Australian Broker Call

Citi rates AWE as Buy (1) -

Citi's oil and gas analysts have bitten the bullet and succumbed to the realisation that the past is just that and the future holds more limitations to how high oil prices might realistically be able to rise.

Apart from lowering near term forecasts, by on average US$5/bbl, of more importance is the team has now cut the long term oil price forecast to US$55/bbl real (from US$65/bbl). This becomes a real problem when many a share price for oil and gas producers is still reflecting a higher price.

For AWE Ltd, the impact has been a lower price target; 63c instead of 71c. Buy/High Risk rating remains in place.

Target price is $0.63 Current Price is $0.48 Difference: $0.155
If AWE meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $0.52, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Citi rates BPT as Buy (1) -

Citi's oil and gas analysts have bitten the bullet and succumbed to the realisation that the past is just that and the future holds more limitations to how high oil prices might realistically be able to rise.

Apart from lowering near term forecasts, by on average US$5/bbl, of more importance is the team has now cut the long term oil price forecast to US$55/bbl real (from US$65/bbl). This becomes a real problem when many a share price for oil and gas producers is still reflecting a higher price.

For Beach Energy, the impact is a lower price target; 77c instead of 84c. The Buy rating has remained, but the High Risk tag has disappeared.

Target price is $0.77 Current Price is $0.64 Difference: $0.135
If BPT meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $0.67, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

Deutsche Bank rates CIM as Upgrade to Hold from Sell (3) -

First half results showed continued growth in work in hand and margins are being maintained. While revenue was below Deutsche Bank's expectations growth is expected to flow through in the future.

The broker had been wary of low margin contracts that might negatively affect earnings but the benefits of economies of scale appear to be offsetting the competitively-priced contracts.

Deutsche Bank upgrades to Hold from Sell. Target is raised to $34.68 from $30.83.

Target price is $34.68 Current Price is $41.03 Difference: minus $6.35 (current price is over target).
If CIM meets the Deutsche Bank target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.21, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.2

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

Macquarie rates CIM as Outperform (1) -

Cimic's profit result came in short of the broker but only on higher depreciation due to ramped up capex in line with increased infra and mining activity. Earnings otherwise beat and strong cash flow was a key positive.

This implies an improvement in result quality and the broker retains Outperform on the company's exposure to the solid local infra market, in which there is no shortage of opportunity. Target trimmed to $42.10 from $42.50.

Target price is $42.10 Current Price is $41.03 Difference: $1.07
If CIM meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $35.21, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.2

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

UBS rates CPU as Downgrade to Neutral from Buy (3) -

The stock is now trading at a market multiple on FY20 estimated earnings which is appropriate, UBS believes, as the key growth drivers are going to fade beyond this point.

The value risks now appear more evenly balanced and the broker downgrades to Neutral from Buy. Target is raised to $15.25 from $14.95.

Target price is $15.25 Current Price is $14.25 Difference: $1
If CPU meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $13.88, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.1

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

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

Crown has been elevated to Buy at Ord Minnett on more cost savings (opex) to offset weak VIP business, reduced gearing for potential corporate partnership strategies and a better outlook for CrownBet. The analysts throw in a rather cheap looking valuation as well.

All in all, it is Ord Minnett's view the risks are by now well and truly priced in, while management can provide offsets. The analysts turn temporarily into speculators and believe there is increased potential for a joint bid for Tatts’ ((TTS)) wagering and lotteries business.

Target price has been increased to $14 from $13. Earnings estimates have been slightly lowered.

Target price is $14.00 Current Price is $12.59 Difference: $1.41
If CWN meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $13.43, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

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

Macquarie believes Dexus will hit its funds from operations guidance at its FY17 result, and expects an update on the office portfolio to be positive given its Sydney focus. 

The outlook for the industrial portfolio remains subdued but the broker suggests improving occupancy will see a return to income growth for the first time since 2014. Dexus remains the broker's preferred office REIT exposure and since the share price fall the market is pricing in no asset value appreciation in the next 12 months. Upgrade to Outperform.

Target unchanged at $10.22.

Target price is $10.22 Current Price is $9.39 Difference: $0.83
If DXS meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $9.47, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.2

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

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

Macquarie suggests GPT's result will show retail growth partially dragged down by Dandenong, strong office rents but increased vacancy, and modest industrial growth supplemented by development. There is potential for a minor uplift to guidance.

GPT remains a solid, defensive proposition offering diversity across all of quality retail, office and industrial, Macquarie notes. On a more attractive forecast return and the chance of  a minor upside surprise, the broker upgrades to Outperform. Target unchanged at $5.18.

