Australian Broker Call

UBS rates ADH as Buy (1) -

The company will temporarily close all retail stores and the Mocka website in New Zealand for 4-6 weeks. UBS estimates the impact will be around a -10% reduction to 2020 sales, with in-store sales likely to be down more than -30% year on year once re-opened.

Several levers are envisaged available to the company, including rent relief and reduced wages. UBS reduces FY20-22 estimates for earnings per share by -33-62%. Buy rating maintained. Target is reduced to $1.90 from $2.75.

Target price is $1.90 Current Price is $0.87 Difference: $1.03
If ADH meets the UBS target it will return approximately 118% (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

Macquarie rates AGL as Underperform (5) -

As demand drops, Macquarie expects there will be a second-order impact on AGL Energy earnings, principally in FY21. There is also likely to be some earnings pressure from bad debts through the cycle.

Falling forward electricity prices are significant, as around 70% of the retail base re-prices in July, the broker observes. Gas may also suffer, although the recent slump in Brent prices should reduce variable costs on recently-negotiated contracts.

Balance sheet capacity is available to take advantage of opportunities and Macquarie upgrades to Neutral from Underperform. Target is reduced to $17.38 from $18.69.

Target price is $17.38 Current Price is $16.70 Difference: $0.68
If AGL meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $18.45, suggesting upside of 10.5% (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 ALQ as Outperform (1) -

Macquarie observes life sciences are now a larger proportion of the group. The company has also drawn down sufficient funds to meet the maturing debt tranche at the end of 2020.

The broker notes gearing is reasonable and the stock has fallen further than peers, partially reflecting its minerals exposure. This is considered overdone. Outperform maintained. Target is reduced to $7.03 from $9.64.

Target price is $7.03 Current Price is $5.55 Difference: $1.48
If ALQ meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $8.22, suggesting upside of 48.1% (ex-dividends)

The company's fiscal year ends in March.

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

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

Morgans was surprised by the company's commentary regarding the resilience of life sciences to the coronavirus crisis, although there are clear downside risk for commodities.

Nevertheless, the broker acknowledges extensive experience in managing cyclical shocks means the company is strongly positioned.

The share price has fallen -22% below the broker's valuation which supports an upgrade to Add from Hold. Target is reduced to $6.90 from $8.10.

Target price is $6.90 Current Price is $5.55 Difference: $1.35
If ALQ meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $8.22, suggesting upside of 48.1% (ex-dividends)

The company's fiscal year ends in March.

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

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

Morgans materially downgrades FY20 forecasts, reflecting the company's decision to suspend distribution guidance and the initial traffic impact from coronavirus.

Rating is upgraded to Add from Hold, despite the fact short-term news flow is likely to be negative.

The coronavirus impact in 2020 appears likely to cause the one and three-year distribution lock-up tests to fail while the material step-up in debt service from FY22 will make the tests difficult to pass, Morgans points out.

The broker assumes the tests will not be passed until FY26 and, hence, trapped cash will continue to accumulate. Success with toll escalation applications may improve this view. Target is raised to $8.12 from $7.57.

Target price is $8.12 Current Price is $5.85 Difference: $2.27
If ALX meets the Morgans target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $7.33, suggesting upside of 25.2% (ex-dividends)

The company's fiscal year ends in December.

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 AMI as Outperform (1) -

FY20 guidance has been withdrawn because of a break in a hoisting shaft at Peak as well as the impact from the current crisis. Macquarie reduces expectations for Peak over the longer term.

The balance sheet is considered robust and the broker maintains an Outperform rating. Target is reduced -17% to $0.50.

Target price is $0.50 Current Price is $0.24 Difference: $0.26
If AMI meets the Macquarie target it will return approximately 108% (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 AQR as Add (1) -

FY20 guidance has been adjusted for the timing of some development projects. Distribution guidance of 21.8c has been maintained.

Morgans believes the company is well situated to withstand the volatility related to the coronavirus crisis. Target is reduced to $3.80 from $4.00.

Target price is $3.80 Current Price is $2.76 Difference: $1.04
If AQR meets the Morgans target it will return approximately 38% (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 AWC as Upgrade to Neutral from Sell (3) -

UBS upgrades to Neutral from Sell, assessing the current share price now reflects the uncertainty in the alumina market. The broker envisages short-term headwinds, amid disruptions to secondary demand for aluminium.

