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Broker Updates
CCP - Morgans rates the stock as Upgrade to Add from Hold
Added On - 6/25/2018 11:00:33 AM
Morgans does not believe there are any legitimate concerns raised from the recent anonymous report published on Credit Corp. The broker suggests, despite the attempt to damage the company's reputation, it is unlikely the risk of access to funding has increased.
TAH - Credit Suisse rates the stock as Outperform
Added On - 6/25/2018 11:00:23 AM
Victoria and Western Australia have increased race field fees from FY19. Even though the current Queensland regime expires June 30, 2019, Credit Suisse is not expecting any further moves, as the large Australian states now have closely aligned race field rates.
MHJ - Macquarie rates the stock as Outperform
Added On - 6/25/2018 10:59:46 AM
Instead of reducing Emma & Roe to 6 stores the company will now abandon the brand and focus on its core. Macquarie has identified a value gap between the current share price and its valuation of the core business.
FBU - Deutsche Bank rates the stock as Hold
Added On - 6/22/2018 11:11:23 AM
The company has reaffirmed guidance for FY18 operating earnings and made no changes to project provisions. The FY19 growth trajectory is soft but in line with Deutsche Bank's expectations.
BAL - Citi rates the stock as Buy
Added On - 6/22/2018 11:11:06 AM
The government has implemented a new rule in the form of Country of Origin Labelling, which comes into effect on July 1 and basically ensures the true extent of Australian produce within a product is documented.
PLS - Macquarie rates the stock as Outperform
Added On - 6/22/2018 11:10:59 AM
The company has produced its first spodumene and tantalite concentrates from the Pilgangoora fines flotation circuit ahead of schedule.
TLS - Morgans rates the stock as Add
Added On - 6/21/2018 10:26:29 AM
Telstra has announced a significant simplification of its operations. FY19 is expected to be affected by restructuring and delays in the NBN.
NCM - Credit Suisse rates the stock as Neutral
Added On - 6/21/2018 10:26:15 AM
Newcrest has settled its insurance claim in relation to the seismic event on April 14, 2017 at Cadia. The settlement is reported to be US$155m.
AMC - Macquarie rates the stock as Outperform
Added On - 6/21/2018 10:25:43 AM
The company's guidance is for a modestly lower FY18 outcome versus the February update. Macquarie calculates this translates to modestly lower profit versus the prior year on a constant currency basis.
GNC - Morgans rates the stock as Hold
Added On - 6/20/2018 11:10:54 AM
Morgans revises forecasts following the release of ABARES' 2018/19 winter crop forecast. The company now looks set to face two consecutive seasons that are well below average. Extremely low carry-over grain will also impact on FY20.
RIO - UBS rates the stock as Buy
Added On - 6/20/2018 11:10:45 AM
UBS found no surprises in its visit to the Rio Tinto Pilbara iron ore system. The focus on value over volume remains in place, and from mine to port the infrastructure is continuously being improved. However, this is getting harder and cost pressures are mounting.
IAG - Credit Suisse rates the stock as Neutral
Added On - 6/20/2018 11:09:50 AM
IAG will sell its interests in Thailand, Indonesia and Vietnam. Credit Suisse suspects the sale price for the loss-making Vietnam operations was probably minimal, given it was undisclosed, while the sale price for the total Thai and Indonesian Holdings was $525m.
FLT - Deutsche Bank rates the stock as Hold
Added On - 6/19/2018 10:42:38 AM
Deutsche Bank observes travel volumes in April slowed after a strong March. While Easter can cloud the numbers the broker does not believe this will have been a factor.
RIO - Macquarie rates the stock as Outperform
Added On - 6/19/2018 10:42:34 AM
The company has reaffirmed 2018 Pilbara shipment guidance of 330-340mt. Macquarie expects integration of AutoHaul together with the scheduled track improvements will lift rail capacity.
S32 - Citi rates the stock as Neutral
Added On - 6/19/2018 10:42:28 AM
The company will acquire the remaining 83% of Arizona Mining for US$1.3bn. The main asset is the Hermosa zinc project where the preliminary economic assessment study has allowed for a mine life of 29 years based on 3.3mt annual throughput and construction capital of US$519m.
