Australian Broker Call

Morgans rates APA as Hold (3) -

The Commonwealth Treasurer's preliminary view that the takeover offer by CKI is contrary to the national interest appears likely to prevent a takeover from going ahead. Morgans had hoped share price weakness following the announcement would provide a buying opportunity but the stock has held up more than expected.

The broker expects the share price to be driven by fundamentals rather than takeover speculation and reduces the target to $8.65 from $9.36. Hold rating maintained.

Target price is $8.65 Current Price is $8.93 Difference: minus $0.28 (current price is over target).
If APA meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.33, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Morgans rates APT as Add (1) -

The company has reported solid business momentum with strong initial traction in the US and positive trends in Australasia.  Morgans found no large surprises in the disclosure but conservatively alters international forecasts for the near term.

The broker believes a recent pull back in the shares is unwarranted because of the impressive underlying growth trends. Longer term upside is envisaged and the broker maintains an Add rating. Target is reduced to $19.15 from $21.65.

Target price is $19.15 Current Price is $13.49 Difference: $5.66
If APT meets the Morgans target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Ord Minnett rates AZJ as Sell (5) -

The Supreme Court of Queensland has dismissed the company's application for a judicial review of the proposed draft access undertaking (UT5) and ordered Aurizon to pay costs.

Ord Minnett observes one benefit from the delay in finalising UT5 is that Aurizon has been able to charge a transition tariff, which the broker estimates at $4.81/net tonne. This is materially higher than the draft decision of $3.86/net tonne.

Essentially, Aurizon has been over-collecting on revenue for 17 months and Ord Minnett wonders whether the market has realised this may need to be repaid. Sell rating maintained and target is $3.85.

Target price is $3.85 Current Price is $4.26 Difference: minus $0.41 (current price is over target).
If AZJ meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.24, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Macquarie rates BHP as Outperform (1) -

Management has reconfirmed a commitment to returning cash to shareholders and Macquarie envisages upside to the FY19 capital management plans.

Buoyant iron ore and coking coal prices appear set to sustain the company's upgrade momentum and the broker reiterates an Outperform rating.

Management has also reconfirmed that Olympic Dam is a core asset. The AGM has also resolved to change the company name to BHP Group from BHP Billiton. Target is steady at $40.

Target price is $40.00 Current Price is $33.30 Difference: $6.7
If BHP meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $37.11, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in June.

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: 0.7

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

Macquarie rates COE as Outperform (1) -

Cooper Energy has announced gross P50 prospective resources across two targets, Annie and Elanora. Macquarie believes the next wave of Otway fields provides the near-term catalysts for 2019.

The company has also pointed out that rig availability will delay the timing of drilling the Henry-2 ST and Manta-3, affecting the production profile. Outperform and 55c target retained.

Target price is $0.55 Current Price is $0.47 Difference: $0.08
If COE meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

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

UBS has had a look at third quarter results from CSL competitors and also adjusted for forex in lowering its earnings forecasts by -6% across the forecast period, resulting in a target price cut to $220 from $232.

However despite competitive pressures, the broker believes CSL can still deliver compound earnings growth of 11% over three years. UBS looks forward to the company's investor day on December 5 and on valuation has upgraded to Buy from Neutral.

Target price is $220.00 Current Price is $189.83 Difference: $30.17
If CSL meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $213.83, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.6

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

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

Having reviewed the VGI reports and the increased disclosure from Corporate Travel, Morgans has more confidence in the company's business model, growth strategy and financials.

The broker continues to believe the reports contained a number of inaccuracies and are unfounded. The broker retains forecasts and expects strong earnings growth.

Morgans believes the stock has been severely oversold, which provides the opportunity to buy a company with solid long-term growth potential.

Rating is upgraded to Add from Hold. Target is raised to $26.72 from $23.30.

