Australian Broker Call

Credit Suisse rates AD8 as Neutral (3) -

Audinate Group will be raising $40m for investing in engineering and R&D and balance sheet strengthening. The funds will also be used for investing in additional products and looking for potential M&A opportunities, reports Credit Suisse.

The broker continues to like the business due to the lucrative structural shift and market share opportunity. In the near term, a challenging revenue environment is expected.

Wanting to remain on the sidelines until it has confidence in the durability of the recovery cycle, Credit Suisse retains its Neutral rating with a target price of $5.40.

Target price is $5.40 Current Price is $5.69 Difference: minus $0.29 (current price is over target).
If AD8 meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.75, suggesting upside of 25.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

UBS rates AD8 as Buy (1) -

Audinate Group announced a $28m fully underwritten institutional placement at $5.15, together with a share purchase plan of up to $12m.

The additional funds will be used to strengthen the company's market leading position.

UBS believes the current environment presents some opportunities for the company by entrenching its leadership position in the audio space, accelerating the structural shift of analogue AV to digital through increased training and building/bolstering the video business.

The broker raises earnings estimates for FY21 and FY22 by 18% and 9%, respectively.

Buy rating maintained. Target is decreased to $7.35 from $7.80.

Target price is $7.35 Current Price is $5.69 Difference: $1.66
If AD8 meets the UBS target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $6.75, suggesting upside of 25.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Macquarie rates AFG as Outperform (1) -

Australian Finance Group’s $700m issue of residential mortgage-backed securities has been completed. The margin impact is neutral against funding costs, the broker calculates, and the issue reduces balance sheet risk and releases capital for recycling.

Outperform and $2.34 target retained.

Target price is $2.34 Current Price is $1.65 Difference: $0.69
If AFG meets the Macquarie target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Morgan Stanley rates ALU as Overweight (1) -

Morgan Stanley tries to get an idea about possible headwinds facing Altium by analysing the second quarter results of its Nasdaq listed competitor – Cadence Designs.

The broker notes Cadence Designs closed the quarter at historical highs and has raised its FY20 growth outlook.

Management at Cadence Designs expects smaller customers to experience liquidity challenges and be unable to meet contractual payments. The broker notes Altium’s core customers are smaller/mainstream segment customers.

There is potential near-term risk, remarks the broker, although it remains positive in the long term.

Morgan Stanley retains its Overweight rating with a target price of $40. Industry view: Attractive.

Target price is $40.00 Current Price is $33.94 Difference: $6.06
If ALU meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.2

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

Macquarie rates ALX as Neutral (3) -

Atlas Arteria posted June quarter traffic numbers in line with expectation. AFRR (France) has recovered well from prior lockdowns but Greenway (US) is still struggling. The reintroduction of further US travel restrictions remains a risk, the broker warns.

Upside rests with French road stimulus and the deleveraging of Warnow, and a recapitalised balance sheet provides opportunity. Greenway repricing remains a swing factor. Neutral retained, target rises to $6.71 from $6.62.

Target price is $6.71 Current Price is $6.74 Difference: minus $0.03 (current price is over target).
If ALX meets the Macquarie target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.72, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

Second-quarter traffic for APRR was down -51% year on year, in-line with Morgan Stanley’s estimate. Revenues were higher than the broker expected, driven by a favourable traffic mix (more trucks).

Dulles Greenway lagged with both low traffic and revenues for the quarter.

Going into the third quarter, the broker expects positive traffic recovery momentum to continue for APRR.

Morgan Stanley maintains its Equal-weight rating with a target price of $6.83. Industry view: Cautious.

Target price is $6.83 Current Price is $6.74 Difference: $0.09
If ALX meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates ALX as Hold (3) -

Data for the June quarter indicated traffic recovering more than expected on the APRR. Dulles Greenway was not that lucky, notes Morgans. Morgans has upgraded short term traffic forecasts for the APRR significantly.

Led by the rebound in traffic and large cash balance, the broker thinks the probability of Atlas Arteria paying a distribution in September/October has increased. The first half result will be reported on August 27^th.

Morgans reiterates its Hold rating with the target price decreasing to $6.81 from $6.98. 

Target price is $6.81 Current Price is $6.74 Difference: $0.07
If ALX meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates ALX as Neutral (3) -

Atlas Arteria updated the market for toll revenue and traffic statistics.

Second quarter traffic was down -51%, which resulted in the company reporting a weighted average revenue decline of -44%.

