Australian Broker Call

November 07, 2017

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COMPANIES DISCUSSED IN THIS ISSUE

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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

Last Updated: 01:12 PM

Your daily news report on the latest recommendation, valuation, forecast and opinion changes.

This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.

For more info about the different terms used by stockbrokers, as well as the different methodologies behind similar sounding ratings, download our guide HERE

Today's Upgrades and Downgrades
JBH - JB HI-FI Upgrade to Hold from Lighten Ord Minnett
LVH - LIVEHIRE Upgrade to Add from Hold Morgans
MFG - MAGELLAN FINANCIAL GROUP Upgrade to Outperform from Neutral Credit Suisse
ORI - ORICA Downgrade to Sell from Neutral Citi
PTM - PLATINUM Upgrade to Neutral from Underperform Credit Suisse
S32 - SOUTH32 Downgrade to Sell from Hold Deutsche Bank
SUL - SUPER RETAIL Upgrade to Hold from Lighten Ord Minnett
WBC - WESTPAC BANKING Downgrade to Neutral from Outperform Credit Suisse
AMC  AMCOR LIMITED

Paper & Packaging

Overnight Price: $14.99

Ord Minnett rates AMC as Hold (3) -

Ord Minnett updates its model following the AGM and guidance commentary. Underlying forecasts for earnings per share are reduced by an average of -1.7% over FY18-20.

Hold rating retained. Target rises to $16.10 from $15.75.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $16.10 Current Price is $14.99 Difference: $1.11
If AMC meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $16.14, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 58.96 cents and EPS of 85.17 cents.
At the last closing share price the estimated dividend yield is 3.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 85.8, implying annual growth of N/A.

Current consensus DPS estimate is 60.5, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 17.5.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 61.58 cents and EPS of 95.65 cents.
At the last closing share price the estimated dividend yield is 4.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.9, implying annual growth of 9.4%.

Current consensus DPS estimate is 66.2, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 16.0.

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

Market Sentiment: 0.3

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

BSL  BLUESCOPE STEEL LIMITED

Steel & Scrap

Overnight Price: $13.33

UPDATED

Ord Minnett rates BSL as Accumulate (2) -

Ord Minnett updates modelling and marks to market for commodity and currency prices. BlueScope remains the broker's key preference in the steel sector.

Accumulate rating retained. Target is raised to $14.00 from $12.30.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $14.00 Current Price is $13.33 Difference: $0.67
If BSL meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $13.85, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 8.00 cents and EPS of 86.00 cents.
At the last closing share price the estimated dividend yield is 0.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.9, implying annual growth of -23.5%.

Current consensus DPS estimate is 12.7, implying a prospective dividend yield of 1.0%.

Current consensus EPS estimate suggests the PER is 13.9.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 8.00 cents and EPS of 108.00 cents.
At the last closing share price the estimated dividend yield is 0.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 102.3, implying annual growth of 6.7%.

Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 1.2%.

Current consensus EPS estimate suggests the PER is 13.0.

Market Sentiment: 0.8

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

COH  COCHLEAR LIMITED

Medical Equipment & Devices

Overnight Price: $180.18

Credit Suisse rates COH as Neutral (3) -

The company has won half of the Chinese government's final tender for 2017. It will supply 1491 cochlear implant units in FY18 at an estimated unit price of $7700.

Credit Suisse incorporates the contract win into assumptions and rolls out currency updates, resulting in a 0.6% upgrade to FY18 earnings estimates and around 2.5% thereafter.

Rating is Neutral. Target is $142.50.

Target price is $142.50 Current Price is $180.18 Difference: minus $37.68 (current price is over target).
If COH meets the Credit Suisse target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $142.97, suggesting downside of -20.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 303.00 cents and EPS of 433.00 cents.
At the last closing share price the estimated dividend yield is 1.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 442.7, implying annual growth of 13.6%.

Current consensus DPS estimate is 305.3, implying a prospective dividend yield of 1.7%.

Current consensus EPS estimate suggests the PER is 40.7.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 343.00 cents and EPS of 489.00 cents.
At the last closing share price the estimated dividend yield is 1.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 501.2, implying annual growth of 13.2%.

Current consensus DPS estimate is 351.2, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 35.9.

Market Sentiment: -0.3

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

FDV  FRONTIER DIGITAL VENTURES LIMITED

Online media & mobile platforms

Overnight Price: $0.68

UPDATED

Morgans rates FDV as Add (1) -

The company has optimised its African portfolio of web portals through an assets swap with Jumia, a local player. The asset swaps are part of the company strategy to only own the market leader in each country in which it operates.

Morgans revises forecasts to take into account the transaction and associated divestments, which reduces revenue in FY18 and accounts for a faster transition to operating profit because of the removal of loss-making entities.

Add rating retained. Target rises to $0.82 from $0.79.

Target price is $0.82 Current Price is $0.68 Difference: $0.14
If FDV meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.00.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.61.

