Australian Broker Call

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

A 221% surge in online sales has helped to offset sales losses due to Adairs store closures, netting to total sales down -37% in five weeks, Morgans notes. Stores are set to progressively reopen over May-June, and liquidity is sufficient to ensure no intention to raise capital.

While earnings forecasting remains difficult, the company's liquidity position and online strength lead the broker to increase its target to $2.17 from $1.22, and upgrade to Add from Hold.

Target price is $2.17 Current Price is $1.54 Difference: $0.63
If ADH meets the Morgans target it will return approximately 41% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

UBS rates ADH as Buy (1) -

The trading update was ahead of UBS estimates in terms of both sales and profit. Stores are expected to fully re-open by the end of June.

The company has indicated there is no material increase in promotional intensity and rent negotiations continue.

UBS maintains earnings estimates, given the uncertainty as economic headwinds start to impact.

The broker also envisages potential for Adairs to exit the pandemic as a stronger player online. Buy rating and $1.90 target maintained.

Target price is $1.90 Current Price is $1.54 Difference: $0.36
If ADH meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

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

Australia's electricity demand looks to be resilient in the face of the virus, Morgans suggests, but the challenge for retailers will be a spike in bad debts. Weaker wholesale prices have not much impacted default retail pricing.

The broker sees increasing value in AGL Energy and Origin Energy. The broker upgrades both to Add from Hold on share price weakness. AGL target falls to $17.15 from $17.39.

Target price is $17.15 Current Price is $16.33 Difference: $0.82
If AGL meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $18.09, suggesting upside of 10.8% (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

UBS rates AMC as Neutral (3) -

UBS updates forecasts to allow for recent changes in consumer behaviour. The broker suspects the third quarter should be supported by pantry stockpiling. However, this is likely to moderate going forward.

The broker reduces FY20/21 forecast by -1-3% to reflect consumer behaviour and increased manufacturing costs. Neutral rating maintained. Target is reduced to $14.10 from $16.00.

Target price is $14.10 Current Price is $13.47 Difference: $0.63
If AMC meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $16.44, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.8

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

UBS rates APT as Sell (5) -

Tencent has taken a 5% stake in Afterpay. At this stage there are no commercial or strategic arrangements. UBS considers this a validation of Afterpay's business model.

A partnership leveraging merchant relationships for Chinese tourists or the cross-border transactions is considered possible but the broker believes it highly unlikely Afterpay will be offered leverage to the WeChat customers for domestic transactions in China.

Sell rating and $13 target maintained.

Target price is $13.00 Current Price is $38.18 Difference: minus $25.18 (current price is over target).
If APT meets the UBS target it will return approximately minus 66% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.04, suggesting downside of -29.2% (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

Macquarie rates ASB as Outperform (1) -

Austal did not win the large US frigate contract but has won a $324m contract for six patrol boats of the Australian Navy.

The decision to award the frigate contract to a competitor will not impact earnings until FY23-24, Macquarie assesses, when construction starts to ramp down on the existing littoral combat contracts.

Meanwhile, the Australian contract is supportive and the broker expects the US government may include shipbuilding in stimulus measures. Austal is a major employer in Alabama and its capacity should be supported beyond the current program.

Macquarie retains an Outperform rating. Target is reduced to $3.10 from $3.20.

Target price is $3.10 Current Price is $2.86 Difference: $0.24
If ASB meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.52, suggesting upside of 23.0% (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 ASB as Downgrade to Lighten from Hold (4) -

Where Austal won a $324m contract to construct patrol boats for the Australian Navy, it also lost out on a US Navy contract with a starting value of US$795m rendering the long-term earnings profile of the company uncertain, comments Ord Minnett.

The outlook for the company would be a balancing act between the shipbuilding contracts from the US and Australia versus a subdued commercial ferry market, suggests the broker.

Rating downgraded to Lighten from Hold with target price decreased to $2.40 from $4.10.