As China returns to work the risk is that demand for finished goods by the rest of the world will not be sufficient to support sustained production.

The broker remains concerned that aluminium in Europe and India is entering a period of extended lock-down and restriction. Target is reduced to $1.50 from $1.90.

Target price is $1.50 Current Price is $1.55 Difference: minus $0.05 (current price is over target).
If AWC meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.96, suggesting upside of 26.3% (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

Morgan Stanley rates BAP as Overweight (1) -

Bapcor was seeing trade sales up 5% until March, when lockdowns in NZ and Thailand saw demand "fall of a cliff". The company nevertheless believes, the broker reports, it can achieve profitability on a much smaller operating network, cuts to opex/capex and inventory management.

Bapcor should then be in a healthy cash position and has no debt renewals for three years. Importantly, there will be no need to raise capital. The broker retains Overweight and an $8.00 target. Industry view: In Line.

Target price is $8.00 Current Price is $3.73 Difference: $4.27
If BAP meets the Morgan Stanley target it will return approximately 114% (excluding dividends, fees and charges).

Current consensus price target is $7.31, suggesting upside of 96.0% (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

Credit Suisse rates BPT as Outperform (1) -

The company has reduced FY20 capital expenditure by -5%. FY21 expenditure is cut by "up to" -30%, which suggests to Credit Suisse the company may struggle to re-negotiate with contractors.

Credit Suisse continues to envisage upside at Beach Energy, perhaps running significantly higher once markets recover.

Outperform maintained. Target is reduced to $1.78 from $1.86.

Target price is $1.78 Current Price is $1.14 Difference: $0.64
If BPT meets the Credit Suisse target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $1.78, suggesting upside of 55.8% (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 BPT as Outperform (1) -

FY20 earnings guidance is reduced by -8%. Production and capital expenditure are expected to be at the lower end of previously announced ranges.

Macquarie observes the exposure to east coast gas markets has shielded the company's financials from the steep decline in oil prices. The gas business essentially covers operating costs, the broker adds.

Beach Energy is also net cash. Outperform maintained. Target is reduced to $1.90 from $2.10.

Target price is $1.90 Current Price is $1.14 Difference: $0.76
If BPT meets the Macquarie target it will return approximately 67% (excluding dividends, fees and charges).

Current consensus price target is $1.78, suggesting upside of 55.8% (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

Morgans rates CAT as Add (1) -

The company has warned that the shut-down of elite sporting events will have a negative impact on new contracts sales in the fourth quarter.

A working capital facility has been recently drawn down and expenditure is being tightened.

Hence, Morgans assesses Catapult Group is well-placed to ride out a prolonged interruption to business. Free cash flow is still expected to be positive in FY21.

Add maintained. Target is reduced to $1.68 from $1.87.

Target price is $1.68 Current Price is $0.60 Difference: $1.08
If CAT meets the Morgans target it will return approximately 180% (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

Morgan Stanley rates CCX as Overweight (1) -

City Chic Collective has closed all of its 107 A&NZ stores (third of revenue) but not stood down staff, and its online business will continue (two-thirds). The online split puts the company in a better position than peers, the broker notes, the balance sheet is strong and rent relief will help.

The broker believes City Chic can emerge from the crisis in a stronger competitive position. Overweight and $4.00 target retained. Industry view: In Line.

Target price is $4.00 Current Price is $1.20 Difference: $2.8
If CCX meets the Morgan Stanley target it will return approximately 233% (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 CLV as Upgrade to Buy from Neutral (1) -

First half results were softer than UBS expected. The miss was attributed to Australasia and Asia sales growth. The broker believes the medium-term growth story is intact and upgrades to Buy from Neutral.

UBS points to defensive qualities, changes in European regulations and exposure to structural growth markets as underpinning the stock. Target is reduced to $2.20 from $2.75.

Target price is $2.20 Current Price is $1.65 Difference: $0.55
If CLV meets the UBS target it will return approximately 33% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

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

Credit Suisse rates CTX as Neutral (3) -

Credit Suisse prefers Caltex on the basis the acquisition by Couche-Tard is still probable. The proposal currently sits at around $33.99 a share, and the broker does not believe the board will support a lower price.

Credit Suisse expects an increasingly weak demand scenario will result in margins deteriorating in the June quarter. Target is raised to $24.88 from $24.00. Neutral maintained.

