WPL – Credit Suisse rates the stock as Outperform
Woodside has reduced expenditure by -US$2.4bn. Credit Suisse notes the balance sheet is robust and there is little risk to debt covenants under current conditions.
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CLV – UBS rates the stock as Upgrade to Buy from Neutral
First-half results were softer than UBS expected. The miss was attributed to Australasia and Asia sales growth. The broker believes the medium-term growth story is intact and upgrades to Buy from Neutral.
Read MoreS32 – Morgans rates the stock as Add
South32 has announced interruptions to its South African operations after the government called a 21-day lock-down.
Read MoreS32 – Morgans rates the stock as Add
South32 has announced interruptions to its South African operations after the government called a 21-day lock-down.
Read MoreAMP – Macquarie rates the stock as Neutral
AMP has withdrawn 2020 guidance, but the sale of Life and NZ is progressing. The broker has marked to market for funds under management but also adjusted remediation assumptions (80% already paid) to remove some duplication of earlier numbers.
Read MoreSUL – Morgan Stanley rates the stock as Overweight
The company posted a strong trading update, as automotive like-for-like sales growth accelerated to 7.5% in the five weeks to March 21. Stores have been closed in New Zealand for a minimum of four weeks.
Read MoreCOH – UBS rates the stock as Sell
UBS is not surprised by the company’s decision to raise up to $850m, considering the sudden deterioration in the operating environment and the likelihood of paying out $380m in penalties following the lost patent infringement case.
Read MoreTCL – Credit Suisse rates the stock as Upgrade to Neutral from Underperform
Traffic levels are likely to be severely impacted by travel bans, lock-downs and other measures to slow the spread of coronavirus. Credit Suisse expects a reduction in the dividend of -23% in FY21 because of lower free cash flow.
Read MoreRIO – Morgans rates the stock as Add
Government action in South Africa has led to Rio Tinto shutting down operations and developments there for three weeks. Quebec has called mining and smelting essential, but only at minimum rates. The broker has adjusted accordingly and also adjusted for commodity price and forex movements.
Read MoreHLS – Credit Suisse rates the stock as Neutral
Healius has withdrawn FY20 guidance. The company is currently completing around 2500 tests for coronavirus per day but this is not enough to offset the volume drop from fewer GP attendances and the deferral of elective pathology & radiology work.
Read MoreWOW – Morgans rates the stock as Hold
Woolworths has declared it cannot accurately forecast the impact of the virus on its full-year result. A trading update revealed strong recent sales growth on consumer hoarding, nonetheless leading to strain on supply chains to keep up with demand. Management noted, however, mayhem seemed to be easing last weekend.
Read MoreSWM – Morgan Stanley rates the stock as No Rating
Seven West has withdrawn earnings guidance for FY20 because of “escalating uncertainty”.
Read MoreMVF – Morgans rates the stock as Downgrade to Hold from Add
FY20 guidance has been withdrawn. Morgans believes it appropriate to revise forecasts and adjust dividend expectations, as cash conservation is paramount.
Read MoreBOQ – Citi rates the stock as Upgrade to Buy from Neutral
Citi upgrades the banking sector to Buy. Even in a severe bad debt scenario the current crisis is not likely to de-stabilise the sector such as what occurred in the GFC.
Read MoreALL – UBS rates the stock as Buy
Based on the latest data, the broker estimates Aristocrat Leisure’s social gaming and casino app revenue has grown by 10-15% year to date. Total social gaming revenue is estimated to be up 90% year on year in February and 50% year to date.
Read MorePMV – UBS rates the stock as Buy
First-half results were characterised by good cost control and brand management, UBS observes. However, the broker reduces near-term forecasts by -15-20% to reflect the impact of coronavirus.
Read MoreSGM – Credit Suisse rates the stock as Neutral
The company has withdrawn guidance because of the unknown impact on scrap demand and activity. Credit Suisse notes the positives include a strong balance sheet, with limited draw on working capital under the current trading conditions.
Read MoreCAR – Morgan Stanley rates the stock as Overweight
The company has indicated its core business had strong momentum prior to the impact of coronavirus. As much of the population goes into shut-down, Morgan Stanley envisages a sharp drop in dealer leads, private listings and automotive display advertising.
Read MoreNWL – UBS rates the stock as Neutral
Netwealth has announced it will absorb the impact of the cut to the official cash rate, equivalent to a cut of around -10%to pre-tax profit on a full-year basis. This is in line with UBS forecasts.
Read MoreHUB – Credit Suisse rates the stock as Outperform
The company has won a new account which will transition around $1bn of funds under administration. Credit Suisse upgrades flow forecasts in the outer years to capture the benefit.
