expected.

On the positive side, write-downs lead to reduced D&A, which will support future earnings, while global investment in battery manufacturing and EV rollouts are increasing, UBS notes.

The lithium price may be nearing an inflection point, the broker suggests, thanks to inventory drawdowns and, in the wider scheme, ongoing plans by governments to ban future sales of petrol/diesel vehicles.

Management believes an unsustainable lithium price will force industry rationalisation. The broker retains Neutral. Target rises to $1.09 from $1.00.

Target price is $1.09 Current Price is $1.01 Difference: $0.08
If GXY meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.09, suggesting upside of 7.9% (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: 0.1

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

Morgans rates HPI as Hold (3) -

Hotel Property Investments' first-half result met the broker and dividend guidance was reaffirmed at roughly 6%.

The recent renewal of 28 leases set to expire next year, reduces the risk profile, and the weighted average lease expiry rises to 11.8 years from 3.8 years.

Morgans retains a Hold rating. Target price rises to $3.44 from $3.32.

Target price is $3.44 Current Price is $3.43 Difference: $0.01
If HPI meets the Morgans 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: 0.0

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

Ord Minnett rates HPI as Hold (3) -

First half profit was in line with Ord Minnett's forecasts. In the short term, Ord Minnett suggests the company has mitigated expiry risk by extending for 10-15 years some 28 leases due to expire in 2021.

As part of the extensions, the company has committed a $30m capital contribution while FY21 rent will be re-based lower by $3m. This drives a -6% reduction to Ord Minnett's forecast FY21 dividend.

The broker retains a Hold rating and raises the target to $3.35 from $3.30.

Target price is $3.35 Current Price is $3.43 Difference: minus $0.08 (current price is over target).
If HPI meets the Ord Minnett 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

Macquarie rates IFN as Outperform (1) -

First half results were in line with expectations. Macquarie finds the outlook challenged in a falling price environment. While this will not stop growth, the pace is expected to be slower.

Guidance for FY20 was unchanged and the company emphasised the expected revenue pressure in the second half, which reflects a seasonal basis along with no compensation claim last year.

Target is reduced to $0.77 from $0.78. Outperform retained.

Target price is $0.77 Current Price is $0.72 Difference: $0.05
If IFN meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $0.77, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Morgans rates IFN as Add (1) -

Infigen Energy's first-half result met the broker but Morgans forecasts a weaker second half as seasonal factors and one-off interruptions bite.

The company's retail volumes and generation capacity continue to edge up and the broker predicts steady growth from FY21 to FY24.

Morgans sees challenges in the second half, noting the seasonal skew of windfarms, volatility in spot electricity prices and an outage at Lake Bonney windfarm.

Morgans expects growth in Commercial and Industrial customers will offset weaker margins from large-scale-generation certificate sales, and the broker is cautious on hedging sales.

Target price eases to 80c from 83c, to reflect more conservative assumptions. Add rating retained.

Target price is $0.80 Current Price is $0.72 Difference: $0.08
If IFN meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $0.77, suggesting upside of 6.9% (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 IFN as Hold (3) -

First half net profit was ahead of Ord Minnett's forecasts. This stemmed from higher-than-expected generation output and a better mix of higher-priced sales.

Management has indicated a greater ability to sell firm energy to commercial and industrial customers and could potentially double contract sales over the next three years.

Hold rating maintained. Target rises to $0.74 from $0.70.

Target price is $0.74 Current Price is $0.72 Difference: $0.02
If IFN meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $0.77, suggesting upside of 6.9% (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

Citi rates ING as Buy (1) -

First half earnings were weaker than expected. The main driver was a negative impact from manufacturing disruptions and feed inflation. The good news is this is expected to reverse in the second half.

Very little price growth was realised in the first half in the Australian poultry business. New Zealand was a little better, with prices up 1.4%.

Citi reiterates a Buy rating and assesses there is upside to forecasts. Target is lifted to $3.90 from $3.40.

Target price is $3.90 Current Price is $3.63 Difference: $0.27
If ING meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.42, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Morgans rates ING as Hold (3) -

Inghams' first-half result disappointed Morgans due to higher feed prices and the network rationalisation.

Metrics were generally unimpressive, cash flow conversion missed a beat and capital expenditure rose given investments in new hatcheries.

Morgans notes the issues surrounding the rationalisation have been resolved and expects a better second half. EPS forecasts fall across FY20-FY22.