Target price is $24.88 Current Price is $21.77 Difference: $3.11
If CTX meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $31.63, suggesting upside of 45.3% (ex-dividends)

The company's fiscal year ends in December.

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 EVN as Outperform (1) -

Credit Suisse increases estimates for earnings per share in FY20 and FY21 by 7% and 39% respectively as revised coal, copper and FX estimates are included.

The material increase to FY22 reflects a gold price assumption that is US$200/oz higher on a lower earnings base.

The broker retains an Outperform rating and raises the target to $4.60 from $4.30.

Target price is $4.60 Current Price is $4.12 Difference: $0.48
If EVN meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.20, suggesting upside of 1.9% (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

Citi rates GUD as Upgrade to Buy from Neutral (1) -

Citi upgrades to Buy from Neutral. Demand is expected to increase over the medium term as higher unemployment and reduced wages translate to consumers holding onto existing vehicles for longer and shifting from original equipment manufacturer services to cheaper independent services.

The broker also suspects the weak environment could assist the company in consolidating the automotive aftermarket. Moreover, the relatively non-discretionary nature of the automotive and water businesses should translate to a faster recovery when the crisis ends. Target is reduced to $10.30 from $12.10.

Target price is $10.30 Current Price is $8.60 Difference: $1.7
If GUD meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $10.98, suggesting upside of 27.7% (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

Macquarie rates IDX as Outperform (1) -

Macquarie incorporates more conservative assumptions. The near-term outlook for diagnostic services is also uncertain, although the broker considers the business is well-positioned for growth over the longer term.

Revenue growth forecasts are reduced by -7-8%. Target is reduced to $4.20 from $4.55. Outperform maintained.

Target price is $4.20 Current Price is $2.16 Difference: $2.04
If IDX meets the Macquarie target it will return approximately 94% (excluding dividends, fees and charges).

Current consensus price target is $4.32, suggesting upside of 99.8% (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 IGO as Upgrade to Buy from Neutral (1) -

IGO Group remains a preferred nickel exposure and UBS upgrades to Buy from Neutral. The stock has fallen -29% in the year to date.

The broker now believes that a US$4.00/lb nickel price is factored in and exploration success is a free option. The balance sheet is also very strong. Target is reduced to $6.00 from $6.75.

Target price is $6.00 Current Price is $4.28 Difference: $1.72
If IGO meets the UBS target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $5.65, suggesting upside of 32.0% (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 ISD as Add (1) -

The company has withdrawn FY20 guidance. In the first half, iSentia noted 90% of revenue was recurring. Despite this, Morgans points out it is still subject to contract expiry and end customer risk.

The broker reduces FY20 and FY21 operating earnings estimates by -3% and -9% respectively. In the current market, the broker adds, investors are seeking liquidity which is not something the stock currently offers.

However, free cash flow should be positive and the debt position is comfortable. Add rating maintained. Target is reduced to $0.33 from $0.43.

Target price is $0.33 Current Price is $0.15 Difference: $0.18
If ISD meets the Morgans target it will return approximately 120% (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 JHC as Hold (3) -

The company has withdrawn FY20 guidance, given the current crisis. A number of measures have been implemented to help maintain liquidity, including the sale of two properties and a halt to further development.

Morgans reduces forecasts to reflect lower occupancy. Hold rating maintained. Target is reduced to $0.83 from $0.89.

Target price is $0.83 Current Price is $0.50 Difference: $0.33
If JHC meets the Morgans target it will return approximately 66% (excluding dividends, fees and charges).

Current consensus price target is $0.83, suggesting upside of 66.5% (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

Ord Minnett rates MYR as Accumulate (2) -

Myer will close its stores for four weeks. Ord Minnett models declining like-for-like sales leading into this period and further weakness afterwards.

A breach of debt covenants is not expected if rent relief is provided. Online, which accounts for 10% of sales, will continue. Accumulate maintained. Target is reduced to $0.20 from $0.50.

Target price is $0.20 Current Price is $0.12 Difference: $0.08
If MYR meets the Ord Minnett target it will return approximately 67% (excluding dividends, fees and charges).

Current consensus price target is $0.45, suggesting upside of 273.3% (ex-dividends)

The company's fiscal year ends in July.

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

Credit Suisse rates NCM as Neutral (3) -

Credit Suisse revises down FY20 estimates for earnings per share by -19% and increases FY21 and FY22 by 15% and 42% respectively. These changes reflect the new gold and copper price forecasts and incorporate the recent downgrade to production by the company.

