BAP – UBS rates the stock as Buy
Bapcor has completed a $180m institutional placement which is expected to significantly reduce leverage. UBS notes the store network in Australia is fully operational and gross margins are steady.
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EHL – Macquarie rates the stock as Outperform
The latest updates from the Australian mining services sector indicate production-related activities domestically have seen little virus impact while internationally is mixed, the broker notes.
Read MoreS32 – Credit Suisse rates the stock as Outperform
The March quarter update revealed little that was surprising for Credit Suisse. All measures being undertaken are designed to preserve the balance sheet, which remains strong.
Read MoreSYD – UBS rates the stock as Buy
The traffic update was broadly in line with expectations. Traffic is currently down around -95%. A further $850m in bank debt brings total liquidity to $2.8bn, which UBS expects should comfortably cover the debt burden for the next 12 months.
Read MoreEHL – Macquarie rates the stock as Outperform
The latest updates from the Australian mining services sector indicate production-related activities domestically have seen little virus impact while internationally is mixed, the broker notes. Exploration and non-essential activities are nonetheless more likely to be curtailed. But in particular, iron ore and gold operations in WA are noted as being very strong.
Read MoreSFR – Credit Suisse rates the stock as Outperform
Production in the March quarter comprised 17,900t of copper and 9,400 ounces of gold at C1 costs of US$0.74/lb. Guidance has been withdrawn as a precaution rather than because of any particular impact.
Read MoreIPL – UBS rates the stock as Neutral
UBS expects depressed prices for ammonia are likely to persist throughout the US cropping season in the second half of FY20. The impact is offset by a lower Australian dollar and improved Australian fertiliser distribution outlook.
Read MoreBKL – Macquarie rates the stock as Underperform
Blackmores’ earnings guidance remains in place but the revenue mix is likely to be materially different than normal, the broker suggests. Supermarkets and pharmacies remain open, but sales will shift to virus-related products and away from other categories. The broker assumes the net impact on profit will be minimal.
Read MoreCWN – Credit Suisse rates the stock as Outperform
Credit Suisse has a base case for a 3-month shutdown of the company’s casinos. Crown Resorts has formally announced that 95% of staff will be stood down.
Read MoreRHC – UBS rates the stock as Neutral
The broker has looked at the SARS event to provide a guide to when elective surgery may be able to start up again, but the problem is SARS was all over quite quickly and thus provides little precedent for Covid-19.
Read MoreCGC – Macquarie rates the stock as Underperform
Costa Group has withdrawn guidance. Macquarie notes this comes despite the strong trading outcome in the March quarter. As seasonal conditions in Australia are better the concern is likely to centre on Europe.
Read MoreTAH – UBS rates the stock as Buy
Tabcorp’s gambling offerings are materially impacted by pub/club closures, the broker notes. Lottery ticket impact at newsagents is unclear in the lockdown. Can racing (80% of wagering) continue with everything else suspended? How much offset can be gleaned from increased online activity?
Read MoreOZL – Macquarie rates the stock as Outperform
First-quarter results were mixed, Macquarie observes, with strong copper and gold production offset by higher-than-expected cash costs.
Read MoreLLC – Credit Suisse rates the stock as Outperform
In examining the balance sheet and cash flow, Credit Suisse does not believe an equity raising is required at this stage.
Read MorePDL – Credit Suisse rates the stock as Neutral
Outflows in the March quarter worse than Credit Suisse expected, although a large proportion were lower-margin Westpac-related outflows and cash/fixed-income outflows.
Read MoreGEM – UBS rates the stock as Upgrade to Buy from Neutral
UBS believes the government decision to support the childcare industry makes sense. The $301m equity raising has dramatically improved the balance sheet and should support the business through a period of weak conditions, the broker assesses.
Read MoreIEL – Macquarie rates the stock as Outperform
The broker has reviewed its position on IDP Education post equity raising, envisiging a three-stage recovery beginning with localised lockdowns and travel restrictions extending lower volumes, followed by lockdowns easing but travel restrictions lagging in FY21, and finally normalisation in FY22 with IDP taking market share.
Read MoreVEA – Credit Suisse rates the stock as Neutral
The company will delay its on-market buyback to assess the longer-term impact of the coronavirus crisis. Capital expenditure will be reduced to preserve cash flow.
Read MoreBOQ – Morgans rates the stock as Hold
Bank of Queensland’s first half result missed the broker on slower revenues and higher expenses. As the broker had expected, following APRA’s directive, the bank has deferred its interim dividend. On the expectation of increased loan impairments, the broker cuts FY earnings forecasts by -12%.
