CSL – UBS rates the stock as Buy
UBS reviews the commercial opportunity for the company’s reconstituted high-density lipoprotein product. The product is currently in a phase 3 clinical trial with the final result expected in 2022.
Read MoreUBS reviews the commercial opportunity for the company’s reconstituted high-density lipoprotein product. The product is currently in a phase 3 clinical trial with the final result expected in 2022.
Read MoreAs part of its capital markets briefing, the company has laid out medium-term targets. Cost targets are in line with expectations and Morgans expects subdued revenue growth over the medium term. No special dividends or buybacks are forecast.
Read MoreMorgans is more confident in the outlook for the regulated network after the briefing. However, concerns continue regarding competitive pressures above rail. With the revenue allowance for operating costs fixed until FY27 for the UT5 agreement, management was upbeat about the cost-cutting potential.
Read MoreNews Corp is reviewing its strategic options for News America Marketing, including a potential sale. Revenue has been under pressure in recent years, declining -6% in FY18. The business provides a range of marketing solutions to advertisers.
Read MoreIn a consolidating market, Credit Suisse foresees material upside in both a stand-alone and merger scenario for the company. The broker expects only modest improvement in growth in the second half relative to a weak first half but believes the issues are transient, such as bottlenecks in Victoria.
Read MoreThe company’s second-half guidance is reduced by around -10% to “approaching $500m”. Credit Suisse suggests the market is looking at just how low guidance can go for FY20.
Read MoreUBS found two positive surprises from the company’s strategy briefing. Fourth quarter like-for-like sales were ahead of expectations and $1bn of cumulative cost reductions by FY23 were announced.
Read MoreThe share price has rallied over 30% in the last month and Morgans downgrades to Hold from Add. Second half operating earnings (EBITDA) are forecast to be less than the first half so, potentially, some weakness is likely to follow when the company reports in late August.
Read MoreMacquarie takes a closer look at the US fresh milk opportunity, the largest consumer market in the world. A2 Milk is currently building its market share, experiencing a similar development profile to Australia, which the broker finds encouraging.
Read MoreAfterpay Touch is required to appoint an AUSTRAC-approved external auditor to look into its compliance with the anti-money laundering regulations. The company must provide AUSTRAC with a copy of the final audit report within 120 days of the external auditor being engaged.
Read MoreThe company has guided to May quarter operating earnings (EBIT) of US$28-29m from its auto and metals recycling segment.
Read MoreThe combination of Amcor and Bemis creates the largest plastic packaging company in the world, Morgans notes, with the deal significantly enhancing Amcor’s presence in North America.
Read MoreThe UK NHS has published hospital activity data for April. UBS estimates NHS e-referrals represent around 79% of Ramsay Health Care’s UK total admissions. April volumes for Ramsay decreased -2.9% while 12-month rolling growth moderated to 4.9% from 6.5% at the end of March.
Read MoreThe company has declared commercial production at the Copler sulphide plant. 2019 oxide production estimates have also been upgraded and costs lowered. Guidance has been increased to 125-145,000 ounces.
Read MoreCiti notes the stock has pulled back substantially and sector sentiment remains weak amid falling steel/scrap prices and minimal buying interest. Still, the broker suspects a market nadir may be close.
Read MoreThe company intends to exit its 50.1% interest in Stratton. UBS considers this a positive move as Stratton provided a minor financial contribution relative to the significant effort by management required to deal with the issues.
Read MoreCredit Suisse has concluded that ongoing weak sales is a more severe earnings headwind for the company, compared with annuity spreads. The company has also guided to FY20, which implies -7-12% downgrades to forecasts.
Read MoreUBS transfers coverage of Charter Hall to another analyst. The target is upgraded to $11.05 from $8.60 and earnings estimates are increased by 10-20%.
Read MoreAUB has downgraded FY19 profit growth guidance to 3-5% growth from a prior 7-12%, citing substantially lower NSW workers comp case volumes and an over-run in the cost of a new underwriting agency IT system
Read MoreMorgans revises forecasts following the release of ABARES’ 2019/20 winter crop forecast. Another below-average east coast grain crop is expected, although it should be better than last year.
Read MoreThe company has provided a trading update on the public cloud business, where the margin contribution has surpassed that of the private cloud. The business has exceeded 530,000 seats on O365 including around 100,000 academic seats.