GUD - UBS rates the stock as Sell
Added On - 6/18/2018 10:22:54 AM
The company recently acquired Disc Brakes Australia and is adding new lines to its automotive division. Feedback from industry appears supportive of the momentum in the automotive business, UBS observes.
CYB - Morgans rates the stock as Hold
Added On - 6/18/2018 10:22:50 AM
Morgans believes there is a high probability that Virgin Money will recommend the revised takeover proposal. The broker assumes CYBG will target cost synergies equivalent to 15-50% of Virgin Money's cost base and it could achieve underlying accretion of 9-32%.
BHP - Macquarie rates the stock as Outperform
Added On - 6/18/2018 10:22:47 AM
The board has formally approved the development of the US$3.4bn, 80mtpa South Flank project. Reserves and resources estimates for Western Australian iron ore have been upgraded.
GMG - Deutsche Bank rates as Hold
Added On - 6/15/2018 8:57:21 AM
Management has reaffirmed FY18 guidance for earnings per share of 46.5c and an intention to maintain low gearing levels. The key takeaway from the investor briefing, in Deutsche Bank's view, was the buoyant state of the industrial property market, in particular in the US.
AIZ - Credit Suisse rates as Underperform
Added On - 6/15/2018 8:57:18 AM
The investor briefing focused on the structural advantages that has allowed the airline to perform through the cycle as well as sustainable returns. Credit Suisse found nothing materially new to change its investment view.
FCT - Morgans rates the stock as Add
Added On - 6/15/2018 8:57:15 AM
Morgans notes cyber security remains one of the largest challenges facing businesses today. Firstwave Cloud Technology offers enterprise-grade cyber security for small-and medium-sized businesses.
SEH - Macquarie rates the stock as Neutral
Added On - 6/14/2018 11:22:19 AM
The company has negotiated an eight-year extension to the Linxing PSC until 2036 but in return has reduced its interest and relinquished some acreage.
APA - Deutsche Bank rates the stock as Buy
Added On - 6/14/2018 11:21:40 AM
Hong Kong based CK Infrastructure has already had initial discussions with the ACCC and FIRB regarding its indicative bid of $11 per share for APA.
FCT - Morgans rates the stock as Add
Added On - 6/14/2018 11:21:22 AM
Morgans notes cyber security remains one of the largest challenges facing businesses today. Firstwave Cloud Technology offers enterprise-grade cyber security for small-and medium-sized businesses.
RIO - Deutsche Bank rates as Hold
Added On - 6/13/2018 10:39:21 AM
While believing some of the bear scenarios regarding rapidly rising scrap consumption are premature, Deutsche Bank expects Chinese demand for iron ore to peak around 2020 and limit the growth potential for the major producers.
TWE - Morgan Stanley rates as Overweight
Added On - 6/13/2018 10:39:16 AM
From information gathered at the Australian briefing by the Swisse vitamin business, Morgan Stanley notes suggestions that Australian wine exports were now moving across the border to China far more easily and the bottleneck previously signalled by Treasury Wine could be over.
CTX - Macquarie rates as Outperform
Added On - 6/13/2018 10:39:08 AM
Caltex has provided first-half profit guidance that is in line with Macquarie's expectations. The broker observes the core business is defensive and earnings growth is expected. Future drivers are the asset review and convenience strategy.
SFR - Credit Suisse rates as Underperform
Added On - 6/12/2018 11:01:59 AM
The company has finally achieved in-principle agreement with Talisman ((TLM)) to acquire its 30% interest in the Monty underground copper mine and Springfield exploration JV. The price is $72m cash plus a 1% NSR royalty on future discoveries within the Springfield JV.
AST - Citi rates as Upgrade to Neutral from Sell
Added On - 6/12/2018 11:01:49 AM
Following the recent underperformance of the share price Citi upgrades to Neutral from Sell and considers the stock fairly valued. The broker also updates its model for the FY18 results, which slightly missed expectations.
AGL - Morgan Stanley rates as Equal-weight
Added On - 6/12/2018 11:01:40 AM
Morgan Stanley observes that pool prices have fallen and retail tariffs will follow. This drives reductions to estimates for earnings per share. Risks around policy add complexity to the outlook.
ABC - Morgan Stanley rates as Underweight
Added On - 6/8/2018 10:05:25 AM
Morgan Stanley observes management is constructive regarding demand from both Australian residential and infrastructure activity. Lime volumes are expected to be stable in FY18.
