SYD – Morgans rates the stock as Add
First-half results were broadly in line with expectations. International passengers comprised 38% and contributed 70% of revenue. Net operating receipts increased by 5%.
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CLW – Macquarie rates the stock as Underperform
Charter Hall’s Long WALE REIT has acquired Telstra’s ((TLS)) portfolio of phone exchange properties in a consortium for $700m or a 4.4% yield.
Read MoreBBN – Morgan Stanley rates the stock as Overweight
FY19 results beat Morgan Stanley’s estimates at every line. Moreover, the broker was surprised by the outlook which points to the durability of the company’s leadership. FY20 estimates for earnings per share are lifted 8%.
Read MoreASX – Morgan Stanley rates the stock as Equal-weight
FY19 results were slightly below Morgan Stanley’s estimates. The special dividend of $1.29 was also below estimates. Guidance is for FY20 operating expenditure growth of 6-8% and capital expenditure of $75-80m.
Read MoreAPX – Credit Suisse rates the stock as Initiation of coverage with Neutral
The broker has initiated coverage of Appen, balancing a 5.1x 2019 revenue forecast with discounted cash flow to come up with a target of $23.00. This is close to the trading price so the broker begins on Neutral.
Read MoreSYD – Morgans rates the stock as Add
First-half results were broadly in line with expectations. International passengers comprised 38% and contributed 70% of revenue. Net operating receipts increased by 5%.
Read MoreGBT – UBS rates the stock as No Rating
The second half was vastly improved, UBS suggests, with the first annual profit growth since FY15. The improvement was driven by the sharp uplift in UK wealth management performance.
Read MoreVCX – Credit Suisse rates the stock as Neutral
FY19 results were at the lower end of guidance and the outlook for FY20 is better than Credit Suisse expected as asset sales are no longer proceeding.
Read MoreHT1 – Morgan Stanley rates the stock as Underweight
First-half results were in line with Morgan Stanley’s expectations. No specific earnings guidance has been provided, although the company has indicated that at the beginning of the second half the radio advertising market was weak and third-quarter advertising revenue could be down in the mid-single digits.
Read MoreARF – Macquarie rates the stock as Neutral
FY19 earnings are in line with expectations. FY20 distribution guidance of 14.3c per security was reaffirmed.
Read MoreCGF – Morgans rates the stock as Hold
FY19 net profit was below expectations and at the bottom of the target range of $545-565m, Morgans notes. Overall, the broker considers the result underpins confidence that the earnings profile has largely been re-based.
Read MoreMFG – UBS rates the stock as Sell
FY19 net profit was well ahead of UBS estimates which purely reflected one-off unrealised asset gains. Otherwise, funds management profit was in line. Of more interest to the broker was the $270m equity raising announcement to fund future growth initiatives.
Read MoreGPT – UBS rates the stock as Neutral
First-half results were below UBS estimates, with the variance related to development profits and retail income. Guidance for 2019 is unchanged.
Read MorePPS – Morgans rates the stock as Add
Praemium’s FY19 profit met the broker, Australian operations continuing to underpin the stock.
Read MoreCOE – Credit Suisse rates the stock as Neutral
FY19 results were in line with estimates. There is a 10% increase to 2P estimates for Casino Henry, offset by a -2% decrease for Sole. Sole start-up guidance remains on track and firm gas sales are expected in December.
Read MoreSYD – Morgan Stanley rates the stock as Overweight
The company anticipates a one-off expense of -$182m in FY19. This relates to an indemnity provided by Sydney Airport under the previous Macquarie Airports ownership structure and in relation to the sale of Copenhagen Airport in 2011.
Read MoreREA – Credit Suisse rates the stock as Neutral
FY19 results were below Credit Suisse estimates, primarily because of listings weakness in the Australian market. Asia was also affected by macro weakness and competitive pressures.
Read MoreAMP – Macquarie rates the stock as Neutral
The broker calls AMP’s earnings result “fairly sound” with strong performances in other businesses offsetting pressures in wealth management. The focus was on the probable sale of Life at a rebased price, a $650m equity raise that will be some -15% dilutive and $300m of targeted cost-cuts by FY22.
Read MoreNCK – Citi rates the stock as Sell
FY19 net profit was ahead of Citi’s estimates. Downside risk to earnings is envisaged for FY20 as sales momentum has turned negative and the higher store base means upside from roll-outs is likely to be smaller.
Read MoreAGL – Credit Suisse rates the stock as Neutral
FY19 underlying net profit was slightly ahead of Credit Suisse estimates but FY20 guidance for $780-860m disappointed.
Read MoreMGR – UBS rates the stock as Sell
FY19 results were in line with UBS expectations. FY20 guidance has been updated to reflect the Tuckerbox transaction not proceeding. Distribution growth guidance is maintained at 5%.
