Australian Broker Call

November 22, 2016

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COMPANIES DISCUSSED IN THIS ISSUE

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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

Last Updated: 01:37 PM

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.

For more info about the different terms used by stockbrokers, as well as the different methodologies behind similar sounding ratings, download our guide HERE

Today's Upgrades and Downgrades
ABP - ABACUS PROPERTY GROUP Upgrade to Buy from Hold Ord Minnett
CYB - CYBG Downgrade to Reduce from Hold Morgans
GPT - GPT Upgrade to Buy from Hold Ord Minnett
SCG - SCENTRE GROUP Upgrade to Buy from Hold Ord Minnett
ABP  ABACUS PROPERTY GROUP

Real Estate

Overnight Price: $2.74

UPDATED

Ord Minnett rates ABP as Upgrade to Buy from Hold (1) -

Ord Minnett has undertaken a sector-wide review, analysing implications for passive property trusts after the recent sharp pull-back.

The company is envisaged making good progress in FY17 and realising more than $30m in profits on the sale of two transactions - Browns Road in Clayton, Victoria, and Westpac House in Adelaide.

The broker believes the market is valuing the company's investment portfolio below its conservative book value. Given current metrics, Ord Minnett upgrades to Buy from Hold and the target to $3.30 from $3.20.

Target price is $3.30 Current Price is $2.74 Difference: $0.56
If ABP meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.09, suggesting upside of 7.8% (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 27.00 cents.
At the last closing share price the estimated dividend yield is 6.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.0, implying annual growth of -28.4%.

Current consensus DPS estimate is 17.3, implying a prospective dividend yield of 6.0%.

Current consensus EPS estimate suggests the PER is 12.0.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 19.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 6.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.8, implying annual growth of 11.7%.

Current consensus DPS estimate is 17.9, implying a prospective dividend yield of 6.2%.

Current consensus EPS estimate suggests the PER is 10.7.

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BBN  BABY BUNTING GROUP LIMITED

Retailing

Overnight Price: $2.88

Morgans rates BBN as Hold (3) -

The company reported 20% sales growth in the first 20 weeks of FY17. Morgans found the update solid, and necessary at the current valuation.

Hence, while the broker likes the stock and believes a material premium is warranted to peers, the valuation means a Hold rating is maintained. Target is reduced to $3.05 from $3.14.

Target price is $3.05 Current Price is $2.88 Difference: $0.17
If BBN meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.18, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 8.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 2.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.0, implying annual growth of 57.1%.

Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 10.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 3.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.5, implying annual growth of 22.7%.

Current consensus DPS estimate is 10.2, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 21.1.

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BLD  BORAL LIMITED

Materials

Overnight Price: $6.15

UPDATED

Credit Suisse rates BLD as Neutral (3) -

The company is acquiring Headwaters, a US building products business. Credit Suisse believes the economics of the deal only stack up on a post-synergy basis. The price is US$2.6bn and synergies of US$100m are identified over four years.

The broker observes this is not yet a done deal as potential regulatory approval issues could arise, particularly around fly ash. Credit Suisse also finds quantifying the underlying organic growth rate is difficult and there is no guarantee that fly ash contracts will be renewed.

The US housing market is choppy and timing around US infrastructure expenditure is also uncertain, so Credit Suisse retains a Neutral rating and $6.45 target.

Target price is $6.45 Current Price is $6.15 Difference: $0.3
If BLD meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.34, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 24.00 cents and EPS of 35.82 cents.
At the last closing share price the estimated dividend yield is 3.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.7, implying annual growth of 10.2%.

Current consensus DPS estimate is 24.4, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 25.00 cents and EPS of 39.33 cents.
At the last closing share price the estimated dividend yield is 4.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.4, implying annual growth of 12.5%.

Current consensus DPS estimate is 27.1, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 14.5.

