OSH – Credit Suisse rates the stock as Underperform
The company has guided to around 8.4mtpa in 2020 because of turbine maintenance on one LNG train. Similar maintenance will be undertaken on the second train in 2021.
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RMD – Macquarie rates the stock as Underperform
Macquarie has long maintained the mantra that ResMed’s valuation, now 36.8x forward earnings and a 38% premium to medical device peers, ascribes limited medium-term risk in relation to reimbursement changes or the longer-term impact of competing technologies. Underperform retained.
Read MoreSYD – Citi rates the stock as Sell
Citi notes Sydney Airport amassed 16.9m international passengers 2019 of which 1.2m were going to or from China.
Read MoreAGI – Macquarie rates the stock as Neutral
The broker has reviewed Dec Q performance across 47,000 slot machines in Australia and found Aristocrat Leisure continues to have the most popular titles, with new game performance 1.3x the floor average. Ainsworth Game Technology continues to underperform at 0.8x, while for other competitors the numbers are hit and miss.
Read MoreLYC – UBS rates the stock as Buy
Revenue was 6% of ahead of UBS estimates in the December quarter. The broker likes the company’s strategic position as the only producer of rare earths outside of China, for which demand is set to double by 2025.
Read MoreMTS – Credit Suisse rates the stock as Neutral
A new retailer co-operative appears designed to reduce buying costs and improve the availability of local and specialty lines that do not compete directly with the range offered by Metcash.
Read MoreSXY – Credit Suisse rates the stock as Neutral
The strong ramp-up in gas production in the December quarter has been offset by softer prices. Credit Suisse suspects declining LNG netbacks stemming from weak LNG spot pricing will have limited impact on Senex Energy because of term contracting.
Read MoreNWL – UBS rates the stock as Sell
Netwealth reported a record $2.9bn net inflows in the Dec Q, made up of $1.1bn from ANZ Private and a doubling of underlying flows from six months ago. Add in a strong market to kick off 2020 and the company has raised its funds under management outlook. Target rises to $7.65 from $7.50.
Read MoreGXY – Morgan Stanley rates the stock as Equal-weight
Costs disappointed Morgan Stanley in the December quarter, affected by the DMS trials that were called off. 2020 production guidance is lower than previously outlined.
Read MoreDMP – UBS rates the stock as Neutral
UBS assesses customer engagement improved in Australia and Germany in the first half but softened in France.
Read MoreAPI – Credit Suisse rates the stock as Underperform
The company has guided to a decline in underlying net profit in the first half because of challenging industry conditions that particularly affect the retail business. An improvement is expected in the second half.
Read MoreRRL – Morgan Stanley rates the stock as Equal-weight
Gold production was ahead of estimates in the December quarter, although Morgan Stanley notes costs are elevated. The company is now expecting the upper end of cost guidance.
Read MoreREH – Morgans rates the stock as Downgrade to Hold from Add
Following recent share price strength, amid expectations of a cyclical upswing, Morgans downgrades to Hold from Add.
Read MoreFLT – Credit Suisse rates the stock as Downgrade to Neutral from Outperform
Credit Suisse observes recent travel data has been weak, consumer sentiment is poor and there is a strong second half skew to guidance.
Read MoreFMG – Credit Suisse rates the stock as Upgrade to Neutral from Underperform
The commodity price outlook is far more accommodative and Credit Suisse lifts the target to $11.00 from $7.50. Rating is upgraded to Neutral from Underperform.
Read MoreMND – Bell Potter rates the stock as Buy
Bell Potter has a positive take on Monadelphous due to the announcement of contract awards worth circa $350m, putting it on track to achieve its $1.5bn target in awards for FY20.
Read MoreMOZ – Wilsons rates the stock as Buy
Wilsons notes the retailer’s revenues have been impacted by the bushfires, as well as broader difficult trading conditions.
Read MoreSUL – Credit Suisse rates the stock as Neutral
Credit Suisse considers it likely investors will look through the fire-related impact on stores in the first half. Nevertheless, more frequent and extreme events have the potential to affect retailer performance.
Read MoreAMC – Credit Suisse rates the stock as Outperform
Credit Suisse raises the target to $16.25 from $15.50, suspecting there could be more consensus upgrades. Falling raw materials prices could stimulate some new volume and underpin profit.
Read MoreRIO – UBS rates the stock as Neutral
The company delivered on its 2019 guidance and has set forecasts for iron ore shipments in 2020 at 330-340mt.
