ORI – Credit Suisse rates the stock as Neutral
Credit Suisse found the increasing evidence of the uptake of technology and improved manufacturing reliability were favourable highlights of the company’s strategy update.
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CCP – Morgans rates the stock as Add
FY19 results were in line with expectations. Net profit guidance of $75-77m is below Morgans’ original forecasts but appears conservative. The broker expects FY20 will benefit from earnings uplift in the US and an increase of 16% in the consumer lending book as well as significantly lower debt.
Read MoreSDF – Credit Suisse rates the stock as Neutral
The company has entered a bid implementation agreement with IBNA following the announcement in June. Also, Steadfast Group is seeking expressions of interest to acquire the total rebate from network brokerages in Australasia.
Read MoreCIM – Macquarie rates the stock as Upgrade to Neutral from Underperform
First-half net profit was below expectations. Mining division strength stood out, delivering 26% growth in pre-tax profit. Operating cash flow was well below expectations. The company has indicated it is moving to alliance-style, rather than fixed-price, contracts which have a more even cash flow profile.
Read MoreKAR – Macquarie rates the stock as Upgrade to Outperform from Neutral
The company will acquire the Bauna oilfield for US$665m, becoming the fourth largest liquids producer on the ASX. Macquarie suggests a US$100-120m capital raising may be required to fund the acquisition shortfall and strengthen the balance sheet.
Read MoreOGC – UBS rates the stock as Neutral
UBS found the cost performance in the June quarter worse than forecast, with all-in sustainable costs up 27%. Some of this was from heavy pre-stripping, so there will be a benefit in the future from greater access to ore and lower stripping costs.
Read MoreTWE – Credit Suisse rates the stock as Outperform
US retail sales data reveals the company has markedly improved sales in July. The improvement came with a strong launch of Beringer Bros. Credit Suisse is impressed with Treasury Wines’ execution under the new distribution model.
Read MoreVRT – UBS rates the stock as Upgrade to Buy from Neutral
UBS reviews volume trends for the Australian IVF market and the implications. Data is positive for Virtus Health and the broker updates growth assumptions. Earnings estimates are upgraded by 1-11% across FY19-21.
Read MoreFMG – Credit Suisse rates the stock as Downgrade to Neutral from Outperform
Credit Suisse believes iron ore prices will peak in the current quarter and downgrades to Neutral from Outperform, despite finding the company difficult to fault.
Read MoreGOR – Macquarie rates the stock as Downgrade to Neutral from Outperform
Macquarie downgrades to Neutral from Outperform as the target is now in line with the current share price. Target is $1.40.
Read MoreASX – Credit Suisse rates the stock as Underperform
Credit Suisse observes corporate actions were weak in the second half of FY19. Margin on listings in the current half year is expected to be significantly higher, as particularly low-margin listings are cycled.
Read MoreALX – UBS rates the stock as Neutral
The company reported weighted average toll revenue increases of 0.3% for the June quarter amid -2.1% declines in traffic across the network. APRR traffic is now down -0.5% on a 12-month trading basis, partially because of the “Yellow Vest” protests.
Read MoreBXB – Morgans rates the stock as Hold
Morgans expects FY19 underlying earnings (EBIT) to be up 1.5% when the company reports on August 21.
Read MoreMP1 – UBS rates the stock as Buy
The company has hit the target of 300 physical data centres as well as increased services and customers. UBS believes the compounding effect of stronger quarterly growth could have a material impact on the long-term revenue potential.
Read MoreOZL – Credit Suisse rates the stock as Underperform
Credit Suisse points out management is confident regarding achieving December quarter production at Carrapateena but the timetable may be at risk, given time-consuming plant completion is still required.
Read MoreCVW – Macquarie rates the stock as Neutral
A trading update from ClearView suggested an FY19 profit -7.6% below the broker’s forecast, due to the adverse impact of a change in income protection claims assumptions. Changes have been made by management in all of expense, claims, lapse and discount rate assumptions to take into account recent experience.
Read MoreTWE – Citi rates the stock as Sell
Citi expects a strong result for FY19, given the premium wine sales into China. Recent data on the wine industry has reinforced the view that growth is likely to be driven by Asia, particularly China.
Read MoreWPL – Credit Suisse rates the stock as Outperform
Credit Suisse observes the shutdown at Pluto has affected revenue and production costs in the second quarter. Yet, the negatives in the June quarter are largely considered one-off and, the broker suspects, over emphasised by the market.
Read MoreSM1 – Morgans rates the stock as Initiation of coverage with Hold
Synlait Milk is nearing completion of the second major capital expenditure phase, during which it will invest NZ$400m in four major growth projects. Morgans believes the new investment will drive strong volume-led earnings growth over FY19-21.
Read MoreCBA – Morgans rates the stock as Hold
Morgans believes stimulus initiatives announced by APRA (Australian Prudential Regulatory Authority), for an additional capital add-on of $500m for operational risk, to be applied until the banks have completed their planned remediation, will de-risk the earnings outlook for the sector.