Market Sentiment: -0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


UPDATED

Deutsche Bank rates BLD as No Rating (-1) -

Boral intends to acquire Headwaters for US$2.6bn.The company expects to be able to extract US$100m in synergies from the US building products business over the next four years.

Deutsche Bank believes the announcement is in line with the company's strategy to grow in the US and notes expansion was always likely to be expensive, given the US housing market is 8% below its historical average.

The acquisition, if completed, will increase the company's US exposure to 38% from 19%, reduce its Australian exposure to 51% from 67% and Asian business to 11% from 14%. Deutsche Bank is restricted on rating and price target at this stage.

Current Price is $6.15. Target price not assessed.

Current consensus price target is $6.34, suggesting upside of 3.1% (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 41.00 cents.
At the last closing share price the estimated dividend yield is 4.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.7, implying annual growth of 10.2%.

Current consensus DPS estimate is 24.4, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 33.00 cents and EPS of 50.00 cents.
At the last closing share price the estimated dividend yield is 5.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.4, implying annual growth of 12.5%.

Current consensus DPS estimate is 27.1, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 14.5.

Market Sentiment: -0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Macquarie rates BLD as No Rating (-1) -

The broker has called Boral's acquisition of US-based Headwaters Inc a "step change", augmenting existing positions in fly ash, stone and roof tiles and repositioning the group in others. Boral suggests the deal should be high single digit earnings accretive after synergies.

The company will raise over $2m in a $1.6m retail/institutional rights offer and a $450m institutional placement at $4.80ps. As the broker is involved in the deal it is currently restricted from making a recommendation.

Current Price is $6.15. Target price not assessed.

Current consensus price target is $6.34, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 23.00 cents and EPS of 35.60 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.7, implying annual growth of 10.2%.

Current consensus DPS estimate is 24.4, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 26.00 cents and EPS of 40.40 cents.
At the last closing share price the estimated dividend yield is 4.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.4, implying annual growth of 12.5%.

Current consensus DPS estimate is 27.1, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 14.5.

Market Sentiment: -0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Morgan Stanley rates BLD as Underweight (5) -

Boral intends to acquire Headwaters for US$2.6bn. Morgan Stanley calculates that significant synergies are required for accretion to be achieved.

Headwaters' cost of debt appears high and the ability to refinance at a lower rate is key to the synergy outcomes, the broker believes. Boral expects synergies of US$30-35m to be delivered in the first full year.

Morgan Stanley retains a Underweight rating, In-line industry view and $6.07 target.

Target price is $6.07 Current Price is $6.15 Difference: minus $0.08 (current price is over target).
If BLD meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.34, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Morgan Stanley forecasts a full year FY17 dividend of 23.10 cents and EPS of 36.00 cents.
At the last closing share price the estimated dividend yield is 3.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.7, implying annual growth of 10.2%.

Current consensus DPS estimate is 24.4, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 24.50 cents and EPS of 38.00 cents.
At the last closing share price the estimated dividend yield is 3.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.4, implying annual growth of 12.5%.

Current consensus DPS estimate is 27.1, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 14.5.

Market Sentiment: -0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


UPDATED

Ord Minnett rates BLD as No Rating (-1) -

The company has an agreement to acquire US building and construction materials company, Headwaters, for around US$2.6bn.

The transaction will be funded through a combination of a $450m institutional placement and a 1- for-2.22 pro rata accelerated renounceable entitlement offer, an underwritten debt bridge facility and existing cash. The deal is expected to be completed by mid 2017.

Ord Minnett is currently restricted on Boral and cannot provide a recommendation or price target at this stage.

Current Price is $6.15. Target price not assessed.

Current consensus price target is $6.34, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 24.00 cents and EPS of 37.00 cents.
At the last closing share price the estimated dividend yield is 3.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.7, implying annual growth of 10.2%.

Current consensus DPS estimate is 24.4, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 27.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 4.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.4, implying annual growth of 12.5%.

Current consensus DPS estimate is 27.1, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 14.5.