Read MoreSUN – UBS rates the stock as Buy
FY19 results signal to UBS the company has solid leverage to commercial rate increases. However, volume losses across personal lines remain an issue. Results were in line with expectations.
Read MoreAQZ – Credit Suisse rates the stock as Neutral
The broker sees tailwinds ahead in further contract rollovers and asset expansion and the development of FIFO and Wet Lease opportunities.
Read MoreCBA – Morgans rates the stock as Hold
FY19 net profit was -2% below Morgans’ forecasts. The broker considers the result bodes well for the outlook for major bank earnings in terms of home lending and residential mortgage asset quality.
Read MoreAIZ – Credit Suisse rates the stock as Neutral
Despite a downgrade to guidance at the beginning of the year, Credit Suisse notes Air New Zealand continues to trade near its recent peaks and at a premium to the airline sector.
Read MoreWES – Morgans rates the stock as Hold
Morgans expects a mixed result when the company reports on August 27. FY19 earnings (EBIT) is forecast to be down -34%, largely because of the Coles ((COL)) de-merger.
Read MoreAPE – Morgan Stanley rates the stock as Upgrade to Overweight from Equal-weight
Morgan Stanley upgrades to Overweight from Equal-weight, believing an opportunity now exists to buy a quality operator at cyclical lows. AP Eagers has become bigger and more relevant now it has merged with Automotive Holdings.
Read MoreRWC – Morgan Stanley rates the stock as Downgrade to Equal-weight from Overweight
Morgan Stanley suspects the outlook has deteriorated since the company downgraded its FY19 guidance in May. Headwinds ensue from Brexit, US tariffs and weak Australian housing construction.
Read MoreCRN – Credit Suisse rates the stock as Outperform
Credit Suisse suspects the subdued reaction to the larger-than-expected distribution in the first half likely reflected broader sentiment and softening coal prices. The broker notes there is a commitment to release 11% of the stock from voluntary escrow six months early.
Read MoreGNC – Morgans rates the stock as Hold
The company has provided weaker FY19 guidance and expects to report an underlying net loss of $70-90m. Morgans is disappointed and concerned about the trading and risk management policies.
Read MoreURW – Citi rates the stock as Sell
Citi remains concerned about the de-leveraging that needs to occur. Management presented a confident outlook at the first half results but the broker is more worried about asset values falling faster, lowering collateral value and leading to more dilutive asset sales, or lenders applying higher debt costs.
Read MoreBGA – Morgans rates the stock as Hold
Bega Cheese has downgraded FY19 guidance for the second time. Underlying operating earnings (EBITDA) have been lowered to $113-117m versus prior guidance of $123m.
Read MoreDHG – Credit Suisse rates the stock as Underperform
Weakness in property listings has become a familiar theme, Credit Suisse notes, and CoreLogic data show that in the second half of FY19 new listings in the capital cities were down -17%, with Sydney down -24% and Melbourne down -22%.
Read MoreRIO – Morgan Stanley rates the stock as Equal-weight
Cash returns to shareholders in the first half exceeded Morgan Stanley’s expectations and imply a total payout ratio of 70% and a base dividend pay-out of 50%. Operating earnings were slightly ahead of estimates.
Read MoreNUF – Credit Suisse rates the stock as Outperform
Credit Suisse suspects, while a capital raising and downgrade to guidance was widely expected, the support from Sumitomo was likely to have been underestimated. The company has downgraded earnings estimates for North America because of weather impacts.
Read MoreDOW – UBS rates the stock as Buy
The company has assessed the additional costs to complete the Murra Warra wind farm contract to be $45m. The additional obligations have arisen through the insolvency of its turbine partner.
Read MoreABC – Macquarie rates the stock as Downgrade to Neutral from Outperform
Macquarie had already set its forecasts below Adelaide Brighton’s prior guidance range on concerns over Queensland demand, but new guidance is lower still, given weak demand in SA and Victoria as well, leading the broker to cut forecasts a further -22%.
Read MoreALQ – Morgans rates the stock as Hold
The first half guidance issued at the AGM was slightly below Morgans’ expectations. The broker believes peak commodities-driven growth is now behind the company and the health of the exploration and mining capital raisings remain key to the performance in FY20.
Read MoreORG – Citi rates the stock as Neutral
APLNG cash flows were slightly ahead of Citi’s expectations. The break-even operating oil price is now calculated at US$21/bbl.
Read MoreLNK – Morgan Stanley rates the stock as Overweight
Morgan Stanley believes, while stock screens cheaply, a re-rating requires a resolution of the Woodford issue as well as more clarity regarding the recent trading update.
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