Target price is $26.72 Current Price is $21.06 Difference: $5.66
If CTD meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $28.14, suggesting upside of 33.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Morgans rates DMP as Downgrade to Reduce from Hold (5) -

The trading update has revealed a further slowing in same-store sales momentum, particularly in Australasia and Europe. FY19 underlying operating earnings guidance of $227-247m was reiterated, although Morgans suggests the upper end is stretched following this latest update.

While the launch of new menus should assist sales growth, the broker awaits greater clarity on the top-line momentum. Rating is downgraded to Reduce from Hold, based on fundamentals. Target is reduced to $50.01 from $51.28.

Target price is $50.01 Current Price is $49.00 Difference: $1.01
If DMP meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $49.09, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.4

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

Credit Suisse rates ECX as Neutral (3) -

The company has agreed to a merger with McMillan Shakespeare ((MMS)). The combined group would be the largest fleet, salary packaging and novated lease provider in Australia.

Targeted synergy benefits are $50m, expected over three years. In the absence of another bid, Credit Suisse ascribes low risk to the merger not proceeding. Target is raised to $2.85 from $1.90. Neutral rating maintained.

Target price is $2.85 Current Price is $2.70 Difference: $0.15
If ECX meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.74, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

UBS rates ECX as No Rating (-1) -

McMillan Shakespeare ((MMS)) has proposed a cash/scrip merger that has been recommended by the EclipX board in the absence of a superior proposal.

The broker is advising and thus is currently restricted on offering a recommendation or target price.

Current Price is $2.70. Target price not assessed.

Current consensus price target is $2.74, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Credit Suisse rates FSF as Neutral (3) -

Fonterra has outlined its priorities for FY19 which include reduced capital expenditure and some asset sales. Credit Suisse observes these priorities are important precursors to lifting both farmer and investor confidence.

The broker believes the calculation of the milk price is one area of contention that is not easily solved within the regulated environment. Neutral retained. Target is steady at NZ$5.09.

Current Price is $4.50. Target price not assessed.

The company's fiscal year ends in July.

Forecast for FY19:

Forecast for FY20:

This company reports in NZD. 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

Deutsche Bank rates GMG as Hold (3) -

Goodman Group has growth momentum on its side, and the Q1 trading update proves just that, suggest the analysts. Deutsche Bank believes growth is likely to remain above "trough cycle levels" for a while into the future, they are also of the view this has already been priced in.

As such, the analysts highlight the shares are trading at a premium vis-a-vis the sector peers. Hence Hold rating retained. Target $9.78.

Target price is $9.78 Current Price is $10.41 Difference: minus $0.63 (current price is over target).
If GMG meets the Deutsche Bank target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.45, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Macquarie rates GMG as Outperform (1) -

The company has maintained FY19 growth expectations of 7% in the first quarter. A track record for beating forecasts signals to Macquarie there is upside risk to guidance.

Macquarie notes increased building density is a continuing theme, with land values now surpassing total building plus land costs. Tenants are also investing significant capital in assets and are after certainty in leasing.

Outperform retained. Target is steady at $11.30.

Target price is $11.35 Current Price is $10.41 Difference: $0.94
If GMG meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $10.45, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Ord Minnett rates GMG as Lighten (4) -

First quarter results suggest Ord Minnett the business is in good shape and on track to meet growth targets. Investment yields remain firm, ensuring strong development margins.

Ord Minnett maintains a Lighten rating and $8.80 target.

Target price is $8.80 Current Price is $10.41 Difference: minus $1.61 (current price is over target).
If GMG 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 $10.45, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

UBS rates GMG as Neutral (3) -

Goodman's "relentless pursuit" of quality assets in premium locations continues to pay off, the broker suggests. The REIT's Sep Q update featured accelerating rental growth, robust work in progress and growth in assets under management. WIP momentum remains strong as Goodman looks to "densify" (multi-level facilities) its portfolio.

The question is as to whether Goodman can keep restocking on similar margins but the broker notes the REIT is not reliant on development profits to drive superior earnings growth, hence valuation is fair. Neutral and $9.88 target retained.