Market Sentiment: 1.0

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

GUD  G.U.D. HOLDINGS LIMITED

Household & Personal Products

Overnight Price: $11.98

Ord Minnett rates GUD as Hold (3) -

The company will divest the Oates cleaning products business for $80m. Ord Minnett is not surprised, given the re-positioning of the company's portfolio and the recent challenges faced by that division.

Sale proceeds will slightly reduce the company's gearing,, while the broker notes the capacity to fund via debt further acquisitions in the automotive parts sector.

Hold rating retained. Target rises to $11.50 from $11.00.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $11.50 Current Price is $11.98 Difference: minus $0.48 (current price is over target).
If GUD meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.69, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 50.00 cents and EPS of 107.00 cents.
At the last closing share price the estimated dividend yield is 4.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.4, implying annual growth of 27.1%.

Current consensus DPS estimate is 51.4, implying a prospective dividend yield of 4.3%.

Current consensus EPS estimate suggests the PER is 15.7.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 57.00 cents and EPS of 71.00 cents.
At the last closing share price the estimated dividend yield is 4.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.9, implying annual growth of -3.3%.

Current consensus DPS estimate is 58.7, implying a prospective dividend yield of 4.9%.

Current consensus EPS estimate suggests the PER is 16.2.

Market Sentiment: 0.0

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

JBH  JB HI-FI LIMITED

Consumer Electronics

Overnight Price: $22.76

Ord Minnett rates JBH as Upgrade to Hold from Lighten (3) -

Ord Minnett retains concerns regarding the health of the consumer sector and the negative impact of Amazon. Nonetheless, there are emerging signs that, while consumer sentiment will likely remain subdued, wage growth could improve.

The broker is also more confident that the company has attributes which provide some support that is yet to be fully reflected in the share price. Rating is upgraded to Hold from Lighten. Target is raised to $23.00 from $22.50.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $23.00 Current Price is $22.76 Difference: $0.24
If JBH meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $24.58, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 135.00 cents and EPS of 205.00 cents.
At the last closing share price the estimated dividend yield is 5.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 206.1, implying annual growth of 33.6%.

Current consensus DPS estimate is 133.5, implying a prospective dividend yield of 5.9%.

Current consensus EPS estimate suggests the PER is 11.0.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 139.00 cents and EPS of 213.00 cents.
At the last closing share price the estimated dividend yield is 6.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 210.8, implying annual growth of 2.3%.

Current consensus DPS estimate is 137.5, implying a prospective dividend yield of 6.0%.

Current consensus EPS estimate suggests the PER is 10.8.

Market Sentiment: -0.1

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

LVH  LIVEHIRE LIMITED

Jobs & Skilled Labour Services

Overnight Price: $0.94

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

Morgans upgrades to Add from Hold because of a recent fall in the share price.

The broker expects the company to continue to signup significant new customers for its Talent Community in coming months. No change to forecasts or $1.10 target are made.

Target price is $1.10 Current Price is $0.94 Difference: $0.16
If LVH meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.87.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 52.22.

Market Sentiment: 1.0

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

MFG  MAGELLAN FINANCIAL GROUP LIMITED

Wealth Management & Investments

Overnight Price: $26.17

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

Funds under management at the end of October were up 8.6%. The strong growth was driven by both positive market movements and net inflows.

The strong market movements were significantly ahead of Credit Suisse assumptions, leading to upgrades of 4% to funds under management.

Rating is upgraded to Outperform from Neutral. Target is raised to $28.25 from $27.00.

Target price is $28.25 Current Price is $26.17 Difference: $2.08
If MFG meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $27.36, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 105.00 cents and EPS of 143.00 cents.
At the last closing share price the estimated dividend yield is 4.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 115.3, implying annual growth of -1.4%.

Current consensus DPS estimate is 97.1, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 22.7.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 123.00 cents and EPS of 167.00 cents.
At the last closing share price the estimated dividend yield is 4.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.5, implying annual growth of 28.8%.

Current consensus DPS estimate is 109.7, implying a prospective dividend yield of 4.2%.

Current consensus EPS estimate suggests the PER is 17.6.

Market Sentiment: 0.3

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

NVT  NAVITAS LIMITED

Education & Tuition

Overnight Price: $4.85

Macquarie rates NVT as Neutral (3) -

Macquarie reviews its investment case and modelling assumptions. FY18 is considered a transition year as the business cycles out of contract losses.

Two important contract renewals are due in the next four months but contract risk then reduces until 2020.  While the stock offers leverage to an attractive segment of the market the broker considers this factored into the share price.

Neutral rating retained. Target is raised to $4.92 from $4.51.

Target price is $4.92 Current Price is $4.85 Difference: $0.07
If NVT meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.47, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 19.50 cents and EPS of 20.70 cents.
At the last closing share price the estimated dividend yield is 4.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.0, implying annual growth of -5.0%.

Current consensus DPS estimate is 18.5, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 23.1.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 19.50 cents and EPS of 23.60 cents.
At the last closing share price the estimated dividend yield is 4.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.1, implying annual growth of 14.8%.