Market Sentiment: -0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BRG  BREVILLE GROUP LIMITED

Retailing

Overnight Price: $8.61

UPDATED

Credit Suisse rates BRG as Outperform (1) -

The company is on track for the broker's forecast of 6% EBITDA growth  in FY17, notwithstanding a challenging domestic market.

Credit Suisse makes some minor reductions to FY18 forecast on the expiry of the Phillips distribution arrangement. The company has reported that the first half is tracking broadly in line with expectations and the new product pipeline is gathering momentum.

Credit Suisse retains an Outperform rating and $9.00 target.

Target price is $9.00 Current Price is $8.61 Difference: $0.39
If BRG meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $8.80, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 29.95 cents and EPS of 41.17 cents.
At the last closing share price the estimated dividend yield is 3.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.4, implying annual growth of 7.3%.

Current consensus DPS estimate is 30.2, implying a prospective dividend yield of 3.5%.

Current consensus EPS estimate suggests the PER is 20.9.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 31.93 cents and EPS of 43.12 cents.
At the last closing share price the estimated dividend yield is 3.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.3, implying annual growth of 9.4%.

Current consensus DPS estimate is 33.5, implying a prospective dividend yield of 3.9%.

Current consensus EPS estimate suggests the PER is 19.1.

Market Sentiment: 0.9

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CWY  CLEANAWAY WASTE MANAGEMENT LIMITED

Commercial Services & Supplies

Overnight Price: $1.07

Ord Minnett rates CWY as Accumulate (2) -

Press speculation suggests Cleanaway is in the race to acquire Bingo Industries. Price expectations for the Bingo business are at more than $500m.

Ord Minnett would be very surprised if Cleanaway emerged as the acquirer, as it would be out of step with management strategy.

The broker suggests Cleanaway is likely kicking tyres rather than being genuinely interested at the reported price. Accumulate rating and $1.08 target retained.

Target price is $1.08 Current Price is $1.07 Difference: $0.01
If CWY meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.10, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 2.00 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 1.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.3, implying annual growth of 53.6%.

Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 25.4.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 3.00 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 2.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.4, implying annual growth of 25.6%.

Current consensus DPS estimate is 2.7, implying a prospective dividend yield of 2.5%.

Current consensus EPS estimate suggests the PER is 20.2.

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CYB  CYBG PLC

Banks

Overnight Price: $4.97

Morgans rates CYB as Downgrade to Reduce from Hold (5) -

Morgans changes its cash earnings per share estimates, reducing forecasts by 4.7% in FY18 and raising by 2.7% for FY19, ahead of the FY16 results.

This is because of higher net interest margin forecasts in each of these years as well as higher credit impairments in FY18.

The rating is downgraded to Reduce from Hold as the broker considers the rally this month has resulted in the stock being overvalued. Target is unchanged at $4.17.

Target price is $4.17 Current Price is $4.97 Difference: minus $0.8 (current price is over target).
If CYB meets the Morgans target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.56, suggesting downside of -6.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY16:

Morgans forecasts a full year FY16 dividend of 0.00 cents and EPS of 28.58 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.4, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 18.5.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 3.89 cents and EPS of 36.99 cents.
At the last closing share price the estimated dividend yield is 0.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.1, implying annual growth of 17.8%.

Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 1.4%.

Current consensus EPS estimate suggests the PER is 15.7.

Market Sentiment: -0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

DCN  DACIAN GOLD LIMITED

Materials

Overnight Price: $3.07

Macquarie rates DCN as Outperform (1) -

Dacian has released a feasibility study for Mt Morgans suggesting an eight-year gold mining operation, and a pre-feasibility expansion study. The broker's valuation includes expansion as a base case.

On a reduced debt component and dilution on an assumed price for new equity, the broker lowers its target to $4.50 from $5.00. The outcomes of the studies are largely as the broker expected and exploration upside is also assumed. Outperform retained.

