BKL – Citi rates the stock as Sell
Blackmores has indicated first half profit is likely to be at similar levels to the prior half, at around $21m. This is below Citi’s original expectations.
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AGL – Macquarie rates the stock as Underperform
The company has reiterated guidance at its investor briefing while Macquarie notes the risk is to the upside and the focus is on strategy not the financials.
Read MorePLS – Credit Suisse rates the stock as Outperform
September quarter production was weak, curtailed to meet soft customer demand and limit the cash burn. The company achieved structural cost reductions and is targeting a reduction in quarterly costs of $5-10m.
Read MoreWGN – Credit Suisse rates the stock as Outperform
Wagners is taking a conservative view of the market in south-east Queensland, which Credit Suisse welcomes. The company has raised $40m in equity and has noted continued delays with major projects.
Read MoreBVS – Macquarie rates the stock as Outperform
Bravura Solutions has acquired FinoComp, which provides software to registry systems, for $25m. The acquisition is expected to deliver around $6.8m in revenue and $1.2m in operating earnings (EBITDA) on a pro forma basis.
Read MoreVEA – UBS rates the stock as Buy
Viva Energy’s Sep Q update revealed refiner margins ahead of forecasts but retail margins remaining soft. This comes out as a net positive, with UBS suggesting 9% upside to consensus forecasts on better refiner margins with some offset from weak retail.
Read MoreIRE – Morgans rates the stock as Add
The company has won a contract with Emergency Services and State Super to provide a full back-office service. Morgans observes a shift from being a software supplier to a full service provider significantly expands the company’s revenue opportunity.
Read MoreCGC – Macquarie rates the stock as Downgrade to Underperform from Neutral
Costa Group has announced its fourth downgrade for the year, now expecting 2019 net profit of $28m and operating earnings (EBITDA) of $98m. Macquarie notes tomatoes are the only produce category to meet second half expectations.
Read MoreGWA – Credit Suisse rates the stock as Neutral
The company has provided maiden FY20 earnings (EBIT) guidance of $80-85m. First quarter sales were down -8% and below Credit Suisse assumptions.
Read MoreSM1 – UBS rates the stock as Neutral
The company has announced a conditional purchase of Dairyworks for NZ$112m. Dairyworks is one of the larger dairy companies in New Zealand and supplies around 50% of cheese and 25% of butter under its consumer brands.
Read MoreCWY – Macquarie rates the stock as Outperform
Cleanaway Waste Management’s guidance to a flat first half is disappointing, Macquarie concedes, but not deserved of the subsequent -13% sell-off. The second half should see improvement thanks to price increases, cost reductions and hopefully, as the broker puts it, stable commodity prices.
Read MoreSGR – Morgans rates the stock as Upgrade to Add from Hold
The trading update was ahead of expectations. The company is forecasting first-half operating earnings of $300-310m on the back of domestic revenue growth and cost reductions.
Read MoreIFL – Macquarie rates the stock as Outperform
IOOF ‘s net flows held up reasonably well in the Sep Q under the circumstances, Macquarie notes, with platform inflows offset by outflows from advice and investment management.
Read MoreWSA – UBS rates the stock as Sell
The company’s September quarter update revealed production was slightly below UBS estimates. Realised revenue was 11% above estimates.
Read MoreJHX – N.V.Credit Suisse rates the stock as Outperform
Further input cost reductions strengthen FY20/21 expectations. Positive end market data and early US reporting commentary leads Credit Suisse to increase North American earnings estimates by 2% for FY20 and 6% for FY21.
Read MoreMGR – UBS rates the stock as Sell
First-quarter update was mixed, UBS observes, with highlights being the ongoing strength in the commercial & industrial portfolio as retail sales growth slows marginally. Residential releases were slightly disappointing.
Read MoreOSH – Credit Suisse rates the stock as Underperform
Production in the September quarter was down -1% because of the mooring damage. The company has revised 2019 guidance, reducing production volumes by -5%. Unit production costs are up 9%, driven by lower production volumes and higher repair costs.
Read MoreSWM – Credit Suisse rates the stock as Neutral
Seven West has announced the sale of Pacific Magazines to Bauer Media for $40m. While at a discount to Credit Suisse’s valuation of $60m, when completed the sale would further reduce the company’s leverage ratio.
Read MoreORI – UBS rates the stock as Neutral
The broker’s satellite monitoring of the Burrup plant rebuild indicates works have commenced and appear to be tracking to schedule. Monitoring will continue.
Read MoreACF – Morgans rates the stock as Add
The company will acquire Uni-span for $21.25m. Morgans estimates FY21 accretion of 29%. There is further upside likely if management can generate revenue synergies and/or exceed cost synergy expectations.
Read MoreSWM – UBS rates the stock as Buy
The company is proposing a merger with Prime Media ((PRT)) through a scrip-based arrangement. Each Prime Media shareholder will receive 0.4582 in Seven West shares.