Target price is $9.88 Current Price is $10.41 Difference: minus $0.53 (current price is over target).
If GMG meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.45, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Macquarie rates GTN as Outperform (1) -

Macquarie observes the first quarter was solid, and while the second quarter has started softer the key trading period is yet to come. Weakness appears concentrated in the mature domestic market.

Offshore markets are performing well and expected to improve. The broker considers the valuation undemanding and maintains an Outperform rating. Target is reduced to $2.55 from $2.60.

Target price is $2.55 Current Price is $2.11 Difference: $0.44
If GTN meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Credit Suisse rates JHX as Outperform (1) -

James Hardie's second quarter costs were stronger and volumes slightly weaker, which drives a -6% downgrade to net profit guidance at the mid point.

Net profit in the quarter was -10.8% below Credit Suisse forecasts while revenue was in line in the US and below forecasts elsewhere.

The broker reduces estimates for FY19 net profit by -9%. Outperform rating maintained. Target is reduced to $21.20 from $23.50.

Target price is $21.20 Current Price is $16.89 Difference: $4.31
If JHX meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $22.41, suggesting upside of 32.7% (ex-dividends)

The company's fiscal year ends in March.

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: 0.9

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

Deutsche Bank rates JHX as Buy (1) -

James Hardie's trading update proved rather disappointing, with the analysts highlighting it was the outlook provided in particular that didn't quite cut the mustard. Deutsche Bank analysts have cut their price target to $20 from $23.60.

Buy rating retained as the analysts remain of the view the share price is too low given the US housing market is still expected to continue growing, while PDG should post a recovery (into FY20). The analysts also suggest input costs might be near their peak.

Target price is $20.00 Current Price is $16.89 Difference: $3.11
If JHX meets the Deutsche Bank target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $22.41, suggesting upside of 32.7% (ex-dividends)

The company's fiscal year ends in March.

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: 0.9

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

Morgan Stanley rates JHX as Overweight (1) -

The company's second quarter disappointed Morgan Stanley on both cost and volume. Nevertheless, the broker believes cost pressures are cyclical.

North American volumes increased by 5% yet, while exteriors grew 8%, the big surprise was the -6% decline in interiors. Pulp and freight costs also remain elevated.

Morgan Stanley reiterates an Overweight rating, noting the stock is trading at an attractive multiple relative to both peers and history. Target is reduced to $21 from $23. Industry view is Cautious.

Target price is $21.00 Current Price is $16.89 Difference: $4.11
If JHX meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $22.41, suggesting upside of 32.7% (ex-dividends)

The company's fiscal year ends in March.

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: 0.9

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

Ord Minnett rates JHX as Accumulate (2) -

Ord Minnett highlights the second quarter net profit was short of estimates at both the net profit and operating level. Margins were soft because of input cost inflation, although the broker observes the underlying operating performance has steadily improved.

There should also be upside to margins in the medium term as inputs normalise. Ord Minnett retains an Accumulate rating and reduces the target to $21.00 from $22.40.

Target price is $21.00 Current Price is $16.89 Difference: $4.11
If JHX meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $22.41, suggesting upside of 32.7% (ex-dividends)

The company's fiscal year ends in March.

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: 0.9

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

UBS rates JHX as Buy (1) -

The US housing market has been weakening for several months but the broker had assumed James Hardie could still grow in a soft market. Now the broker sees this as more difficult as the challenges from lower housing activity make it harder for the company to predict volume growth. Margin expectations have been cut.

James Hardie previously thought input cost pressures would ease but now the opposite appears top be the case. In a declining market with rising cost pressures, the broker expects the share price to languish but retains Buy on a longer term view. Target falls to $22.00 from $24.40.

Target price is $22.00 Current Price is $16.89 Difference: $5.11
If JHX meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $22.41, suggesting upside of 32.7% (ex-dividends)

The company's fiscal year ends in March.