Target price is $4.50 Current Price is $3.07 Difference: $1.43
If DCN meets the Macquarie target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $4.25, suggesting upside of 40.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 4.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 62.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -5.6, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 0.00 cents and EPS of 5.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.4, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 89.1.

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GPT  GPT

Real Estate

Overnight Price: $4.53

Ord Minnett rates GPT as Upgrade to Buy from Hold (1) -

Ord Minnett has undertaken a sector-wide review, analysing implications for large capitalisation passive property trusts after the recent sharp pull-back. The broker considers GPT oversold, warranting a better cost of capital given its asset quality and growth prospects.

The broker upgrades to Buy from Hold on the basis that its portfolio is in sound shape, with sector leading portfolio income growth over the next three years translating into circa 4% distribution growth over five years. Target is raised to $5.40 from $5.32.

Target price is $5.40 Current Price is $4.53 Difference: $0.87
If GPT meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.09, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Ord Minnett forecasts a full year FY16 dividend of 24.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 5.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.7, implying annual growth of -39.1%.

Current consensus DPS estimate is 23.7, implying a prospective dividend yield of 5.2%.

Current consensus EPS estimate suggests the PER is 15.9.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 24.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 5.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.4, implying annual growth of 2.4%.

Current consensus DPS estimate is 24.3, implying a prospective dividend yield of 5.3%.

Current consensus EPS estimate suggests the PER is 15.5.

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HSO  HEALTHSCOPE LIMITED

Health Care Equipment & Services

Overnight Price: $2.20

Morgan Stanley rates HSO as Equal-weight (3) -

Private health insurer affordability needs to improve, amongst other regulatory changes, to restore confidence in growth, Morgan Stanley believes.

While the broker finds no compelling valuation argument for Healthscope that would change its Equal-weight status it also envisages no short-term signs that industry growth will recover.

Target is reduced to $2.39 from  $2.53. Industry view is In-Line.

Target price is $2.39 Current Price is $2.20 Difference: $0.19
If HSO meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.63, suggesting upside of 20.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Morgan Stanley forecasts a full year FY17 dividend of 7.40 cents and EPS of 10.49 cents.
At the last closing share price the estimated dividend yield is 3.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.0, implying annual growth of 5.8%.

Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 19.9.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 8.20 cents and EPS of 11.53 cents.
At the last closing share price the estimated dividend yield is 3.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.8, implying annual growth of 7.3%.

Current consensus DPS estimate is 8.4, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 18.5.

Market Sentiment: 0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IDX  INTEGRAL DIAGNOSTICS LIMITED

Health Care Equipment & Services

Overnight Price: $1.16

UPDATED

UBS rates IDX as Buy (1) -

The company has flagged a slower recovery in radiology volumes, along with increased local competition. Hence, FY17 net profit  is likely to fall below normalised FY16 trading net profit of $16.6m.

UBS observes the company is joining a growing list of other Medicare/hospital exposed stocks which are reporting a soft start to FY17.

The broker expects a slowdown in the near term but a return to growth in the longer term. A Buy rating is retained. Target is reduced to $1.85 from $2.06.

Target price is $1.85 Current Price is $1.16 Difference: $0.69
If IDX meets the UBS target it will return approximately 59% (excluding dividends, fees and charges).

Current consensus price target is $1.59, suggesting upside of 33.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 9.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 7.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.1, implying annual growth of 35.4%.

Current consensus DPS estimate is 8.1, implying a prospective dividend yield of 6.8%.

Current consensus EPS estimate suggests the PER is 10.7.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 9.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 7.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.3, implying annual growth of 10.8%.

Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 7.3%.

Current consensus EPS estimate suggests the PER is 9.7.

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IPD  IMPEDIMED LIMITED

Health Care Equipment & Services

Overnight Price: $1.24

Morgans rates IPD as Add (1) -

The AGM has highlighted a productive year, Morgans believes, which included the commercial launch of L-Dex and key alliances.

