QAN – 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 Guidance has been withdrawn because of the unknowns surrounding coronavirus.
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SLK – Macquarie rates the stock as Initiation of coverage with Outperform
SeaLink Travel’s acquisition of Transit Systems transforms the company, the broker suggests, providing exposure to metro bus services in Australia, Singapore, and London. Transit Systems’ advantage is its ability to manage margins against contract terms, the broker notes, with revenue not exposed to passenger and fare risk.
Read MoreQAN – Citi rates the stock as Neutral
Qantas will seek to reduce international capacity by -23% until September 2020, or at least until the operating environment is clearer. To ensure the balance sheet can withstand the challenges, the company is cancelling the $150m off-market buyback.
Read MoreWPL – Macquarie rates the stock as Outperform
The substantial fall in spot oil has meant prices are close to break-even levels for Woodside Petroleum and Macquarie observes resolving the supply uncertainty is now the clear catalyst.
Read MoreJHX – Citi rates the stock as Buy
Given defensive revenue drivers and global stimulus measures underway, Citi believes an opportunity is emerging and James Hardie remains a preferred exposure.
Read MoreOGC – Credit Suisse rates the stock as Outperform
OceanaGold is being penalised by more than Didipio’s value, Credit Suisse assesses, which signals investor aversion to the uncertainty in the Philippines.
Read MoreFPH – Macquarie rates the stock as Neutral
Macquarie suspects the spread of coronavirus could have a modest impact on profit expectations. The broker assesses US/European hospitals are unlikely to require additional hardware to cope with the epidemic, as was the case in China.
Read MoreCBA – Credit Suisse rates the stock as Upgrade to Neutral from Underperform
Credit Suisse downgrades earnings estimates on the back of the reduction in official cash rates but also taking note of an increase in bad debt provisions derived from economic stress.
Read MoreCSL – UBS rates the stock as Buy
Strong plasma industry data out of the US comes as no surprise to the broker given the numbers run on a three month lag and CSL’s first half result has already told the story. The broker believes the data likely reflect ongoing movement of product from the rest of the world into the US, where prices ar higher, rather than being a proxy for plasma supply growth.
Read MoreAWC – Citi rates the stock as Upgrade to Buy from Neutral
Alumina Ltd has been upgraded to Buy from Neutral as part of a sector stress-test undertaken by commodity analysts at Citi. Taking guidance from global interest rates, Citi’s view is that 2020 will be a disappointing year for the sector overall.
Read MoreBXB – Citi rates the stock as Buy
Citi updates its US cost monitor, noting lumber prices are recovering. Softwood lumber inflation was 5.6% in January which comes as prices start to cycle the strong decline experienced in the prior corresponding half.
Read MoreWPL – Macquarie rates the stock as Upgrade to Outperform from Neutral
Scarborough is progressing and set for a final investment decision in 2020. A tolling fee has been agreed and interest in the fields are now aligned for both Woodside Petroleum and BHP Group ((BHP)).
Read MoreSDG – Morgans rates the stock as Hold
The first half result was mixed, Morgans observes, and overshadowed by the announcement of a proposed $60m off-market buyback. No FY20 guidance was provided but the broker expects a second half earnings skew, given the timing of settlements.
Read MoreFMG – UBS rates the stock as Upgrade to Buy from Sell
UBS suspects, given commodity volatility stemming from the coronavirus outbreak, China is likely to introduce commodity-intensive stimulus to soften any economic downturn.
Read MoreJHC – Macquarie rates the stock as Neutral
The company expects operating earnings will be -10% lower in FY20. Macquarie assesses uncertain earnings and high gearing provide higher downside risk for investors.
Read MoreMWY – Morgans rates the stock as Hold
First-half results were in line with forecasts, albeit weak. A material reduction in earnings reflected a significant fall in wood fibre export shipments because of the excess production of paper pulp in Brazil and US tariffs on Chinese paper imports.
Read MoreBGA – UBS rates the stock as Buy
First half results were below expectations. Guidance has been reaffirmed for FY20 operating earnings of (EBITDA) of $95-105m.
Read MoreAMC – Credit Suisse rates the stock as Upgrade to Outperform from Neutral
Credit Suisse upgrades to Outperform from Neutral because of the recent fall in the share price. Value has emerged, in the broker’s opinion, and Amcor did not fully participate in the recent market rally.
Read MoreCMW – Macquarie rates the stock as Upgrade to Neutral from Underperform
First-half earnings were well ahead of expectations. This was driven by development and performance fees. Despite the beat on expectations being driven by non-recurring items, Macquarie suspects there is upside risk to FY20 guidance.
Read MoreHVN – Credit Suisse rates the stock as Neutral
First-half results were largely in line with expectations. However, Credit Suisse notes comparisons are unfavourable with The Good Guys ((JBH)) and Nick Scali ((NCK)), as Harvey Norman’s Australian franchisee performance weakened in the second quarter relative to the other two.