CWY - Morgans rates as Add
Added On - 6/8/2018 10:05:13 AM
The company has indicated the China Sword policy restricting the import of contaminated recycling waste has impacted FY18 operating earnings (EBITDA) by -$3-6m. The Queensland government's landfill levy is not expected to have a material impact.
CGC - UBS rates as Buy
Added On - 6/8/2018 10:04:49 AM
A tour of Costa's berry and avocado operations in FNQ did nothing to alter the broker's belief FY18 guidance is conservative.
MTS - Deutsche Bank rates as Hold
Added On - 6/7/2018 11:15:13 AM
The company has announced it will recognise a -$352m impairment to its food & grocery business. The majority pertains to goodwill and other intangibles.
ASX - Morgans rates as Reduce
Added On - 6/7/2018 11:15:01 AM
May was a strong trading month for ASX, Morgans observes, with futures volumes up 14% and listings & capital raisings up 224% on the prior corresponding period.
ABC - Macquarie rates the Outperform
Added On - 6/7/2018 11:14:47 AM
The company has hosted an investor briefing, reiterating its FY18 outlook. Macquarie observes the market dynamics are favourable and the lime business, at 11% of revenue, remains a stable contributor.
VCX - Credit Suisse rates as Neutral
Added On - 6/6/2018 10:52:05 AM
The company intends to dispose of up to $1.0bn of sub-regional and neighbourhood shopping centres that are considered non-core. Proceeds will be reinvested into the development pipeline.
APO - Morgans rates as Hold
Added On - 6/6/2018 10:51:57 AM
The company has won the right to operate 50 central Sydney billboard sites for the NSW Roads and Maritime Services. Morgans expects the new screens will be slightly accretive from FY19.
BOQ - Morgan Stanley rates as Underweight
Added On - 6/6/2018 10:51:48 AM
Morgan Stanley believes the Australian banks' "super cycle" has come to an end.
IPL - Deutsche Bank rates as Buy
Added On - 6/5/2018 10:25:55 AM
Deutsche Bank believes upside earnings risks are emerging. These risks emanate from the re-start of the $300m share buyback, finalisation of Gibson Island gas agreements and recovery in global nitrogen prices.
JHX - Morgan Stanley rates as Equal-weight
Added On - 6/5/2018 10:25:51 AM
US Census data for 2017 shows no change in market share across any of the major siding categories. Vinyl continues to hold the larger share at 27%, followed by stucco at 24%, brick a 22%, fibre cement at 20% and wood at 5%.
NCM - Citi rates as Buy
Added On - 6/5/2018 10:25:28 AM
Citi analysts highlight the "high takeover appeal" that is currently swirling over the Newcrest Mining share price.
GXY - UBS rates the stock as Buy
Added On - 6/4/2018 11:09:29 AM
The company has updated the definitive feasibility study for the Sal de Vida project and announced the sale of the northern tenements to help fund its development.
ING - Morgans rates the stock as Add
Added On - 6/4/2018 11:09:16 AM
Morgans has reviewed its investment thesis in the light of strong appreciation in the share price. The broker continues to expect the company to provide an impressive FY18 result.
BSL - Credit Suisse rates as Outperform
Added On - 6/4/2018 11:08:35 AM
Consistent with expectations, the company will endure no tariff or quota on steel exported to the US and can continue to export cold rolled coil without a 25% tariff, reports the broker.
MND - Macquarie rates as Neutral
Added On - 6/1/2018 11:26:45 AM
Macquarie now forecasts a -16% decline in the company's FY19 construction revenue, given the low level of wins this year and the time lag for new work flowing through to revenue. The Ichthys work should largely be completed by June 30 and the focus is now on the replacement of around $300m in revenue run-off in FY19.
ASX - Credit Suisse rates as Underperform
Added On - 6/1/2018 11:26:34 AM
ASX has entered into a JV with InfoTrack to provide an electronic property settlement offering. At $30m its a small, low risk investment into an adjacent market providing a new revenue opportunity, the broker notes, but unlikely to move the dial much on earnings.
CBA - Morgan Stanley rates as Underweight
Added On - 6/1/2018 11:26:07 AM
Growth in mortgages continues to slow and Morgan Stanley envisages downside risk to the major banks' growth forecasts, currently at around 4%. The broker highlights a new competitive disadvantage for the major banks.