The broker moderates near-term revenue assumptions to reflect a lower first quarter. The catalysts for 2017 include European and FDA clearance for SOZO, for use in lymphoedema and heart failure.

An Add rating is retained. Target is reduced to $2.08 from $2.13.

Target price is $2.08 Current Price is $1.24 Difference: $0.84
If IPD meets the Morgans target it will return approximately 68% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.71.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of 0.00 cents.

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

KAR  KAROON GAS AUSTRALIA LIMITED

Energy

Overnight Price: $1.97

UPDATED

Deutsche Bank rates KAR as Buy (1) -

A court injunction has delayed the sale process for the Bauna and Tartaruga Verde fields in Brazil. Karoon Gas was the preferred bidder for the fields. As with any court case,  Deutsche Bank notes the risk of a negative outcome exists.

The best outcome in the broker's view is that the injunction is dismissed after 30 days. The worst outcome is if the sale process has to start again. A Buy rating and $2.30 target are retained.

Target price is $2.30 Current Price is $1.97 Difference: $0.33
If KAR meets the Deutsche Bank target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.14, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 65.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -13.0, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 98.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.7, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NCM  NEWCREST MINING LIMITED

Materials

Overnight Price: $20.93

Deutsche Bank rates NCM as Sell (5) -

After the investor briefing Deutsche Bank notes Newcrest intends to prove up its Cadia expansion, with Lihir set to reach 14mtpa by late 2017.

The broker believes the company is likely to increase its merger and acquisition activity, with both investments and divestments possible.

Cadia provides one of the best growth options in the global gold space, in the broker's opinion. Deutsche Bank retains a Sell rating on valuation. Target is steady at $19.

Target price is $19.00 Current Price is $20.93 Difference: minus $1.93 (current price is over target).
If NCM meets the Deutsche Bank target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.96, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 17.00 cents and EPS of 68.00 cents.
At the last closing share price the estimated dividend yield is 0.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.4, implying annual growth of 60.2%.

Current consensus DPS estimate is 17.4, implying a prospective dividend yield of 0.8%.

Current consensus EPS estimate suggests the PER is 22.3.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 24.00 cents and EPS of 94.00 cents.
At the last closing share price the estimated dividend yield is 1.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 104.7, implying annual growth of 12.1%.

Current consensus DPS estimate is 31.0, implying a prospective dividend yield of 1.5%.

Current consensus EPS estimate suggests the PER is 19.9.

Market Sentiment: -0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Macquarie rates NCM as Neutral (3) -

Newcrest's AGM provided an update on the new production target goal at Lihir, which is on track, and noted an intention to lift throughput at Cadia to offset declining grades. The company's other operations offer short mine lives compared to these two, the broker notes.

The broker's forecasts are largely in line with guidance. Ahead of Lihir and Cadia site tours later in the week the broker has eased its target back to $24 from $25 and retains Neutral.

Target price is $24.00 Current Price is $20.93 Difference: $3.07
If NCM meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $20.96, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 25.00 cents and EPS of 82.70 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.4, implying annual growth of 60.2%.

Current consensus DPS estimate is 17.4, implying a prospective dividend yield of 0.8%.

Current consensus EPS estimate suggests the PER is 22.3.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 27.00 cents and EPS of 91.00 cents.
At the last closing share price the estimated dividend yield is 1.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 104.7, implying annual growth of 12.1%.

Current consensus DPS estimate is 31.0, implying a prospective dividend yield of 1.5%.

Current consensus EPS estimate suggests the PER is 19.9.

Market Sentiment: -0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Ord Minnett rates NCM as Lighten (4) -

In the wake of the investor briefing, Ord Minnett suspects throughput and grade profile at Cadia could be weaker than consensus estimates.

Throughput at Lihir could conceptually increase to 17mtpa in the long-term. The broker notes the company continues to prioritise internal growth opportunities, by reducing bottlenecks and expanding its core assets.

The broker maintains a Lighten rating and $19.00 target.