Hold rating retained, the broker expecting a seasonal improvement and the unfolding of the five-year plan. Target price raised to $3.60 from $3.50.

Target price is $3.60 Current Price is $3.63 Difference: minus $0.03 (current price is over target).
If ING meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.42, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

UBS rates ING as Neutral (3) -

Inghams Group's profit was largely in line with consensus and guidance was reiterated. Strong momentum in New Zealand offset weakness in Australia. The broker remains concerned over poor cash flow conversion.

The biggest drivers from here are wheat prices, which are currently elevated, and contract wins amidst increasing competition. Neutral and $3.10 target retained.

Target price is $3.10 Current Price is $3.63 Difference: minus $0.53 (current price is over target).
If ING meets the UBS target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.42, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Morgans rates LAU as Hold (3) -

Linday Australia's first-half result pleased the broker given the tough environment. Management reiterated guidance.

The expanded refrigerated rail fleet and customer growth is expected to drive the result.

Morgans appreciates that Lindsay Australia is diversifying its earnings base across new revenue streams and geographies, reducing seasonal impacts.

Hold rating retained. Target price inches up to 40c from 39c. 

Target price is $0.40 Current Price is $0.37 Difference: $0.03
If LAU meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates M7T as Initiation of coverage with Hold (3) -

Mach7 Technologies first-half result met Morgans' estimates, the company reporting maiden positive cash flow, on track with guidance.

A key contract win from Advocate Aurora Health was the main driver, thanks to the booking of $4m in software licence fees.

Management reports a solid pipeline, but the broker says much will come down to the timing of contract execution from here and expects a weaker second half.

Morgans initiates coverage with a Hold rating and target of $1.16.

Target price is $1.16 Current Price is $0.81 Difference: $0.35
If M7T meets the Morgans target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates MVF as Add (1) -

Monash IVF's first-half result slightly outpaced Morgans, thanks to cycle growth, but the dividend disappointed. Management reiterated guidance.

Growth was logged in most states, although NSW and Victoria were flat, and there was a positive turnaround in the diagnostic division.

Target price is steady at $1.15. The broker retains an Add rating, noting the main downside risk as softer cycle volumes arising from competition from low-cost operators.

Target price is $1.15 Current Price is $1.00 Difference: $0.15
If MVF meets the Morgans 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

Citi rates MYX as Neutral (3) -

The first half net loss was larger than Citi expected. This resulted from weak revenue amid continued pressure in the generics division.

Citi had expected a disappointing result but notes revenue continued to decline in the last two months of the half.

The broker also notes there was a large gap between reported profit and underlying profit, and finds it unclear whether all the one-off costs will not be repeated.

Neutral/High Risk rating maintained. Target is reduced to $0.40 from $0.50.

Target price is $0.40 Current Price is $0.35 Difference: $0.05
If MYX meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $0.42, suggesting upside of 18.6% (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

Credit Suisse rates MYX as Neutral (3) -

First half operating earnings (EBITDA) missed expectations and were down -42% to $47.4m, although this excludes one-off items totalling $12.7m.

While increased competition in generics impacted sales, Credit Suisse believes the price erosion will be less severe going forward.

The broker reduces estimates by an average of -20% across the forecast period and expects operating earnings growth of 40% in FY21, continuing to envisage merit in the strategy to pivot towards the more stable profile of the specialty brands portfolio.

Neutral maintained. Target is reduced to $0.43 from $0.56.

Target price is $0.43 Current Price is $0.35 Difference: $0.08
If MYX meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $0.42, suggesting upside of 18.6% (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

Macquarie rates MYX as Neutral (3) -

Reported operating earnings (EBITDA) were below Macquarie's estimates. Generics revenue fell by -33% with underlying gross margins down -11%. Meanwhile, growth in specialty brands moderated.

Macquarie is looking for increased uptake and additional revenue going forward from Lexette and Tolsura. Neutral maintained. Target is reduced to $0.41 from $0.57.

Target price is $0.41 Current Price is $0.35 Difference: $0.06
If MYX meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $0.42, suggesting upside of 18.6% (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

UBS rates MYX as Neutral (3) -

Mayne Pharma posted a low-quality beat on earnings, the broker suggests, due to one-off adjustments. Revenues fell short of estimates, with sales down -26% in Generic Products and -2% in Specialty Brands. Specialty Brands enjoyed a net rebound is sales in the December quarter but the broker suspects this is moslty seasonal.