The company benefited from a toll mix toward heavy vehicles, according to UBS. Dulles Greenway traffic was down -65% for the quarter, representing the 13th consecutive quarter of traffic declines. This was greater than other jurisdictions due to higher covid-19 impacts and inconsistent application of lockdown measures.

Despite IH20 being profitable, the broker assumes no dividend will be declared for this period.

Neutral rating maintained. Target price is $6.35.

Target price is $6.35 Current Price is $6.74 Difference: minus $0.39 (current price is over target).
If ALX meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.72, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates AMC as Accumulate (2) -

Ord Minnett reports North American beverage volumes remain a key focal point for Amcor. Sales for beverages have grown year on year, observes the broker.

For the four weeks to July 11, juice, sparkling water and sports drinks outperformed still water, soft drinks and energy, reports the broker. Sales for packaged food companies remained strong during the period.

Tobacco volumes are back to low single-digit decline after a weak April, reveals the broker.

Ord Minnett reiterates its Accumulate recommendation with a target price of $16.50.

Target price is $16.50 Current Price is $15.25 Difference: $1.25
If AMC meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $16.08, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Macquarie rates AMI as Outperform (1) -

Aurelia Metals posted a strong production recovery in the June quarter thanks to higher grades and improved throughput. A maiden resource was announced for Federation, which the broker sees as a significant step forward towards a substantially longer mine life for Hera.

Drilling results at Kairos and Peak North point to good grades that should ensure meaningful production in FY21-22, the broker suggests. Outperform and 70c target retained.

Target price is $0.70 Current Price is $0.63 Difference: $0.07
If AMI meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

UBS rates APE as Initiation of coverage with Buy (1) -

UBS initiates coverage of A.P. Eagers with a Buy rating.

The broker expects demand volatility to persist but believes the company is uniquely positioned to leverage its scale and business transformation initiatives to deliver structural improvements in profitability and returns over the medium-term.

UBS believes sector consolidation and dealership rationalisation is set to accelerate. The broker estimates a -30% reduction in the company's dealership footprint. This along with AHG synergies and covid-19 initiatives could drive a -21% structural reduction in long-term operating expenses. The broker also expects sales per dealership to increase materially as the market consolidates.

Initiation of coverage with a Buy. The target price is $7.90.

Target price is $7.90 Current Price is $7.00 Difference: $0.9
If APE meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.86, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Citi rates BBN as Buy (1) -

Baby Bunting Group issued a FY20 trading update.

Citi updates its forecast model by increasing sales estimates by 1%.

FY21-23 forecast profits remain unchanged.

Buy rating maintained. Target price is $3.60.

Target price is $3.60 Current Price is $3.50 Difference: $0.1
If BBN meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.51, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgan Stanley rates BBN as Overweight (1) -

Baby Bunting Group pre-guided its FY20 result which is materially ahead of broker Morgan Stanley’s estimate as well as consensus forecasts.

Important metrics like sales, operating income, net profit etc are better than expected by the broker. This was mostly driven by e-commerce sales, which also highlights the company’s competitive advantage versus smaller retailers, points out the broker.

The broker notes FY21 outlook commentary, while positive in general, did not list out any specifics.

Morgan Stanley retains its Overweight rating with a target price of $3.70. Industry view: In-line.

Target price is $3.70 Current Price is $3.50 Difference: $0.2
If BBN meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.51, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates BPT as Buy (1) -

Beach Energy's 4Q20 production report was -7% below Citi's estimates.

Sales revenue of $320 was -14% below the broker's forecasts. However, net cash of $50m exceeded Citi's forecast $38m.

The company will update its five-year outlook at the August result. The broker expects negligible free cash flow generation until FY22, depending on the timing of Otway drilling.

Buy rating is maintained. Target price is $1.99.

Target price is $1.99 Current Price is $1.56 Difference: $0.43
If BPT meets the Citi target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $1.81, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Credit Suisse rates BPT as Outperform (1) -

Beach Energy missed achieving its operating income target by a slight margin. This was expected and Credit Suisse notes the miss was driven by lower production on Western Flank (due to covid-19) along with weaker oil price realisation.

Credit Suisse notes there are three potential upsides in the form of operating cost reduction, resource increase and increasing production capacity.

The broker thinks the downside risk may be overplayed due to the current uncertainty. This leaves upside potential if Beach Energy’s update in August holds up well, comments the broker. 