Read MoreAX1 – Morgan Stanley rates the stock as Overweight
Accent Group has stepped away from guidance for FY20 and second-half earnings growth.
Read MoreLLC – UBS rates the stock as Neutral
The outbreak of coronavirus has shifted the economic outlook and funding markets in a negative direction, UBS notes. The broker calculates Lendlease requires $150-200m in transaction earnings to reach FY20 consensus forecasts.
Read MoreREA – Morgans rates the stock as Upgrade to Hold from Reduce
The company has reduced earnings expectations for FY20, abandoning the likelihood of a strong rebound in premium ad volumes in the current half. An automatic price rise of around 8% has also been postponed.
Read MoreANZ – Macquarie rates the stock as Underperform
With earnings already under pressure from ultra-low rates, the likelihood of further unconventional measures implies another step down. Macquarie notes that while the jury is out on the effectiveness of QE, consensus suggests it hurts bank profitability.
Read MoreALU – UBS rates the stock as Upgrade to Buy from Neutral
UBS upgrades to Buy from Neutral as the valuation appears highly attractive for the long-term growth trajectory. A commercialisation of the relationship with Dassault is a material near-term catalyst.
Read MoreECX – Credit Suisse rates the stock as Outperform
While the company has experienced a stable operating environment in the year to date the coronavirus outbreak implies some risk going forward.
Read MoreCCL – Morgans rates the stock as Hold
Coca-Cola Amatil as withdrawn FY20 guidance. On the one hand the company is benefitting from consumer stockpiling but on the other it is losing sales due to cancelled events, crowdless sport and a general stay-at-home trend.
Read MoreCTD – Credit Suisse rates the stock as Outperform
The company has suspended guidance. Costs are being managed, which includes staff leave, shorter working weeks and reductions in discretionary expenditure.
Read MoreVAH – UBS rates the stock as Neutral
Virgin Australia will reduce group capacity by -6% in the June half and -8% in the December half. This could be adjusted further to reflect changes in demand, either through tactical cancellations or further scheduling cuts.
Read MoreCGF – Macquarie rates the stock as Neutral
The company has reverted back to its original guidance, expecting a pre-tax profit range of $500-550m as opposed to the top end of the range.
Read MoreVAH – UBS rates the stock as Neutral
Virgin Australia will reduce group capacity by -6% in the June half and -8% in the December half. This could be adjusted further to reflect changes in demand, either through tactical cancellations or further scheduling cuts.
Read MoreCTD – Credit Suisse rates the stock as Outperform
The company has suspended guidance. Costs are being managed, which includes staff leave, shorter working weeks and reductions in discretionary expenditure.
Read MoreFLT – Morgans rates the stock as Hold
Flight Centre has withdrawn FY20 guidance. The broker has revised down forecasts with the caveat of best guess under the circumstances. The broker’s travel sector view is one of depressed conditions throughout the first half FY21 before normalising in FY22.
Read MoreCSL – Citi rates the stock as Upgrade to Buy from Neutral
A brave team of healthcare analysts at Citi has upgraded CSL to Buy from Neutral if only because the share price continues to weaken. Citi has kept the $332 price target intact, while forecasting double-digit percentages growth in EPS for each of the following three years.
Read MoreBHP – Credit Suisse rates the stock as Neutral
Credit Suisse cuts oil price forecasts substantially, lowering Brent in 2020 to US$37-42/bbl from US$55-63/bbl. 2021 forecasts are also reduced, to US$45-50/bbl from US$55-65/bbl.
Read MoreMTS – Macquarie rates the stock as Neutral
With respect to the virus, Macquarie sees limited risk to Consumer Staples particularly supermarkets, Coca-Cola Amatil and Domino’s Pizza.
Read MoreCPU – Macquarie rates the stock as Underperform
Due to plunging interest rates, Computershare has downgraded FY20 management earnings guidance to “down around -15%” from a previous “down around -5%” but more importantly, the broker notes, downgraded FY21 margin income guidance by -47% on the basis that negative knock-on effects could manifest for US mortgage servicing and corporate actions through FY21.
Read MoreWEB – UBS rates the stock as Buy
Travel demand has slumped sharply and there are high levels of uncertainty over the next 6-12 months. Hence Webjet has withdrawn FY20 guidance.
Read MoreQAN – Credit Suisse rates the stock as Neutral
Qantas has announced a -23% cut to international capacity and a -5% cut to domestic. Guidance has been withdrawn because of the unknowns surrounding coronavirus.
Read MoreDXS – Morgan Stanley rates the stock as Upgrade to Overweight from Equal-weight
Morgan Stanley believes Dexus is “ideal” for taking shelter its market volatility. The leases are underpinned by fixed 3.5-4%/year increases, while a tight Sydney office market should cushion the impact of uncertainties.
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