Ongoing improvement will be necessary to offset US generic industry pressures, the broker warns. Neutral retained, target falls to 42c from 49c.

Target price is $0.42 Current Price is $0.35 Difference: $0.07
If MYX meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $0.42, suggesting upside of 18.6% (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

Macquarie rates NEA as Outperform (1) -

First half results were largely in line with the recent update, although Macquarie remains concerned about the stickiness of the subscriber base and the broader competitive landscape.

The company has justified its sales & marketing investment, noting a stronger second quarter in the US. The broker would like stronger second half metrics and FY21 outlook to be more confident in the medium-term.

Outperform rating maintained. Target is reduced to $2.90 from $3.10.

Target price is $2.90 Current Price is $1.82 Difference: $1.08
If NEA meets the Macquarie target it will return approximately 59% (excluding dividends, fees and charges).

Current consensus price target is $2.63, suggesting upside of 44.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates OGC as Neutral (3) -

2019 earnings highlight the impact from the loss of the Didipio contribution, although beat Macquarie's estimates. The company has started to consider other options for Didipio, including care & maintenance and possibly even divestment.

2020 guidance is broadly in line with the broker's assumptions. Lower costs are expected for both Haile and Macraes in 2020. Macquarie retains a Neutral rating and $3.10 target.

Target price is $3.10 Current Price is $2.96 Difference: $0.14
If OGC meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.01, suggesting upside of 35.5% (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: 0.8

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

UBS rates OGC as Buy (1) -

OceanaGold reported earnings slightly below the broker. Cash flow disappointed and debt is thus greater than estimated. The result is nevertheless not representative, the broker suggests, given Didipio was unexpectedly offline during its pending mining licence renewal process.

Unfortunately Didipio remains unresolved, while Waihi is also mostly offline as new mining areas are set up. 2020 is shaping up as another transition year, the broker notes.

The stock has fallen some -50% despite the surging A$ gold price, hence the broker retains Buy. Target falls to $3.85 from $4.00.

Target price is $3.85 Current Price is $2.96 Difference: $0.89
If OGC meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $4.01, suggesting upside of 35.5% (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: 0.8

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

Citi rates ORE as Buy (1) -

First half results were in line with expectations. Citi reduces operating earnings (EBITDA) estimates for FY20 by -32%, expecting a loss of -$13.5m.

The broker believes the acquisition of the remainder of Advantage Lithium is positive as it provides more control to manage Olaroz/Cauchari while the existing Olaroz plant and infrastructure can be leveraged.

Buy/High Risk rating maintained. Target is $4.00.

Target price is $4.00 Current Price is $3.36 Difference: $0.64
If ORE meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.33, suggesting downside of -0.9% (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

Credit Suisse rates ORE as Outperform (1) -

Underlying net profit in the first half was slightly lower than expected. Earnings from Olaroz were in line. The company plans to acquire the 65% of Advantage Lithium it does not own, returning the project to full ownership.

This will be funded by scrip with the issue of 15.1m shares at $3.29, valuing the transaction at $50m. Otherwise, Credit Suisse believes the results were clean and the main news was the lower lithium price.

In the current climate the broker finds it difficult to assess the timing for a re-rating and suspects this will be based on evidence of underlying demand growth rather than improved pricing.

Credit Suisse maintains an Outperform rating and $4.45 target.

Target price is $4.45 Current Price is $3.36 Difference: $1.09
If ORE meets the Credit Suisse target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $3.33, suggesting downside of -0.9% (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

Macquarie rates ORE as Underperform (5) -

First half results were in line with expectations. Macquarie suspects, given latent hard rock supply, it could be some time before genuine tightness emerges in order to drive a meaningful recovery in the lithium price.

The broker now expects a small loss of -US$1m in FY20 versus prior expectations for a small profit. Underperform and $2.00 target retained.

Target price is $2.00 Current Price is $3.36 Difference: minus $1.36 (current price is over target).
If ORE meets the Macquarie target it will return approximately minus 40% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.33, suggesting downside of -0.9% (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

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

Morgan Stanley found the first half results weaker than forecast. Pricing in the March quarter is expected around US$5000/t, below the broker's forecasts of US$5285/t, and is likely to reflect wider discounts for primary products.

Production guidance is maintained. Equal-weight rating and In-Line industry view maintained. Target is $2.85.