Target price is $2.40 Current Price is $2.86 Difference: minus $0.46 (current price is over target).
If ASB meets the Ord Minnett target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.52, suggesting upside of 23.0% (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

Citi rates AWC as Buy (1) -

Alumina prices bottomed out in mid April, offsetting cost increases during the month. Citi raises Australian dollar forecast for 2020 and 2021.

As a result, 2020 and 2021 underlying net profit for Alumina Ltd is revised down -22% and -13%, respectively. Citi retains a Buy rating and reduces the target to $1.90 from $2.00.

Target price is $1.90 Current Price is $1.57 Difference: $0.33
If AWC meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.80, suggesting upside of 14.6% (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: 0.3

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

Citi rates BAP as Buy (1) -

As reported yesterday, Citi has initiated coverage on Bapcor with a $6 price target and Buy recommendation. Among the stand-out conclusions drawn in the report is the expansion into Thailand could end up being worth more than double the company's target.

Combining the defensive characteristics of the industry with company-specific avenues for growth sees Citi anticipating EPS CAGR of 14% between FY20-FY24. Apart from a "material" opportunity in Thailand, the analysts suggest next on the expansion list will be South Korea, Indonesia and Malaysia.

Citi analysts see several drivers for positive margin expansion, underpinned by private label growth on top of consolidation of distribution centres and a turnaround for Autobarn stores. The analysts highlight auto parts are less discretionary than other retail categories.

Target price is $6.00 Current Price is $4.84 Difference: $1.16
If BAP meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.81, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates CCP as Outperform (1) -

Macquarie assesses the supply of non-performing consumer credit is likely to increase. Moreover, Credit Corp is well-positioned because of the recent capital raising.

History suggests debt buying in periods of economic weakness is attractive while the options for financial institutions are limited.

Macquarie retains an Outperform rating and $19.30 target.

Target price is $19.30 Current Price is $15.15 Difference: $4.15
If CCP meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $18.90, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates CKF as Add (1) -

In initial response to today's trading update released by Collins Foods, Morgans highlights the performance turns out better-than-expected. The operations in Europe are still "challenged" but here the broker sees optimism in improvement seen in recent weeks.

The company has noted its balance sheet remains strong, points out the broker, with plenty of headroom before covenants come into play. Morgans thinks risks are diminishing for the need of an emergency capital raising.

The next catalyst for the share price might well be the next trading update in June, suggests the broker. Add rating retained, alongside a price target of $8.17, up from $7.06 previously.

Target price is $8.17 Current Price is $7.67 Difference: $0.5
If CKF meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in May.

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

Citi rates CWN as Buy (1) -

The company has guided to normalised FY20 operating earnings of $500m. Citi revises second half after-tax loss estimates to -$92m from-$108m to reflect the full impact of the casino closures.

Dividends are likely to be suspended in the second half and first half of FY21. Importantly, the closure period will be treated as a significant item, and the broker notes issues surrounding covenants could be avoided, as significant items are not considered.

The potential for corporate activity presents upside to fundamental valuations. Buy and $8.20 target retained.

Target price is $8.20 Current Price is $9.22 Difference: minus $1.02 (current price is over target).
If CWN meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.31, suggesting upside of 1.0% (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

Credit Suisse rates CWN as Outperform (1) -

Credit Suisse has reviewed Crown Resorts for the prospect of sale and leasebacks and concluded these could add up to $0.70 per share as a short-term boost to valuation.

Still, the broker warns that divesting assets can hinder value creation over the longer term. Therefore, the bulk of any valuation uplift is likely to come from restoring earnings post the pandemic. Outperform rating and $12 target maintained.

Target price is $12.00 Current Price is $9.22 Difference: $2.78
If CWN meets the Credit Suisse target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $9.31, suggesting upside of 1.0% (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 CWN as Outperform (1) -

Macquarie suggests investors look through FY20/21 forecasts and short-term trading updates for the Australasian casinos, given the high level of earnings uncertainty. FY22 should be considered a more normal year.

The broker still finds the stock appealing and an Outperform rating is maintained. Target is $11.40.