Current consensus DPS estimate is 19.7, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 20.1.

Market Sentiment: -0.2

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

ORI  ORICA LIMITED

Mining Sector Contracting

Overnight Price: $18.96

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

"Running hard to stand still" and "more downside risk in the near term" easily explain why Citi has elected to downgrade to Sell from Neutral. The stock is trading at a 10% premium versus the broader market as investors have been anticipating a recovery in profits, but Citi is not on board.

Forecasts have been cut by -13.5% in FY18 and -6% in FY19 after what is labeled a disappointing FY17 report. Citi thinks ammonium nitrate (AN) will be pushed into surplus in Western Australia from the moment the Burrup AN plant will ramp up.

Citi sees AN not rebalancing until FY20. Incitec Pivot ((IPL)) is preferred. Target drops to $17.

Target price is $17.00 Current Price is $18.96 Difference: minus $1.96 (current price is over target).
If ORI meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.08, suggesting downside of -4.6% (ex-dividends)

Forecast for FY18:

Current consensus EPS estimate is 101.8, implying annual growth of N/A.

Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY19:

Current consensus EPS estimate is 114.5, implying annual growth of 12.5%.

Current consensus DPS estimate is 61.3, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 16.6.

Market Sentiment: -0.4

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


Credit Suisse rates ORI as Neutral (3) -

Credit Suisse was disappointed with the FY17 result, as the benefits of a recovery in mining activity appear to be pushed into FY19 and beyond.

Orica is the natural beneficiary of growth in market demand in Australia but, pushing out profit growth expectations for another year, warrants caution, in the broker's opinion.

Neutral rating retained. Target is reduced to $18.19 from $18.71.

Target price is $18.19 Current Price is $18.96 Difference: minus $0.77 (current price is over target).
If ORI meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.08, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 55.03 cents and EPS of 99.49 cents.
At the last closing share price the estimated dividend yield is 2.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 101.8, implying annual growth of N/A.

Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 65.70 cents and EPS of 118.65 cents.
At the last closing share price the estimated dividend yield is 3.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 114.5, implying annual growth of 12.5%.

Current consensus DPS estimate is 61.3, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 16.6.

Market Sentiment: -0.4

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


UPDATED

Deutsche Bank rates ORI as Hold (3) -

Price resets, higher input costs and plant outages led Orica to a -4% miss of forecasts with its result yesterday. This is despite some improving trends, the broker notes, in Aust, Indonesia and North America and benefits from business improvement initiatives.

Things aren't so great in Europe and LatAm and guidance disappointed alongside the result. The broker has cut earnings by -7-8% and dropped its target to $18.85 from $20.25. Hold retained.

Target price is $18.85 Current Price is $18.96 Difference: minus $0.11 (current price is over target).
If ORI meets the Deutsche Bank target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.08, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 52.00 cents and EPS of 104.00 cents.
At the last closing share price the estimated dividend yield is 2.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 101.8, implying annual growth of N/A.

Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY19:

Deutsche Bank forecasts a full year FY19 dividend of 60.00 cents and EPS of 119.00 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 114.5, implying annual growth of 12.5%.

Current consensus DPS estimate is 61.3, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 16.6.

Market Sentiment: -0.4

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


Macquarie rates ORI as Neutral (3) -

FY17 net profit was below Macquarie's forecast. This was largely because of weaker-than-expected results in Europe, Africa and the Middle East via additional Gyttorp sourcing costs and higher interest/minorities.

The macro outlook is positive, particularly in Australia, the broker suggests, because of increased overburden removal and brownfield mine expansions but this will take time to flow through.

Neutral rating retained. Target reduces to $19.62 from $21.00.

Target price is $19.62 Current Price is $18.96 Difference: $0.66
If ORI meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $18.08, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 52.60 cents and EPS of 99.90 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 101.8, implying annual growth of N/A.

Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 65.80 cents and EPS of 108.40 cents.
At the last closing share price the estimated dividend yield is 3.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 114.5, implying annual growth of 12.5%.

Current consensus DPS estimate is 61.3, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 16.6.

Market Sentiment: -0.4

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


UPDATED

Morgan Stanley rates ORI as Underweight (5) -

FY17 results missed Morgan Stanley's forecasts. The broker acknowledges the performance on costs but believes the underlying operating environment remains challenged.

While the stock has corrected around -10% since the results were announced, Morgan Stanley believes it continues to reflect an overly robust cyclical recovery over the medium term.

Underweight. Target is reduced to $16.50 from $17.50. Industry view is Cautious.

Target price is $16.50 Current Price is $18.96 Difference: minus $2.46 (current price is over target).
If ORI 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 $18.08, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 51.00 cents and EPS of 99.00 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 101.8, implying annual growth of N/A.

Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 60.00 cents and EPS of 116.00 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 114.5, implying annual growth of 12.5%.

Current consensus DPS estimate is 61.3, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 16.6.

