AFG – Macquarie rates the stock as Outperform
The broker has reviewed the potential earnings contribution for Australian Finance Group assuming the merger with Connective go ahead.
Read MoreBroker News
AIZ – Credit Suisse rates the stock as Underperform
Air New Zealand expects an underlying pre-tax loss of up to -NZ$120m in FY20. There was no update on current liquidity.
Read MoreNUF – UBS rates the stock as Reinstate coverage with Neutral
UBS reinstates coverage on Nufarm with a Neutral rating and $5.19 target. The broker considers the stock is fair value and trading in line with its long-term average.
Read MoreMTS – Macquarie rates the stock as Neutral
Macquarie updates numbers ahead of the results. Channel checks point to strong sales at local supermarkets and liquor stores during the height of the pandemic.
Read MoreRHC – UBS rates the stock as Neutral
Public hospital elective surgery data for the four major states indicates, in aggregate, the number of people waiting surgery increased 9% in the March quarter.
Read MoreJMS – Macquarie rates the stock as Outperform
First-quarter production was stronger than Macquarie expected while sales were affected by shipments being rolled over into the second quarter.
Read MoreIFN – Morgans rates the stock as Hold
Infigen Energy had received an offer of $0.80 from UAC Energy which the broker considered a fair price, albeit the board hed not yet recommended the offer. Now international wind energy company Iberdrola has offered 86c.
Read MoreFPH – UBS rates the stock as Sell
UBS notes initial attempts to assess sales related to the pandemic were based on high estimates of infection rates, available ICU beds and manufacturing capability.
Read MoreCGF – Credit Suisse rates the stock as Neutral
Credit Suisse calculates that the company’s capital position dropped to the lower end of the target range in March because of the large expansion in sub-investment-grade credit spreads and a drop in equity markets.
Read MoreOPC – Morgans rates the stock as Hold
Telco services company Uniti Group ((UWL)) has offered OptiComm shareholders $5.10 in cash and/or scrip in a full takeover bid. The board has recommended shareholders accept the bid unless a better one comes along. Given directors and associates own around 50% of the company the broker suggests a takeover is likely.
Read MoreBSL – UBS rates the stock as Neutral
UBS updates modeling following a trough in earnings that appears shallower than previously expected. The broker now assesses the risk/reward is balanced and retains a Neutral rating.
Read MoreIPL – Macquarie rates the stock as Outperform
Macquarie lifts forecasts for the Australian dollar and, whilst in isolation this is negative for reported earnings, a stronger currency is usually correlated positively with higher global fertiliser prices.
Read MoreRWC – Credit Suisse rates the stock as Upgrade to Outperform from Neutral
Credit Suisse increases estimates for net profit by 53% in FY20 and 22% in FY21. The contractor outlook in the US has improved materially.
Read MoreSVW – UBS rates the stock as Buy
UBS notes WesTrac’s revenue is up 15% year-on-year and Coates revenue up 2%. WesTrac has recently won 2 major truck and ancillary fleet orders with Fortescue Metals ((FMG)).
Read MoreWAF – Macquarie rates the stock as Downgrade to Neutral from Outperform
Macquarie upgrades processing assumptions for Sanbrado as the performance to date has been strong.
Read MoreNCM – UBS rates the stock as Buy
Newcrest has results of drilling at Red Chris and Havieron which reinforce the emerging value in these projects. UBS is of the view that the results from Havieron increase the likelihood it will be mined, which could change the economics of Telfer.
Read MoreOZL – Macquarie rates the stock as Outperform
Despite restrictions in South Australia, OZ Minerals has continued to operate as normal at its mines. Hence the Carrapateena expansion study is due in the next few weeks and Prominent Hill expansion next year. The confirmation of the economics of a block cave at Carra is a key potential catalyst, the broker suggests, offering upside risk to forecasts.
Read MoreAVN – Macquarie rates the stock as Upgrade to Outperform from Neutral
Macquarie believes Aventus Group is well placed to benefit from the reopening of the economy and a residential rebound.
Read MoreTPM – UBS rates the stock as Neutral
UBS believes the merger with Vodafone Hutchison Australia should solve a number of problems for both companies and are highly complementary.
Read MoreNST – Credit Suisse rates the stock as Upgrade to Outperform from Neutral
Credit Suisse increases gold price forecasts for 2020-22, again. Fundamentals underpinning the gold sector include low and negative yields, a weakening US dollar and expectations that significant fiscal stimulus from various governments will ultimately be highly inflationary.