Lihir has been downgraded on access issues, reducing ex-pit tonnage amid increased reliance on low-grade stockpile.

The broker notes Newcrest has a healthy development portfolio but none of these will make a meaningful contribution for more than four years.

Credit Suisse retains a Neutral rating and reduces the target to $25.25 from $31.80.

Target price is $25.25 Current Price is $24.02 Difference: $1.23
If NCM meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $27.33, suggesting upside of 13.8% (ex-dividends)

The company's fiscal year ends in June.

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

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

Northern Star has announced a -10-15% reduction to March quarter production, withdrawing FY20 production and cost guidance. All mines are operating but at reduced rates.

Credit Suisse reduces estimates for FY20 earnings per share by -35%, assuming the impact involves two weeks of the March quarter and two months of the June quarter. Liquidity appears sound.

The broker upgrades to Neutral from Underperform and raises the target to $11.50 from $10.30.

Target price is $11.50 Current Price is $11.17 Difference: $0.33
If NST meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $12.14, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in July.

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 OGC as Downgrade to Neutral from Outperform (3) -

Credit Suisse decreases FY20 earnings estimates to nil, removing Didipio entirely from forecasts. A six-week closure in New Zealand is assumed.

The duration of the shut-down of mines may have implications for liquidity, which the broker suspects will become increasingly tight.

A resolution at Didipio would act as a considerable positive catalyst but the market has no insight into when this may be achieved.

Rating is downgraded to Neutral from Outperform and the target is lowered to $1.72 from $4.20.

Target price is $1.72 Current Price is $1.71 Difference: $0.01
If OGC meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.26, suggesting upside of 90.9% (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: 0.7

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

Credit Suisse rates OML as Outperform (1) -

The company's equity raising removes near-term liquidity risk and Credit Suisse welcomes the improved ability to navigate the coming months.

The broker forecasts a -21% decline in revenue in the first half and a -17% decline in the second half.

Any recovery late in 2020 is expected to be gradual but the favourable market structure has not changed. Hence, the broker retains an Outperform rating. Target is reduced to $1.25 from $4.15.

Target price is $1.25 Current Price is $0.58 Difference: $0.67
If OML meets the Credit Suisse target it will return approximately 116% (excluding dividends, fees and charges).

Current consensus price target is $1.61, suggesting upside of 178.0% (ex-dividends)

The company's fiscal year ends in December.

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 OML as Accumulate (2) -

The company has raised additional capital to alleviate pressure on its balance sheet. Ord Minnett suspects this should provide sufficient resources to withstand the near-term pressure.

The broker's sensitivity analysis signals the company can withstand up to a -36% decline in revenue over April to September and still be below its new leverage covenant of 4.0x.

The duration of the revenue decline is expected to be short lived. Accumulate maintained. Target is reduced to $1.25 from $3.90.

Target price is $1.25 Current Price is $0.58 Difference: $0.67
If OML meets the Ord Minnett target it will return approximately 116% (excluding dividends, fees and charges).

Current consensus price target is $1.61, suggesting upside of 178.0% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates PMV as Neutral (3) -

The company has announced stores will shut for four weeks and the majority of staff will stand down or work without pay. Macquarie awaits clarity on rental negotiations.

Estimates for earnings per share are lowered by -50% in FY20 and -27% in FY21.

While management has the ability to trade in the current climate, given a strong balance sheet and scale, the earnings impact is considered difficult to forecast.

Macquarie retains a Neutral rating and reduces the target to $11.25 from $12.82.

Target price is $11.25 Current Price is $10.98 Difference: $0.27
If PMV meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $13.70, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in July.

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

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

Credit Suisse implements a revised gold price deck. The performance at Edikan is meeting budget and provides cash flow to support the wider business. The risk of forced mine suspensions remains.

The broker upgrades to Neutral from Underperform and raises the target to $1.09 from $1.03.

Target price is $1.09 Current Price is $0.98 Difference: $0.11
If PRU meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.06, suggesting upside of 8.5% (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

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

Credit Suisse increases estimates for earnings per share by 7% and 27% in FY20 and FY21 respectively, implementing higher gold and lower FX estimates.

Rating is upgraded to Outperform from Neutral and the target reduced to $4.70 from $4.75.