Target price is $5.18 Current Price is $4.86 Difference: $0.32
If GPT meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.16, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Macquarie rates MLX as Outperform (1) -

Metal X's June Q report featured higher than expected shipments from both Nifty and Renison but higher cash costs at both. Cash flow was thus slightly weaker, the broker notes.

The broker expects copper production to rise over the next two years and drive down costs. The upcoming reserve upgrade for Nifty is a key catalyst. Outperform and $1.00 target retained.

Target price is $1.00 Current Price is $0.73 Difference: $0.275
If MLX meets the Macquarie target it will return approximately 38% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Citi rates NVT as Neutral (3) -

Citi is trying to make us all believe it has just "initiated" coverage of Navitas with a $5.30 price target. This compares with a Buy rating and $5.70 price target in early February 2015.

Let's call it a re-initiation of coverage. The analysts note Navitas currently derives circa 60% of revenue from Australia. The company is targeting greater penetration in the USA.

Target price is $5.30 Current Price is $5.00 Difference: $0.3
If NVT meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting downside of -3.8% (ex-dividends)

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Citi rates NXT as Buy (1) -

The company has taken a strategic stake in the real estate investment trust that owns three of its data centres. NextDC has spent $29m to acquire a 14% stake in Asia-Pacific Data Centre ((AJD)).

The company intends to use its stake to support the existing board position that rejects a proposal by 360 Capital ((TGP)) to remove the responsible entity and replace it with its own nominee.

Citi suspects the reason behind the acquisition is to ensure that the landlord of its three assets is aligned with its best interests. Nevertheless, the broker envisages limited upside from deploying this capital to acquire a non-blocking stake.

The broker also does not rule out a move towards acquiring the underlying assets of Asia Pacific Data Centre. Buy rating and $5.18 target retained.

Target price is $5.18 Current Price is $4.27 Difference: $0.91
If NXT meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 15.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Citi rates ORG as Downgrade to Neutral from Buy (3) -

Citi's oil and gas analysts have bitten the bullet and succumbed to the realisation that the past is just that and the future holds more limitations to how high oil prices might realistically be able to rise.

Apart from lowering near term forecasts, by on average US$5/bbl, of more importance is the team has now cut the long term oil price forecast to US$55/bbl real (from US$65/bbl). This becomes a real problem when many a share price for oil and gas producers is still reflecting a higher price.

On Citi's calculations, Origin Energy's share price is already projecting US$55/bbl, hence the downgrade to Neutral. New target price of $7.34 compares with $8.59 prior.

Target price is $7.34 Current Price is $7.19 Difference: $0.15
If ORG meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $7.56, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Citi rates OSH as Downgrade to Sell from Neutral (5) -

Citi's oil and gas analysts have bitten the bullet and succumbed to the realisation that the past is just that and the future holds more limitations to how high oil prices might realistically be able to rise.

Apart from lowering near term forecasts, by on average US$5/bbl, of more importance is the team has now cut the long term oil price forecast to US$55/bbl real (from US$65/bbl). This becomes a real problem when many a share price for oil and gas producers is still reflecting a higher price.

On Citi's calculations, Oil Search's share price is projecting US$68/bbl, hence there is no other option than to downgrade; to Sell from Neutral. New target price of $5.72 compares with $7.47 prior.

Target price is $5.72 Current Price is $6.60 Difference: minus $0.88 (current price is over target).
If OSH meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.49, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

Credit Suisse rates OSH as Outperform (1) -

Credit Suisse observes another strong result in the June quarter production. Production guidance has been retained for 2017 at 28.5-30.5mmboe.

The broker has little doubt that the market is concerned about the oil price, the election risk in PNG and broader LNG markets and it is hard to counter these fears.

Nevertheless, the company is the only large petroleum stock in Australia with any material growth in coming years. Outperform rating is retained. Target is $7.25.

Target price is $7.25 Current Price is $6.60 Difference: $0.65
If OSH meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $7.49, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

Deutsche Bank rates OSH as Buy (1) -

June quarter production was -1% below Deutsche Bank's estimates because of a slightly larger impact from maintenance activities at PNG LNG. Revenue was -12% below forecasts because of sales under-lift.

Full year guidance remains unchanged and the company expects first half production costs to be in the lower half of 2017 guidance. Deutsche Bank retains a Buy rating and $8.00 target.

Target price is $8.00 Current Price is $6.60 Difference: $1.4
If OSH meets the Deutsche Bank target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $7.49, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

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

June quarter results were below Morgan Stanley's expectations because of maintenance at PNG LNG and slightly lower oil production. The broker expects further details on LNG expansions are required before the stock can re-rate on its long-term expansion plans.