Target price is $2.85 Current Price is $3.36 Difference: minus $0.51 (current price is over target).
If ORE meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.33, suggesting downside of -0.9% (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

Citi rates ORG as Buy (1) -

Citi downgrades FY20-22 estimates for earnings per share by -1-15%, unwinding what is now considered to be optimistic assumptions on electricity margins.

The broker notes the company has conceded that price signals are not currently working, given market intervention, and it will be unlikely to invest heavily in new generation until such time as this ceases.

In the absence of growth, the broker suspects Origin Energy may buy back shares as early as FY21. Buy rating and $8.42 target maintained.

Target price is $8.42 Current Price is $7.53 Difference: $0.89
If ORG meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $8.64, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates ORG as Outperform (1) -

Underlying net profit was better than Macquarie expected in the first half. Guidance has been reiterated.

The broker believes the share price is already capturing the tough economic outlook for energy markets.

However, strong cash flow is providing the flexibility to lift the dividend or fund the next opportunity.

Outperform rating maintained. Target is reduced to $8.61 from $8.90.

Target price is $8.61 Current Price is $7.53 Difference: $1.08
If ORG meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.64, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

UBS rates ORG as Buy (1) -

UBS has cut its 2020 oil price forecast (Brent) to US$60.00/bbl from a prior US$63.50/bbl. It expects the first half to see a drop to US$57/bbl before recovering to over US$60/bbl in the second half as OPEC production cuts kick in.

Origin Energy target falls to $9.25 from $9.30, Buy retained.

Target price is $9.25 Current Price is $7.53 Difference: $1.72
If ORG meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $8.64, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

UBS rates OSH as Buy (1) -

The broker has cut its 2020 oil price forecast (Brent) to US$60.00/bbl from a prior US$63.50/bbl. It expects the first half to see a drop to US$57/bbl before recovering to over US$60/bbl in the second half as OPEC production cuts kick in.

Oil Search target falls to $7.25 from $7.30, Buy retained.

Target price is $7.25 Current Price is $6.14 Difference: $1.11
If OSH meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $6.92, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.3

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

Macquarie rates PLS as Underperform (5) -

First half loss was greater than Macquarie expected. The broker notes the company will continue to operate on a campaign basis until demand recovers.

While expecting some sales recovery over the second half, the broker assesses a flat second half outcome would result in downside risk to the near-term outlook.

Underperform rating and $0.21 target retained.

Target price is $0.21 Current Price is $0.28 Difference: minus $0.07 (current price is over target).
If PLS 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 $0.34, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Morgan Stanley rates PTM as Underweight (5) -

First half earnings were slightly below forecasts while the dividend was ahead. Morgan Stanley retains an Underweight rating, given the soft performance and flows.

Target is $3.50. Industry view In Line. The main new information was the break down of outflows, with retail posting -$1.14bn, -12.5% of funds under management, and institutional posting -$156m, -4.5% of funds under management.

Target price is $3.50 Current Price is $4.29 Difference: minus $0.79 (current price is over target).
If PTM meets the Morgan Stanley target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.92, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

Ord Minnett rates PTM as Sell (5) -

Pre-tax profit in the first half declined -6% and Ord Minnett notes average funds under management shrank while costs continue to inflate. The broker expects the trend will continue into the second half.

Ord Minnett suggests the stock is far too expensive and retains a Sell rating. Target is raised to $3.83 from $3.75.

Target price is $3.83 Current Price is $4.29 Difference: minus $0.46 (current price is over target).
If PTM meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.92, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

Macquarie rates RIO as Outperform (1) -

Rio Tinto has reduced its 2020 iron ore shipment guidance range to 324-334mt because of weather impacts.

Macquarie notes shipments peaked at 338mt in 2018 and fell -3% in 2019, with a further -1% decline now expected in 2020.

The company will release its 2019 results on February 26. Outperform maintained. Target is $107.

Target price is $107.00 Current Price is $95.26 Difference: $11.74
If RIO meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $100.34, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Ord Minnett rates SSG as Buy (1) -

First half results signal to Ord Minnett the company's online strategy is building traction. Like-for-like sales growth is expected to moderate in the second half as strong comparables are cycled.

The broker suggests reinvestment in overheads is now supporting a booming online business and the broadened store network. Buy rating maintained. Target is raised to $0.92 from $0.61.