Target price is $4.70 Current Price is $3.86 Difference: $0.84
If RRL meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.78, suggesting upside of 23.8% (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 S32 as Outperform (1) -

The company is taking measures to address expenditure in the current conditions. Sustaining capital expenditure is being lowered by -US$150m and exploration by -US$10m over the next 15 months. The buyback has been suspended.

Credit Suisse adjusts earnings to account for the changes and assumes a four-week impact at the South African manganese and export coal businesses. The risk is if further disruptions occur. Outperform rating and $3.10 target maintained.

Target price is $3.10 Current Price is $1.81 Difference: $1.29
If S32 meets the Credit Suisse target it will return approximately 71% (excluding dividends, fees and charges).

Current consensus price target is $2.78, suggesting upside of 53.5% (ex-dividends)

The company's fiscal year ends in June.

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 S32 as Outperform (1) -

Macquarie believes the additional measures to curb operating expenditure and suspend the buyback are prudent.

Recent movements in commodity prices have turned the earnings upgrade momentum to the downside, the broker notes.

The balance sheet is robust and Macquarie expects free cash flow yields 7% and 12% in FY20 and FY21 respectively. Outperform rating maintained. Target is $2.40.

Target price is $2.40 Current Price is $1.81 Difference: $0.59
If S32 meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $2.78, suggesting upside of 53.5% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates S32 as Overweight (1) -

South32 has declared its balance sheet is in good stead. The company has suspended its buyback, lowered sustaining capex and delayed the Hermosa pre-feasibility study.

South Africa is in lockdown but SAEC and Hillside have been declared essential, while the lockdown in Colombia means Cerro Matosa will operate at a reduced rate.

No other assets have experienced disruptions. The broker retains Overweight. Target falls to $2.80 from $2.85. Industry view: In Line.

Target price is $2.80 Current Price is $1.81 Difference: $0.99
If S32 meets the Morgan Stanley target it will return approximately 55% (excluding dividends, fees and charges).

Current consensus price target is $2.78, suggesting upside of 53.5% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates S32 as Add (1) -

The company is planning to cut -US$160m in expenditure over the next 15 months. Cerro Matoso, Colombia, will continue operating at a reduced rate despite a 19 day national lock-down.

The remaining share buyback has been suspended. Morgans notes the company continues to benefit from a strong balance sheet and retains an Add rating. Target is reduced to $2.60 from $2.71.

Target price is $2.60 Current Price is $1.81 Difference: $0.79
If S32 meets the Morgans target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $2.78, suggesting upside of 53.5% (ex-dividends)

The company's fiscal year ends in June.

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 SAR as Buy (1) -

The company has maintained FY20 guidance. Production of 150-150,000 ounces in the March quarter was a record and in line with Citi's expectations.

The company has implemented a longer three-week roster to minimise crew interactions.

Buy rating and $4.30 target maintained.

Target price is $4.30 Current Price is $3.71 Difference: $0.59
If SAR meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $4.53, suggesting upside of 22.0% (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

Macquarie rates SAR as Outperform (1) -

The company has maintained production guidance for FY20 of more than 500,000 ounces in reported preliminary production for the March quarter of 150-155,000 ounces.

There has been minimal impact on production from the coronavirus crisis so far.

Macquarie observes stable operations at Super Pit and Carosue Dam underpin the outlook. Outperform maintained. Target is raised to $3.90 from $3.60.

Target price is $3.90 Current Price is $3.71 Difference: $0.19
If SAR meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.53, suggesting upside of 22.0% (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

UBS rates SEK as Neutral (3) -

UBS lowers job market forecasts, expecting employment metrics will be worse than the GFC on almost every measure.

While recognising gearing is elevated, the broker considers the risk to the balance sheet is low because of a staggered maturity profile over 2021-26 and other mitigating factors.

Marketing costs are expected to be cut as well as the dividend. Neutral rating maintained. Target is reduced to $15.25 from $22.75.

Target price is $15.25 Current Price is $14.82 Difference: $0.43
If SEK meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $21.55, suggesting upside of 45.4% (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

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

SG Fleet has withdrawn guidance. Corporate and novated funding structures remain operational but novated began to see a decline in March. The broker assumes consumers and businesses will be impacted as they focus on balance sheets and rethink major purchases.

No balance sheet update but the broker notes the company has plenty of headroom on debt facilities. Equal-weight retained, target falls to $2.45 from $2.60. Industry view: In Line.