Read MoreCGC – Citi rates the stock as Buy
Citi notes pricing for mushrooms has been unusually weak this year. This is Costa Group’s largest domestic product category. The weakness should abate in coming months but the broker remains cautious about forecasts.
Read MoreAMP – Credit Suisse rates the stock as Neutral
The sale of the company’s life business is unlikely to proceed on current terms because of the challenges in meeting the Reserve Bank of New Zealand’s criteria. Credit Suisse notes this allows the buyer the opportunity to review its offer and potentially lower the purchase price by over -$1bn.
Read MoreREA – Morgans rates the stock as Downgrade to Reduce from Add
The shares are now trading well above Morgans’ valuation and the rating is downgraded to Reduce from Add. REA Group shares have risen 21% since the broker last reported on the stock in May.
Read MoreCOH – Citi rates the stock as Downgrade to Sell from Neutral
Citi expects net profit in FY19 of $275m, at the top end of guidance. The broker suspects market growth in North America will be lower than the prior corresponding period as Cochlear may have been more focused on protecting market share.
Read MoreALL – Macquarie rates the stock as Outperform
After a review of Aristocrat forecasts, the broker has decided digital, which currently represents some 28% of profit, may have reached an inflection point. Better growth is expected from FY20 and beyond supported by recent Social Casual releases and improvements in Social Casino.
Read MoreELD – Morgans rates the stock as Upgrade to Add from Hold
Elders will acquire Australian Independent Rural Retailers for $187m. The acquisition will be funded via cash and scrip. Morgans considers the purchase price reasonable, given the size of the group.
Read MoreBIN – UBS rates the stock as Buy
UBS finds the majority of the Sydney market has implemented larger-than-expected price increases, off the back of the Queensland landfill levy. The broker believes there is further upside available from recent price increases.
Read MoreDMP – Morgans rates the stock as Hold
Morgans reviews assumptions ahead of the results on August 21. Revenue growth of 12% and operating earnings (EBITDA) growth of 10% are expected. The broker still envisages risks to guidance based on store roll-out and margins.
Read MoreMYX – Credit Suisse rates the stock as Neutral
Credit Suisse reviews script volume trends for the company’s key generic and specialty brands. With limited improvement in the final six weeks of FY19 the broker envisages downside risk to consensus forecasts.
Read MoreCSL – UBS rates the stock as Buy
The Trump Administration has withdrawn its proposed rebate rule which was intended to stop the practice of pharmacy benefit manager rebates from January 1, 2020. UBS suggests the most likely reason was the cost of implementation.
Read MoreMPL – Citi rates the stock as Neutral
Neutral rating retained as Citi adjusts EPS forecasts (slightly) upon marking-to-market led by stronger bonds (lower yields) and stronger equities. The analysts cannot help but conclude this stock looks expensive given the industry’s challenged outlook.
Read MoreOZL – UBS rates the stock as Buy
The company has updated on the Brazilian assets. UBS has been waiting for further details on development to refine its assessment. The update indicates that the economics of the Antas mine are worse than previously assessed.
Read MoreIRE – Credit Suisse rates the stock as Neutral
Credit Suisse remains broadly positive about the company’s UK operations, highlighting supportive industry conditions for advice/wealth software amid likely consolidation in advice that is aligned to the company’s focus.
Read MoreWHC – Morgans rates the stock as Add
Whitehaven Coal’s June Q production beat the broker by 4%, suggesting operational issues appear to be under control, although some sales have shifted in FY20.
Read MoreRFF – UBS rates the stock as Buy
UBS assesses Rural Funds has missed the A-REIT rally as it is up just 10% versus the sector’s gains of 22%. The company’s revaluation of Rewan and its gulf properties has affirmed the cattle strategy and provides the broker with confidence.
Read MoreSVW – Credit Suisse rates the stock as Outperform
Credit Suisse has assessed the mining aftermarket industry, which is the company’s higher multiple division, and believes this offsets weakness within the lower-multiple equipment hire division.
Read MoreRIO – Morgans rates the stock as Hold
The broker has reviewed its assumptions and forecasts for Rio, including marking to new iron ore price forecasts. This leads to a valuation increase to an enterprise multiple of 5.5x for FY20, in line with global peers.
Read MoreAHY – Credit Suisse rates the stock as Outperform
Credit Suisse assesses an improving earnings profile and low PE should attract investors and the stock could re-rate.
Read MoreGNC – UBS rates the stock as Buy
UBS notes press speculation there is potential interest in the company’s malt division. The division is currently scheduled to be de-merged after the FY19 results in November.
Read MoreREH – Morgans rates the stock as Initiation of coverage with Add
Morgans notes strategically located distribution centres offer a wide range of products from premium brands, enabling the company to capture large-scale contractors with comprehensive requirements.
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