Credit Suisse maintains its Outperform rating with the target price increasing slightly to $1.80 from $1.79.

Target price is $1.80 Current Price is $1.56 Difference: $0.24
If BPT meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.81, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Macquarie rates BPT as Neutral (3) -

Beach Energy's June quarter production and revenue both fell short of the broker, due to lower Victorian offshore gas production on weak demand and crude discounts. There was no update provided on the gas price negotiation with Origin Energy ((ORG)).

The broker retains Neutral and a $1.60 target, not seeing compelling value at the current price, but this could all change given the current burst of M&A activity in the sector. The broker suggests Beach Energy likely has the feelers out, and awaits any news.

Target price is $1.60 Current Price is $1.56 Difference: $0.04
If BPT meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.81, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

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

Beach Energy’s June quarter results are in-line with Morgan Stanley’s forecasts. The company disclosed its operating income margin will be slightly lower as compared to its guidance for FY20.

The broker highlights things to watch out for include the drilling pace update at Western Flank and an update on Otway production adjustments, among others.

The company has reported reserves upgrades in Western Flank for the last four years, but the broker thinks this may not happen this year.

Morgan Stanley maintains its Equal-weight rating with a target price of $1.35. Industry view: Cautious.

Target price is $1.35 Current Price is $1.56 Difference: minus $0.21 (current price is over target).
If BPT meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.81, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgans rates BPT as Add (1) -

Beach Energy’s June quarter report was slightly ahead of Morgans’ expectations. This translates to 3% higher FY20 sales than expected, driven by higher gas and oil prices than assumed by the broker.

Morgans has raised its long term gas price assumptions. Seeing the work put in by the company on extending its Western Flank oil assets, no material impairments of reserves are expected by the broker.

Morgans maintains its Add rating with the target price increasing to $1.88 from $1.66.

Target price is $1.88 Current Price is $1.56 Difference: $0.32
If BPT meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.81, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Ord Minnett rates BPT as Accumulate (2) -

Despite falling short of its guidance, Beach Energy’s June quarter production and sales volumes are in-line with Ord Minett’s estimates.

FY20 operating income will fall short of guidance, disclosed the company, due to weak product prices and production.

While liquid oil prices were below the broker’s forecasts, gas prices remained elevated which confirms the broker’s suspicion that Beach Energy sells more on contract prices.

Management indicated it will be updating the market on its five-year outlook. The broker expects growth to temper with the focus shifting to cash flow which is the key near term catalyst for the stock.

Ord Minnett reaffirms its Accumulate recommendation with a target price of $2.25.

Target price is $2.25 Current Price is $1.56 Difference: $0.69
If BPT meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $1.81, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Macquarie rates CLQ as No Rating (-1) -

Work on Clean Teq's Sunrise Project Execution Plan with Fluor Australia is nearing completion with a release expected by the end of September, the broker notes.

Management has warned there is upward pressure on Sunrise capex, but an agreement with Relativity Space provides the potential to add a scandium revenue stream.

Macquarie is currently restricted from making a recommendation.

Current Price is $0.20. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

UBS rates DOW as Neutral (3) -

Downer EDI has announced a capital raise and trading update.

The company will raise $400m via a fully underwritten accelerated non-renouncable entitlement offer. The offer is priced at $3.75 per share, a -12% discount to the last close.

The funds will be deployed to fund the -$135m acquisition of the minorities in Spotless, support -$150m in restructuring cash costs and retain gearing between 25%-30%.

The company expects to report FY20 earnings (UNPATA) of around $215m, which is approximately -9% below the UBS forecast.

The broker reduces EPS forecasts for FY21and FY21 by -12% and -17%, respectively.

UBS believes believes there is an ongoing strategic intention to shift the business model toward capital-light urban services.

Neutral rating maintained. Target is raised to $4.42 from $4.20.

Target price is $4.42 Current Price is $4.30 Difference: $0.12
If DOW meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.68, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Morgans rates IFN as Hold (3) -

Spanish giant Iberdrola has increased its bid for Infigen Energy to $0.92, up from $0.89. This is on the condition that a further 13% of shareholders accept its offer before July 30.

The broker highlights Iberdrola has received acceptance for about 4% of the securities. This excludes CIFF Capital UK's (TCI Funds) 20%.

The broker does not expect Iberdrola to increase its bid any further after this and is of the view the security holders should accept its offer.