Target price is $19.00 Current Price is $20.93 Difference: minus $1.93 (current price is over target).
If NCM meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.96, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 10.00 cents and EPS of 87.00 cents.
At the last closing share price the estimated dividend yield is 0.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.4, implying annual growth of 60.2%.

Current consensus DPS estimate is 17.4, implying a prospective dividend yield of 0.8%.

Current consensus EPS estimate suggests the PER is 22.3.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 31.00 cents and EPS of 74.00 cents.
At the last closing share price the estimated dividend yield is 1.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 104.7, implying annual growth of 12.1%.

Current consensus DPS estimate is 31.0, implying a prospective dividend yield of 1.5%.

Current consensus EPS estimate suggests the PER is 19.9.

Market Sentiment: -0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


UBS rates NCM as Sell (5) -

The strategy briefing focused on why the company's operational performance has improved over the last two years. While confidence is increased, UBS still cannot justify the share price.

The broker believes that, while the stock may appear favourable on a simple value/reserve ratio or mine life metric, a large part of the reserves are tied up in undeveloped or long-life assets,  which carry uncertainty.

Sell rating and $12.25 target retained.

Target price is $12.25 Current Price is $20.93 Difference: minus $8.68 (current price is over target).
If NCM meets the UBS target it will return approximately minus 41% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.96, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 20.00 cents and EPS of 100.00 cents.
At the last closing share price the estimated dividend yield is 0.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.4, implying annual growth of 60.2%.

Current consensus DPS estimate is 17.4, implying a prospective dividend yield of 0.8%.

Current consensus EPS estimate suggests the PER is 22.3.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 17.00 cents and EPS of 87.00 cents.
At the last closing share price the estimated dividend yield is 0.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 104.7, implying annual growth of 12.1%.

Current consensus DPS estimate is 31.0, implying a prospective dividend yield of 1.5%.

Current consensus EPS estimate suggests the PER is 19.9.

Market Sentiment: -0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

OTW  OVER THE WIRE HOLDINGS LIMITED

Software & Services

Overnight Price: $2.85

UPDATED

Morgans rates OTW as Initiation of coverage with Add (1) -

Over The Wire is a business telco offering services to medium sized organisations. Morgans notes the exceptionally strong customer retention with an ability to provide personalised services as opposed to typically selling products.

The broker also notes a 20% return on equity, surplus net cash and strong free cash flow generation.

Morgans initiates coverage with an Add rating and $3.30 target, noting the the only real bear point is the valuation, which is higher than peers. The broker considers this justifiable given superior earnings growth.

Target price is $3.30 Current Price is $2.85 Difference: $0.45
If OTW meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY16:

Morgans forecasts a full year FY16 dividend of 1.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 0.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.67.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 2.30 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 0.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.50.

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

QAN  QANTAS AIRWAYS LIMITED

Transportation

Overnight Price: $3.10

UPDATED

Ord Minnett rates QAN as Buy (1) -

The US Department of Transport has issued a "show cause" order, tentatively denying the application by American Airlines and Qantas to expand their existing alliance services between the US and Australasia.

The decision has negative potential implications for what is Qantas' largest and most profitable international market but Ord Minnett believes the current share price already reflects significant earnings risk, so maintains a Buy rating and $4.50 target.

Target price is $4.50 Current Price is $3.10 Difference: $1.4
If QAN meets the Ord Minnett target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $4.28, suggesting upside of 36.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 16.00 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 5.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.5, implying annual growth of 16.4%.

Current consensus DPS estimate is 26.5, implying a prospective dividend yield of 8.5%.

Current consensus EPS estimate suggests the PER is 5.4.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 16.00 cents and EPS of 52.00 cents.
At the last closing share price the estimated dividend yield is 5.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.6, implying annual growth of -3.3%.

Current consensus DPS estimate is 25.9, implying a prospective dividend yield of 8.3%.

Current consensus EPS estimate suggests the PER is 5.6.