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: 0.9

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

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

The stock has traded down -40% from its peak and, while headwinds continue, Morgan Stanley believes it is far more reasonably priced now. The broker envisages increased traction from the global roll-out of stores and e-commerce offering.

Further softening is envisaged ahead of Christmas as tough comparables are cycled.

The risk/reward is now more balanced and the broker upgrades to Equal-weight from Underweight. Target is reduced to $8.40 from $9.50. Industry view is In-Line.

Target price is $8.40 Current Price is $7.78 Difference: $0.62
If LOV meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $9.68, suggesting upside of 24.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

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

The company has agreed a merger with EclipX ((ECX)), offering 0.1414 shares plus $0.46 cash per each EclipX share. Credit Suisse upgrades to Outperform from Neutral, regarding the stock is attractively valued even prior to the proposed merger.

The broker believes the strategic rationale is sound and the majority of the synergy benefits are achievable. Target is reduced to $17.65 from $18.55 because of a lower market multiple.

Target price is $17.65 Current Price is $15.82 Difference: $1.83
If MMS meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $17.38, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

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

The company has announced an intention to merge with EclipX ((ECX)). Macquarie calculates the bid, of $0.46 cash and 0.1414 McMillan Shakespeare shares, represents a 17% premium to the last close for EclipX.

Macquarie calculates more than 30% accretion post synergies. The broker upgrades to Outperform from Neutral and suspects the market is either not rating the combined business, does not trust EclipX earnings or does not believe the synergies. Target is raised to $17.41 from $16.54.

Target price is $17.41 Current Price is $15.82 Difference: $1.59
If MMS meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $17.38, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

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

Morgan Stanley observes the market has been calling for consolidation in fleet management for some time. McMillan Shakespeare's offer for EclipX ((ECX)) is considered both logical and accretive, with the returns compelling to shareholders of both companies.

The offer includes a large equity component, comprising $0.46 cash and 0.1414 McMillan Shakespeare shares. While execution risk is high, the broker considers the upside from both revenue and cost synergies is material. However, the complexity of the combined business, as well as a returns profile going forward, need to be considered.

Morgan Stanley retains Equal-weight rating, $16.45 target and In-Line sector view.

Target price is $16.45 Current Price is $15.82 Difference: $0.63
If MMS meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $17.38, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Ord Minnett rates MMS as Downgrade to Hold from Buy (3) -

The transaction with EclipX ((ECX)) has caused Ord Minnett to pause, downgrading to Hold from Buy, as further assessment is made of the combined entity. The combined entity becomes much more of a fleet management play with less salary packaging/novated leasing as a percentage.

The broker is uncertain regarding the ongoing contribution from the Right2Drive business, as McMillan Shakespeare management were unwilling to commit to this on the conference call. Target is reduced to $16.00 from $20.50.

Target price is $16.00 Current Price is $15.82 Difference: $0.18
If MMS meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $17.38, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Credit Suisse rates NHC as Neutral (3) -

The Queensland Land Court has delivered a positive recommendation in respect of the New Acland stage 3 mining lease and environmental applications. The approvals process now moves to the Department of Environment and the Minister for Mines.

Full stage 3 approvals are the near-term catalyst and Credit Suisse still assumes stage 2 ceases production at the end of FY20 from which point stage 3 commences, although even with this latest announcement there are still risks to these assumptions.

Neutral rating maintained. Target is $4.10.

Target price is $4.10 Current Price is $3.60 Difference: $0.5
If NHC meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.75, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in July.

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

Citi rates NWS as Neutral (3) -

Citi observes strong growth in news & information and digital real estate in the first quarter. Foxtel is expected to continue dragging on earnings throughout the rest of the year.

The broker believes investors looking for exposure to the real estate segment are better off buying REA Group ((REA)).

Citi downgrades estimates for earnings per share by -19-20% for FY19-21, mainly because of higher net interest costs and tax. Neutral rating maintained. Target is reduced to $21.45 from $22.00.