Morgans does not think there is any upside to buying shares on market and retains its Hold rating with the target price increasing to $0.92 from $0.89.

Target price is $0.92 Current Price is $0.92 Difference: $0
If IFN meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $0.78, suggesting downside of -15.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates LYC as Buy (1) -

Lynas Corp reported June quarter figures which revealed production had increased back to 75% of capacity in June. A return to 100% is dependent on a recovery in weak demand in the global auto sector.

However, UBS declares that realised pricing was in excess of its forecasts.

The broker contemplates a range of funding possibilities, of which equity is one, for the -$500m restructure to shift Cracking and Leaching to Australia, which Lynas Corp has three years to complete.

UBS raises pricing assumptions and lifts the company's valuation. Buy rating maintained. Target price increased to $2.80 from $2.70.

Target price is $2.80 Current Price is $2.08 Difference: $0.72
If LYC meets the UBS target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates MFG as Downgrade to Underperform from Neutral (5) -

Magellan Financial delivered $779bn of inflows in the June quarter which by its standards, Macquarie notes, was a quiet quarter. Market performance added back half of assets under management value lost in the prior quarter. The positive surprise were $39m in performance fees.

The stock now trades on a 25x forward PE, which is 52% above peers. Hence on a valuation basis, the broker downgrades to Underperform from Neutral. Target rises to $57.50 from $50.00.

Target price is $57.50 Current Price is $62.35 Difference: minus $4.85 (current price is over target).
If MFG meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $54.99, suggesting downside of -9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Citi rates MGR as Buy (1) -

Looking forward towards the upcoming August reporting season, property sector analysts at Citi are bracing for a rather "messy" experience, with lots of accountancy adjustments and differences in accountancy practices making straight comparisons difficult.

The analysts advise investors to focus on bigger issues such as the outlook for retail rents, office demand, residential volumes, etc.

Those that will/can provide guidance will be rewarded, predict the analysts. They maintain the view that retail landlords are most likely positioned for negative surprises.

Buy rating retained for Mirvac Group, with price target at $2.76 (-1c).

Target price is $2.76 Current Price is $2.14 Difference: $0.62
If MGR meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $2.58, suggesting upside of 20.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Citi rates MQG as Neutral (3) -

Citi reviews likely comments emanating from the Macquarie Group AGM on July 30. The broker expects the company to reveal 1QFY21 as a trough quarter for earnings.

Citi remains below consensus earnings estimates, forecasting a shallower V-shaped recovery. However, the broker cites that strong liquidity in many of the company's key markets should enable a quick earnings recovery in FY22 as transaction volumes normalise.

Citi forecasts earnings to improve throughout FY21 as low rates underpin FUM growth, transactions return and the pipeline remains strong.

Neutral rating maintained. Target price is $110.

Target price is $110.00 Current Price is $126.80 Difference: minus $16.8 (current price is over target).
If MQG 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 $115.67, suggesting downside of -8.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates MQG as Buy (1) -

Expectations for Macquarie Group are high owing to the strong June quarter US investment bank reporting season.

Ord Minnett notes the outlook for the group’s commodities and global markets division looks positive, driven by strong growth in its fixed income, currencies and commodities, as well as equities revenues.

The broker remains attracted to the group’s long-term drivers in Macquarie infrastructure and real assets (MIRA), green energy and Australian mortgage businesses.

The group will be holding its 2020 AGM on July 30. Ord Minnett retains its Buy recommendation with the target price increasing to $130 from $120.

Target price is $130.00 Current Price is $126.80 Difference: $3.2
If MQG meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $115.67, suggesting downside of -8.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates OZL as Underperform (5) -

OZ minerals had a strong June quarter, producing 47% of 2020’s copper production guidance in the first half. Both Prominent Hill and Carrapateena in particular performed well, notes the broker.

The group has upgraded its 2020 guidance for both copper and gold.

The broker thinks the company will continue to be well supported by tailwinds like price trends in both copper and gold and an improved second-half operating outlook.

Credit Suisse retains its Underperform rating with the target price increasing to $9 from $8.60.

Target price is $9.00 Current Price is $13.53 Difference: minus $4.53 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.46, suggesting downside of -9.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates OZL as Outperform (1) -

OZ Minerals' June quarter production was strong, with production beats at Prominent Hill and Carrapateena offsetting weakness at Carajas. Production guidance for 2020 has been increased and cost guidance reduced.