Target price is $11.40 Current Price is $9.22 Difference: $2.18
If CWN meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $9.31, suggesting upside of 1.0% (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

Ord Minnett rates CWN as Hold (3) -

Crown Resorts announced FY20 operating earnings of $500m along with a net profit of $210m for the period spanning July 1, 2019 to March 23, 2020.

Accordingly, Ord Minnett has updated forecasts, expecting a net profit of $143.2m for FY20 and circa $126m for FY21 while predicting revenues to fall -55.9% in the second half of FY20 and -48.3% in the first half of FY21.

Hold reiterated with target price increased to $8.50 from $8.30.

Target price is $8.50 Current Price is $9.22 Difference: minus $0.72 (current price is over target).
If CWN meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.31, suggesting upside of 1.0% (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

Citi rates IAG as Buy (1) -

Citi finds investment earnings hard to predict, particularly given the lack of transparency regarding alternative investment. Hence, the broker is not surprised it underestimated the extent of losses from the recent market rout.

Despite lowering estimates substantially, Citi still believes the stock is relatively defensive and this should prove an attractive characteristic going forward. Buy rating maintained. Target is reduced to $6.60 from $7.70.

Target price is $6.60 Current Price is $5.49 Difference: $1.11
If IAG meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.23, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Credit Suisse rates IAG as Neutral (3) -

Credit Suisse found the update on the investment performance to date generated more questions than answers. Insurance Australia Group has called out a -$280m loss in it shareholder funds financial year to date.

The broker does not understand what is in the portfolio that would generate such yield and is concerned now about some margin slippage in the core business.

Credit Suisse opts for a Neutral rating and reduces the target to $5.70 from $6.60.

Target price is $5.70 Current Price is $5.49 Difference: $0.21
If IAG meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.23, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Macquarie rates IAG as Neutral (3) -

The company has retained guidance while softening expectations surrounding the full-year dividend. Low single-digit growth in gross written premiums is still expected, with a reported insurance margin of 12.5-14.5%.

This excludes the unrealised loss from the widening of credit spreads since December. Macquarie assesses there is downside risk to forecasts for premium growth in the second half, related to business closures and policy cancellations.

Neutral rating. Target is reduced to $5.60 from $6.70.

Target price is $5.60 Current Price is $5.49 Difference: $0.11
If IAG meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.23, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Morgan Stanley rates IAG as Overweight (1) -

The company has clarified the impact on shareholder funds of marking to market, which will limit the second half dividend. Year-to-date investment losses have amounted to -$280m.

Morgan Stanley assesses the gap to expectations is attributable largely to alternative exposures, including offshore and high-yield credit.

However FY20 guidance is retained, which Morgan Stanley believes reflects a strong domestic general insurance franchise.

Overweight rating retained. Target is $7.00. Industry view: In Line.

Target price is $7.00 Current Price is $5.49 Difference: $1.51
If IAG meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $6.23, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Morgans rates IAG as Hold (3) -

An update from Insurance Australia Group revealed investment losses year to date of -$280m, leading management to warn of limited scope for a first half dividend.

While the balance sheet remains robust, the broker also believes there will be no capital return from the sale of the State Bank of India joint venture either.

The broker cuts its forecast FY21 earnings by -43%. Target falls to $5.85 from $6.91, Hold retained.

Target price is $5.85 Current Price is $5.49 Difference: $0.36
If IAG meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.23, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates IAG as Hold (3) -

Insurance Australia Group indicates limited scope to pay a final dividend for FY20 and broker Ord Minnett forecasts no dividend for the second half.

The group is achieving the highest margins in general insurance globally and the broker believes the cycle is turning favourable in the commercial segment. The common equity tier-one (CET1) stands at the top end of target range, reports the broker.

Ord Minnett holds onto the Hold rating with target price reduced to $6.30 from $7.

Target price is $6.30 Current Price is $5.49 Difference: $0.81
If IAG meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $6.23, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates IAG as Neutral (3) -

The company has updated on the FY20 shareholders fund investment income which indicates larger mark-to-market losses over the first four months of the second half.