Target price is $21.45 Current Price is $19.72 Difference: $1.73
If NWS meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $22.60, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.2

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

Credit Suisse rates NWS as Neutral (3) -

First quarter results were firm and in line at the revenue level with Credit Suisse estimates.

The broker makes minor changes to earnings estimates, noting the result was supported by a US$48m one-off benefit from the early termination of a partnership with Tabcorp ((TAH)).

The broker maintains a Neutral rating and raises the target to $20.80 from $20.35.

Target price is $20.80 Current Price is $19.72 Difference: $1.08
If NWS meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $22.60, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.2

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

Macquarie rates NWS as Outperform (1) -

The first quarter earnings were solid, in Macquarie's view, although Foxtel continues to weigh because of structural challenges and reinvestment.

The broker is encouraged by the digital and subscription trends for the news and information business, while digital real estate remains the core driver of growth and just over half of valuation.

Target is raised to $25.84 from $25.51. Macquarie reiterates an Outperform rating.

Target price is $25.84 Current Price is $19.72 Difference: $6.12
If NWS meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $22.60, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.2

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

Morgan Stanley rates NWS as Underweight (5) -

First quarter results were ahead of Morgan Stanley's expectations with revenue up 23% and operating earnings up 12%. No explicit earnings guidance was provided, as usual.

The broker estimates the company needs to achieve 18% growth over the next nine months in order to achieve consensus expectations for FY18 operating earnings of US$1.29bn.

Underweight rating and US$12.50 target maintained. Industry view is Attractive.

Current Price is $19.72. Target price not assessed.

Current consensus price target is $22.60, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.2

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

UBS rates OGC as Buy (1) -

The mine life of OceanaGold's NZ assets is a key risk, but having returned from a site tour the broker believes there is pathway for mine extensions, particularly at Waihi given promising exploration results.

UBS upgrades its valuation by 11% and lifts the target to $4.70 from $4.50, Buy retained. 

Target price is $4.70 Current Price is $3.93 Difference: $0.77
If OGC meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.70, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.6

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

Credit Suisse rates PDL as Underperform (5) -

FY18 results were in line with expectations. Credit Suisse is forecasting a -8% decline in estimates for earnings per share in  FY19 as some headwinds are visible in the company's outlook. First half performance fees are tracking significantly lower and fixed cost growth of 6-8% has also been guided.

The broker notes some flexibility in the cost base and factors in a -15% fall in variable expenses. Underperform rating maintained. Target is raised to $7.40 from $7.10.

Target price is $7.40 Current Price is $8.37 Difference: minus $0.97 (current price is over target).
If PDL meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.38, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Macquarie rates PDL as Outperform (1) -

FY18 results were ahead of expectations, with margins broadly stable and costs well managed. While the JO Hambro performance fees are tracking lower, Macquarie believes there is enough in the underlying result to offset this.

The broker also notes fixed cost growth guidance of 6-8% is well down on the prior year. Outperform rating and $10 target maintained.

Target price is $10.00 Current Price is $8.37 Difference: $1.63
If PDL meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $9.38, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Morgan Stanley rates PDL as Overweight (1) -

Pendal is now guiding to FY19 fixed cost growth of 6-8%. Morgan Stanley notes FY18 was a key year for investment which has positioned the business for future growth.

Despite market volatility, Morgan Stanley believes Pendal has more growth options than just navigating the issues facing active asset managers. The broker believes there is a US market opportunity as the company has a product range that avoids large-cap US equities and focuses on international equities, amid a planned sales expansion to cover the west coast market.

The US mutual funds base margins of 85 basis points are also the highest in the group. Morgan Stanley maintains an Overweight rating and reduces the target to $10.80 from $11.00. Industry view: In-Line.

Target price is $10.80 Current Price is $8.37 Difference: $2.43
If PDL meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $9.38, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Morgans rates PDL as Hold (3) -

FY18 net profit was in line with expectations, up 16.5%. The result was driven by a 10% uplift in funds under management. Morgans believes the outlook over the next 6-12 months is mixed, amid underperformance across a number of smaller funds.

