Fonterra Shareholders Fund achieved the top end of guidance in FY20. Credit Suisse acknowledges the company still needs to make allowance for the pandemic-related uncertainty that is affecting the food services business.
Read MoreUBS assesses Scentre Group’s hybrid notes issuance will solidify its existing credit ratings and increase the buffer to debt covenants. The earnings forecast has been downgraded by circa -10% due to the hybrid issue.
Read MoreMacquarie has visited the Julimar site in WA, noting plans to accelerate the drilling. Land outside of the state forest has been largely secured and should enable a complete drill-out of the Gonneville intrusion over the next year.
Read MoreIcar Asia has updated on July to August trading. Malaysia and Indonesia are rebounding from pandemic lows in the second quarter, reports Morgans, however, Thailand is underperforming expectations.
Read MoreUBS downgrades Reliance Worldwide Corp to Neutral from Buy with the target price increased to $3.85 from $3.65.
Read MoreMacquarie is bullish on CSR’s building products segment led by a more resilient detached market and has raised FY21 building products operating income forecast by 23%.
Read MoreMorgans believes the company is at risk of disappointing the market expectations due to persistently low thermal coal prices. Additional disappointment may come from non-core asset write-downs, head office re-location costs, legal costs and staff redundancies.
Read MoreThe company’s presentations have reinforced the various options for long-term growth. Macquarie expects investment will mirror the revenue outlook.
Read MoreThe UK has ruled in favour of policyholders being able to claim on their insurance in the business interruption test case. While an appeal is possible, UBS notes this does not change QBE Insurance’s net exposure of -US$70m given reinsurance protection.
Read MoreUniti Group ((UWL)) has revised its OptiComm offer to $5.85, which consists of $4.835 in cash (including the $0.10 dividend) plus 0.80537 Uniti Group shares per 1 OptiComm share. The Uniti Group share component was valued at $1.01 (using a $1.26 Uniti Group share price).
Read MoreCredit Suisse believes the pandemic will promote a sustained increase in flu vaccination rates over the next 2-3 years.
Read MoreMacquarie reviews the pathology margins, noting these have declined over time but expansion is now likely to FY23.
Read MoreCoronado Global Resources raised US$180m in new equity, thereby reducing gearing to around 23% from 41%. Additionally, banks have extended the debt covenant waivers to September 2021 from February 2021.
Read MoreCredit Suisse upgrades forecasts, expecting the boost to household goods expenditure will be longer than previously anticipated. Wesfarmers is also positioned to add value through strategic acquisitions in the industrials and home improvement sectors.
Read MoreMacquarie Group has announced, with two weeks remaining in the first half, it expects profit (NPAT) to be around $950m. This is around -25% lower than the second half of 2020.
Read MoreCredit Suisse is increasing its 2021 gold price forecasts to US$2500/oz and 2022 to US$2200/oz, amid a number of supportive macroeconomic factors.
Read MoreThe departure of certain executives is, in Macquarie’s view, a key step in regaining stakeholder trust after the Juukan Gorge incident. A search for a replacement to the outgoing CEO is the catalyst for the stock in the short term.
Read MoreIGO has commenced a strategic review of the options surrounding its 30% interest in the Tropicana gold mine, following several unsolicited approaches for the asset. The review will take 3-6 months.
Read MoreCharter Hall Long WALE REIT has acquired a 50% stake in a Charter Hall Group ((CHC))-managed partnership holding 49% of 70 BP petrol station assets in New Zealand. The remaining stake in the fund will be held by Charter Hall Retail REIT ((CQR)).
Read MoreUBS believes processing Scarborough gas at the North West Shelf (NWS) is the most value accretive of the various approaches assessed. The broker believes if Woodside Petroleum acquires an additional 33% equity in the NWS, this may allow the company to pivot towards the higher value Scarborough concept.
Read MoreMorgans reviews Brickworks ahead of the company’s FY20 result for the July year-end on September 24.
Read MoreMorgans views Woodside Petroleum’s share price as trading at a discount to the value of its existing operations.
Read MoreCredit Suisse has become more balanced in its view of the stock and upgrades to Neutral from Underperform. The rating change is more about the share price than any fundamental difference.
Read MoreMincor Resources has confirmed the existence of ore grade mineralisation at Cassini North, considered encouraging by Macquarie who believes both Cassini North and Cassini offer upside risk through exploration success which could imply mine life extensions.
Read MoreOptiComm has received a non-binding offer from First State Super. Morgans suggests investors Hold and states there is upside risk relating to the possibility of a higher bid eventuating.
Read MoreOfficial agricultural forecaster, ABARES, has upgraded the winter crop outlook for Australia’s east coast to 24.4mt. UBS highlights the earnings leverage that exists for crop that is over 24mt, given Graincorp’s derivative payment is maximised at around 24mt.
Read MoreAfter reviewing capital concerns, Macquarie concludes that Challenger is in a materially stronger capital position, compared with peers during the GFC, amid the now tighter regulatory oversight.
Read MoreMorgans reduces first half FY21 volume forecasts for Domain Holdings due to the extension of the Victorian lockdowns.
Read MoreWith Beach Energy’s share price down -15% since May, Macquarie notes the company has underperformed the energy sector on account of its reduced five-year free cash flow guidance.
Read MoreCSL and the Australian government have signed a heads of agreement to supply doses of the University of Queensland’s coronavirus vaccine, scheduled for distribution in mid 2021.
Read MoreMorgans updates estimates to also reflect the strong run in the gold price since the last update. The company’s extra detail is considered conservative but overall the increased estimated production should leave room for a mine life extension.
Read MoreMorgan Stanley notes media speculation Scentre Group may launch a $1.8bn equity raising, even though the CEO at the results rejected any plans to raise equity in order to alleviate tight gearing.
Read MorePerseus Mining is confident in the development of Yaoure and first gold is timed for December. The company also intends to accelerate a valuation of resources acquired as a result of the takeover of Exore Resources ((ERX)).
Read MoreOperating earnings in FY20 were ahead of Credit Suisse estimates. The fourth quarter was supported by strong domestic gaming in Auckland and Hamilton.
Read MoreOn calculating the contribution of coronavirus testing to the company’s financial performance, UBS makes material upgrades over the short term.
Read MoreMorgan Stanley notes while ALS has lagged its global peers over the last 1-2 years, there is upside potential for if the expansion of its Life Sciences business continues.
Read MoreDomino’s Pizza Enterprises’ FY20 result was in line with Morgan Stanley’s estimates except for in ANZ and Europe due to covid-19 related disruptions.
Read MoreCredit Suisse points out Coca-Cola Amatil’s cost reduction programs over 2019-22 should reduce the cost base by -$120m. The broker assesses these will be directed towards discretionary spending.
Read MoreThe first half underlying net loss for Palla Pharma was below Morgans expectations. The result was impacted by a major UK customer manufacturing license loss and the early jettison of a non-opiate contract manufacturing organisation (CMO) contract. Additionally, the supply chain was affected by covid-19 disruptions, explains the broker.
Read MoreCiti remains concerned that the pandemic has accelerated the structural headwinds that face the company’s businesses, particularly in the case of cinemas.
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