UBS points out this likely reflects larger losses on alternative assets, an opaque portfolio representing 27% of the fund. The company has also indicated there is limited scope to pay a final dividend in September.

The broker finds greater value appeal elsewhere. Neutral rating and $6.65 target maintained.

Target price is $6.55 Current Price is $5.49 Difference: $1.06
If IAG meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.23, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

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

IOOF Holdings is navigating a tough environment for flows and now has an opportunity to extract scale, in Morgan Stanley's view. While multiples are undemanding, the broker needs more confidence regarding stabilising margins and further reinvestment.

The broker envisages some risk that further investment may be required to accelerate the business model transition, in order to protect earnings.

Equal-weight rating maintained. Target is reduced to $4.50 from $7.25. Industry view: In-Line.

Target price is $4.50 Current Price is $4.27 Difference: $0.23
If IFL meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.48, suggesting upside of 4.8% (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

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

Australia's electricity demand looks to be resilient in the face of the virus, Morgans suggests, but the challenge for retailers will be a spike in bad debts. Weaker wholesale prices have not much impacted default retail pricing. The broker sees increasing value in AGL Energy and Origin Energy.

The broker still sees medium-term value in Infigen Energy but with the growth slowing it is difficult to see catalysts in the short term to lift the share price. Downgrade to Hold from Add. Target falls to 57c from 71c.

Target price is $0.57 Current Price is $0.54 Difference: $0.03
If IFN meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $0.69, suggesting upside of 28.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Credit Suisse rates ING as Outperform (1) -

Credit Suisse suspects that, in Australia, disruption to channels such as wholesale and food service would have been offset by higher demand from retail along with variations in margin.

The company has suggested that the changes to volume and channel mix resulting from the pandemic make it difficult to draw conclusions for the final weeks of FY20.

Therefore, the broker suggests this is a prudent view taken by the board rather than any major change in outlook. Outperform rating maintained. Target is reduced to $3.95 from $4.00.

Target price is $3.95 Current Price is $3.25 Difference: $0.7
If ING meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 9.6% (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

Macquarie rates ING as Neutral (3) -

Macquarie notes a surge in retail sales in March and April has helped offset weakness in other channels. Strong retail channel sales are expected to help offset feed costs in the second half.

The company has noted reduced visibility and volatile poultry markets. Macquarie trims short-term estimates. Neutral retained. Target is $3.35.

Target price is $3.35 Current Price is $3.25 Difference: $0.1
If ING meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 9.6% (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

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

Second half earnings were on track to exceed the first half but changes in volume and channel mix makes this uncertain, Morgan Stanley assesses.

Operating issues stemming from social distancing have led to inefficiencies and higher costs and the temporary suspension of some value-enhanced product.

The company has good access to funding, with significant head room available, although management is reducing and deferring unnecessary expenditure.

Rating is Equal-weight. Target is $3.60. Industry view: Cautious.

Target price is $3.60 Current Price is $3.25 Difference: $0.35
If ING meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 9.6% (ex-dividends)

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 ING as Hold (3) -

Inghams has said it's on track for second half earnings to exceed the first half, but changes in volumes and channel mix have limited its ability to accurately forecast, hence previous guidance has been withdrawn. The initial surge in retail demand for at-home cooking has now eased while out-of-home has been materially impacted.

Inghams has done a commendable job in reconfiguring its supply chain, the broker suggests, but the outlook is dependent on virus depth and duration. Target falls to $3.48 from $3.60, Hold retained.

Target price is $3.48 Current Price is $3.25 Difference: $0.23
If ING meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 9.6% (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 ING as Neutral (3) -

Inghams has observed more uncertainty around the final weeks of FY20 in terms of changing volume and channel mix.

UBS assesses there are cost inefficiencies resulting from social distancing and out-of-home volumes are weak.

While the update was incrementally negative, with the dividend intact and valuation undemanding, the broker retains a Neutral rating and $3.10 target.