ANZ - Morgan Stanley rates as Equal-weight
Added On - 5/31/2018 11:30:37 AM
The bank has sold its NZ life insurance business to Cigna for NZ$700m. Morgan Stanley notes ANZ had not publicly stated the business was for sale, although believes the decision is consistent with the strategy to exit low-return and non-core businesses.
FMG - UBS rates the stock as Buy
Added On - 5/31/2018 11:30:32 AM
UBS believes it makes sense that Fortescue Metals is starting to explore alternative product strategies in order to receive better margins.
ALQ - Deutsche Bank rates as Sell
Added On - 5/31/2018 11:30:25 AM
Management expects Alcontrol to provide an additional $8-10m in operating earnings in FY19, which would increase life sciences margins by around 90 basis points.
SHV - Morgans rates the stock as Hold
Added On - 5/30/2018 9:18:15 AM
Morgans believes the company should achieve at least the top end of its pool price estimate of $8.10-8.50/kg, reflecting positive industry fundamentals and a falling Australian dollar. Morgans upgrades forecasts, given the company's strong operating leverage to rising almond prices.
S32 - UBS rates the stock as Neutral
Added On - 5/30/2018 9:18:12 AM
The company has signed a conditional agreement to acquire a 50% stake in Eagle Downs, Queensland. Payment comprises two stages, US$106m upon completion of the acquisition and US$27m three years after completion.
AZJ - Credit Suisse rates the stock as Outperform
Added On - 5/30/2018 9:17:55 AM
Aurizon has applied for a judicial review of what seemed a particularly harsh UT5 draft decision on the grounds of bias of the Queensland regulator's chairman, given the next day that person was appointed chairman of the Port of Newcastle, NSW's competitor to Queensland coal. The broker believes Aurizon has a strong case.
JHX - Morgan Stanley rates as Equal-weight
Added On - 5/29/2018 10:06:27 AM
The asbestos liability review has shown a third year of lower-than-expected claims and a second year of lower-than-expected claim costs.
ALQ - Morgans rates as Hold
Added On - 5/29/2018 10:06:24 AM
Morgans assesses, in a first glance at the FY18 accounts, that the miss in life sciences is unlikely to offset the better outcome in commodities, with regard to FY19 consensus downgrades and a negative market response.
FMG - Credit Suisse rates as Outperform
Added On - 5/29/2018 10:06:19 AM
The company has approved the development and associated rail project at Eliwana. This project will underpin a new premium product for the company, with an iron content of 60%.
WES - Citi rates the stock as Downgrade to Sell from Neutral
Added On - 5/28/2018 7:56:05 PM
Wesfarmers has announced the sale of Bunnings UK & Ireland. The 24 Bunnings pilot stores will revert back to the Homebase brand following completion of the transaction.
WOR - Macquarie rates the stock as Outperform
Added On - 5/28/2018 7:55:53 PM
Macquarie observes contract announcements have picked up in the market and should back recovery prospects, notwithstanding the uncertainty regarding timing.
SPK - Morgan Stanley rates the stock as Overweight
Added On - 5/28/2018 7:55:34 PM
The company will accelerate its cost reduction program, called Quantum, bringing forward an extra NZ$25-30m in implementation costs. This is not a complete surprise to Morgan Stanley and the broker notes no guidance is yet being issued for FY19.
EHL - Morgans rates the stock as Add
Added On - 5/25/2018 3:40:28 PM
The company has announced it will acquire Matilda Equipment for $80m. Matilda is a niche rental supplier of ancillary mining equipment, comprising mostly new model dozers and civil/services vehicles.
REA - Citi rates the stock as Buy
Added On - 5/25/2018 3:40:24 PM
Detailed analysis of industry ad volumes suggests to Citi REA Group continues to exert its dominance, leaving but a few spots for Domain Holdings to lead over its bigger competitor, such as in Sydney's eastern suburbs.
WES - Macquarie rates the stock as No Rating
Added On - 5/25/2018 3:40:18 PM
Media articles signal Alteri Investors and Hilco have made offers for Homebase to Wesfarmers. Endless, a UK PE investor, is no longer in the running according to the speculation.