Target price is $0.92 Current Price is $0.75 Difference: $0.17
If SSG meets the Ord Minnett target it will return approximately 23% (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

UBS rates STO as Neutral (3) -

UBS has cut its 2020 oil price forecast (Brent) to US$60.00/bbl from a prior US$63.50/bbl. It expects the first half to see a drop to US$57/bbl before recovering to over US$60/bbl in the second half as OPEC production cuts kick in.

Santos target falls to $8.05 from $8.10, Neutral retained.

Target price is $8.05 Current Price is $7.66 Difference: $0.39
If STO meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $8.61, suggesting upside of 12.4% (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 SXY as Upgrade to Outperform from Neutral (1) -

First half results were in line with expectations. Operating expenditure was ahead of expectations and this, along with sustaining capital expenditure, remains the key uncertainty and driver of value, Credit Suisse suggests.

The time to start accumulating the stock may be nearing and market concerns regarding pricing may be overdone.

That said, Credit Suisse still asserts, for those who remain wary of being long CSG in the ramp-up phase, a preference for Strike Energy ((STX)).

Rating is upgraded to Outperform from Neutral. Target is $0.37.

Target price is $0.37 Current Price is $0.34 Difference: $0.03
If SXY meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $0.45, suggesting upside of 31.4% (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

Macquarie rates SXY as Outperform (1) -

First half earnings were weaker than Macquarie expected and forecasts from FY21 are decreased by -10-25% on higher corporate costs and depreciation.

The company is ramping up production, with 40% volume growth expected in the second half.

The drilling campaign is expected to be completed by mid 2020, which the broker assesses should enable the company to achieve its targeted initial production plateau by the end of FY21.

Target is reduced to $0.50 from $0.55. Outperform maintained.

Target price is $0.50 Current Price is $0.34 Difference: $0.16
If SXY meets the Macquarie target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $0.45, suggesting upside of 31.4% (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 SXY as Overweight (1) -

Morgan Stanley expects the company's assets will generate around $50-70m of free cash from FY22. The broker was encouraged by the commentary regarding the potential for fewer wells, given current flow rates.

The broker assesses Senex Energy is now closer to producing from its gas assets in the Surat Basin. Overweight maintained. Target is $0.45. Industry view: In-Line.

Target price is $0.45 Current Price is $0.34 Difference: $0.11
If SXY meets the Morgan Stanley target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $0.45, suggesting upside of 31.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Morgans rates SXY as Add (1) -

Senex's first-half result outpaced Morgans, thanks to stellar cost-management.

The only negative appeared to be higher-than-expected depreciation and amortisation, which was felt at the net profit after tax line.

Senex is considering drilling less wells in the light of strong production from existing wells.

Broker retains an Add rating. Target price rises to 53c from 52c.

Target price is $0.53 Current Price is $0.34 Difference: $0.19
If SXY meets the Morgans target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $0.45, suggesting upside of 31.4% (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 SXY as Hold (3) -

First half underlying net profit was significantly below Ord Minnett's forecasts because of an increase in depreciation that was associated with the ramp up of production in the Surat Basin.

Nevertheless, the broker assesses the company is making good progress in achieving its step up in gas production. Hold rating and $0.37 target maintained.

Target price is $0.37 Current Price is $0.34 Difference: $0.03
If SXY meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $0.45, suggesting upside of 31.4% (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 TLS as Accumulate (2) -

Ord Minnett assesses the TPG Telecom ((TPM)) merger with Vodafone Australia is the optimal outcome for Telstra, given the alternative.

Consumers and the industry benefit from having all operators profitable and the merger will provide Vodafone Australia with a better chance of profitability in a country where it has never been profitable.

Telstra also expects a stronger third operator will be rational. However, the merged entity still will not have the balance sheet to challenge Telstra or Optus on the network. Acumulate rating and $4.25 target maintained.

Target price is $4.25 Current Price is $3.71 Difference: $0.54
If TLS meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.05, suggesting upside of 9.2% (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 WPL as Neutral (3) -

UBS has cut its 2020 oil price forecast (Brent) to US$60.00/bbl from a prior US$63.50/bbl. It expects the first half to see a drop to US$57/bbl before recovering to over US$60/bbl in the second half as OPEC production cuts kick in.

Woodside target falls to $34.60 from $35.00, Neutral retained.

Target price is $34.60 Current Price is $31.18 Difference: $3.42
If WPL meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $35.92, suggesting upside of 15.2% (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: 0.4

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