Read MoreSKI – UBS rates the stock as Neutral
The Australian Energy Regulator has determined its final proposal for the SA Power Networks. This confirms revenue will reduce -5.5% over 2020-25 relative to the prior period, mostly because of lower allowed rates of return. The outcome is better than expected.
Read MoreDMP – Credit Suisse rates the stock as Underperform
Credit Suisse found no surprises in the update. The main unknown is the willingness of franchisees to invest, as opening of new stores is the primary determinant of the company’s earnings growth.
Read MoreAFG – Macquarie rates the stock as Outperform
The broker had been on research restriction for Australian Finance Group’s capital raising but returns to retain an Outperform recommendation. Funding is now in place to support book growth, the broker notes, and margin clarity has increased with funding renewal and securitisation market activity.
Read MoreKGN – Credit Suisse rates the stock as Neutral
The company sustained another strong month of sales and earnings growth in May. This stems from consumers switching to online and increased marketing expenditure.
Read MoreHLS – Macquarie rates the stock as Upgrade to Outperform from Neutral
Macquarie reviews the near-term growth assumptions and assumes a less substantial impact from the pandemic. The broker believes Healius is positively leveraged to improved activity levels heading into FY21.
Read MoreOML – Credit Suisse rates the stock as Outperform
Credit Suisse found little detail in the AGM update. The broker assesses near-term volatility is highly likely. Moreover, consensus estimates appear “toppy” for 2021.
Read MoreBSL – Credit Suisse rates the stock as Outperform
At current levels the market is pricing in depressed FY20/21 earnings in perpetuity, Credit Suisse assesses, which is unrealistic.
Read MoreSEK – UBS rates the stock as Neutral
The company has signalled the upcoming changes to contract structure, effective July 1. Concessions will cease and recruiters/corporates on subscriptions will transfer back to minimum dollar commitments.
Read MoreBSL – Credit Suisse rates the stock as Outperform
At current levels the market is pricing in depressed FY20/21 earnings in perpetuity, Credit Suisse assesses, which is unrealistic.
Read MoreSEK – UBS rates the stock as Neutral
The company has signalled the upcoming changes to contract structure, effective July 1. Concessions will cease and recruiters/corporates on subscriptions will transfer back to minimum dollar commitments.
Read MoreAYS – Macquarie rates the stock as Outperform
The company will acquire 77,000 mobile subscribers from Optus for $15.8m. Macquarie expects the transaction will be modestly accretive in FY21. Amaysim has also reiterated FY20 guidance for underlying operating earnings of $33-39m.
Read MoreARF – Macquarie rates the stock as Outperform
Arena REIT has undertaken a $60m equity raising. Macquarie notes the balance sheet gearing will decline to 17.6%, materially below the target range of 35-40%.
Read MoreTWE – Credit Suisse rates the stock as Neutral
Credit Suisse’s channel checks indicate the luxury wine market in China is not showing any meaningful sign of recovery. Business people appear unprepared to gather and “banquet”.
Read MoreALX – Morgans rates the stock as Downgrade to Hold from Add
Atlas Arteria is undertaking a capital raising via a $420m institutional placement and share purchase plan of up to $75m. Proceeds are to be used to repay the debt related to the APRR investment.
Read MoreSDF – UBS rates the stock as Initiation of coverage with Buy
Premium growth on the client trading platform has been tracking behind target but increased broker uptake of the INSIGHT platform, along with the expansion of auto-rating to additional classes, is expected to clear bottlenecks to growth from the second half of FY21.
Read MoreSGR – Credit Suisse rates the stock as Outperform
Star Entertainment has reached agreement with the NSW government to set the casino tax rates and create certainty around the regulatory framework for the period FY22-41.
Read MoreAPT – Morgans rates the stock as Downgrade to Hold from Add
The stock is trading at its highest multiples compared with historical averages. Morgans upgrades earnings forecasts for the next two years because of improved revenue and bad debt assumptions, based on recent trends.
Read MoreSUL – Macquarie rates the stock as Outperform
Macquarie considers the risk/reward more balanced now. The broker has feedback that suggests Supercheap Auto and Rebel are holding up well relative to other discretionary retail categories.
Read MoreWPL – UBS rates the stock as Buy
The oil price has lifted from its April low, benefiting from a lift in sentiment as a result of reduced supply and the lifting of mobility restrictions.
Read MoreSTO – Macquarie rates the stock as Outperform
Santos has completed its US$1.5bn acquisition of the northern Australia/Timor-Leste assets. Macquarie notes some improvement in the settlement terms.
Read More