Market Sentiment: -0.4

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


Morgans rates ORI as Hold (3) -

FY17 results fell short of Morgans expectations. While market conditions have improved the broker envisages headwinds from further price re-sets, higher gas costs and increased depreciation & amortisation.

Given the stock was fully valued leading into the result, the broker suggests a severe reaction in the market was to be expected.

Morgans continues to hold the view that the stock is more of a late cycle play because of its leverage to volumes, versus some of its peers.

Hold rating retained. Target rises to $18.90 from $18.10.

Target price is $18.90 Current Price is $18.96 Difference: minus $0.06 (current price is over target).
If ORI meets the Morgans target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.08, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 51.00 cents and EPS of 100.00 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 101.8, implying annual growth of N/A.

Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 55.00 cents and EPS of 109.00 cents.
At the last closing share price the estimated dividend yield is 2.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 114.5, implying annual growth of 12.5%.

Current consensus DPS estimate is 61.3, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 16.6.

Market Sentiment: -0.4

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


Ord Minnett rates ORI as Hold (3) -

The company expects pricing headwinds and increased R&D investment to be offset by its business improvement initiatives.

Ord Minnett still believes the company is challenged from a growth perspective and there is uncertainty around the near-term profit profile at Burrup and the future for Bontang once Burrup ramps up.

The broker retains a Hold rating and raises the target to $19.00 from $16.80.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $19.00 Current Price is $18.96 Difference: $0.04
If ORI meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $18.08, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 53.00 cents and EPS of 101.00 cents.
At the last closing share price the estimated dividend yield is 2.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 101.8, implying annual growth of N/A.

Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 61.00 cents and EPS of 116.00 cents.
At the last closing share price the estimated dividend yield is 3.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 114.5, implying annual growth of 12.5%.

Current consensus DPS estimate is 61.3, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 16.6.

Market Sentiment: -0.4

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

PRU  PERSEUS MINING LIMITED

Gold & Silver

Overnight Price: $0.32

Macquarie rates PRU as Neutral (3) -

The company has completed a definitive feasibility study for the Yaoure gold project. The project is attractive, in Macquarie's opinion, and could lift production towards 500,000 ounces per annum for the company.

The company expects to fund the project with a combination of cash flow and debt and an improved performance at Edikan and delivery on Sissingue remain central to this strategy.

Macquarie retains a Neutral rating and $0.40 target.

Target price is $0.40 Current Price is $0.32 Difference: $0.08
If PRU meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $0.48, suggesting upside of 51.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 0.00 cents and EPS of 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.4, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 22.9.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.1, implying annual growth of 192.9%.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 7.8.

Market Sentiment: 0.6

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

PTM  PLATINUM ASSET MANAGEMENT LIMITED

Wealth Management & Investments

Overnight Price: $7.76

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

Credit Suisse observes growth in funds under management appears to be particularly strong, with unit prices for the international fund indicating a rise of 6.9% in October.

Both this fund and the Asia fund, which rose 8.9%, are ahead of  the broker's normalised growth assumptions.

While the broker considers the trading multiple slightly stretched, the rebound in fund performance could lead to higher net flows and performance fees. Rating is upgraded to Neutral from Underperform. Target rises to $7.00 from $5.90.

Target price is $7.00 Current Price is $7.76 Difference: minus $0.76 (current price is over target).
If PTM meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.99, suggesting downside of -35.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 35.00 cents and EPS of 34.00 cents.
At the last closing share price the estimated dividend yield is 4.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.9, implying annual growth of -5.8%.

Current consensus DPS estimate is 29.1, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 26.0.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 37.00 cents and EPS of 37.00 cents.
At the last closing share price the estimated dividend yield is 4.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.8, implying annual growth of -0.3%.

Current consensus DPS estimate is 28.6, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 26.0.

Market Sentiment: -0.8

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

S32  SOUTH32 LIMITED

Mining

Overnight Price: $3.52

Deutsche Bank rates S32 as Downgrade to Sell from Hold (5) -

South32 has highlighted additional cost inflation going forward from rising input prices, commodity price-linked contracts and the A$. Deutsche Bank believes costs could rise by as much as 20% in FY18, cutting earnings by -15%.

Meanwhile, the market is valuing the stock based on spot commodity prices and A$ at current levels through to end-FY19, yet the broker believes all of alumina, manganese and coal are expensive based on current cost curves.

Deutsche has thus downgraded to Sell. Target falls to $2.80 from $2.85.

Target price is $2.80 Current Price is $3.52 Difference: minus $0.72 (current price is over target).
If S32 meets the Deutsche Bank target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.18, suggesting downside of -9.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 14.41 cents and EPS of 24.90 cents.
At the last closing share price the estimated dividend yield is 4.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.9, implying annual growth of N/A.

Current consensus DPS estimate is 12.4, implying a prospective dividend yield of 3.5%.

Current consensus EPS estimate suggests the PER is 14.7.