Read MoreARB – Credit Suisse rates the stock as Neutral
A combination of falling car sales in the company’s categories and an appreciating Thai baht has meant ARB Corp now expects net profit to be weaker than the prior first half.
Read MoreIAG – Credit Suisse rates the stock as Upgrade to Neutral from Underperform
The company will sell its 26% interest in the joint venture with State Bank of India. Total consideration is over $640m with an expected increase in Insurance Australia Group’s regulatory capital position of over $400m once the transaction completes.
Read MoreAWC – Macquarie rates the stock as Underperform
Alumina’s production numbers were largely in line with Macquarie’s expectations but realised prices surprised to the upside. AWAC JV partner Alcoa has announced a review into up to 4mtpa of alumina production and 1.5mtpa of aluminium production.
Read MoreNST – UBS rates the stock as Neutral
September quarter production was -10% below UBS estimates with costs 12% higher. The broker suggests, being the fourth quarter of weaker-than-expected production, market confidence has been dented and this is potentially affecting the company’s premium valuation.
Read MoreOZL – UBS rates the stock as Buy
September quarter production was slightly weaker than forecast but, importantly, Carrapateena remains on track for first production in November.
Read MoreALL – Credit Suisse rates the stock as Outperform
Confidence in the existing game portfolio and operating momentum supports assumptions for the company’s land-based business, Credit Suisse suggests. The broker values the stock on the assumption the company’s predilection to invest will uphold an expanded market share.
Read MoreCGF – Macquarie rates the stock as Outperform
After a challenging period for Challenger, Sep Q total book growth exceeded expectations thanks to Japanese annuity sales and growth in guaranteed income products. Local fixed-term sales are holding up, Macquarie notes, despite low-interest rates.
Read MoreSXL – Macquarie rates the stock as Downgrade to Neutral from Outperform
While ad markets have continued to be choppy across broader media, Macquarie was surprised by the extent of Southern Cross’ guidance downgrade. Channel checks reveal weakness is across the board, not just in any one sector. The broker has reassessed its general media assumptions.
Read MoreCOE – Morgans rates the stock as Add
September quarter production, up 22%, was slightly ahead of Morgans’ estimates. Revenue from gas sales was up 32% versus the prior quarter, supported by higher gas prices from new contracts and better production, which offset lower revenue from oil.
Read MoreCVN – Macquarie rates the stock as Outperform
Carnarvon’s Sep Q drilling and corporate costs were in line with the broker’s expectation. Following the company’s recent capital raising it should be well funded to progress the Dorado prospect through to completion of front-end engineering & design (FEED).
Read MoreALQ – Credit Suisse rates the stock as Downgrade to Neutral from Outperform
While the stock is priced for a recovery in geochemistry Credit Suisse finds little evidence this is occurring. The focus at the result is likely to be on the volume growth in geochemistry and continued margin improvement in life sciences.
Read MoreSTO – UBS rates the stock as Neutral
Santos will acquire ConocoPhillips’ northern Australian assets for $1.39bn. The transaction will be funded from free cash flow and $750m in new debt facilities as well as a 25% equity sell-down of Bayu-Undan and Darwin LNG.
Read MoreMHJ – Citi rates the stock as Buy
First-quarter trading has revealed the company’s strategies are gaining momentum, with Citi noting the business has stabilised. The broker expects Michael Hill will focus on improving Canadian sales productivity and expanded its product range.
Read MoreRRL – Credit Suisse rates the stock as Upgrade to Neutral from Underperform
Credit Suisse notes the revised definitive feasibility study for McPhillamys is due in the first half of FY20 and may reveal improved economics on incorporating the higher-grade satellite, Discovery Ridge.
Read MoreRHC – UBS rates the stock as Neutral
Ramsay’s UK NHS admissions rose 1.8% year on year in August — a good result, the broker notes, given an 8.0% increase in FY19 — however 12-month rolling growth eased to 3.0% from 3.4%. Current admissions and a tariff increase bode well for NHS revenue in FY20, but the increased use of agency nurses to handle the workload reduces margin expectations, the broker points out.
Read MoreCWY – Citi rates the stock as Initiation of coverage with Buy
Citi initiates coverage on the Australian waste management sector, rating Cleanaway Waste Management a Buy with a $2.40 target.
Read MoreRMD – UBS rates the stock as Buy
Ahead of ResMed’s Sep Q results, the broker has made adjustments for forex and tax assumptions, leading to modest earnings downgrades. Target unchanged at US$140 (A$20.75 at current spot).
Read MoreORA – Macquarie rates the stock as No Rating
The company will sell its Australasian fibre business to Nippon Paper for $1.72bn. The transaction represents an FY19 adjusted operating earnings (EBITDA) multiple of 11.5x.
Read MoreSKI – Morgans rates the stock as Reduce
The draft decision on the South Australian Power Networks has confirmed Morgans’ view that distribution revenue will fall. A lower capital expenditure budget also means a slowdown in regulated asset base growth.
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