The broker maintains a Hold rating and $10.05 target and would prefer the growth path to be less reliant on market direction.

Target price is $10.05 Current Price is $8.37 Difference: $1.68
If PDL meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $9.38, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

UBS rates PDL as Neutral (3) -

Pendal's result held no surprises for the broker but, after three years of 15% compound profit growth, the broker sees markets as being less supportive in FY19, leading to moderating funds flows and lower performance fees. Fixed costs are expected to fall but remain elevated.

Headwinds may be more temporary if JOHCM can lift its game but at current valuation the broker sees limited upside. Neutral retained, target falls to $9.00 from $9.80.

Target price is $9.00 Current Price is $8.37 Difference: $0.63
If PDL meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $9.38, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

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

Morgan Stanley estimates around $100m in net inflows in October. The rebound in flows was somewhat of a surprise to the broker, given the slower investment performance and recent market volatility.

Both volatility and investment performance tend to impact retail flows which is the company's predominant business. Equal-weight retained. Industry view: In-Line. Target is $6.

Target price is $6.00 Current Price is $5.18 Difference: $0.82
If PTM meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $5.28, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

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

While the company has operated in a difficult market over the past five years, Credit Suisse notes premium rates have turned positive in early 2018 and premium rate increases have been maintained.

The broker reassesses the growth opportunity and has a more optimistic view. The company is expected to update the market in early December on potential cost reductions.

Credit Suisse upgrades to Outperform from Neutral and raises the target to a $13 from $11.

Target price is $13.00 Current Price is $11.44 Difference: $1.56
If QBE meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $12.11, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

Credit Suisse rates REA as Neutral (3) -

First quarter results were solid, Credit Suisse observes, with revenue growth of 17% and operating earnings growth of 23%. Growth was supported by acquisitions and reflects a strong performance in a subdued listings environment.

 Neutral rating and $85.50 target maintained.

Target price is $85.50 Current Price is $80.40 Difference: $5.1
If REA meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $87.19, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

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

Macquarie observes a very strong first quarter result, with the drivers being the take-up of depth products as well as new revenue from commercial and developer segments.

The broker finds it hard to fault the trajectory of the business, despite the macro trends. A strong FY19 is expected and Macquarie upgrades to Outperform from Neutral. Target is unchanged at $90.

Target price is $90.00 Current Price is $80.40 Difference: $9.6
If REA meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $87.19, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Morgan Stanley rates REA as Overweight (1) -

First quarter revenue growth of 17% and operating earnings growth of 15% indicate to Morgan Stanley that expectations for FY19 are achievable.

The company expects market conditions will not improve in the short term and listings may be weaker in the lead up to the NSW election in March.

Industry view is Attractive. Overweight rating retained. Target is $95.00.

Target price is $95.00 Current Price is $80.40 Difference: $14.6
If REA meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $87.19, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

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

First quarter results were stronger than expected, benefiting from continued growth in depth products and softer-than-expected declines in new listings.  There was strong growth in the developer and commercial segments.

Ord Minnett increases developer revenue growth estimates to 10% for FY19 and continues to expect 10% growth in commercial revenues.

As the stock is trading in line with the $79 target the broker downgrades the rating to Hold from Accumulate.

Target price is $79.00 Current Price is $80.40 Difference: minus $1.4 (current price is over target).
If REA meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $87.19, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

UBS rates REA as Neutral (3) -

REA's Sep Q earnings growth exceeded the broker's expectation due to higher than expected developer/commercial growth, strong Australian residential growth thanks to new products, and lower than expected cost growth. Cost growth will step up in FY19, guidance suggests.

The broker has upgraded forecasts but only moderately on the assumption the first quarter FY19 could be the high water mark, with tough comparables to cycle and state and federal elections holding back listings, although on that note REA suggests any change to negative gearing could see listings go the other way.

Neutral and $75 target retained.