Forecast for FY19:

Deutsche Bank forecasts a full year FY19 dividend of 14.41 cents and EPS of 24.90 cents.
At the last closing share price the estimated dividend yield is 4.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.4, implying annual growth of -6.3%.

Current consensus DPS estimate is 12.6, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 15.7.

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

SCG  SCENTRE GROUP

REITs

Overnight Price: $4.03

UPDATED

Deutsche Bank rates SCG as Buy (1) -

Scentre reaffirmed 2017 guidance at its operational update. Retail sales are expected to continue slowing but the REIT has outperformed peers, the broker notes.

Scentre continues to progress its development pipeline and the broker sees an attractive valuation against both historical levels and peers. Buy and $4.26 target retained.

Target price is $4.26 Current Price is $4.03 Difference: $0.23
If SCG meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 22.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 5.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.0, implying annual growth of 11.6%.

Current consensus DPS estimate is 21.9, implying a prospective dividend yield of 5.4%.

Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 22.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 5.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.1, implying annual growth of -3.5%.

Current consensus DPS estimate is 22.3, implying a prospective dividend yield of 5.5%.

Current consensus EPS estimate suggests the PER is 16.1.

Market Sentiment: 0.5

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


Macquarie rates SCG as Outperform (1) -

The company has re-affirmed FY17 guidance for around 4.25% growth in free funds from operations. Distribution guidance of 21.73 cents per share has also been re--affirmed.

The share price has de-rated significantly in 2017. The fundamentals for retail landlords are expected to remain challenging and Macquarie believes this is reflected in the share price.

Outperform. Target is $4.51.

Target price is $4.51 Current Price is $4.03 Difference: $0.48
If SCG meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 21.80 cents and EPS of 23.10 cents.
At the last closing share price the estimated dividend yield is 5.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.0, implying annual growth of 11.6%.

Current consensus DPS estimate is 21.9, implying a prospective dividend yield of 5.4%.

Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 22.20 cents and EPS of 24.70 cents.
At the last closing share price the estimated dividend yield is 5.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.1, implying annual growth of -3.5%.

Current consensus DPS estimate is 22.3, implying a prospective dividend yield of 5.5%.

Current consensus EPS estimate suggests the PER is 16.1.

Market Sentiment: 0.5

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


UPDATED

UBS rates SCG as Buy (1) -

UBS asks when will the company's superior portfolio start to outperform peers amid low expectations for the consumer sector?

The company's update provided little comfort, with specialty sales marginally better than peers but overshadowed by the trend. The broker maintains a value bias and expects the company will provide resilient 2018 guidance.

Buy retained. Target is $4.30.

Target price is $4.30 Current Price is $4.03 Difference: $0.27
If SCG meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 22.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 5.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.0, implying annual growth of 11.6%.

Current consensus DPS estimate is 21.9, implying a prospective dividend yield of 5.4%.

Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 22.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 5.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.1, implying annual growth of -3.5%.

Current consensus DPS estimate is 22.3, implying a prospective dividend yield of 5.5%.

Current consensus EPS estimate suggests the PER is 16.1.

Market Sentiment: 0.5

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

SGM  SIMS METAL MANAGEMENT LIMITED

Steel & Scrap

Overnight Price: $13.71

ADDED

Citi rates SGM as Neutral (3) -

Citi analysts remain bullish on market dynamics for global steel, but they are left holding too many question marks when it comes to Sims Metal. They thus prefer BlueScope Steel ((BSL)) in the sector.

Target price is $14.40 Current Price is $13.71 Difference: $0.69
If SGM meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $14.72, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 44.00 cents and EPS of 80.90 cents.
At the last closing share price the estimated dividend yield is 3.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.4, implying annual growth of -18.1%.

Current consensus DPS estimate is 45.0, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY19:

Citi forecasts a full year FY19 dividend of 70.00 cents and EPS of 100.00 cents.
At the last closing share price the estimated dividend yield is 5.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 89.0, implying annual growth of 5.5%.

Current consensus DPS estimate is 49.3, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 15.4.

Market Sentiment: 0.3

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


Ord Minnett rates SGM as Hold (3) -

Ord Minnett updates its modelling and marks to market commodity and currency prices. This has had the effect of lowering scrap prices and margins on an absolute basis.

The broker gives the company the benefit of a large proportion of its efficiency targets in FY18 and FY19 but believes the stock is fully valued. Hold rating retained. Target is lowered to $13 from $14.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $13.00 Current Price is $13.71 Difference: minus $0.71 (current price is over target).
If SGM meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.72, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 46.00 cents and EPS of 93.00 cents.
At the last closing share price the estimated dividend yield is 3.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.4, implying annual growth of -18.1%.

Current consensus DPS estimate is 45.0, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 48.00 cents and EPS of 95.00 cents.
At the last closing share price the estimated dividend yield is 3.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 89.0, implying annual growth of 5.5%.

Current consensus DPS estimate is 49.3, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 15.4.

