Australian Broker Call
September 28, 2016
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Last Updated: 11:10 AM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.
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Credit Suisse rates ALL as Neutral (3) -
Gaming revenue trends have improved strongly in Oklahoma in July and August which should possibly benefit the company's VGT segment.
Credit Suisse expects VGT to generate 6% revenue growth in FY17, with improved momentum and a recent gaming deal signed with the Quapaw.
The broker upgrades earnings per share estimates by 4-5%. Neutral retained. Target is raised to $15.65 from $15.00.
Target price is $15.65 Current Price is $15.96 Difference: minus $0.31 (current price is over target).
If ALL meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $16.07, suggesting upside of 0.2% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY16:
Credit Suisse forecasts a full year FY16 dividend of 20.00 cents and EPS of 59.19 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 56.5, implying annual growth of 87.7%. Current consensus DPS estimate is 22.3, implying a prospective dividend yield of 1.4%. Current consensus EPS estimate suggests the PER is 28.4. |
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 22.00 cents and EPS of 64.69 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 69.3, implying annual growth of 22.7%. Current consensus DPS estimate is 30.9, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 23.1. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates BAP as Neutral (3) -
Bapcor has made an offer to acquire NZ-listed auto parts company Hellaby, to be funded by an equity placement at $5.85 and debt. Pre-bids have already been accepted for around 30% of the placement, the broker notes.
The broker considers this to be a sound acquisition, offering plenty of synergies, and 11% earnings accretion by FY18. However the deal is not yet done. Neutral thus retained but target rises to $6.78 from $5.67.
Target price is $6.78 Current Price is $6.16 Difference: $0.62
If BAP meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $6.47, suggesting upside of 8.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 14.60 cents and EPS of 24.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.5, implying annual growth of 31.7%. Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 25.5. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 18.10 cents and EPS of 30.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.2, implying annual growth of 20.0%. Current consensus DPS estimate is 17.5, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 21.3. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates BAP as Neutral (3) -
Bapcor has announced an all-cash bid for New Zealand's Hellaby Holdings. The offer is NZD3.30 per share and Bapcor has indicated the bid has already received certain shareholder approval for nearly 30% of outstanding shares.
Board approval has not been received and an independent appraisal is being sought from which the board will make a recommendation.
UBS believes the acquisition makes strategic sense as there are significant scale benefits, estimating the proposed transaction would be 12-15% accretive on a pro forma basis.
The broker retains a Neutral rating and $6.30 target.
Target price is $6.30 Current Price is $6.16 Difference: $0.14
If BAP meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $6.47, suggesting upside of 8.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 13.50 cents and EPS of 23.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.5, implying annual growth of 31.7%. Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 25.5. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 16.50 cents and EPS of 28.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.2, implying annual growth of 20.0%. Current consensus DPS estimate is 17.5, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 21.3. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates BLD as Buy (1) -
Deutsche Bank expects Australian housing demand to be strong, given continued low interest rates, solid investment and, in NSW at least, an historical under building.
The broker continues to rate Boral as a Buy, with its exposure to the robust Australian construction markets and potential for margin expansion on price increases.
Target is raised to $7.53 from $7.25.
Target price is $7.53 Current Price is $6.57 Difference: $0.96
If BLD meets the Deutsche Bank target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $6.85, suggesting upside of 1.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 28.00 cents and EPS of 43.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 38.5, implying annual growth of 12.6%. Current consensus DPS estimate is 24.4, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 17.5. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 33.00 cents and EPS of 51.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 42.8, implying annual growth of 11.2%. Current consensus DPS estimate is 26.9, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 15.7. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates CBA as Hold (3) -
Ord Minnett remains cautious on the banks but believes better discipline on mortgage pricing and the loss of momentum in the global regulatory capital agenda provides the potential for banks to perform in 2017.
Commonwealth Bank's Hold rating is retained. Target is raised to $75 from $74.
Target price is $75.00 Current Price is $72.70 Difference: $2.3
If CBA meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $76.95, suggesting upside of 5.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 420.00 cents and EPS of 541.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 549.6, implying annual growth of -1.0%. Current consensus DPS estimate is 420.8, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 13.3. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 EPS of 543.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 560.0, implying annual growth of 1.9%. Current consensus DPS estimate is 416.1, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 13.1. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates CSR as Buy (1) -
Deutsche Bank expects Australian housing demand to be strong, given continued low interest rates, solid investment and, in NSW at least, an historical under building.