Target price is $75.00 Current Price is $80.40 Difference: minus $5.4 (current price is over target).
If REA meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $87.19, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Deutsche Bank rates RHP as Buy (1) -

Deutsche Bank only initiated coverage with a Buy rating and $1.65 target one week ago. Yesterday, Rhipe released a strong first quarter trading update which came with upgraded guidance for FY19. Deutsche Bank analysts have responded by lifting forecasts and the price target to $1.75. Buy.

The analysts continue to be of the view this company has an attractive business model, robust earnings growth potential plus exposure to a sector ripe (pun probably intended) for consolidation.

Target price is $1.75 Current Price is $1.35 Difference: $0.4
If RHP meets the Deutsche Bank target it will return approximately 30% (excluding dividends, fees and charges).

Market Sentiment: 0.5

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

Morgans rates RHP as Hold (3) -

The company has reported a strong trajectory in the first quarter and upgrades FY19 guidance by 10%. Operating costs were up 12% in the quarter but operating earnings margins expanded materially, to 3.8%.

Morgans observes the Microsoft Cloud is going well and upgrades FY19 and FY20 estimates for earnings per share by 17% and 14% respectively.

Target is raised to $1.44 from $1.28. Hold rating maintained.

Target price is $1.44 Current Price is $1.35 Difference: $0.09
If RHP meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Citi rates SGM as Neutral (3) -

Citi observes the shares have rebounded around 20% since late October as scrap prices recovered in Turkey and firmed in the US. The AGM has confirmed a stable outlook for the remainder of the financial year.

The broker suggests the start of the share buyback program should support the stock. Neutral rating and $13 target maintained.

Target price is $13.00 Current Price is $12.86 Difference: $0.14
If SGM meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $14.18, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Deutsche Bank rates SGM as Hold (3) -

Hold rating and $12.50 target maintained as management has used the AGM to confirm guidance towards the upper level of the prior range. Deutsche Bank analysts, while acknowledging this is a positive, cannot help themselves and keep reminding investors risk remains.

Target price is $12.50 Current Price is $12.86 Difference: minus $0.36 (current price is over target).
If SGM meets the Deutsche Bank target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.18, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Macquarie rates SGM as Outperform (1) -

At its AGM the company continued to express confidence in the Chinese and Turkish markets. Sims Metal expects to raise the quality of its scrap processing and improve its ability to sell into China and other markets that are lowering the acceptable contamination levels.

Macquarie considers the stock inexpensive and absolute multiples are observed to be close to historical lows. Outperform rating maintained. Target is $16.60.

Target price is $16.60 Current Price is $12.86 Difference: $3.74
If SGM meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $14.18, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

UBS rates SGM as Neutral (3) -

Sims didn't provide any new numbers at its AGM or much detail around FY19 expectations. No formal guidance was offered, which suggests to the broker the company is happy with consensus forecasts.

The broker nevertheless believes consensus to be on the high side, albeit forecasting is difficult in the face of trade wars and Turkey issues. Scrap markets have stabilised after a tumultuous year but further quality tightening in China and SE Asia poses a longer term headwind.

Neutral and $12.50 target retained.

Target price is $12.50 Current Price is $12.86 Difference: minus $0.36 (current price is over target).
If SGM 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 $14.18, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Macquarie rates SGP as Neutral (3) -

Macquarie reviews the business following a sell-off in the stock. The broker highlights the risk of slowing development volumes and reduces residential earnings estimates beyond FY20.

Against the backdrop of a housing correction, Macquarie maintains a Neutral rating and reduces the target to $3.71 from $4.29.

Target price is $3.71 Current Price is $3.66 Difference: $0.05
If SGP meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.18, suggesting upside of 14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Morgan Stanley rates TME as Overweight (1) -

The company has indicated that in the four months to end of October revenue rose 9% and operating earnings (EBIT) rose 10%. Morgan Stanley considers this a slight acceleration from FY18.