Market Sentiment: 0.3

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

SUL  SUPER RETAIL GROUP LIMITED

Automobiles & Components

Overnight Price: $7.74

Ord Minnett rates SUL as Upgrade to Hold from Lighten (3) -

Ord Minnett retains concerns regarding the health of the consumer sector and the negative impact of Amazon. Nonetheless, there are emerging signs that, while consumer sentiment will likely remain subdued, wage growth could improve.

The broker is also more confident that the company has attributes which provide some support that is yet to be fully reflected in the share price. Rating is upgraded to Hold from Lighten. Target is unchanged at $8.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $8.00 Current Price is $7.74 Difference: $0.26
If SUL meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $9.22, suggesting upside of 19.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 47.00 cents and EPS of 71.00 cents.
At the last closing share price the estimated dividend yield is 6.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.6, implying annual growth of 42.6%.

Current consensus DPS estimate is 50.7, implying a prospective dividend yield of 6.6%.

Current consensus EPS estimate suggests the PER is 10.5.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 47.00 cents and EPS of 76.00 cents.
At the last closing share price the estimated dividend yield is 6.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 79.6, implying annual growth of 8.2%.

Current consensus DPS estimate is 54.3, implying a prospective dividend yield of 7.0%.

Current consensus EPS estimate suggests the PER is 9.7.

Market Sentiment: 0.6

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

SYR  SYRAH RESOURCES LIMITED

Rare Earth & Minerals

Overnight Price: $3.67

Macquarie rates SYR as Neutral (3) -

Macquarie updates estimates to include the September quarter cash position and revised production outlook for Balama. First production of intermediate flake and fines product has been achieved.

As construction is effectively complete, commissioning at Balama is now in focus. The broker believes commissioning is the key milestone and the main risk to valuation.

Neutral and $3.70 target retained.

Target price is $3.70 Current Price is $3.67 Difference: $0.03
If SYR meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting upside of 21.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 48.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.3, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 0.00 cents and EPS of 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 111.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.3, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 85.3.

Market Sentiment: 0.6

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

TPE  TPI ENTERPRISES LIMITED

Pharmaceuticals & Biotech/Lifesciences

Overnight Price: $2.70

Morgans rates TPE as Add (1) -

Morgans observes the company has made considerable progress in becoming one of only a handful of vertically integrated global narcotic suppliers.

Management has reconfirmed a positive outlook for second half operating earnings, forecasting a 127% increase in revenue through 2018. The Portugal subsidiary has been sold for a net gain of $875,000.

Morgans raises 2017-19 earnings estimates and envisages 2017 underlying earnings will make a profit.

Add retained. Target rises to $3.53 from $3.06.

Target price is $3.53 Current Price is $2.70 Difference: $0.83
If TPE meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 67.50.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.55.

Market Sentiment: 1.0

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

VCX  VICINITY CENTRES

REITs

Overnight Price: $2.70

ADDED

Citi rates VCX as Buy (1) -

Vicinity Centres has agreed upon an asset swap; in exchange for 49% of Chatswood Chase it will acquire 50% in three centres in Sydney CBD, which, Citi assures us, are of high quality.

The transaction will be EPS accretive but Citi sees benefits beyond the obvious. Buy rating reiterated.

Target price is $3.09 Current Price is $2.70 Difference: $0.39
If VCX meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.91, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 18.10 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 6.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of -3.2%.

Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 6.2%.

Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY19:

Current consensus EPS estimate is 18.9, implying annual growth of 4.4%.

Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 6.3%.

Current consensus EPS estimate suggests the PER is 14.3.

Market Sentiment: 0.4

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


UBS rates VCX as Buy (1) -

The company has swapped a 50% interest in Chatswood Chase for a 50% interest and management rights to Queen Victoria Building, The Galleries and Strand Arcade.

UBS likes the strategic aspects of the transaction, given the increased exposure to the Sydney CBD and improved tenancy mix.

Factoring in the asset swap and buyback results in a 1% increase in FY18 estimates and a 2% increase in FY19 and beyond.

Buy and a $2.92 target maintained.

Target price is $2.92 Current Price is $2.70 Difference: $0.22
If VCX meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.91, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 16.20 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 6.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of -3.2%.

Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 6.2%.

Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY19:

UBS forecasts a full year FY19 dividend of 17.10 cents and EPS of 19.40 cents.
At the last closing share price the estimated dividend yield is 6.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 4.4%.

Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 6.3%.

Current consensus EPS estimate suggests the PER is 14.3.

Market Sentiment: 0.4

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

VVR  VIVA ENERGY REIT

REITs

Overnight Price: $2.16

Deutsche Bank rates VVR as Buy (1) -

Viva has successfully acquired two properties following due diligence and the other $45m of acquisitions announced back in June have now settled. It is Viva's intention to grow through acquisition, the broker notes.

The broker thus expects more of the same and highlights a robust acquisition pipeline. A plan to refinance debt is also underway. Buy and $2.72 target retained.