OZ Minerals is benefiting from strong gold prices and a recent run in copper prices, the broker notes. Outperform retained, target rises to $15.00 from $12.60.

Target price is $15.00 Current Price is $13.53 Difference: $1.47
If OZL meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $12.46, suggesting downside of -9.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Morgan Stanley rates OZL as Overweight (1) -

Both Prominent Hill and Carrapateena performed well during the June quarter, notes Morgan Stanley. In fact, the strong ramp-up at Carrapateena has allowed OZ Minerals to upgrade its 2020 guidance.

Group copper production guidance has been increased by 5.5% while that of gold production has risen by 8%. Costs guidance has decreased by circa -75%.

Led by the strong June quarter result and updated 2020 guidance, the broker has increased earnings forecasts for FY20-22.

Morgan Stanley maintains its Overweight rating with the target price increasing to $14.30 from $12.30. Industry view: Attractive.

Target price is $14.30 Current Price is $13.53 Difference: $0.77
If OZL meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $12.46, suggesting downside of -9.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Morgans rates OZL as Downgrade to Hold from Add (3) -

2020 guidance for OZ Minerals’ copper production was lifted by 6% with gold guidance rising by 8%. AISC costs have been lowered materially, reports Morgans.

The upgrade has been driven by pricing tailwinds, faster than expected ramp-up at Carrapateena and strong execution, lists the broker.

Led by the new guidance and the strong rebound in copper prices, the broker also upgrades its 2020-22 operating income forecasts by 9-17%.

While the company enjoys pricing tailwinds, it is trading at a premium to Morgans’ valuation, compelling the broker to downgrade its rating to Hold from Add.

The target price increases to $12.05 from $10.65.

Target price is $12.05 Current Price is $13.53 Difference: minus $1.48 (current price is over target).
If OZL meets the Morgans target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.46, suggesting downside of -9.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

UBS rates OZL as Buy (1) -

OZ Minerals has released 2Q20 production figures well above UBS expectations. This was largely due to the rapid derisking of Carrapateena.

The broker believes there are further catalysts ahead, including the Prominent Hill shaft study due in 4Q20. UBS values the project at greater than $1 per share, which helps raise the share target price to $15.

Adding to the favourable outlook is the looming copper supply disruption, due partly to increasing issues in Chile.

The broker incorporates the positive production result and upgraded guidance to generate a 71% lift in 2020 profit estimates.

Target is raised to $15 from $12.20.

Target price is $15.00 Current Price is $13.53 Difference: $1.47
If OZL meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $12.46, suggesting downside of -9.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates PDL as Outperform (1) -

Net outflows continued for Pendal Group in the June quarter which is disappointing, the broker suggests, but the pipeline is at least improving.

Flow weakness was nevertheless offset by positive market movements and forex, recovering around half of March quarter losses.

Outperform retained, target rises to $7.00 from $6.50.

Target price is $7.00 Current Price is $5.91 Difference: $1.09
If PDL meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $6.66, suggesting upside of 9.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Macquarie rates PPT as Neutral (3) -

Perpetual saw net outflows in the June quarter mostly driven by retail and intermediary, with the worst of institutional outflows now apparently over, the broker notes.

Funds under management recovered around half the losses of the prior quarter. Neutral retained, target rises to $33.00 from $27.50.

Target price is $33.00 Current Price is $33.34 Difference: minus $0.34 (current price is over target).
If PPT meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $34.02, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Morgan Stanley rates PPT as Overweight (1) -

Morgan Stanley notes Perpetual is turning around its asset management flows and thinks the recent Trillium acquisition adds crucial ESG capabilities.

The broker also considers the investment platform to have more diversity than other Australian asset managers covered by the broker.

The company’s private wealth segment has seen fourteen consecutive halves of net inflows, considered impressive by the broker looking at the recent volatility and industry changes.

FY20-21 net profit forecasts have been upgraded by 7-9% due to the Trillium acquisition, cost discipline and reversal of unrealised investment losses.

Morgan Stanley reiterates its Overweight rating with the target price increasing to $45 from $42. Industry view: In-line.

Target price is $45.00 Current Price is $33.34 Difference: $11.66
If PPT meets the Morgan Stanley target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $34.02, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Macquarie rates PTM as Underperform (5) -

Platinum Asset Management's outflows remained elevated in the June quarter, while market performance reversed fom the prior weak quarter by around 30%.

The Asia Fund was the shining light, the broker notes, while the International Fund appears to have missed the March sell-off and subsequent rally.

