OML – Credit Suisse rates the stock as Outperform
Credit Suisse found little detail in the AGM update. The broker assesses near-term volatility is highly likely. Moreover, consensus estimates appear “toppy” for 2021.
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BSL – Credit Suisse rates the stock as Outperform
At current levels the market is pricing in depressed FY20/21 earnings in perpetuity, Credit Suisse assesses, which is unrealistic.
Read MoreSEK – UBS rates the stock as Neutral
The company has signalled the upcoming changes to contract structure, effective July 1. Concessions will cease and recruiters/corporates on subscriptions will transfer back to minimum dollar commitments.
Read MoreBSL – Credit Suisse rates the stock as Outperform
At current levels the market is pricing in depressed FY20/21 earnings in perpetuity, Credit Suisse assesses, which is unrealistic.
Read MoreSEK – UBS rates the stock as Neutral
The company has signalled the upcoming changes to contract structure, effective July 1. Concessions will cease and recruiters/corporates on subscriptions will transfer back to minimum dollar commitments.
Read MoreAYS – Macquarie rates the stock as Outperform
The company will acquire 77,000 mobile subscribers from Optus for $15.8m. Macquarie expects the transaction will be modestly accretive in FY21. Amaysim has also reiterated FY20 guidance for underlying operating earnings of $33-39m.
Read MoreARF – Macquarie rates the stock as Outperform
Arena REIT has undertaken a $60m equity raising. Macquarie notes the balance sheet gearing will decline to 17.6%, materially below the target range of 35-40%.
Read MoreANZ – Morgan Stanley rates the stock as Overweight
ANZ Bank has sold UDC Finance in New Zealand to Shinsei Bank for NZ$762m. Morgan Stanley considers the sale of a non-core business and the capital release as an incremental positive.
Read MoreTWE – Credit Suisse rates the stock as Neutral
Credit Suisse’s channel checks indicate the luxury wine market in China is not showing any meaningful sign of recovery. Business people appear unprepared to gather and “banquet”.
Read MoreALX – Morgans rates the stock as Downgrade to Hold from Add
Atlas Arteria is undertaking a capital raising via a $420m institutional placement and share purchase plan of up to $75m. Proceeds are to be used to repay the debt related to the APRR investment.
Read MoreSDF – UBS rates the stock as Initiation of coverage with Buy
Premium growth on the client trading platform has been tracking behind target but increased broker uptake of the INSIGHT platform, along with the expansion of auto-rating to additional classes, is expected to clear bottlenecks to growth from the second half of FY21.
Read MoreSGR – Credit Suisse rates the stock as Outperform
Star Entertainment has reached agreement with the NSW government to set the casino tax rates and create certainty around the regulatory framework for the period FY22-41.
Read MoreAPT – Morgans rates the stock as Downgrade to Hold from Add
The stock is trading at its highest multiples compared with historical averages. Morgans upgrades earnings forecasts for the next two years because of improved revenue and bad debt assumptions, based on recent trends.
Read MoreSUL – Macquarie rates the stock as Outperform
Macquarie considers the risk/reward more balanced now. The broker has feedback that suggests Supercheap Auto and Rebel are holding up well relative to other discretionary retail categories.
Read MoreWPL – UBS rates the stock as Buy
The oil price has lifted from its April low, benefiting from a lift in sentiment as a result of reduced supply and the lifting of mobility restrictions.
Read MoreSTO – Macquarie rates the stock as Outperform
Santos has completed its US$1.5bn acquisition of the northern Australia/Timor-Leste assets. Macquarie notes some improvement in the settlement terms.
Read MoreWEB – Credit Suisse rates the stock as Downgrade to Neutral from Outperform
Credit Suisse eventually expects upside to the FY19 earnings base, primarily driven by the B2B division. However, with this division exposed to onerous travel restrictions in the northern hemisphere the broker tempers expectations and will look to get upbeat again once intra-regional leisure travel improves.
Read MoreALX – UBS rates the stock as Neutral
The company has announced a $420m placement to be used for repayment of the corporate debt facility, which UBS assesses removes some risk and simplifies the holding structure for the 31% stake in APRR.
Read MoreANN – Credit Suisse rates the stock as Outperform
Credit Suisse believes the increase in PPE demand, and single-use examination gloves in particular, is structural and will remain a focus post the pandemic.
Read MoreCSL – Citi rates the stock as Upgrade to Buy from Neutral
With the shares having underperformed the broader market by no less than -19% over the month past, including a noticeable drubbing in yesterday’s session, Citi analysts have upgraded CSL to Buy from Neutral.