Target price is $2.72 Current Price is $2.16 Difference: $0.56
If VVR meets the Deutsche Bank target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 13.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 6.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.62.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 14.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 6.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.43.

Market Sentiment: 1.0

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

WBC  WESTPAC BANKING CORPORATION

Banks

Overnight Price: $32.57

Citi rates WBC as Neutral (3) -

FY17 turned into deja vu for the analysts at Citi as cost growth is outpacing sluggish revenue growth. It's characteristic for the sector overall in Australia.

Luckily for the banks, point out the analysts, the benign credit environment continues to act as a saviour with BDD’s at an historical low of 11bps as new gross impaireds disappeared and provisions were released.

Citi sees no urgency from management to shake up things and therefore no imminent catalyst for the share price.

Sector pecking order is now National Australia Bank ((NAB)), ANZ Bank ((ANZ)), Westpac and then CommBank ((CBA)). Neutral rating retained, as well as the $31 price target.

Target price is $31.00 Current Price is $32.57 Difference: minus $1.57 (current price is over target).
If WBC meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.70, suggesting upside of 3.5% (ex-dividends)

Forecast for FY18:

Current consensus EPS estimate is 245.7, implying annual growth of N/A.

Current consensus DPS estimate is 188.7, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 13.3.

Forecast for FY19:

Current consensus EPS estimate is 248.2, implying annual growth of 1.0%.

Current consensus DPS estimate is 192.8, implying a prospective dividend yield of 5.9%.

Current consensus EPS estimate suggests the PER is 13.1.

Market Sentiment: 0.4

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


UPDATED

Credit Suisse rates WBC as Downgrade to Neutral from Outperform (3) -

Credit Suisse liked the balance sheet growth in FY17 but did not like the negative tone of the FY18 guidance statements, particularly around revenue.

Following the upgrade of the stock mid 2017 to Outperform as a tactical call on the leverage to Australian mortgage re-pricing, the broker now downgrades to Neutral as the benefits have become embedded and there are emerging margin headwinds.

Target is reduced to $33.50 from $34.00.

Target price is $33.50 Current Price is $32.57 Difference: $0.93
If WBC meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $33.70, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 188.00 cents and EPS of 243.00 cents.
At the last closing share price the estimated dividend yield is 5.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 245.7, implying annual growth of N/A.

Current consensus DPS estimate is 188.7, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 13.3.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 188.00 cents and EPS of 249.00 cents.
At the last closing share price the estimated dividend yield is 5.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 248.2, implying annual growth of 1.0%.

Current consensus DPS estimate is 192.8, implying a prospective dividend yield of 5.9%.

Current consensus EPS estimate suggests the PER is 13.1.

Market Sentiment: 0.4

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


Deutsche Bank rates WBC as Buy (1) -

Westpac suffered from the same malaise as peers in the Sep Q -- a market going nowhere hence weak trading profits. This led to a miss at the headline but the broker saw a solid result on operational trends. The bank's net income margin rose despite the impact of the levy.

At 10.6%, the capital position is better than the broker expected and bad debts fell once more, with Westpac highlighting a peak in WA mortgage arrears. Buy retained, target rises to $35.00 from $34.50.

Target price is $35.00 Current Price is $32.57 Difference: $2.43
If WBC meets the Deutsche Bank target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $33.70, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 191.00 cents and EPS of 250.00 cents.
At the last closing share price the estimated dividend yield is 5.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 245.7, implying annual growth of N/A.

Current consensus DPS estimate is 188.7, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 13.3.

Forecast for FY19:

Deutsche Bank forecasts a full year FY19 dividend of 193.00 cents and EPS of 257.00 cents.
At the last closing share price the estimated dividend yield is 5.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 248.2, implying annual growth of 1.0%.

Current consensus DPS estimate is 192.8, implying a prospective dividend yield of 5.9%.

Current consensus EPS estimate suggests the PER is 13.1.

Market Sentiment: 0.4

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


Macquarie rates WBC as Neutral (3) -

FY17 results were solid and, while the headline result fell short of Macquarie's expectations, underlying trends are considered broadly supportive. The broker expects the bank to benefit from improved trading income and residual mortgage re-pricing benefit.

Of concern is the medium-term impact of slowing mortgage growth and normalising of margins as loans are switched to principal & interest from interest only.

Neutral rating retained.Target is raised to $34.50 from $34.00.

Target price is $34.50 Current Price is $32.57 Difference: $1.93
If WBC meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $33.70, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 189.00 cents and EPS of 242.90 cents.
At the last closing share price the estimated dividend yield is 5.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 245.7, implying annual growth of N/A.

Current consensus DPS estimate is 188.7, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 13.3.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 200.00 cents and EPS of 243.20 cents.
At the last closing share price the estimated dividend yield is 6.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 248.2, implying annual growth of 1.0%.

Current consensus DPS estimate is 192.8, implying a prospective dividend yield of 5.9%.

Current consensus EPS estimate suggests the PER is 13.1.