The broker continues to rate CSR as a Buy, noting its late cycle nature and continued benefits in the medium term. Target is raised to $4.11 from $3.94.
Target price is $4.11 Current Price is $3.54 Difference: $0.57
If CSR meets the Deutsche Bank target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $3.67, suggesting upside of 1.7% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 26.00 cents and EPS of 34.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 32.1, implying annual growth of 13.8%. Current consensus DPS estimate is 23.8, implying a prospective dividend yield of 6.6%. Current consensus EPS estimate suggests the PER is 11.2. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 22.00 cents and EPS of 27.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.4, implying annual growth of -11.5%. Current consensus DPS estimate is 21.1, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 12.7. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates CVO as No Rating (-1) -
Cover-More has acquired Travelex Insurance Services for US$105m cash, funded by a rights issue and debt. Travelex is the third largest travel insurance specialist in the US.
The acquisition will provide the scale and distribution for Cover-More to expand its business in the US, the broker notes. The broker is advising on the deal and thus is currently on research restriction.
Current Price is $1.44. Target price not assessed.
Current consensus price target is $1.47, suggesting upside of 1.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 5.50 cents and EPS of 9.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.8, implying annual growth of 8.6%. Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 16.4. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 6.50 cents and EPS of 10.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.9, implying annual growth of 12.5%. Current consensus DPS estimate is 6.8, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 14.5. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates CVO as Equal-weight (3) -
The company will acquire Travelex Insurance Services in the US for around $138m. Morgan Stanley likes the potential accretion and perpetual use of the Travelex brand.
The broker is not so keen on the timing of the deal, preferring to have had the underwriting agreement done and dusted ahead of any acquisition. There is also the lack of clarity around key metrics such as equity pricing or interest expense.
Equal-weight rating retained. Target rises to $1.55 from $1.50. In-Line industry view.
Target price is $1.55 Current Price is $1.44 Difference: $0.11
If CVO meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $1.47, suggesting upside of 1.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 7.00 cents and EPS of 9.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.8, implying annual growth of 8.6%. Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 16.4. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 7.80 cents and EPS of 10.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.9, implying annual growth of 12.5%. Current consensus DPS estimate is 6.8, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 14.5. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates CVO as Neutral (3) -
Cover-More will acquire Travelex Insurance Services for US$105m. The deal will accelerate the company's North American expansion. The acquisition will be funded via an entitlement offer and draw down of corporate debt.
Cover-More remains in the final stages of negotiating an agreement with two international insurers in order to distribute in all global markets except the US.
Despite the development, UBS finds a number of issues which are hard to ignore, including a challenging domestic pricing environment, falling North American joint venture volumes and a decline in assistance margins over the last 18 months.
UBS still does not consider the stock cheap, given uncertainties, and retains a Neutral rating. Target rises to $1.38 from $1.35.
Target price is $1.38 Current Price is $1.44 Difference: minus $0.06 (current price is over target).
If CVO meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $1.47, suggesting upside of 1.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 6.00 cents and EPS of 8.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.8, implying annual growth of 8.6%. Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 16.4. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 6.00 cents and EPS of 9.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.9, implying annual growth of 12.5%. Current consensus DPS estimate is 6.8, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 14.5. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates FBU as Buy (1) -
Deutsche Bank expects Australian housing demand to be strong, given continued low interest rates, solid investment and, in NSW at least, an historical under building.
The broker continues to rate Fletcher Building as a Buy. Target is raised to NZD11.52 from NZD11.32.
Current Price is $10.05. Target price not assessed.
Current consensus price target is $12.05, suggesting upside of 19.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 42.80 cents and EPS of 65.12 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 64.1, implying annual growth of N/A. Current consensus DPS estimate is 40.5, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 15.7. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 46.52 cents and EPS of 70.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 67.3, implying annual growth of 5.0%. Current consensus DPS estimate is 42.3, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 15.0. |
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates IRE as Hold (3) -
The company has acquired Financial Synergy, a provider of software to the Australian superannuation industry. The business was acquired for $94m, funded by equity.
This marks the fourth acquisition by Iress in the last 12 months. While the balance sheet is far from stretched Ord Minnett believes it unlikely gearing will decline meaningfully, with organic cash flow generation only marginally offsetting the dividend paid in recent periods.
A Hold rating is maintained. Target is raised to $11.18 from $11.00.
Target price is $11.18 Current Price is $11.61 Difference: minus $0.43 (current price is over target).