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

QBE  QBE INSURANCE GROUP LIMITED

Insurance

Overnight Price: $11.19

Credit Suisse rates QBE as Neutral (3) -

Credit Suisse observes the company's earnings have disappointed in previous years and the region that has disappointed the most has been North America. Hence, the broker believes the fact North America should deliver some significant earnings upside in 2016 will be welcome.

While arguably this is a one off, and does not ease the pain from the earnings risk in outer years, the broker believes it will buy management time and deliver some much-needed earnings growth for investors.

Credit Suisse upgrades 2016 earnings forecast by 30%. A Neutral rating is retained and the target is raised to $11.85 from $10.50.

Target price is $11.85 Current Price is $11.19 Difference: $0.66
If QBE meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $11.02, suggesting downside of -2.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Credit Suisse forecasts a full year FY16 dividend of 83.47 cents and EPS of 79.43 cents.
At the last closing share price the estimated dividend yield is 7.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.8, implying annual growth of N/A.

Current consensus DPS estimate is 52.1, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.1.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 76.74 cents and EPS of 82.12 cents.
At the last closing share price the estimated dividend yield is 6.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.9, implying annual growth of 27.5%.

Current consensus DPS estimate is 56.9, implying a prospective dividend yield of 5.1%.

Current consensus EPS estimate suggests the PER is 13.4.

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

RHC  RAMSAY HEALTH CARE LIMITED

Health Care Equipment & Services

Overnight Price: $69.23

Morgan Stanley rates RHC as Equal-weight (3) -

Morgan Stanley still envisages volume risk for Australian hospitals, although Ramsey Health Care's portfolio leaves it less exposed. Private health insurer affordability needs to improve, amongst other regulatory changes, to restore confidence in growth, the broker believes.

Price target is reduced to $70.40 from $79.40. Equal-weight rating retained. Industry view is In-Line.

Target price is $70.40 Current Price is $69.23 Difference: $1.17
If RHC meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $79.75, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Morgan Stanley forecasts a full year FY17 dividend of 138.80 cents and EPS of 255.40 cents.
At the last closing share price the estimated dividend yield is 2.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 258.2, implying annual growth of 18.7%.

Current consensus DPS estimate is 136.0, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 27.1.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 153.60 cents and EPS of 284.10 cents.
At the last closing share price the estimated dividend yield is 2.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 290.5, implying annual growth of 12.5%.

Current consensus DPS estimate is 153.5, implying a prospective dividend yield of 2.2%.

Current consensus EPS estimate suggests the PER is 24.1.

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SCG  SCENTRE GROUP

Real Estate

Overnight Price: $4.12

Ord Minnett rates SCG as Upgrade to Buy from Hold (1) -

Ord Minnett has undertaken a sector-wide review, analysing implications for large capitalisation passive property trusts after the recent sharp pull-back.

Scentre Group has the best portfolio and the most conservative valuations, in the broker's opinion. It also has the best development track record and a growing work book. Ord Minnett upgrades to Buy from Hold and retains a $4.70 target.

Target price is $4.70 Current Price is $4.12 Difference: $0.58
If SCG meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.68, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Ord Minnett forecasts a full year FY16 dividend of 21.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 5.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.4, implying annual growth of 3.6%.

Current consensus DPS estimate is 21.2, implying a prospective dividend yield of 5.1%.

Current consensus EPS estimate suggests the PER is 17.8.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 22.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 5.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.6, implying annual growth of 0.9%.

Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 5.3%.

Current consensus EPS estimate suggests the PER is 17.6.

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SMX  SMS MANAGEMENT & TECHNOLOGY LIMITED

Software & Services

Overnight Price: $1.28

Macquarie rates SMX as Neutral (3) -

The broker had expected downside risk to earnings as SMS undergoes its transformation and it's been worse than thought. Despite recent measures to diversify, traditional consulting is still a large portion of revenue and the first four months of FY17 have been very tough.