Market Sentiment: 0.4

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


Morgan Stanley rates WBC as Overweight (1) -

Morgan Stanley believes the bank offers less uncertainty and execution risk versus its peers, as it has a settled strategy, good margin management and a consistency on costs.

FY17 was considered a challenging year and the second half result reinforces the broker's view that the bank is in a sweet spot for margins and further expansion is likely in the first half of FY18. The broker envisages a stronger CET1 ratio but limited capital management options going forward.

Target is reduced to $32.10 from $32.60. Overweight retained. Industry View: In Line.

Target price is $32.10 Current Price is $32.57 Difference: minus $0.47 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.70, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 188.00 cents and EPS of 232.00 cents.
At the last closing share price the estimated dividend yield is 5.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 245.7, implying annual growth of N/A.

Current consensus DPS estimate is 188.7, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 13.3.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 190.00 cents and EPS of 235.00 cents.
At the last closing share price the estimated dividend yield is 5.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 248.2, implying annual growth of 1.0%.

Current consensus DPS estimate is 192.8, implying a prospective dividend yield of 5.9%.

Current consensus EPS estimate suggests the PER is 13.1.

Market Sentiment: 0.4

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


UPDATED

Ord Minnett rates WBC as Hold (3) -

Ord Minnett was disappointed with FY17 cash earnings at the headline level. FY18 outlook commentary also underwhelmed but on further analysis the underlying result appeared slightly better.

The stock appears inexpensive but a positive catalyst to re-rate may be lacking for the short-term, in the broker's opinion.

Hold rating and $33 target retained.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $33.00 Current Price is $32.57 Difference: $0.43
If WBC meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $33.70, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 EPS of 251.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 245.7, implying annual growth of N/A.

Current consensus DPS estimate is 188.7, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 13.3.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 EPS of 257.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 248.2, implying annual growth of 1.0%.

Current consensus DPS estimate is 192.8, implying a prospective dividend yield of 5.9%.

Current consensus EPS estimate suggests the PER is 13.1.

Market Sentiment: 0.4

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

Summaries
AMC AMCOR Hold - Ord Minnett Overnight Price $14.99
BSL BLUESCOPE STEEL Accumulate - Ord Minnett Overnight Price $13.33
COH COCHLEAR Neutral - Credit Suisse Overnight Price $180.18
FDV FRONTIER DIGITAL VENTURES Add - Morgans Overnight Price $0.68
GUD G.U.D. HOLDINGS Hold - Ord Minnett Overnight Price $11.98
JBH JB HI-FI Upgrade to Hold from Lighten - Ord Minnett Overnight Price $22.76
LVH LIVEHIRE Upgrade to Add from Hold - Morgans Overnight Price $0.94
MFG MAGELLAN FINANCIAL GROUP Upgrade to Outperform from Neutral - Credit Suisse Overnight Price $26.17
NVT NAVITAS Neutral - Macquarie Overnight Price $4.85
ORI ORICA Downgrade to Sell from Neutral - Citi Overnight Price $18.96
Neutral - Credit Suisse Overnight Price $18.96
Hold - Deutsche Bank Overnight Price $18.96
Neutral - Macquarie Overnight Price $18.96
Underweight - Morgan Stanley Overnight Price $18.96
Hold - Morgans Overnight Price $18.96
Hold - Ord Minnett Overnight Price $18.96
PRU PERSEUS MINING Neutral - Macquarie Overnight Price $0.32
PTM PLATINUM Upgrade to Neutral from Underperform - Credit Suisse Overnight Price $7.76
S32 SOUTH32 Downgrade to Sell from Hold - Deutsche Bank Overnight Price $3.52
SCG SCENTRE GROUP Buy - Deutsche Bank Overnight Price $4.03
Outperform - Macquarie Overnight Price $4.03
Buy - UBS Overnight Price $4.03
SGM SIMS METAL MANAGEMENT Neutral - Citi Overnight Price $13.71
Hold - Ord Minnett Overnight Price $13.71
SUL SUPER RETAIL Upgrade to Hold from Lighten - Ord Minnett Overnight Price $7.74
SYR SYRAH RESOURCES Neutral - Macquarie Overnight Price $3.67
TPE TPI ENTERPRISES Add - Morgans Overnight Price $2.70
VCX VICINITY CENTRES Buy - Citi Overnight Price $2.70
Buy - UBS Overnight Price $2.70
VVR VIVA ENERGY REIT Buy - Deutsche Bank Overnight Price $2.16
WBC WESTPAC BANKING Neutral - Citi Overnight Price $32.57
Downgrade to Neutral from Outperform - Credit Suisse Overnight Price $32.57
Buy - Deutsche Bank Overnight Price $32.57
Neutral - Macquarie Overnight Price $32.57
Overweight - Morgan Stanley Overnight Price $32.57
Hold - Ord Minnett Overnight Price $32.57
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

12

2. Accumulate

1

3. Hold

20

5. Sell

3

Tuesday 07 November 2017

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Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.