Read MoreRDY – Macquarie rates the stock as Outperform
Macquarie updates forecasts to allow for the potential impact of the coronavirus crisis. Some of the sales pipeline is expected to be pushed out and the time to close new clients will be extended.
Read MoreAWC – Macquarie rates the stock as Outperform
Macquarie has marked to market for March quarter bulk commodity prices and incorporated provisional pricing adjustments.
Read MoreOSH – UBS rates the stock as Buy
Oil Search has announced a US$700m capital raising at $2.10 a share as well as a nine-month extension to its US$300m facility. Production and capital guidance has been maintained.
Read MoreCAJ – Credit Suisse rates the stock as Outperform
Credit Suisse suggests the closure of the Fowler Simmons transaction just ahead of the current crisis puts the focus on the balance sheet at a time when it was showing some sign of turning around.
Read MoreCBA – Morgans rates the stock as Hold
APRA has written to the banks and insurers, advising them to “seriously consider deferring decisions on the appropriate level of dividends until the outlook is clearer”.
Read MoreSXL – UBS rates the stock as Buy
UBS assumes the worst advertising market declines are in the June and September quarters before easing off in the December quarter. A recovery is expected from 2021.
Read MoreTAH – Credit Suisse rates the stock as Outperform
Credit Suisse suspects the company may need equity of $500m, although it acknowledges it does not have a liquidity issue.
Read MoreORG – Citi rates the stock as Buy
Origin Energy has retained its distribution guidance from its APLNG stake, which was under threat from the oil price collapse.
Read MoreCBA – Credit Suisse rates the stock as Neutral
Credit Suisse, again, reduces earnings estimates and allows for a further increase in bad debts for the banks.
Read MoreRWC – UBS rates the stock as Buy
The company has put more than 40% of its UK staff on leave as channel partners there temporarily close or reduce their purchases.
Read MoreDTL – Morgans rates the stock as Hold
Data#3 has noted its primary objective at present is to keep staff and customers safe and serviced. Immediate demand for the company’s remote working solutions is strong. Data suggests to the broker Data#3 will achieve its full-year objective of delivering sustainable growth.
Read MoreFBU – UBS rates the stock as Neutral
The company has withdrawn guidance for FY20 and cancelled the interim dividend to preserve liquidity.
Read MoreORA – Credit Suisse rates the stock as Outperform
The company expects to complete the sale of the fibre business by the end of the month. Credit Suisse now assumes $750m is distributed by way of a special dividend of $0.62. A $200m buyback is then expected in FY21.
Read MoreIEL – UBS rates the stock as Upgrade to Buy from Sell
While the next 6-9 months will be challenging, UBS assesses the $190m capital raising and incremental debt facilities provide ample flexibility.
Read MoreCBA – Citi rates the stock as Buy
Citi does not expect APRA to follow the RBNZ’s lead in suspending bank dividend payments, as too many self-funded retirees rely on that income with the cash rate at 0.25%. The regulator has indeed flagged an opposite capital approach — easing the timing on “unquestionably strong” levels in the face of the crisis.
Read MoreIEL – Morgans rates the stock as Upgrade to Add from Hold
IDP Education was travelling along fine at the beginning of the year before the wheels fell off in March, a trading update revealed. This has prompted a $240m capital raising and debt refinancing. Morgans has cut earnings per share forecast by over -40% and does not expect a full recovery until FY22.
Read MoreTLS – UBS rates the stock as Buy
UBS now assumes Telstra cuts the dividend to $0.14, potentially from the second half of FY20. Long-term forecasts for earnings per share are unchanged at $0.18.
Read MoreBAP – Credit Suisse rates the stock as Outperform
Bapcor has underperformed recently, given the concerns around shut-downs and the associated impact on the balance sheet.
Read MoreASX – Credit Suisse rates the stock as Neutral
Credit Suisse assesses earnings should benefit from volatility in the short term. ASX is considered the most defensive stock amongst diversified financials and it carries no debt.
Read MoreWES – UBS rates the stock as Neutral
UBS cuts forecasts for Wesfarmers by -4-16% as well as updates for the sell-down of the Coles stake.
Read MoreLVH – Morgans rates the stock as Add
LiveHire has won a major contract for its talent community software from the Queensland public service. The deal will allow Queensland to have a more efficient response to the coronavirus pandemic, redeploying more than 15,000 public service employees.
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