LLC – Citi rates the stock as Buy
Citi believes Lendlease has the potential for a multi-year re-rating as it evolves into a global real estate developer and fund manager. Critical to this is the sale of the engineering & services business.
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NWS – UBS rates the stock as Buy
UBS updates forecasts to account for the first quarter. First-quarter operating earnings (EBITDA) fell -38% to $221m, well below forecasts. The company highlighted a particularly sluggish Australian economy and property market.
Read MoreBSL – Credit Suisse rates the stock as Outperform
BlueScope Steel has confirmed first half guidance for earnings (EBIT) around $275m. Earnings drivers, including US and Asian steel spreads, are in line with assumptions provided in the original guidance.
Read MoreTNE – UBS rates the stock as Sell
FY19 results were ahead of UBS estimates. The quality was below expectations, although the outlook is considered positive.
Read MoreWEB – Credit Suisse rates the stock as Neutral
FY20 operating earnings (EBITDA) are expected to be between $157-167m with the first half registering at least $80m. Credit Suisse revises up estimates for earnings per share by 4.4%.
Read MoreCRN – Credit Suisse rates the stock as Outperform
The company has indicated 2019 operating earnings (EBITDA) will now be below the guidance range of US$687-737m. Softer metallurgical coal prices in the fourth quarter are being blamed along with a -3% reduction in saleable production.
Read MoreQAN – UBS rates the stock as Buy
UBS considers the most material disclosure at the company’s investor briefing was a five-year target for Qantas domestic earnings (EBIT) growth of 18% and 22% for Jetstar domestic.
Read MoreA2M – Macquarie rates the stock as Outperform
a2 Milk provided solid revenue guidance and margin upgrades at its AGM, thanks to price increases, product launches and benefits from the Synlait Milk ((SM1)) contract renegotiation. Improved disclosure addressed a number of market concerns, Macquarie notes.
Read MoreSUN – UBS rates the stock as Buy
Suncorp’s lending portfolio contracted -0.6% over the first quarter, resulting in a -0.1% decline on the prior corresponding quarter. UBS notes the larger housing book declined -0.6% reflecting increased competition and a subdued market backdrop.
Read MoreABP – Credit Suisse rates the stock as Neutral
The acquisition of Australian Unity Office Fund ((AOF)) will not proceed. This follows a vote by AOF unit holders. Both Abacus Property and Charter Hall ((CHC)) had indicated no further offer would be made if the scheme was not approved.
Read MoreBXB – Citi rates the stock as Buy
Citi updates US cost data to account for a reversal in the decline in lumber prices. Transport rate inflation remains modest, which the broker expects will provide a tailwind for costs from the second half.
Read MoreMYX – Credit Suisse rates the stock as Neutral
The launch of new generic drugs fentora and efudex has been strong, with 40% and 30% market share respectively. Yet Credit Suisse suspects this has not been enough to offset competition and earnings decline in the first half.
Read MoreQAN – UBS rates the stock as Buy
UBS suspects changes in focus at competitor Virgin Australia ((VAH)) should mean Qantas will maintain an advantage and Virgin will not be able to rely solely on cost initiatives to improve profitability.
Read MoreAPE – Morgans rates the stock as Add
The trading update reflected tougher market conditions and a softer-than-expected outcome for Automotive Holdings in the year to date. Morgans suspects this reflects a more conservative accounting treatment by AP Eagers, softer new vehicle sales, and underperformance by Automotive Holdings.
Read MorePLS – Credit Suisse rates the stock as Outperform
The company has reported recoveries in the December quarter to date of 60%. Credit Suisse notes, importantly, in early November recoveries averaged 68.5% over a five day period. This is a major step towards the long-held target recovery of 75%.
Read MoreGNC – UBS rates the stock as Buy
The company has reported its worst-ever annual result, UBS notes, heavily affected by drought and onerous rail take-or-pay contracts. A large grain trading loss of -$65m was incurred. Meanwhile, there was another record performance in the malt business.
Read MoreECX – UBS rates the stock as Buy
The FY19 result was complicated, as expected. Core business was in line with UBS estimates. The broker expects non-core business to be divested in FY20 and, post-restructuring, to have a neutral impact on FY20 operating earnings (EBITDA).
Read MoreAUB – Credit Suisse rates the stock as Upgrade to Outperform from Neutral
The company has reaffirmed its FY20 guidance. Credit Suisse was encouraged by the update and notes the share price has underperformed the market by around -30% over the last 12 months following a series of earnings downgrades.
Read MoreNEC – Credit Suisse rates the stock as Outperform
The extent of the TV weakness, highlighted at the AGM, was greater than Credit Suisse expected. The company is now guiding to low single-digit growth in FY20 operating earnings (EBITDA). Growth is expected to be skewed to the second half.