If IRE meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $11.97, suggesting upside of 2.8% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY16:
Ord Minnett forecasts a full year FY16 dividend of 46.00 cents and EPS of 41.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 44.3, implying annual growth of 25.9%. Current consensus DPS estimate is 45.4, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 26.3. |
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 55.00 cents and EPS of 51.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 51.9, implying annual growth of 17.2%. Current consensus DPS estimate is 51.1, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 22.4. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates KMD as Hold (3) -
The FY16 result met downgraded guidance and sales growth was subdued at 1.6%, Morgans observes. There was no FY17 trading update or guidance.
Morgans considers the outlook challenging given increased competition and is concerned that the company has reduced its marketing expenditure and there is little upside to the Australian store footprint.
Target is raised to $1.84 from $1.64. Hold rating is retained.
Target price is $1.84 Current Price is $1.92 Difference: minus $0.075 (current price is over target).
If KMD meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $1.98, suggesting upside of 3.3% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 10.23 cents and EPS of 16.75 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 17.2, implying annual growth of N/A. Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 11.1. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 11.16 cents and EPS of 18.61 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.2, implying annual growth of 11.6%. Current consensus DPS estimate is 11.8, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 10.0. |
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates OGC as Underperform (5) -
The company's Didipio mine has been listed for suspension as one of 23 mines in the Philippines, on release of national mine audit results. A further seven were ordered to be closed while 10 were cleared as passing the audit.
Until now, Credit Suisse observes OceanaGold's best-in-class environmental track record appears to have insulated it from closure. The company has acknowledged the government's statement on the audit but advises it has not received any formal order and is seeking clarification.
Underperform rating is retained. Target is $4.40.
Target price is $4.40 Current Price is $4.35 Difference: $0.05
If OGC meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $4.15, suggesting upside of 5.8% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY16:
Credit Suisse forecasts a full year FY16 dividend of 5.44 cents and EPS of 34.14 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.1, implying annual growth of N/A. Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 1.1%. Current consensus EPS estimate suggests the PER is 13.0. |
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 2.72 cents and EPS of 54.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 43.6, implying annual growth of 44.9%. Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 1.0%. Current consensus EPS estimate suggests the PER is 9.0. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates ORA as Outperform (1) -
The broker has moved Orora to top pick among the packagers, ahead of Amcor ((AMC)) and Pact Holdings ((PGH)). The broker has Outperform ratings on all three.
Amcor and Pact have both made acquisitions post-result and the broker expects further acquisitions in the US by Orora to build on its 1% share of the fragmented market. The broker also suggests the proposed container deposit scheme in various Oz states would not ultimately impact Orora earnings materially.
Target unchanged at $3.20.
Target price is $3.20 Current Price is $3.07 Difference: $0.13
If ORA meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $3.12, suggesting upside of 1.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 10.00 cents and EPS of 14.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 14.4, implying annual growth of 2.1%. Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 21.4. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 11.00 cents and EPS of 16.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.3, implying annual growth of 13.2%. Current consensus DPS estimate is 11.1, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 18.9. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates ORG as Neutral (3) -
Frank Calabria was announced as the new CEO and the company has at the same time stated a de-merger is not in consideration at present.
Despite the statement, Credit Suisse does not believe the base E&P business should be part of that future. A lower capital intensity in the residual business would leave the broker more comfortable with the level of leverage.
Neutral rating and $5.90 target retained.
Target price is $5.90 Current Price is $5.18 Difference: $0.72
If ORG meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $6.09, suggesting upside of 18.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 0.00 cents and EPS of 30.56 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.6, implying annual growth of N/A. Current consensus DPS estimate is 2.9, implying a prospective dividend yield of 0.6%. Current consensus EPS estimate suggests the PER is 16.2. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 0.00 cents and EPS of 56.29 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.8, implying annual growth of 76.6%. Current consensus DPS estimate is 14.5, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 9.2. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates OSH as Re-instate coverage with Neutral rating (3) -
The outlook for Oil Search is not as clear as it once was and Credit Suisse updates its valuation post the removal of the Interoil restriction. The broker still struggles to be comfortable with the level of project financing that is achievable.
Nevertheless, in the current oil world the broker acknowledges there is logic in owning a high quality stock like Oil Search. Credit Suisse reinstates coverage with Neutral rating and $6.30 target.
Target price is $6.30 Current Price is $6.53 Difference: minus $0.23 (current price is over target).