Target price is $3.10 Current Price is $3.25 Difference: minus $0.15 (current price is over target).
If ING meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.56, suggesting upside of 9.6% (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

Ord Minnett rates INR as Buy (1) -

Ioneer released the Definitive Feasibility Study (DFS) for the Rhyolite Ridge project and broker Ord Minnett notes an improvement in the project economics with better operating cost savings and higher recoveries to offset the increase in capex.

The study would aid Ioneer in discussions aimed at funding the US$785m project, believes the broker and leaves the model unchanged for now while trying to comprehend the complexities of the project.

Speculative Buy reaffirmed with target price unchanged at $0.4.

Target price is $0.40 Current Price is $0.13 Difference: $0.27
If INR meets the Ord Minnett target it will return approximately 208% (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

Credit Suisse rates MND as Neutral (3) -

Should current difficulties continue, Monadelphous expects FY20 revenue will be flat and margins will be "significantly challenged".

The company has taken a -$14m provision for the water project underperformance and restructure costs, which Credit Suisse notes is a rarity for Monadelphous.

The update was more bearish than those emanating from other mining services companies, in the broker's view, which potentially reflects the labour intensity of the company's work.

Neutral rating maintained. Target is reduced to $10 from $17.

Target price is $10.00 Current Price is $9.54 Difference: $0.46
If MND meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $13.08, suggesting upside of 37.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates MQG as Buy (1) -

Macquarie Group is due to report FY20 result on May 8 and Ord Minnett expects covid-19 to mar an otherwise strong second half.

The broker forecasts a -6% fall in net profit in FY20 to $2.807bn, driven by higher investment and loan impairments. FY21 would be no better with -12% decline in net profit, more uncertainty and higher impairments, predicts Ord Minnett.

There is also the possibility of Macquarie not providing a full-year earnings guidance. Even so, the broker acknowledges the impact to be cyclical and most of the business lines to remain attractively placed beyond this downturn.

The stock’s Buy rating is retained with target price unchanged at $112.

Target price is $112.00 Current Price is $100.24 Difference: $11.76
If MQG meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $117.65, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in March.

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 MVF as Upgrade to Add from Hold (1) -

Monash IVF was performing in line with expectations through to late February, but March saw a material slowdown. The government's permission to reopen IVF clinics from April 27 will lead to a gradual return to normal, Morgans suggests.

Monash has raised $80m to clear debt concerns and provide for acquisitions. Target falls to 63c from 83 on dilution. Upgrade to Add from Hold.

Target price is $0.63 Current Price is $0.58 Difference: $0.05
If MVF meets the Morgans target it will return approximately 9% (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

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

Coal prices have turned down sharply, with Newcastle thermal coal dropping to US$50/t and spot hard coking coal to US$109/t. The weaker prices reflect the re-start of Richards Bay exports and weaker demand from key markets.

Citi reduces New Hope's FY20 and FY21 operating earnings (EBITDA) estimates by -3% and -14%, respectively. Low coal prices and a stronger Australian dollar remain headwinds.

The broker reduces the target to $1.60 from $1.70 and downgrades to Neutral from Buy.

Target price is $1.60 Current Price is $1.41 Difference: $0.19
If NHC meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $1.68, suggesting upside of 18.8% (ex-dividends)

The company's fiscal year ends in July.

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

Macquarie rates ORA as Resume coverage with a Neutral rating (3) -

The balance sheet has strengthened post the sale of the fibre business, Macquarie observes. The outlook for local beverages is bright, as the company is a beneficiary of a shift to at-home consumption even with the pulling forward of demand.

Meanwhile, wine demand remains soft as Australian wine exports are down -7% for the year to March.

Macquarie expects around $700m to be returned to shareholders by the end of June via a mix of capital return and special dividends.

The near-term focus is on the extent of weakness in North America and the broker would like greater clarity on the amount of shareholder returns and the strategy going forward.

Macquarie resumes coverage with a Neutral rating and $2.75 target.