Read MoreALQ – UBS rates the stock as Neutral
FY20 net profit was slightly ahead of UBS estimates. The company has reiterated recent commentary regarding trading and provided no formal FY21 guidance.
Read MoreAIZ – Credit Suisse rates the stock as Downgrade to Underperform from Neutral
As a result of actions to cut expenditure, Air New Zealand expects its FY21 monthly cash burn to reduce a further -NZ$50-60m, excluding any benefit from passenger revenue.
Read MoreMTS – UBS rates the stock as Upgrade to Buy from Neutral
The strong market backdrop and the outperformance of independent grocers as well as an improving outlook for hardware has caused the broker to upgrade to Buy from Neutral.
Read MoreSXY – Macquarie rates the stock as Outperform
FY20 earnings guidance has been upgraded by around 10% to $45-55m because of the narrowing of production guidance.
Read MoreSFR – Credit Suisse rates the stock as Outperform
Sandfire has reinstated FY20 operating guidance. Guidance was withdrawn as a precaution at the March quarter result but there has been no discernible impact on operations from the pandemic to date.
Read MoreAGL – UBS rates the stock as Neutral
UBS suspects weakening electricity prices will affect forecast earnings. The broker reduces FY20-22 estimates for earnings per share by -3-16%.
Read MoreMND – Citi rates the stock as Upgrade to Buy from Neutral
The company’s balance sheet is the strongest in Citi’s coverage, courtesy of having negligible debt. The broker likes the combination of relative resilience in mining, coupled with optimism regarding the pace of recovery in energy from 2021.
Read MoreAPT – UBS rates the stock as Sell
Afterpay has indicated there are now more than 5m active customers in the US. No update on other markets was provided.
Read MoreWES – Credit Suisse rates the stock as Neutral
Credit Suisse suggests the restructuring of Target is unlikely to shift investor views regarding Wesfarmers. The company will spend $240-310m on the restructuring.
Read MoreTAH – Citi rates the stock as Reinstate Coverage with Sell
Tabcorp is facing a challenging year, cycling a fortunate run of lottery jackpots amid wagering retail venue closures and an uncertain outlook for sports betting.
Read MoreALL – Macquarie rates the stock as Outperform
First-half net profit was down -13% to $368m but Macquarie envisages a path for net profit to exceed $1bn in FY22, supported by gains in market share, both in land-based games and digital.
Read MoreFSF – UBS rates the stock as Neutral
UBS assesses the third quarter result was “respectable”, underpinned by higher margins across all divisions and lower operating costs.
Read MoreFBU – Credit Suisse rates the stock as Neutral
The company has indicated the outlook is difficult and plans to cut 1500 jobs. The prospect of breaking even on earnings (EBIT) in the fourth quarter, which usually represents 40-45% of annual EBIT, highlights the downside associated with any return to more restrictive lockdown measures, Credit Suisse asserts.
Read MoreBIN – UBS rates the stock as Buy
UBS expects a softening in residential and commercial construction will negatively affect waste volumes across Australia. Still, Bingo Industries should be resilient and could even benefit from increased infrastructure projects.
Read MoreFBU – Morgan Stanley rates the stock as Equal-weight
Trading has been in line with expectations until the lockdowns, which have caused considerable disruption, particularly in the NZ business.
Read MoreCPU – Morgans rates the stock as Add
Computershare has re-affirmed its FY20 guidance after a number of pandemic-led earnings downgrades with margin income guidance at US$180m.
Read MoreKGN – UBS rates the stock as Neutral
While the acquisition of Matt Blatt and the acceleration in online penetration is supportive, UBS remains cautious. As stores re-open and competitive offerings emerge the broker expects the benefits for online business from the pandemic will partially reverse.
Read MoreAPX – Credit Suisse rates the stock as Downgrade to Neutral from Outperform
At current levels, Credit Suisse suggests an upgrade is required to support the share price appreciation and this may be challenging in the current environment.
Read MoreNAN – Morgans rates the stock as Downgrade to Hold from Add
Share price of Nanosonics has been relatively stable during this period of pandemic-generated volatility, observes Morgans.
Read MoreBLD – Credit Suisse rates the stock as Downgrade to Neutral from Outperform
Credit Suisse describes the drop in profitability in the latest update as “stunning”, with margins down -7-10%, and despite little apparent impact from the pandemic on revenue.
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