Equal-weight rating and In-Line sector view retained. Target is reduced to $7.56 from $7.70.

Target price is $7.56 Current Price is $6.60 Difference: $0.96
If OSH meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $7.49, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

Morgans rates OSH as Add (1) -

After a well-flagged maintenance shutdown, PNG production was in line with the broker's forecast, but a solid comeback in June suggests perhaps T1 and T2 could sustain a higher run rate sooner than assumed. There are nevertheless more maintenance shutdowns ahead, the broker notes.

The broker believes Qatar's plans to boost LNG production is more of a threat to Australia-based producers than to PNG, given PNG is closer to the Asian markets and Asian buyers value supply diversity. Oil Search remains the broker's top pick in the gas space.

Add retained. Target falls to $10.16 from $10.22.

Target price is $10.16 Current Price is $6.60 Difference: $3.56
If OSH meets the Morgans target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $7.49, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

Ord Minnett rates OSH as Accumulate (2) -

There was nothing in the June quarter report that has Ord Minnett analysts change their opinion on the stock, today's research report concludes. The analysts do note PNG LNG has now recorded its eleventh consecutive quarter of above-nameplate production with output improving further since the quarter ended.

Also, exploration success could lead to further expansions of the plant, add the analysts, while the PNG government shall receive a formal proposal for expansion of the project later in the year. Accumulate rating retained. Target price has lost 15c and now sits at $7.25.

Target price is $7.25 Current Price is $6.60 Difference: $0.65
If OSH meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $7.49, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

UBS rates OSH as Neutral (3) -

Operationally, PNG LNG continues to exceed UBS' expectations. The broker questions whether 2018 de-bottlenecking will mean output reaches 9mtpa. If so, UBS estimates there is $0.26 upside to the valuation.

Expansion is making progress but the broker requires more boxes to be ticked. UBS maintains a Neutral rating and $7.20 target.

Target price is $7.20 Current Price is $6.60 Difference: $0.6
If OSH meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $7.49, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.4

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

Citi rates RIO as Buy (1) -

June quarter production was weaker than expected, primarily driven by iron ore shipments being down -6% year-on-year. Citi notes, on the positive side, bauxite revealed record shipments.

The broker downgrades FY17 and FY18 earnings estimates by -9% and -4% respectively after incorporating changes to commodity price forecasts and removing the Coal & Allied operations from the December quarter estimates. Buy rating and $66 target retained.

Target price is $66.00 Current Price is $64.50 Difference: $1.5
If RIO meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $71.29, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Credit Suisse rates RIO as Outperform (1) -

Outside of iron ore and metallurgical coal, Credit Suisse found the June quarter relatively solid in terms of production. The broker forecasts first half EBITDA of US$9.3bn and underlying net profit of US$4.4bn.

The broker continues to model a US$2.5bn incremental buy-back for the half. Outperform retained. Target is $72.

Target price is $72.00 Current Price is $64.50 Difference: $7.5
If RIO meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $71.29, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Deutsche Bank rates RIO as Buy (1) -

The company has reported a 5% increase in copper equivalent production for the June quarter but the result was -6% below Deutsche Bank's expectations.

The main issue for the broker is the weaker-than-expected Pilbara iron ore shipments because of rail maintenance. Nevertheless, stronger-than-expected realised pricing for the first half has offset most of the weaker shipments.

Buy rating and $73 target retained.

Target price is $73.00 Current Price is $64.50 Difference: $8.5
If RIO meets the Deutsche Bank target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $71.29, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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 RIO as Outperform (1) -

Rio Tinto's June Q production was roughly in line with the brokers' forecast, as is lower 2017 shipment guidance. Coking coal was the weak spot because of Debbie, while aluminium and copper outlooks were broadly in line.

The broker retains a preference for Rio over BHP ((BHP)), with a stronger aluminium outlook the prime differentiator. Outperform and $78 target retained.

Target price is $78.00 Current Price is $64.50 Difference: $13.5
If RIO meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $71.29, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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 RIO as Overweight (1) -

Morgan Stanley notes a small shortfall in iron ore and copper production and the realised iron ore price in the June quarter versus its forecasts. The overall revenue miss is around -1% of 2017 sales and -3% of EBITDA estimates.

Overweight rating maintained. Target is $72. Industry view: Attractive.

Target price is $72.00 Current Price is $64.50 Difference: $7.5
If RIO meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $71.29, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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 RIO as Downgrade to Hold from Add (3) -

It was another soft quarter for Rio in the Pilbara although 2018 still looks to be as expected in volume terms, according to Morgans. The miner nevertheless benefitted from solid iron ore and coal prices in the quarter and a strong rebound for aluminium.