Target price is $2.75 Current Price is $2.46 Difference: $0.29
If ORA meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.90, suggesting upside of 18.0% (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

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

Australia's electricity demand looks to be resilient in the face of the virus, Morgans suggests, but the challenge for retailers will be a spike in bad debts. Weaker wholesale prices have not much impacted default retail pricing.

The broker sees increasing value in AGL Energy and Origin Energy. The broker upgrades both to Add from Hold on share price weakness. Origin target rises to $5.50 from $5.15.

Target price is $5.50 Current Price is $5.55 Difference: minus $0.05 (current price is over target).
If ORG meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.64, suggesting upside of 19.6% (ex-dividends)

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

UBS rates ORG as Buy (1) -

Origin Energy has acquired a 20% stake in Octopus Energy, expecting the platform "Kraken" will transform the customer experience in its retail business.

UBS believes the development is not indicative of the company's plans to grow materially in the UK. The share of licensing and retail revenue could provide upside to forecasts, however.

UBS retains a Buy rating and raises the target to $7.90 from $7.65. The broker assesses balance-sheet stress could arise if oil prices remain under US$30/bbl in FY21.

Target price is $7.90 Current Price is $5.55 Difference: $2.35
If ORG meets the UBS target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $6.64, suggesting upside of 19.6% (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 PBH as Initiation of coverage with Buy (1) -

The online sports gaming segment presents a significant opportunity for Pointsbet Holdings with the potential Total Addressable Market (TAM) in the US at US$5.2bn per annum. This figure represents only the 12 states the company has agreements with, reminds Ord Minnett.

The company has made commendable progress in New Jersey, Iowa and Indiana despite covid-19, observes Ord Minnett, with the sports gaming sector in New Jersey alone providing total revenue of circa US$299m in 2019.

The broker believes the experience from Australian operations would be a huge point in the company’s favour. Ord Minnett initiates coverage of Pointsbet Holdings with a Buy rating and a target price of $5.

Target price is $5.00 Current Price is $4.53 Difference: $0.47
If PBH meets the Ord Minnett target it will return approximately 10% (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 PLS as Underperform (5) -

Pilbara Minerals has shipped 33,700t of spodumene concentrate in the March quarter, a flat outcome on the prior quarter.

Still, the flat performance quarter on quarter could be considered a positive, in Macquarie's view, given the weakness in the seaborne market.

The broker suspects the pricing impacts of the pandemic could be more acutely felt in the June quarter, despite a return to production by Chinese battery manufacturers.

Underperform rating and target reduced to $0.10 from $0.21.

Target price is $0.10 Current Price is $0.21 Difference: minus $0.11 (current price is over target).
If PLS meets the Macquarie target it will return approximately minus 52% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.23, suggesting upside of 7.1% (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 PPH as Buy (1) -

UBS notes churches are adopting digital payments faster as a result of closures. The broker notes the company's customer base is concentrated in the states most affected by the pandemic, including Washington, California and Texas.

Pushpay Holdings will report its FY20 result on May 6. UBS maintains a Buy rating and raises the target to NZ$5.25 from NZ$4.60.

Current Price is $4.36. Target price not assessed.

Current consensus price target is $2.72, suggesting downside of -37.6% (ex-dividends)

The company's fiscal year ends in March.

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: 0.3

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

Morgans rates QUB as Hold (3) -

Qube Holdings is raising $500m to pursue growth opportunities both organic and acquisitive. The company believes it can generate returns at the top or beyond its 12-15% internal rate of return target.

While the broker has made material downgrades on dilution, it recommends investors take up the rights issue given the potential for a 25% total shareholder return at the offer price.

Target falls to $2.38 from $3.01. Hold retained.

Target price is $2.38 Current Price is $2.61 Difference: minus $0.23 (current price is over target).
If QUB meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.63, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

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

The company will raise $500m in new equity to reduce debt and pursue acquisitions. UBS observes the strategic value of assets and the exposure to compounding freight volumes has not changed as a result of the pandemic.

Hence, the rating is upgraded to Buy from Neutral. Qube Holdings continues to assess funding and ownership options for Moorebank. Target is reduced to $2.70 from $3.15.