Read MoreCredit Suisse observes specialty sales for CSL Behring have grown around 15% per annum since FY13, driven in part by Kcentra. The broker believes this product is increasingly used off label to reverse other anti-coagulants including NOAC and control bleeding in trauma situations.
Read MoreAGL had hinted at a desire to move into the telco space at Macquarie’s recent conference but rather than muck around, it has put in a bid for Vocus Group ((VOC)) below the bid that private equity recently withdrew.
Read MoreThe company has appointed Rizing as a distribution partner. Rizing will promote the company’s Talent Community sourcing system in return for a share of recurring licence income. The deal is non-exclusive.
Read MoreThe company has updated on June quarter production, downgrading guidance to 45-50,000t from 50-55,000t. The reason, UBS notes, is the delay to the production improvement plan.
Read MoreBank of Queensland has appointed George Frazis as CEO, to take over September 5. Mr. Frazis was formally the chief executive of the consumer bank at Westpac ((WBC)). Citi expects investors will be optimistic about the appointment and believes Bank of Queensland is well-placed as a likely participant in any industry consolidation.
Read MoreThe company has reduced FY19 guidance, indicating net profit will now be at the lower end of $47-51m. New FY20 guidance, $105m in operating earnings (EBITDA) and $38m in net profit, is below UBS estimates.
Read MoreIluka has finalised a deal with the IFC whereby IFC will invest and aggregate US$60m and take a 10% stake in the Sierra Leone assets. This leads to a -1% decrease in the company’s annual earnings estimate and a slight downward revision in valuation, Citi calculates. Buy rating and $11 target maintained.
Read MoreThe company has provided key metrics in its Australasian business, along with an update on its expansion in the US and UK. The main positive, for Morgans, was US business, which was substantially higher in terms of sales, merchants, and customers in the second half.
Read MoreUBS observes strong equity markets and volatility in interest rates support stronger second half activity. Average daily cash equity turnover is now up 8.5% while futures volumes are running 14% higher.
Read MoreThe company’s investor briefing has shown how the combined business is positioning to capture more work as Jacobs ECR is integrated. Credit Suisse remains comfortable that, pending a smooth integration, leverage to the controlled cost base and new scale will provide unique exposure to the global energy mix.
Read MoreCiti only initiated coverage with a Buy/High-Risk rating and a $3 target in May, about three weeks ago, so there will be a number of unhappy faces at the office. The company management has downgraded production guidance in a significant manner.
Read MoreThe US government has tentatively approved Qantas’ proposed expanded alliance and revenue pooling agreement with American Airlines. The arrangement will mean the two carriers co-ordinate flight schedules, pricing and capacity and share revenue on international routes between the US, Australia and New Zealand.
Read MoreFletcher Building has completed the sale of Formica and disclosed the contribution to FY19 guidance, updating for timing and variations. New guidance range is NZ$620-650m, with a -1.6% downgrade at the midpoint from prior guidance.
Read MoreAbacus Property and Charter Hall ((CHC)) have acquired a 19.9% strategic interest in Australian Unity Office Fund ((AOF)) for $95.6m, equivalent to $2.95 per unit. Australian Unity Office has since released a notice to ASX stating it has received an unsolicited takeover proposal.
Read MoreThe company has announced the acquisition of Halcyon Knights, an IT recruitment company, for $13.5m. This will increase People Infrastructure’s exposure to the sector and Morgans estimates an increase to FY20 earnings per share of 16%.
Read MoreThe broker initiates coverage of Abacus Property with an Outperform rating, believing the investment fundamentals are becoming more attractive as the business transitions away from being a real estate trader towards acquiring assets offering recurring revenues, specifically self-storage, which the broker sees as continuing to grow strongly.
Read MoreThe company has acquired QuantHouse for EUR38.9m, to be funded by debt. The business is expected to incur a minor loss in 2019 but should be accretive to earnings in FY20.
Read MoreThe company has revised FY19 operating earnings guidance (EBITDA) to $350-360m and operating net profit to $195-205m. This is below Morgans’ estimates. Issues reflect the impact of Brexit on the asset services business and headwinds in funds administration from client migration, as well as elevated resourcing costs.
Read MoreCredit Suisse believes a strong positive reaction in the share price to the first half result stems mainly from evidence that the underlying fleet and novated lease business is holding a relatively flat trajectory.
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