Target price is $2.45 Current Price is $1.17 Difference: $1.28
If SGF meets the Morgan Stanley target it will return approximately 109% (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

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

Smartgroup Corp does not provide guidance but suggests current consensus forecasts are unreliable. All was fine up to February but subsequent lockdowns are reducing activity. The company is preparing for reduced trading but it's too early to quantify.

The company has $60m in cash, $36m in debt and access to $103m in credit. The broker retains Equal-weight. Target falls to $8.00 from $8.70. Industry view: In Line.

Target price is $8.00 Current Price is $4.85 Difference: $3.15
If SIQ meets the Morgan Stanley target it will return approximately 65% (excluding dividends, fees and charges).

Current consensus price target is $7.17, suggesting upside of 47.8% (ex-dividends)

The company's fiscal year ends in December.

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 SIQ as Hold (3) -

The business is re-positioning for reduced trading conditions. Morgans expects the company can remain positive in terms of cash flow and notes the balance sheet is solid.

There is an element of defensive, recurring revenue which the broker estimates to be around 45% of historical revenue.

Some elements will be permanently affected by the crisis. In particular, Morgans suspects add-on insurance sales and revenue will be materially lower. Hold rating maintained. Target is reduced to $6.58 from $8.55.

Target price is $6.58 Current Price is $4.85 Difference: $1.73
If SIQ meets the Morgans target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $7.17, suggesting upside of 47.8% (ex-dividends)

The company's fiscal year ends in December.

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 SUL as Hold (3) -

The trading update has revealed an acceleration in automotive business and BCF, as consumers prepared for the potential impact of shut-downs.

While the company does not have significant exposure to shopping centres, Morgans still flags the discretionary nature of the product, especially the focus on outdoors and leisure.

The interim dividend has been cancelled. Around $100m in additional debt facilities have been approved.

While the valuation is cheap, the broker considers the earnings part of the equation questionable and retains a Hold rating. Target is reduced to $7.84 from $8.22.

Target price is $7.84 Current Price is $4.37 Difference: $3.47
If SUL meets the Morgans target it will return approximately 79% (excluding dividends, fees and charges).

Current consensus price target is $8.46, suggesting upside of 93.7% (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 SXY as Outperform (1) -

The company has hedged around 60% of oil production for the next 18 months and has 95% of 2020 gas contracted, providing pricing security.

Macquarie notes initial production is expected to plateau in FY22, tripling to 3.6mmboe. Outperform rating maintained. Target is $0.40.

Target price is $0.40 Current Price is $0.17 Difference: $0.23
If SXY meets the Macquarie target it will return approximately 135% (excluding dividends, fees and charges).

Current consensus price target is $0.39, suggesting upside of 130.4% (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

Macquarie rates SYR as Underperform (5) -

Government travel restrictions have meant operations at Balama are temporarily suspended. Macquarie assumes a six-month halt to production, which will reduce the loss expected in 2020.

The broker believes Balama needs a material improvement in demand to return to full production.

Target is reduced to $0.17 from $0.35. Underperform maintained.

Target price is $0.17 Current Price is $0.24 Difference: minus $0.07 (current price is over target).
If SYR meets the Macquarie target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.57, suggesting upside of 135.4% (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: 0.0

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

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

Syrah Resources had already suspended production guidance but has now temporarily suspended production at Balama, given international and domestic travel restrictions are impacting on most of its workforce.

No cost impact has been provided, but the company believes orders for existing inventory will still be dispatched.

Little change expected to cash balance guidance of $64.6m. The broker sticks with Equal-weight. Target falls to 35c from 50c. Industry view: In Line.

Target price is $0.35 Current Price is $0.24 Difference: $0.11
If SYR meets the Morgan Stanley target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $0.57, suggesting upside of 135.4% (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: 0.0

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

Ord Minnett rates TAH as Lighten (4) -

As governments look for further ways to contain coronavirus, Ord Minnett expects this will exacerbate the situation for retail lotteries.

Retail foot traffic is decreasing significantly and the analysis the broker conducted for lottery vendors in the Melbourne CBD shows a -73% decrease versus a 52-week average.

There is yet to be a pick up in digital lottery sales to counteract this. Lighten rating and $2.05 target maintained.

Target price is $2.05 Current Price is $2.41 Difference: minus $0.36 (current price is over target).
If TAH meets the Ord Minnett target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.90, suggesting upside of 61.8% (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

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

The analysts suggest Tassal Group is well-placed in terms of both demand for product and ability to supply. That said, Credit Suisse expects some disruption will occur.