Read MoreCGC – Credit Suisse rates the stock as Outperform
The company has maintained 2020 guidance for earnings of $150m (EBITDAS). Improved prices are expected to enable the mushroom produce division to recover some growth.
Read MoreAIZ – Macquarie rates the stock as Underperform
First-half results were soft, Macquarie observes. Recently downgraded guidance for FY20 pre-tax profit of $300-350m has been maintained. Revenue was in line with expectations.
Read MoreKSL – Morgans rates the stock as Add
Kina Securities profit beat the broker by 6% on 7% better than expected revenues. It was a very solid result, the broker suggests, in a period the company bedded down the transitional ANZ PNG acquisition. Cost-to-income has risen slightly but Kina is creating a solid recent track record of delivery to complement its strong organic growth profile.
Read MoreREG – UBS rates the stock as Neutral
First half results were broadly in line with UBS estimates. Average occupancy declined to 90.4%.
Read MoreBKL – Citi rates the stock as Neutral
The good news is that Blackmores’ new strategy seems sensible and it might actually turn around the company’s operational performance, comment analysts at Citi. They still need to see evidence of tangible improvement before turning more positive on the stock.
Read MoreSDF – Credit Suisse rates the stock as Downgrade to Neutral from Outperform
First half results beat Credit Suisse estimates. The broker appreciates the fact the business is setting up for sustainable earnings, but growth remains below what can be expected in a positive premium rate environment.
Read MoreHUB – Morgans rates the stock as Add
Hub24’s 75% increase in profit was in line with expectations. Management’s funds under administration target for end-FY21 remains unchanged and is on track. Increased flows year to date are being driven by advisors coming on board, the broker notes.
Read MoreCAJ – Credit Suisse rates the stock as Outperform
First-half results were in line but Credit Suisse finds more positives have flowed. The broker believes the update, which showed improvement across organic growth and cash flow, serves as a first step in justifying a re-rating process that has some way to go.
Read MoreAWC – Citi rates the stock as Neutral
Citi analysts comment Alumina Ltd’s bottom line performance missed expectations, and by quite the margin too. They also point out that with a weaker AUD, the company’s cash costs are potentially a lot lower in 2020, which should assist the bottom line.
Read MoreVEA – UBS rates the stock as Buy
Viva Energy’s result was in line with recently downgraded guidance, although overall quality was better than expected, the broker notes. An announced $680m off-market buyback is a clear positive. The broker suspects earnings may have bottomed.
Read MoreWOR – Credit Suisse rates the stock as Neutral
First-half results were ahead of forecasts. Credit Suisse raises FY20 revenue estimates by 7%. Management has raised its Jacobs ECR synergy target to $175m from $150m.
Read MoreBSL – Citi rates the stock as Buy
On Citi’s assessment, BlueScope Steel released a better-than-expected interim performance, but also provided soft guidance for H2. Coronavirus uncertainty rules. The analysts believe market sentiment will likely remain weak for the time being.
Read MoreING – UBS rates the stock as Neutral
Inghams Group’s profit was largely in line with consensus and guidance was reiterated. Strong momentum in New Zealand offset weakness in Australia. The broker remains concerned over poor cash flow conversion.
Read MoreMYX – Macquarie rates the stock as Neutral
Reported operating earnings (EBITDA) were below Macquarie’s estimates. Generics revenue fell by -33% with underlying gross margins down -11%. Meanwhile, growth in specialty brands moderated.
Read MoreSXY – Credit Suisse rates the stock as Upgrade to Outperform from Neutral
First-half results were in line with expectations. Operating expenditure was ahead of expectations and this, along with sustaining capital expenditure, remains the key uncertainty and driver of value, Credit Suisse suggests.
Read MoreSYD – UBS rates the stock as Neutral
Sydney Airport’s result was in line, with earnings up 4% on flat traffic and cash flow up 6% on a flat interest cost. The company deviated from standard practice nonetheless by not issuing FY distibution guidance, due to the as yet unkown impact of the virus.
Read MoreSUL – Credit Suisse rates the stock as Neutral
Credit Suisse suspects investor debates will be heightened after the results, with rising costs countering strong growth in sales revenue and resulting in a flat profit outcome from the automotive and sports divisions.
Read MoreAX1 – Citi rates the stock as Downgrade to Neutral from Buy
One day after lauding Accent Group’s operational excellence, Citi analysts have decided it’s time to downgrade to Neutral from Buy. The move has been inspired by the share price rally, in combination with potential downside from the coronavirus spreading.
Read MoreAHY – Citi rates the stock as Buy
Citi analysts thought 2019 marked a “good” result with top line growth carried by both B2B and retail, while challenges from pulp prices and increased marketing costs and price investment continue.
Read MorePGH – Credit Suisse rates the stock as Outperform
Credit Suisse observes contract manufacturing was very weak in the first half while the volume erosion in packaging continues.
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