Ongoing strong cash flows support a robust balance sheet but a lack of capex plans suggests to Morgans low business confidence among global miners persists. The share price has run up ahead of result season and has reached the broker's target of $62.30, down from $66.57.

Downgrade to Hold.

Target price is $62.30 Current Price is $64.50 Difference: minus $2.2 (current price is over target).
If RIO 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 $71.29, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Ord Minnett rates RIO as Accumulate (2) -

Ord Minnett labels the June quarter report a "relatively weak quarterly result". The stockbroker notes Pilbara shipments were flat on the previous quarter. The company has flagged further rail maintenance effects in the second half.

Rio Tinto cutting iron ore production guidance is not seen as material, but it does raise questions, comment the analysts. In the end, it's the cheap valuation that wins out. Accumulate rating retained. Target price unchanged at $72.

Target price is $72.00 Current Price is $64.50 Difference: $7.5
If RIO meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $71.29, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.8

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

UBS rates RIO as Buy (1) -

Coal production in the June quarter was stronger than UBS expected, largely because of effective mine sequencing in the Hunter Valley and reduced impact versus expectations from Cyclone Debbie.

The broker makes no changes to group earnings estimates but notes copper is reduced because of lower provisional pricing and this is offset by higher earnings in coal. Buy and $75 target retained.

Target price is $75.00 Current Price is $64.50 Difference: $10.5
If RIO meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $71.29, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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) -

June quarter gold production lifted and was matched by a significant fall in costs. Citi increases forecasts for gold prices and the Australian dollar, lifting estimates for FY18 earnings and reducing FY19.

The broker retains a Buy rating and raises the target to $1.46 from $1.20.

Target price is $1.46 Current Price is $1.28 Difference: $0.18
If SAR meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Macquarie rates SAR as Outperform (1) -

Saracen posted production records at both Carosue Dam and Thunderbox in the June Q and the long term goal of a 300kozpa run rate has now been achieved, the broker notes. Drilling success continues at Karari.

As the Karari outlook improves and Thunderbox passes peak development costs, the earnings outlook also improves, the broker notes. Outperform retained, target rises to $1.40 from $1.30.

Target price is $1.40 Current Price is $1.28 Difference: $0.12
If SAR meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Macquarie rates SCG as Upgrade to Outperform from Underperform (1) -

Macquarie forecasts mid single digit funds from operations growth for Scentre in the first half result while underlying portfolio growth should remain subdued. The broker remains cautious on tenant returns in retail.

That said, Scentre continues to offer a relatively defensive income stream from high quality shopping centres and the REIT now offers a more attractive shareholder return following recent material underperformance, Macquarie notes. Upgrade to Outperform from Underperform. Target falls to $4.36 from $4.52.

Target price is $4.36 Current Price is $4.14 Difference: $0.22
If SCG meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.52, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Citi rates SEH as Buy (1) -

Citi's oil and gas analysts have bitten the bullet and succumbed to the realisation that the past is just that and the future holds more limitations to how high oil prices might realistically be able to rise.

Apart from lowering near term forecasts, by on average US$5/bbl, of more importance is the team has now cut the long term oil price forecast to US$55/bbl real (from US$65/bbl). This becomes a real problem when many a share price for oil and gas producers is still reflecting a higher price.

The impact on Sino Gas & Energy has been a reduction in price target by 2c to 15c. Buy/High Risk rating remains in place.

Target price is $0.15 Current Price is $0.09 Difference: $0.063
If SEH meets the Citi target it will return approximately 72% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Morgans rates SKI as Initiation of Coverage: Add (3) -

The bulk of Spark's revenues are secure through to 2020 given a regulated cap, the broker notes, hence the stock offers defensive earnings and reliable and growing dividend growth. Estimated cash yield is 6.1%.

The broker values Spark on a standalone basis but consolidation in the regulated industry is logical, and the broker sees Spark as a potential target. Coverage initiated with an Add rating and $2.62 target.

Target price is $2.62 Current Price is $2.52 Difference: $0.1
If SKI meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

Citi rates STO as Buy (1) -

Citi's oil and gas analysts have bitten the bullet and succumbed to the realisation that the past is just that and the future holds more limitations to how high oil prices might realistically be able to rise.

Apart from lowering near term forecasts, by on average US$5/bbl, of more importance is the team has now cut the long term oil price forecast to US$55/bbl real (from US$65/bbl). This becomes a real problem when many a share price for oil and gas producers is still reflecting a higher price.

The result for Santos is a new price target of $4.23 (was $5.31) and an unchanged Buy rating. Earnings estimates have received a serious haircut.