Target rises to $3.50 from $3.15, Underperform retained.

Target price is $3.50 Current Price is $3.85 Difference: minus $0.35 (current price is over target).
If PTM meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.10, suggesting downside of -19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.8

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

Citi rates QBE as Buy (1) -

QBE Insurance Group provided an update on covid-19 impacts and the 1H20 result. Given slightly better premium rate momentum and less covid-19 claims allocated to FY21, Citi raises earnings estimates by 1% for FY21.

The broker relays some insurance industry commentary and suggests we are seeing the strongest international insurance market conditions since 2002.

The analyst believes the company's experience is supportive of this with it achieving rate increases of 14.2% in international and 10.2% in North America in the second quarter.

Buy rating is maintained. The target price is $11.

Target price is $11.00 Current Price is $9.83 Difference: $1.17
If QBE meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $10.94, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Credit Suisse rates QBE as Outperform (1) -

QBE Insurance Group expects to report a statutory loss of -US$750m in the first half. The group also expects to incur costs of -US$600m, of which -US$335m will be in its first-half result, reports Credit Suisse.

Believing the group is only partway through the pandemic, Credit Suisse states it cannot yet sign off on covid-19 related losses.

The broker acknowledges the group is exposed to one-off claims in the present environment. On the bright side, it considers the outlook to be improving with margins expected to improve.

Credit Suisse maintains its Outperform rating with the target price increasing to $12 from $10.15.

Target price is $12.00 Current Price is $9.83 Difference: $2.17
If QBE meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $10.94, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Macquarie rates QBE as Downgrade to Underperform from Neutral (5) -

Ongoing reserve strengthening in the US and a lack of correlation between QBE Insurance’s definition of attritional claims ratios and group earnings reinforce Macquarie's concerns that large portions of the group remain non-core to QBE’s underlying business.

Management has provided more detail on covid losses and first half income.

Investors continue to focus on pricing and attritional claims momentum, but the broker believes another group-wide review should be undertaken.

Rating is downgraded to Underperform from Neutral. Near term earnings forecast have been cut, but on assumed higher premiums in the longer term, target rises to $8.20 from $6.90.

Target price is $8.20 Current Price is $9.83 Difference: minus $1.63 (current price is over target).
If QBE meets the Macquarie target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.94, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Morgan Stanley rates QBE as Overweight (1) -

QBE Insurance Group’s first-half pre-release indicates bigger than impacted covid-19 impact with higher catastrophe losses and reserve top-ups, observes Morgan Stanley.

The covid-19 at -US$600m is -US$200m more than expected by the broker.

The positives include strong capital position and stronger than expected rise in premiums and prices. This implies an upside risk to FY21 forecast, states the broker.

Morgan Stanley maintains its Overweight rating with a target price of $11.60. Industry view: In-line.

Target price is $11.60 Current Price is $9.83 Difference: $1.77
If QBE meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $10.94, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Morgans rates QBE as Add (1) -

QBE Insurance Group will be booking a statutory loss of -US$750m in the first half led mostly by covid-19 headwinds.

Other negatives include larger than expected covid-19 claims impact of about -US$600m along with booking a provision top-up for the first half, reports Morgans.

On the positive side, the group’s profitability measure (the current accident year combined ratio) has improved by circa 3% this year, remarks the broker, and its balance sheet remains strong.

FY20 is a difficult year for the group, comments the broker but expects pricing tailwinds to improve profitability in FY21.

Morgans reaffirms its Add rating with the target price decreasing to $11.28 from $11.52.  

Target price is $11.28 Current Price is $9.83 Difference: $1.45
If QBE meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $10.94, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Ord Minnett rates QBE as Accumulate (2) -

QBE Insurance Group’s pre-released details from the first half 2020 result show the company expects a statutory loss of -US$750m.

This is higher than Ord Minnett’s estimated -US$666m driven by higher covid-19 related costs, risk and reserve margins and first half catastrophic provisions.

The broker expects a lot of the risk to dissipate over the next six months with actual losses becoming clearer.

Ord Minnett maintains its Accumulate recommendation with the target price increasing to $11 from $10.

Target price is $11.00 Current Price is $9.83 Difference: $1.17
If QBE meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $10.94, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

UBS rates QBE as Buy (1) -

QBE Insurance Group has pre-announced its 1H20 loss of -$750m versus an expectation of -$369m by UBS.