Read MoreCGC – UBS rates the stock as Buy
UBS reduces the target to $3.25, from $5.20, to reflect the impact of the capital raising and the company’s recent downgrade to expectations.
Read MoreCAT – Morgans rates the stock as Upgrade to Add from Hold
Catapult Group has renewed and expanded its deal with Rugby Australia, in the wake of renewing its deal with the NRL, meaning no more material renewals upcoming in the near future.
Read MoreDHG – Macquarie rates the stock as Upgrade to Outperform from Neutral
Macquarie observes cost management has offered more protection than previously expected against the headwinds to volume. Trading was slightly weaker than expected in July to October but offset by strong cost-cutting.
Read MoreASX – Citi rates the stock as Sell
Citi lifts estimates for earnings per share by 1% based on solid volumes over the year to date. The broker believes ASX has many qualities, including a strong competitive position, commitment to a stable pay-out and positive leverage to higher market volatility.
Read MoreAPT – Citi rates the stock as Upgrade to Buy from Neutral
Citi analysts have dug deeper into web site traffic and app downloads for the Buy Now, Pay Later sector in general. Their conclusion is that Afterpay Touch had a solid October in the USA.
Read MoreREA – UBS rates the stock as Neutral
The first-quarter result disappointed UBS. Group revenue fell -9%. However, the miss was partly driven by increased revenue deferrals.
Read MoreSUL – Credit Suisse rates the stock as Neutral
The company has presented its new strategy, incorporating a digital future. Credit Suisse notes a lot of changes are proposed so the need to successfully execute is high.
Read MoreCTD – Morgans rates the stock as Add
Trade wars, Brexit and the Hong Kong protests made for a particularly tough first half for Corporate Travel Management, but there are signs of life returning in the second half. The company has reiterated FY guidance and Morgans assumes modest first-half earnings growth followed by double-digit growth in the second half as macro headwinds gradually ease.
Read MoreDOW – UBS rates the stock as Downgrade to Neutral from Buy
The shares have recently outperformed and UBS downgrades to Neutral from Buy. The share price has increased around 20% in the year to date. The company has reiterated guidance for FY20 net profit of around $365m.
Read MoreJHX – Credit Suisse rates the stock as Outperform
Net profit was ahead of Credit Suisse forecasts in the September quarter, with the company outperforming on margin in North America. FY20 net profit guidance has been raised to US$340-370m.
Read MoreCTD – Morgans rates the stock as Add
Trading in the second quarter appears to have improved while the company has reiterated FY20 guidance for 10-16.5% growth in operating earnings.
Read MorePDL – Credit Suisse rates the stock as Neutral
FY19 net profit was slightly ahead of Credit Suisse forecasts. While the outlook has improved, the broker notes there are still near-term risks. Performance fees are expected to remain low in FY20 and investments in growth initiatives continue.
Read MoreBLD – UBS rates the stock as Downgrade to Neutral from Buy
UBS lowers its rating to Neutral from Buy as the stock is approaching the target. House prices are lifting and housing approvals appear to be bottoming but the next 12 months are still likely to experience a contraction ahead of a trough, in the broker’s view.
Read MoreILU – Citi rates the stock as Neutral
Citi notes Iluka Resources is constructive regarding the mid-term outlook for zircon, expecting a market deficit because of declining supply. The company also expects an upturn in pigment demand for feedstocks by mid-2020.
Read MoreASG – Macquarie rates the stock as Outperform
The company has acquired Trivett Alexandria for $9m, which Macquarie suggests is capitalising on a bottom-of-the-cycle valuation.
Read MoreCLW – Macquarie rates the stock as Underperform
The company has acquired three assets for $270.6m. Macquarie estimates the transaction is largely neutral to earnings in FY20 and, whilst a marginal positive, is insufficient to change its view on the stock.
Read MoreWBC – Morgans rates the stock as Add
Westpac’s earnings result fell short of Morgan’s forecast, although adjusting for “transient items” produces a better underlying result. The dividend of 80c, down from a 94c interim, is -4c lower than the broker forecast.
Read MoreMQG – Morgans rates the stock as Add
Macquarie’s result was largely in line with consensus and relatively clean and solid, the broker suggests. The Group is tracking well against FY guidance of “slightly lower” but is cycling a very strong second half last year, Morgans notes.
Read MoreORI – Macquarie rates the stock as Neutral
FY19 net profit was ahead of expectations. Macquarie liked the positive growth outlook, particularly in the context of a challenging earnings backdrop in the broader market.
Read MoreORG – Credit Suisse rates the stock as Outperform
Commodity revenue was 5% ahead of Credit Suisse forecasts in the first quarter while LNG revenue was 12% ahead. The broker adjusts realised price assumptions for the next year relative to Brent oil pricing.
Read MoreALL – UBS rates the stock as Buy
Data suggest Aristocrat achieved 23% US ship-share in the Sep Q, up from 20% and in line with UBS forecasts.
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