WPL - Macquarie rates the stock as Neutral
Added On - 5/24/2018 12:07:42 PM
The company has focused on organic growth options in the Asian LNG market at its investor presentation. Capital intensity has been reduced for Scarborough but Macquarie suspects gas buyers are still unwilling to commit.
SRX - Morgans rates the stock as Hold
Added On - 5/24/2018 12:07:32 PM
CDH has formalised its takeover offer at $33.60 via a scheme of arrangement.
COH - UBS rates the stock as Sell
Added On - 5/24/2018 12:07:25 PM
The broker has changed analysts for Cochlear, remodelled valuation drivers and switched to a discounted cash flow methodology. The result is a target price increase to $170 from $150.
CLH - Morgans rates as Hold
Added On - 5/23/2018 11:23:23 AM
The company has entered a transaction with Balbec Capital to assign part of its arrangement book for $19.5m. The company will receive the cash up front and intends to reinvest this in PDLs.
JHX - Morgan Stanley rates as Equal-weight
Added On - 5/23/2018 11:20:58 AM
Results beat Morgan Stanley's estimates at the headline while volume was a little soft in North America. Management attributed this to softer interior volumes as a result of the removal of some product.
HSO - Credit Suisse rates as Neutral
Added On - 5/23/2018 11:20:42 AM
Healthscope intends to close Geelong and Cotham private hospitals in Victoria and take an impairment on Frankston Private. The company has also lowered FY18 guidance and signalled 10% growth in hospital operating earnings in FY19.
SKI - Morgans rates as Add
Added On - 5/22/2018 10:51:47 AM
The regulator has released the final decision regarding Transgrid regulated revenue for the five-year period from July 2018. While important for Transgrid, Morgans notes the result is not significant for Spark Infrastructure as it has only a 15% equity interest relative to its 49% stakes in VPN and SAPN.
BHP - UBS rates as Buy
Added On - 5/22/2018 10:51:35 AM
UBS believes the company is the best positioned of the diversified miners and has a compelling valuation.
ECX - Credit Suisse rates as Outperform
Added On - 5/22/2018 10:49:47 AM
Credit Suisse is firmly of the view that the de-rating of the company over the past six months is overdone. Earnings are growing, operating conditions are stable and the momentum is positive.
SYD - Macquarie rates the stock as Outperform
Added On - 5/21/2018 9:03:01 AM
Macquarie believes April traffic statistics are somewhat misleading as a capture movements of Easter and school holidays.
CSL - Citi rates the stock as Buy
Added On - 5/21/2018 9:02:48 AM
As the company has lifted its guidance for the FY, Citi analysts have lifted their estimates and their price target to $215 from $175. High margins for Haegarda and Idelvion are the main drivers, they explain.
DLX - Deutsche Bank rates the stock as Sell
Added On - 5/21/2018 9:02:41 AM
Deutsche Bank analysts have held a negative view on DuluxGroup for quite a while, as illustrated by their Sell rating and $5.70 price target. Both remain in place as the analysts label the release of interim results a negative event for the company.
DLX - Deutsche Bank rates as Sell
Added On - 5/18/2018 11:36:22 AM
Deutsche Bank analysts have held a negative view on DuluxGroup for quite a while, as illustrated by their Sell rating and $5.70 price target. Both remain in place as the analysts label the release of interim results a negative event for the company.
MPL - Macquarie rates as Neutral
Added On - 5/18/2018 11:36:11 AM
Macquarie's forecasts now include 2% average premium rises in April 2019 and April 2020, regardless of a change in government.
CGF - Credit Suisse rates as Outperform
Added On - 5/18/2018 11:35:23 AM
In the wake of the budget, the government has issued a Retirement Income Covenant Position paper setting out a range of details in relation to Comprehensive Income products for Retirement (CIPR) and allowing a short period for feedback.
BHP - Credit Suisse rates the stock as Neutral
Added On - 5/17/2018 10:06:04 AM
The process of offloading US shale is still on track, BHP noted at a conference yesterday, while insisting conventional oil still has a place in the company's portfolio. Higher energy costs have lifted medium term costs for met coal and copper production.
CPU - UBS rates the stock as Neutral
Added On - 5/17/2018 10:05:47 AM
The company has announced the acquisition of Equatex, a European employee share plan administration business headquartered in Zurich. This represents a key growth segment for the company and UBS suggests it should add significant outer year accretion based on synergies across the combined platform.
 

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