The company has pointed to the restaurants segment for domestic wholesale salmon shutting down, while parts of the takeaway, online and home delivery business are showing growth.

Credit Suisse upgrades to Outperform from Neutral and reduces the target to $3.90 from $4.90.

Target price is $3.90 Current Price is $3.48 Difference: $0.42
If TGR meets the Credit Suisse target it will return approximately 12% (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 URW as Neutral (3) -

The company has withdrawn 2020 guidance. Macquarie notes a move to a 70% pay-out ratio will improve the balance sheet by EUR1bn every three years.

While the stock offers a 16% distribution yield, the broker points to a heavy balance sheet, downside risk to distributions in FY21 and a pulling forward of structural headwinds. Target is $7.94. Neutral maintained.

Target price is $7.94 Current Price is $4.83 Difference: $3.11
If URW meets the Macquarie target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $9.47, suggesting upside of 96.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

This company reports in EUR. 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

Credit Suisse rates VEA as Neutral (3) -

Credit Suisse reduces forecasts as the demand environment continues to weaken. While retail margins improved in the March quarter a deterioration is expected in June.

The broker retains a Neutral rating and reduces the target to $1.36 from $1.97.

Target price is $1.36 Current Price is $1.25 Difference: $0.11
If VEA meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.08, suggesting upside of 66.4% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates WPL as Outperform (1) -

Woodside has reduced expenditure by -US$2.4bn. Credit Suisse notes the balance sheet is robust and there is little risk to debt covenants under current conditions.

The CEO has confirmed the company will consider inorganic growth opportunities that present in the current market.

Credit Suisse believes Woodside is well-placed to acquire a suite of tier-1 assets below net values. Outperform rating maintained. Target is raised to $28.89 from $27.86.

Target price is $28.89 Current Price is $17.59 Difference: $11.3
If WPL meets the Credit Suisse target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $26.40, suggesting upside of 50.1% (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: 0.6

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

Macquarie rates WPL as Outperform (1) -

Woodside has reduced capital expenditure guidance by -60% for 2020, much of this related to Scarborough/Pluto train 2. Final investment decisions on this as well as Browse have been delayed.

Macquarie notes the balance sheet is strong, with significant liquidity and minimal debt repayments required over 2020.

However, at spot prices the broker suspects there is a risk to the dividend. Outperform maintained. Target is reduced to $27 from $33.

Target price is $27.00 Current Price is $17.59 Difference: $9.41
If WPL meets the Macquarie target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $26.40, suggesting upside of 50.1% (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: 0.6

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

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

Woodside Petroleum has announced a -50% cut in capex and the removal of US$100m in opex and has undertaken hedging. On the broker's lower-for-longer oil price assumptions it is not clear Scarborough would proceed, but the broker admits forecasts might be too conservative.

If Scarborough is removed from the model valuation actually increases, highlighting its risk at low oil prices. The broker believes the LNG-oil price linkage may no longer be appropriate and expects fixed price contracts going forward. Equal-weight and $19.70 target retained. Industry view: Cautious.

Target price is $19.70 Current Price is $17.59 Difference: $2.11
If WPL meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $26.40, suggesting upside of 50.1% (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: 0.6

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

Morgans rates WPL as Add (1) -

Woodside is taking significant steps to preserve free cash flow and Morgans has gained confidence from the moves, given a previous concern that the company might extend its balance sheet at a time of exceptional uncertainty.

Expenditure reductions and hedging will help the company maintain strong cash flow in 2020, suggests the broker. Add rating maintained. Target is raised to $26.71 from $26.14.

Target price is $26.71 Current Price is $17.59 Difference: $9.12
If WPL meets the Morgans target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $26.40, suggesting upside of 50.1% (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: 0.6

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

UBS rates WSA as Upgrade to Buy from Neutral (1) -

UBS upgrades to Buy from Neutral and lowers the target to $2.50 from $2.90. Despite the risks, the broker considers the valuation attractive.

The stock is considered highly leveraged to nickel prices and, while there is downside risk in the short term, the broker suspects the Indonesian nickel ore ban and the uptake of electric vehicles will resume importance.

Target price is $2.50 Current Price is $1.85 Difference: $0.65
If WSA meets the UBS target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $2.88, suggesting upside of 55.8% (ex-dividends)

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