The miss was largely driven by covid-19 impacts (-$335m). Further pandemic costs of around -$265m are expected through to December 2021.

However, 1H20 operating trends surprised UBS positively with GWP growth of greater than 10% as the rate cycle transitions to 'hard ' from 'firm' according to the broker.

UBS believes the company's fundamental outlook remains strong with rate cycle tailwinds outpacing other headwinds.

Buy rating retained. Target is increased to $11.50 from $10.55.

Target price is $11.50 Current Price is $9.83 Difference: $1.67
If QBE meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $10.94, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Citi rates RSG as Buy (1) -

Resolute Mining released June quarter production figures in line with Citi's estimates.

Although complex, the company has developed a good understanding of processing at Syama, the broker believes. Citi expects a comprehensive September quarter update on the project.

The broker reduces FY20-22 earnings estimates on lower Mako output and higher costs.

Buy rating is maintained. Target price is $1.70.

Target price is $1.70 Current Price is $1.40 Difference: $0.3
If RSG meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

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

On Monday Macquarie was awaiting more detail on the Syama Sulphides ramp-up, which is key to deleveraging, while retaining Underperform. Yesterday's quarterly report showed performance roughly in line with expectations, with production beating but costs missing.

Most importantly, Syama Sulphides showed positive processing momentum and the broker now feels more comfortable in the operations' longer term outlook. This results in a double-upgrade to Outperform from Underperform. Target rises to $1.60 from $1.05.

Target price is $1.60 Current Price is $1.40 Difference: $0.2
If RSG meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates SAR as Underperform (5) -

Saracen Minerals had planned a stockpile strategy as a potential covid measure but having deferred that plan, June quarter production was slightly lower than the broker's forecast.

The company has highlighted a number of accounting adjustments that will be included in its FY20 result, leading the broker to cut its earnings forecast by -11%.

An update on the KCGM mining strategy, expected later this quarter, will be a major milestone for Saracen, the broker notes, but for now, Underperform and $5.40 target retained.

Target price is $5.40 Current Price is $6.22 Difference: minus $0.82 (current price is over target).
If SAR meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.69, suggesting downside of -8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Citi rates SCG as Sell (5) -

Looking forward towards the upcoming August reporting season, property sector analysts at Citi are bracing for a rather "messy" experience, with lots of accountancy adjustments and differences in accountancy practices making straight comparisons difficult.

The analysts advise investors to focus on bigger issues such as the outlook for retail rents, office demand, residential volumes, etc.

Those that will/can provide guidance will be rewarded, predict the analysts. They maintain the view that retail landlords are most likely positioned for negative surprises.

Sell rating for Scentre Group hereby re-iterated. Target price drops to $2.06 from $2.27.

Target price is $2.06 Current Price is $2.09 Difference: minus $0.03 (current price is over target).
If SCG meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.40, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Citi rates SDF as Buy (1) -

Steadfast Group provided a trading update and expects to deliver FY20 earnings at the top end of the guidance range of $215m-$225m. This guidance was originally withdrawn due to covid-19.

Citi believes this indicates a significant slow down in earnings momentum in 4Q20. However, prior Citi forecasts already incorporated this outcome and the broker now believes earnings revision risks remain skewed to the upside.

The hardening premium rate cycle could gain additional momentum from strong reinsurance rate increases, as insurers lift pricing to recover margins, states the broker.

Buy rating maintained. Target rises to $4.00 from $3.90.

Target price is $4.00 Current Price is $3.53 Difference: $0.47
If SDF meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.82, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.9

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

Macquarie rates SDF as Outperform (1) -

Steadfast Group posted 8.6% earnings growth in the June quarter thanks to a positive premium rate environment, prompting management to reinstate a previously withdrawn FY20 guidance range and leaning to the top end, implying 16.4% year on year growth, the broker notes.

Fears of cancellation, deferrals and coverage reduction have not proven to be material in the second half, albeit the broker warns a weaker outlook is negative for unit growth. Outperform retained, target rises to $3.80 from $3.70.

Target price is $3.80 Current Price is $3.53 Difference: $0.27
If SDF meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.82, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.9

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

Morgan Stanley rates SEK as Overweight (1) -

June quarter group fees for Seek fell by -34% year on year. Morgan Stanley notes activity levels picked up in June but this hasn’t translated to a bounce-back in fees.

The broker considers it encouraging that listings in Seek’s Australian business are back to about 70% of pre-covid-19 levels.