The top half of guidance is now expected, which is for full year revenue growth of 5-8%. Morgan Stanley maintains an Overweight rating. Industry view is Attractive. Price target is NZ$5.40.

Current Price is $4.76. Target price not assessed.

Current consensus price target is $5.20, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.2

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

Ord Minnett rates WEB as Buy (1) -

Ord Minnett considers the acquisition of Destinations of the World makes sense and the trading update, with operating earnings forecast in excess of $110m, has removed the uncertainty leading up to the AGM.

While on face value the price paid for the acquisition is considered relatively full, after incorporating annual synergies it becomes more reasonable.

Ord Minnett believes concerns regarding growth stocks and/or those with consumer-facing characteristics are overdone in the context of Webjet. Buy rating maintained. Target is raised to $19.03 from $16.80.

Target price is $19.03 Current Price is $12.36 Difference: $6.67
If WEB meets the Ord Minnett target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $16.74, suggesting upside of 35.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Deutsche Bank rates WHC as Buy (1) -

Deutsche Bank analysts have returned from a site visit with increased confidence, which has led to them adding 20c to the price target, now at at $6.20. Buy,

Target price is $6.20 Current Price is $4.93 Difference: $1.27
If WHC meets the Deutsche Bank target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $5.88, suggesting upside of 19.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

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

Since the company announced an intention to buy the ECR business from Jacob's Engineering the stock has traded well below the entitlement issue price. Still, Dar Group's intention to take up all its entitlement is a sign of confidence in the deal, Credit Suisse suggests.

Despite the amount of entitlement stock to be absorbed, which may suppress the share price, Credit Suisse moves to Outperform from Neutral on the medium-term outlook. Target is steady at $17.60.

Target price is $17.60 Current Price is $15.22 Difference: $2.38
If WOR meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $19.34, suggesting upside of 27.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Citi rates XRO as Neutral (3) -

First half underlying earnings were ahead of Citi's estimates. The broker increases FY19-21 operating earnings forecasts by 11-12% to reflect a forecast improvement in revenue per unit growth and a quicker ramping up of operating leverage.

Positive free cash flow is now expected in FY20, rather than FY19. Neutral rating maintained. Target is raised $44.60 from $40.60.

Target price is $44.60 Current Price is $42.11 Difference: $2.49
If XRO meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $44.09, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

This company reports in NZD. 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 XRO as Neutral (3) -

Macquarie notes first half subscriber and revenue growth trends were positive, particularly in Australasia and the UK. While the US business is positive, growth is yet to accelerate at a similar rate in the UK.

Subscriber growth was 32% and revenue growth was 37% and first half guidance is unchanged. Macquarie factors in a further $200m in acquisitions in the next three years, expecting the company to continue scaling other opportunities.

The broker upgrades the target to $44 from $37 and maintains a Neutral rating.

Target price is $44.00 Current Price is $42.11 Difference: $1.89
If XRO meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $44.09, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

This company reports in NZD. 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

Morgan Stanley rates XRO as Overweight (1) -

First half results were stronger than expected with revenue up 37% and underlying operating earnings up 102%. The company has reiterated guidance for cash outflow to reduce.

The broker notes subscriber growth was strong and the company continues to progress in the US.

Morgan Stanley retains an Overweight rating and $50 target. Industry view is Attractive.

Target price is $50.00 Current Price is $42.11 Difference: $7.89
If XRO meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $44.09, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

This company reports in NZD. 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 XRO as Buy (1) -

First half operating earnings were ahead of Ord Minnett's estimates. Impairments largely related to the decision to discontinue the US payroll product and move to a full-service solution, provided by partner Gusto.

The broker believes the result was strong, with the company hinting at plans to unlock the addressable market by offering new products to entry-level, less complex businesses.

Based on the broker's forecasts, Xero could grow subscribers at a compound rate of 19% to FY22. Buy rating and $49 target maintained.

Target price is $49.00 Current Price is $42.11 Difference: $6.89
If XRO meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $44.09, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

This company reports in NZD. 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