Credit Suisse observes the shutdown at Pluto has affected revenue and production costs in the second quarter. Yet, the negatives in the June quarter are largely considered one-off and, the broker suspects, over emphasised by the market.
Read MoreQBE has announced the new Ogden Rate in the UK will result in a -US$60m impact to pre-tax earnings in the first half. This is more severe than Morgan Stanley had estimated.
Read MoreSynlait Milk is nearing completion of the second major capital expenditure phase, during which it will invest NZ$400m in four major growth projects. Morgans believes the new investment will drive strong volume-led earnings growth over FY19-21.
Read MoreMorgans believes stimulus initiatives announced by APRA (Australian Prudential Regulatory Authority), for an additional capital add-on of $500m for operational risk, to be applied until the banks have completed their planned remediation, will de-risk the earnings outlook for the sector.
Read MoreCiti notes pricing for mushrooms has been unusually weak this year. This is Costa Group’s largest domestic product category. The weakness should abate in coming months but the broker remains cautious about forecasts.
Read MoreThe sale of the company’s life business is unlikely to proceed on current terms because of the challenges in meeting the Reserve Bank of New Zealand’s criteria. Credit Suisse notes this allows the buyer the opportunity to review its offer and potentially lower the purchase price by over -$1bn.
Read MoreThe shares are now trading well above Morgans’ valuation and the rating is downgraded to Reduce from Add. REA Group shares have risen 21% since the broker last reported on the stock in May.
Read MoreCiti expects net profit in FY19 of $275m, at the top end of guidance. The broker suspects market growth in North America will be lower than the prior corresponding period as Cochlear may have been more focused on protecting market share.
Read MoreAfter a review of Aristocrat forecasts, the broker has decided digital, which currently represents some 28% of profit, may have reached an inflection point. Better growth is expected from FY20 and beyond supported by recent Social Casual releases and improvements in Social Casino.
Read MoreMorgan Stanley asserts Aristocrat Leisure does not need to outperform to succeed in digital. The company’s land-based success and scale provide a competitive advantage, despite growth moderating in this area.
Read MoreElders will acquire Australian Independent Rural Retailers for $187m. The acquisition will be funded via cash and scrip. Morgans considers the purchase price reasonable, given the size of the group.
Read MoreUBS finds the majority of the Sydney market has implemented larger-than-expected price increases, off the back of the Queensland landfill levy. The broker believes there is further upside available from recent price increases.
Read MoreMorgans reviews assumptions ahead of the results on August 21. Revenue growth of 12% and operating earnings (EBITDA) growth of 10% are expected. The broker still envisages risks to guidance based on store roll-out and margins.
Read MoreThe company has announced $1.1bn in net outflows for the June quarter. By channel, underlying outflows came from the direct & advised retail as well as institutional.
Read MoreCredit Suisse reviews script volume trends for the company’s key generic and specialty brands. With limited improvement in the final six weeks of FY19 the broker envisages downside risk to consensus forecasts.
Read MoreThe Trump Administration has withdrawn its proposed rebate rule which was intended to stop the practice of pharmacy benefit manager rebates from January 1, 2020. UBS suggests the most likely reason was the cost of implementation.
Read MoreNeutral rating retained as Citi adjusts EPS forecasts (slightly) upon marking-to-market led by stronger bonds (lower yields) and stronger equities. The analysts cannot help but conclude this stock looks expensive given the industry’s challenged outlook.
Read MorePreliminary indications suggest FY19 results are in line with Morgan Stanley’s estimates. Break-even on cash flow, excluding the capital raising, has been achieved. The company will release its results on August 21.
Read MoreThe company has updated on the Brazilian assets. UBS has been waiting for further details on development to refine its assessment. The update indicates that the economics of the Antas mine are worse than previously assessed.
Read MoreCredit Suisse remains broadly positive about the company’s UK operations, highlighting supportive industry conditions for advice/wealth software amid likely consolidation in advice that is aligned to the company’s focus.