Target price is $2.70 Current Price is $2.61 Difference: $0.09
If QUB meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.63, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Morgans rates RMD as Add (1) -

ResMed's March quarter beat expectations, featuring a tripling in ventilator production and supported by digital health services. Revenues grew 4.5% and profit 12.5%. While the virus has created headwinds for new sleep disorder diagnoses, the impact on the base business has been negligible, the broker notes.

Headwinds are not insurmountable, and will ease as restrictions are lifted. Target rises to $29.00 from $27.79, Add retained.

Target price is $29.00 Current Price is $23.85 Difference: $5.15
If RMD meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $24.15, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: -0.1

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

Citi rates TCL as Sell (5) -

Citi assesses Transurban's traffic outlook may be improving albeit from a very low base. However, uncertainty regarding revenue and distribution policy adds a cautious note to the outlook.

The broker envisages revenue will decline more than traffic because of toll relief to customers in financial distress and almost no revenue from the US.

The broker reiterates a Sell rating as, while company expects to have adequate liquidity to the end of FY21, gearing remains high. Target is $10.15.

Target price is $10.15 Current Price is $13.82 Difference: minus $3.67 (current price is over target).
If TCL meets the Citi target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.13, suggesting downside of -5.0% (ex-dividends)

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 TCL as Outperform (1) -

Recent traffic numbers have shown signs of stabilisation. Macquarie anticipates the company will be the first cab off the rank when activity rebounds after the lock-down.

Benefits will come from the normalisation of the M4 Expressway and the Logan motorway traffic along with the opening up of the M5 Expressway, with dividend momentum as a result.

The broker assesses growth opportunities remain, if not enhanced by government policy. Outperform maintained. Target is reduced to $15.17 from $15.21.

Target price is $15.17 Current Price is $13.82 Difference: $1.35
If TCL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $13.13, suggesting downside of -5.0% (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 TCL as Equal-weight (3) -

Traffic appears to have troughed during April and Morgan Stanley is hopeful a recovery will continue, bolstered by the use of cars as a social distancing tool and increased levels of home delivery.

Truck traffic for construction and essential items provides a floor to cash flow. The project pipeline remains in train and future growth also appears favourable.

Equal-weight. Industry view: Cautious. Target is $14.85.

Target price is $14.85 Current Price is $13.82 Difference: $1.03
If TCL meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $13.13, suggesting downside of -5.0% (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

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

Transurban traffic has been materially impacted, declining -60-70% for its US assets with the toll price falling to US$1.50 from US$8 per trip, observes Ord Minnett.

The traffic growth forecast by the broker for FY20 remains at -11% with DPS forecast for the second half unchanged at $0.12. The broker expects the company to rebalance capital structure at the next acquisition, increasing the dilution risk.

The stock is downgraded to Hold from Accumulate with target price at $13.50.

Target price is $13.50 Current Price is $13.82 Difference: minus $0.32 (current price is over target).
If TCL meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.13, suggesting downside of -5.0% (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 TCL as Buy (1) -

Transurban has signalled the last week of April revealed Australian traffic was down around -45% for the month.

This suggests the decline is moderating and taken together with the indications mobility restrictions may ease this month, points to a more optimistic scenario for the June quarter, UBS assesses.

In turn, this could result in upside to the forecast dividend for the second half. Australian traffic continues to be more resilient than in Europe and US. Buy rating and $13.85 target maintained.

Target price is $13.85 Current Price is $13.82 Difference: $0.03
If TCL meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $13.13, suggesting downside of -5.0% (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

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

Virgin Money is due to report interim earnings on Wednesday after the bell. Morgans expects the result to beat consensus, but also sees concerns over the outlook for the UK economy continuing to weigh on the share price.

The stock is trading at only 0.3x net tangible assets but the broker sees this as fair, after significantly downgrading forecasts on the virus threat. Risk remains to the downside. Morgans downgrades to Hold from Add. Target falls to $1.44 from $4.23.