Target price is $4.23 Current Price is $3.02 Difference: $1.21
If STO meets the Citi target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $3.82, suggesting upside of 17.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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 SXY as Neutral (3) -

Citi's oil and gas analysts have bitten the bullet and succumbed to the realisation that the past is just that and the future holds more limitations to how high oil prices might realistically be able to rise.

Apart from lowering near term forecasts, by on average US$5/bbl, of more importance is the team has now cut the long term oil price forecast to US$55/bbl real (from US$65/bbl). This becomes a real problem when many a share price for oil and gas producers is still reflecting a higher price.

For Senex Energy, the impact consists of lowered forecasts and a new target price of 28c (down from 34c). Neutral/High Risk rating remains in place.

Target price is $0.28 Current Price is $0.28 Difference: minus $0.005 (current price is over target).
If SXY meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.31, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

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

Macquarie expects Vicinity's FY17 result to be in line with guidance, with the potential for a minor beat, while the FY18 outlook should be for a resumption in growth.

Vicinity offers a relatively defensive income stream from a relatively high quality retail portfolio, and while Macquarie remains cautious on tenant returns, an attractive total shareholder return forecast leads the broker to upgrade to Outperform. Target unchanged at $2.91.

Target price is $2.91 Current Price is $2.62 Difference: $0.29
If VCX meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.93, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Citi rates VRL as Sell (5) -

While the sale of the Singaporean cinemas has reduced net debt, Citi continues to believe gearing is elevated and there will be no improvement over the medium term.

Intensifying competition from Hoyts and Reading means the company's cinema exhibition division continues to underperform.

Tourism on the Gold Coast is also subdued and likely to translate into a slower recovery in theme parks, the broker adds. Citi retains a Sell rating and reduces the target to $3.45 from $3.85.

Target price is $3.45 Current Price is $4.16 Difference: minus $0.71 (current price is over target).
If VRL meets the Citi target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.88, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Deutsche Bank rates VRL as Hold (3) -

The company has issued a trading update signalling the tragedy at Dreamworld, owned by Ardent Leisure ((AAD)), continues to beset theme park operations. Unfavourable weather has also affected  theme parks in the June quarter.

Deutsche Bank observes the drop in attendance is temporary and the group has attractive assets, which could be realised for rapid de-gearing or generating higher earnings. Nevertheless, there is heightened risk in FY18 and earnings momentum is poor.

Hold rating retained. Target is raised to $4.30 from $3.70 to reflect the lower gearing  post the sale of the Singapore joint venture.

Target price is $4.30 Current Price is $4.16 Difference: $0.14
If VRL meets the Deutsche Bank target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.88, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Macquarie rates VRL as Neutral (3) -

An FY17 update from Village shows Theme Park expectations at the low end of guidance and an expected impairment for Wet'n'Wild, the broker notes. Cinema is set to miss guidance.

Village is trading at an apparently attractive valuation but this is not cause to Buy, the broker believes, as the company needs to rebuild its track record. This result will be a critical one, the broker warns. Neutral retained.

The removal of a risk discount takes the broker's target to $3.99 from $3.38.

Target price is $3.99 Current Price is $4.16 Difference: minus $0.17 (current price is over target).
If VRL meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.88, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Macquarie rates WFD as Upgrade to Outperform from Underperform (1) -

Macquarie expects Westfield's first half growth to be subdued due to Brexit and the uncertain timing of a swap receivable. The full year outlook will likely be unchanged, the broker suspects, with recent GBP strength helping. The key will be any insights onto the trajectory in 2018.

Given the stock has materially de-rated and total shareholder return now looks attractive, Macquarie upgrades to Outperform from Underperform. Target rises to $9.14 from $8.93.

Target price is $9.14 Current Price is $7.86 Difference: $1.28
If WFD meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $9.50, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Citi rates WPL as Downgrade to Sell from Neutral (5) -

Citi's oil and gas analysts have bitten the bullet and succumbed to the realisation that the past is just that and the future holds more limitations to how high oil prices might realistically be able to rise.

Apart from lowering near term forecasts, by on average US$5/bbl, of more importance is the team has now cut the long term oil price forecast to US$55/bbl real (from US$65/bbl). This becomes a real problem when many a share price for oil and gas producers is still reflecting a higher price.

On Citi's calculations, Woodside's share price is projecting US$68/bbl, hence there is no other option than to downgrade; to Sell from Neutral. New target price of $27.50 compares with $32.41 prior.

Target price is $27.50 Current Price is $29.73 Difference: minus $2.23 (current price is over target).
If WPL meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.47, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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