Read MoreWhitehaven Coal’s June Q production beat the broker by 4%, suggesting operational issues appear to be under control, although some sales have shifted in FY20.
Read MoreUBS assesses Rural Funds has missed the A-REIT rally as it is up just 10% versus the sector’s gains of 22%. The company’s revaluation of Rewan and its gulf properties has affirmed the cattle strategy and provides the broker with confidence.
Read MoreCredit Suisse has assessed the mining aftermarket industry, which is the company’s higher multiple division, and believes this offsets weakness within the lower-multiple equipment hire division.
Read MoreThe broker has reviewed its assumptions and forecasts for Rio, including marking to new iron ore price forecasts. This leads to a valuation increase to an enterprise multiple of 5.5x for FY20, in line with global peers.
Read MoreCredit Suisse assesses an improving earnings profile and low PE should attract investors and the stock could re-rate.
Read MoreUBS notes press speculation there is potential interest in the company’s malt division. The division is currently scheduled to be de-merged after the FY19 results in November.
Read MoreMorgans notes strategically located distribution centres offer a wide range of products from premium brands, enabling the company to capture large-scale contractors with comprehensive requirements.
Read MoreMacquarie continues to envisage earnings headwinds for Suncorp and a risk to consensus estimates. The broker believes the company’s cash return targets are becoming increasingly unachievable. Some change to FY20 guidance is expected at the August result.
Read MoreFollowing a fatal accident at Golding’s Baralaba North coal mine, operations have been halted pending investigation. NRW Holdings’ Baralaba contract represents some 20% of FY19 mining division earnings and extends to 2021.
Read MoreThe company ended June with $86.7bn in funds under management, up 24.7% over the financial year. Morgans expects an update on new products at the August results, such as the US sustainable and retirement income product, which are medium to longer term growth options.
Read MoreThe Didipio operation in the Philippines appears to be at risk of disruption as a contingent of locals are blockading access roads and prohibiting supply trucks reaching the mine. Light vehicles, personnel and food supply continue to access the site unimpeded.
Read MoreThe company will divest GraysOnline and AreYouSelling for $60m to Quadrant Private Equity. The transaction includes a distribution agreement, allowing EclipX to continue benefiting from utilisation of Grays automotive segment as a disposal channel.
Read MoreAs dry conditions continue and farming costs increase, Australia’s milk supply is expected to decline again in FY20. Dairy Australia forecasts Australian milk supply to contract a further -3-5% in FY20 after declining by -7-9% in FY19.
Read MoreUBS has surveyed investors, finding the biggest issue is competition in the NZ telco market. The broker suggests there is a low probability of a dividend reduction, as competition has been more rational in 2019.
Read MoreThe company has downgraded its underlying earnings (EBIT) outlook for FY19 by -NZ$30m, the result of a disappointing Australian division. Given the sharp decline in Australia, management’s view that FY19 was a successful year is a surprise to Deutsche Bank.
Read MoreGame installation data in NSW have revealed Aristocrat Leisure has suffered a -35-40% decline in volumes and captured 55% ship share, its lowest share since 2015. NSW accounts for about half of Australia’s gaming machine shipments.
Read MoreThe broker sees a risk in the WA domestic gas market remaining relatively well supplied by capacity increases at other projects, limiting Beach’s upside on the west coast.
Read MoreCredit Suisse extends its review of the company’s debt levels, reducing FY19 net debt estimates to US$4.6bn from US$5.1bn. This adds around $0.30 to valuation.
Read MoreUBS updates the main earnings drivers, including average occupancy in the second half, now estimated at 92.2% versus 93.6% in the first half. Second half government revenue per occupied bed is up 7% and second half staff costs per occupied bed are up 2%.
Read MoreCiti increases estimates for FY20 earnings (EBIT) by 1% and FY21 by 5% to reflect the company’s deal with network customers.
Read More