Target price is $1.44 Current Price is $1.42 Difference: $0.02
If VUK meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.85, suggesting upside of 29.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

This company reports in GBP. 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

Citi rates WBC as Buy (1) -

The pre-announcements regarding the first half results ensured market expectations were met, Citi observes. Excluding tax and pre-announced bad debts, core earnings were ahead of estimates.

The bank has deferred the interim dividend because of APRA's directive, rather than because of strong lending growth.

The broker suspects the decision around when and how much to pay will likely depend on the required size of the CET1 ratio APRA is seeking.

Citi retains a Buy rating and $26 target.

Target price is $26.00 Current Price is $16.16 Difference: $9.84
If WBC meets the Citi target it will return approximately 61% (excluding dividends, fees and charges).

Current consensus price target is $18.59, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Credit Suisse rates WBC as Outperform (1) -

Credit Suisse downgrades estimates by -1-5% following the first half result, to incorporate lower revenue and higher expenses. The broker observes greater confidence around Westpac's provisioning compared with its peer group.

In addition, the inflation scenarios for risk-weighted assets appear manageable. Outperform rating and $17.90 target maintained.

Target price is $17.90 Current Price is $16.16 Difference: $1.74
If WBC meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $18.59, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates WBC as Neutral (3) -

First half results were affected by material provisions and remediation charges. Macquarie believes Westpac needs to improve its underlying performance and deliver efficiency benefits in order to outperform peers.

While there is valuation support at current levels, the broker recognises it will take time for management to address recent operating challenges.

Neutral retained. Target unchanged at $17.

Target price is $17.00 Current Price is $16.16 Difference: $0.84
If WBC meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $18.59, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates WBC as Underweight (5) -

Westpac has decided to undertake a strategic review of sub-scale and/or low-returning businesses. Morgan Stanley observes such strategies from other majors banks in recent years have typically required significant restructuring costs.

Revenue and margins were ahead of forecasts in the first half and both were boosted by stronger treasury income. Morgan Stanley retains an Underweight rating. Target is reduced to $15.00 from $15.70. Industry view: In Line.

Target price is $15.00 Current Price is $16.16 Difference: minus $1.16 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.59, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in September.

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 WBC as Add (1) -

Westpac's pre-announced first half credit impairment charge was slightly lower than the broker expected, but yesterday's profit result was -10% lower than forecast due to soft banking fee and wealth management income. The dividend deferral was expected.

The broker continues to believe Westpac's risk profile is second only to that of Commonwealth Bank ((CBA)), and its provisions are more conservative than those of ANZ Bank ((ANZ)) and National Bank ((NAB)), implying less top-up risk. Westpac is the broker's preferred pick. Add retained, target falls to $19.00 from $19.50.

Target price is $19.00 Current Price is $16.16 Difference: $2.84
If WBC meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $18.59, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in September.

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 WBC as Hold (3) -

Westpac’s first half was better than expected with underlying pre-provision profit 2% ahead of Ord Minnett's estimates. The bank decided to hold off the interim dividend.

With its capital position below that of peers, the bank may build a further buffer, expects the broker. Ord Minnett predicts there could be downward pressure on dividends.

The broker has reduced the cash net profit forecast for FY20 by -2% while raising it by 1% for the next two years.

Hold rating retained with target price increased to $16.75 from $16.

Target price is $16.75 Current Price is $16.16 Difference: $0.59
If WBC meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $18.59, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in September.

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 WHC as Neutral (3) -

Coal prices have turned down sharply, with Newcastle thermal coal dropping to US$50/t and spot hard coking coal to US$109/t. The weaker prices reflect the re-start of Richards Bay exports and weaker demand from key markets.

Citi reduces Whitehaven Coal's FY20 and FY21 operating earnings (EBITDA) estimates by -4% and -21%, respectively. Low coal prices and a stronger Australian dollar remain headwinds.

Neutral rating maintained. Target is reduced to $1.80 from $2.00.

Target price is $1.80 Current Price is $1.78 Difference: $0.02
If WHC meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.57, suggesting upside of 44.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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