If OSH meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $7.89, suggesting upside of 21.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY16:
Credit Suisse forecasts a full year FY16 dividend of 5.61 cents and EPS of 12.92 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.0, implying annual growth of N/A. Current consensus DPS estimate is 5.0, implying a prospective dividend yield of 0.8%. Current consensus EPS estimate suggests the PER is 54.3. |
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 11.78 cents and EPS of 29.33 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.5, implying annual growth of 120.8%. Current consensus DPS estimate is 10.6, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 24.6. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates QUB as Re-instate coverage with Neutral rating (3) -
The company's strategy to vertically integrate its import/export supply chains is likely to deliver attractive investment returns in the medium to longer term, Credit Suisse believes.
The announcement of anchor tenants at Moorebank may be a positive catalyst, but mineral resource exposure could mean FY17 revenue is lower while the earnings contribution from Patrick may be lower than expected.
Credit Suisse re-instates coverage with a Neutral rating and $2.30 target.
Target price is $2.30 Current Price is $2.29 Difference: $0.01
If QUB meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $2.60, suggesting upside of 14.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 5.60 cents and EPS of 8.29 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 10.0, implying annual growth of 22.1%. Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 2.6%. Current consensus EPS estimate suggests the PER is 22.7. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 5.60 cents and EPS of 8.68 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 10.9, implying annual growth of 9.0%. Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 20.8. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates RAN as Add (1) -
Range International has ordered an additional six production lines to be installed at its new factory in east Java in 2017. Morgans takes this to mean the company is on track to meet the targets outlined in its prospectus and may even be running ahead of expectations.
Morgans expects the company to break even in 2017 and retains an Add rating and $1.73 target. Given the large global market opportunity, the broker envisages potential for strong earnings growth for years to come.
Target price is $1.73 Current Price is $1.38 Difference: $0.35
If RAN meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in December.
Forecast for FY16:
Morgans forecasts a full year FY16 dividend of 0.00 cents and EPS of minus 1.50 cents. |
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 0.00 cents and EPS of 1.50 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates S32 as Buy (1) -
UBS observes, after a 3-day tour of the company's south African business, that the rand remains a headwind. The company is guiding to sustaining capital of US$450m in FY17 with just US$7m slated for South African manganese.
The broker questions the low amount and, while retaining higher levels in its estimates, wonders whether the market is factoring too high long-term sustaining capital.
The broker retains Buy rating and $2.25 target, noting market tightness is driving higher manganese prices but supply is also rising.
Target price is $2.25 Current Price is $2.39 Difference: minus $0.14 (current price is over target).
If S32 meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.24, suggesting downside of -6.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 6.79 cents and EPS of 16.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 10.7, implying annual growth of N/A. Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 1.7%. Current consensus EPS estimate suggests the PER is 22.3. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 6.79 cents and EPS of 16.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.0, implying annual growth of 2.8%. Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 21.7. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates SAI as Hold (3) -
The scheme of arrangement with Baring Asia will mean shareholders receive $4.75 per share for their SAI Global investment.
While the break fee on the transaction is $11m, Ord Minnett considers it unlikely another bidder will emerge with a higher price, unless another party can strike an agreement with Standards Australia to provide longer-term earnings security.
Target is raised to $4.75 from $3.45. Hold retained.
Target price is $4.75 Current Price is $4.64 Difference: $0.11
If SAI meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $4.28, suggesting downside of -8.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 18.00 cents and EPS of 30.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 29.5, implying annual growth of 18.5%. Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 15.7. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 22.00 cents and EPS of 34.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.8, implying annual growth of 7.8%. Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates WES as Sell (5) -
Coal prices continue to surprise to the upside and Citi analysts have bitten the bullet and increased forecasts, which has added 4% to Wesfarmers' EPS estimate for the present fiscal year.
The analysts point out Wesfarmers is not catching all of the upside from surprisingly strong coal prices as it carried 1m tonnes from FY16 into FY17 that will generate a lower price.
The outlook seems sound, but Citi analysts expect Coles' sales trends to slow and margins to decline slightly. The combination of the two may lead to a PE de-rating for the stock, say the analysts. Sell rating retained. Target lifts 30c to $38.80.
Target price is $38.80 Current Price is $43.97 Difference: minus $5.17 (current price is over target).
If WES meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $42.10, suggesting downside of -4.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 200.00 cents and EPS of 249.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 240.0, implying annual growth of 563.0%. Current consensus DPS estimate is 200.9, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 18.4. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 207.00 cents and EPS of 246.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 259.2, implying annual growth of 8.0%. Current consensus DPS estimate is 215.1, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 17.0. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 6 |
| 3. Hold | 12 |
| 5. Sell | 2 |
Wednesday 28 September 2016
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