Read MoreCBA – Morgan Stanley rates the stock as Underweight
Morgan Stanley believes Commonwealth Bank is priced for a strong result so the potential for disappointment is great. The outlook for margins and costs, alongside expectations of a buyback, will be the main focus.
Read MoreS32 – Credit Suisse rates the stock as Outperform
The December quarter was soft, Credit Suisse observes, amid weak manganese prices. The main change to estimates is driven by an expected effective tax rate of 75-85% in the first half. There are no available tax benefits to use from South Africa Energy Coal.
Read MoreMHJ – Citi rates the stock as Buy
Buy rating maintained while the price target loses -1c to $0.80. Citi found the Q2 trading update serves as a signal that sales momentum is strong, supported by Black Friday and Christmas 2019.
Read MoreAWC – UBS rates the stock as Sell
Alcoa reported an adjusted earnings loss for the December quarter of -US$0.31 per security. Net distributions to Alumina Ltd were US$74.4m.
Read MoreRSG – Macquarie rates the stock as Outperform
Resolute Mining will sell Ravenswood gold mine for $50m cash, a $50m promissory note and up to $200m in contingent payments. Macquarie values the deal at $150m.
Read MoreDHG – UBS rates the stock as Downgrade to Sell from Neutral
UBS believes new listings are now on track to return to positive growth in the second half. FY20 earnings forecasts are unchanged but FY21-22 are increased by 11-12% on higher assumed listings growth.
Read MorePPT – Credit Suisse rates the stock as Neutral
Funds under management totalled $26.3bn at the end of December, up 1% during the quarter. This was ahead of Credit Suisse estimates and the company has reported its first positive quarter of flows in nearly three years.
Read MoreRSG – Macquarie rates the stock as Outperform
The company’s 2020 production guidance of 500,000 ounces is in line with Macquarie’s expectations while guidance for AISC of US$980/oz is -19% below forecasts.
Read MoreLVT – Citi rates the stock as Buy
Citi expects a step up in growth in the second quarter as the company angles for a partner-based channel strategy. The broker is looking for a record second quarter after a weaker-than-expected first quarter.
Read MoreTYR – Morgan Stanley rates the stock as Initiation of coverage with Overweight
Tyro Payments is an Australian merchant acquirer business competing against the major banks. Morgan Stanley believes this presents a rare opportunity to gain exposure to the payments system.
Read MoreTWE – UBS rates the stock as Buy
Nielsen data from the US indicates the company’s December sales were weak, with volume sales down -3.5% in the month. Top brands fared better, up 0.2% year-on-year and an improvement vs November.
Read MoreHUB – Credit Suisse rates the stock as Neutral
Credit Suisse downgrades earnings estimates by -3-4%. The broker believes the company has one of the best products in the market and is able to gain market share through capturing an outsized share of flow.
Read MoreWPL – Macquarie rates the stock as Neutral
The Sangomar project phase 1 has received final approval from the Senegalese government and will move to execution and development. This is a major step forward for the company’s growth strategy.
Read MoreARB – Citi rates the stock as Neutral
ARB Corp is considered well-placed to benefit from the shift in consumer preferences towards sports utility vehicles and four-wheel-drive cars. However, Citi finds the peer multiple demanding amid short-term headwinds stemming from a decline in first half Australian 4×4 sales.
Read MoreCOL – Morgan Stanley rates the stock as Downgrade to Underweight from Equal-weight
Morgan Stanley observes supermarket industry margins have re-based and this has paid off for the major operators. The broker believes execution will be a differentiator in supermarkets in 2020 and Woolworths has a margin advantage, partially reflecting its scale advantage. This is considered unlikely to be eroded over the medium term.
Read MoreEVN – Ord Minnett rates the stock as Hold
Both production and costs were below guidance in the December quarter. The company has also flagged a potential downgrade to the resource at Mount Carlton and water security issues at Cowal.
Read MorePPH – UBS rates the stock as Buy
UBS observes the company has outperformed the market by 20% over the last month because of improved operating leverage, double-digit back book growth and the acquisition of Church Community Builder.
Read MoreLLC – Citi rates the stock as Buy
Lendlease has an agreement with Acciona for the purchase of its engineering business for $180m, less selling costs and working capital adjustments.
Read MoreQBE – Morgan Stanley rates the stock as Overweight
Morgan Stanley reviews its assessment of the risk/reward after the company’s operating update. Cash net profit estimates are reduced by -14% and -5% for 2019 and 2020 respectively.
Read MoreQBE – Morgan Stanley rates the stock as Overweight
Adverse weather has driven a weaker result in the company’s crop combined operating ratio in the US.
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