Consensus estimates for FY21, with revenue growth expected at 11% and a net profit growth estimate of 23% may be too optimistic, comments the broker. A modest recovery is expected in the next six months.

Morgan Stanley remains positive about Seek and retains its Overweight rating with a target price of $22. Industry view: Attractive.

Target price is $22.00 Current Price is $22.00 Difference: $0
If SEK meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $21.63, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

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

Upgrade to Neutral from Sell as Citi analysts have updated estimates to reflect higher than previously expected impact of Homebuilder, along with state based stimulus, to land sale volumes.

Citi analysts have increased residential volumes for FY20/FY21. They lowered estimated volumes in future years given they also believe Homebuilder will pull forward demand.

EPS estimates increase 1.4% and 3.4% in FY20 and FY21, and decline -0.5% in FY22. The broker's price target declines to $3.16 from $3.21.

Target price is $3.16 Current Price is $3.23 Difference: minus $0.07 (current price is over target).
If SGP 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 $3.67, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates SGR as Hold (3) -

The broker expects visitation levels for the Star and Crown Resorts ((CWN)) casinos to take a step backwards. This is similar to what has been seen in the US given the increase in virus infections.

Earnings forecasts for FY20-21 have been increased to reflect the early re-opening in June.

With the majority of the casino’s earnings domestic, the broker remains sceptical of a meaningful return to levels seen during the pre-covid period last year.

Risks remain around covid-19 cases and potential closures. Discretionary spending may be weighed down by low consumer confidence and a heavily indebted consumer, fears the broker. There also exists competitive risk from Crown’s Barangaroo casino.

 Ord Minnett retains its Hold recommendation with the target price increasing to $2.70 from $2.45.

Target price is $2.70 Current Price is $2.77 Difference: minus $0.07 (current price is over target).
If SGR meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.42, suggesting upside of 20.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Ord Minnett rates SHL as Hold (3) -

Sonic Healthcare’s major markets have seen a dramatic rise in testing in recent weeks due to re-surging covid-19 cases.

This has led broker Ord Minnett to raise its FY21 earnings estimates by 7.5%.

The broker does highlight that the situation could call for a doubling of testing capacity which increases the chances for pooled testing. This, however, is not a viable solution currently and unlikely to be a near term threat, believes the broker.

Ord Minnett maintains its Hold recommendation with the target price increasing to $32 from $30.

Target price is $32.00 Current Price is $32.31 Difference: minus $0.31 (current price is over target).
If SHL meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.05, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates TAH as Lighten (4) -

Ord Minnett expects JobKeeper will continue to keep the industry’s turnover artificially high, helped by the lack of alternative discretionary outlets.

The broker feels Tabcorp Holdings is exposed to structurally challenged and declining wagering channels. The company also faces competition from bookmakers. 

On the positive side, digital lottery sales and online migration should provide some degree of margin relief and earnings growth, expects the broker.

Ord Minnett maintains its Lighten rating with the target price increasing to $2.60 from $2.10.

Target price is $2.60 Current Price is $3.45 Difference: minus $0.85 (current price is over target).
If TAH meets the Ord Minnett target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.48, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

UBS rates TWE as Neutral (3) -

US off-premise wine sales were solid but slowed again and indicated a further share loss for Treasury Wine Estates, while on-premise was weak but declines eased, according to UBS. 

UBS continues to believe the company has a large opportunity in Asia, particularly in China. In addition, the broker cites a strong balance sheet and a turnaround opportunity in the US.

The broker points out uncertainties such as the speed of recovery in China, the resolution of US oversupply and market share loss, and Australia/ China trade risk.

Neutral rating maintained. Target price is $11.80.

Target price is $11.80 Current Price is $11.42 Difference: $0.38
If TWE meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $11.39, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Citi rates VCX as Neutral (3) -

Looking forward towards the upcoming August reporting season, property sector analysts at Citi are bracing for a rather "messy" experience, with lots of accountancy adjustments and differences in accountancy practices making straight comparisons difficult.

The analysts advise investors to focus on bigger issues such as the outlook for retail rents, office demand, residential volumes, etc.

Those that will/can provide guidance will be rewarded, predict the analysts. They maintain the view that retail landlords are most likely positioned for negative surprises.

Citi retains its Neutral rating for Vicinity Centres, with a price target of $1.51 (down from $1.65).

Target price is $1.51 Current Price is $1.37 Difference: $0.14
If VCX meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.56, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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