The broker sees long term opportunities but ongoing short term risk. In the absence of M&A, the broker sees few catalysts before next February's result. Earnings cut by 40%, target falls to $1.24 from $1.71, Neutral retained.

Target price is $1.24 Current Price is $1.28 Difference: minus $0.04 (current price is over target).
If SMX meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.46, suggesting upside of 18.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 5.80 cents and EPS of 8.90 cents.
At the last closing share price the estimated dividend yield is 4.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.5, implying annual growth of -4.3%.

Current consensus DPS estimate is 10.8, implying a prospective dividend yield of 8.8%.

Current consensus EPS estimate suggests the PER is 9.1.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 6.50 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 5.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.7, implying annual growth of 8.9%.

Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 7.2%.

Current consensus EPS estimate suggests the PER is 8.3.

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SYR  SYRAH RESOURCES LIMITED

Materials

Overnight Price: $2.89

UPDATED

Morgan Stanley rates SYR as Underweight (5) -

The company's update on its battery strategy signals a slow ramp up and higher capital expenditure, along with a delay to Balama.

Morgan Stanley acknowledges that Balama remains a world-class reserve and building downstream processing is sensible, but believes the funding headwinds continue. In this light the broker retains a Underweight rating.

Although announcements of any new offtakes will be positive for sentiment, the broker notes that actual pricing, and existence of any discounts to achieve the offtake contracts, will likely only be clear once revenue recognition commences.

Industry view: Attractive. Target is reduced to $2.75 from $3.75.

Target price is $2.75 Current Price is $2.89 Difference: minus $0.14 (current price is over target).
If SYR meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.74, suggesting upside of 103.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY16:

Morgan Stanley forecasts a full year FY16 dividend of 0.00 cents and EPS of minus 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 48.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.4, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY17:

Morgan Stanley forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 72.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.3, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

VCX  VICINITY CENTRES

Real Estate

Overnight Price: $2.78

Morgan Stanley rates VCX as Underweight (5) -

Morgan Stanley believes Vicinity Centres needs to address its high, but unsustainable, pay-out ratio, as well as elevated execution risk, to drive a sustainable re-rating of the stock.

The broker reduces its FY18-20 compound growth rate forecast to 4.2% from 4.8% and envisages better value in Scentre Group ((SCG)), which trades on the same 5.9% cap rate. Underweight retained. Target is reduced to $3.00 from $3.25. Industry view: Attractive.

Target price is $3.00 Current Price is $2.78 Difference: $0.22
If VCX meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Morgan Stanley forecasts a full year FY17 dividend of 17.40 cents and EPS of 17.60 cents.
At the last closing share price the estimated dividend yield is 6.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of -23.8%.

Current consensus DPS estimate is 17.5, implying a prospective dividend yield of 6.3%.

Current consensus EPS estimate suggests the PER is 15.0.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 18.00 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 6.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.1, implying annual growth of 3.2%.

Current consensus DPS estimate is 18.2, implying a prospective dividend yield of 6.6%.

Current consensus EPS estimate suggests the PER is 14.5.

Market Sentiment: -0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Summaries
ABP - ABACUS PROPERTY GROUP Upgrade to Buy from Hold - Ord Minnett Overnight Price $2.74
BBN - BABY BUNTING Hold - Morgans Overnight Price $2.88
BLD - BORAL Neutral - Credit Suisse Overnight Price $6.15
No Rating - Deutsche Bank Overnight Price $6.15
No Rating - Macquarie Overnight Price $6.15
Underweight - Morgan Stanley Overnight Price $6.15
No Rating - Ord Minnett Overnight Price $6.15
BRG - BREVILLE GROUP Outperform - Credit Suisse Overnight Price $8.61
CWY - CLEANAWAY WASTE MANAGEMENT Accumulate - Ord Minnett Overnight Price $1.07
CYB - CYBG Downgrade to Reduce from Hold - Morgans Overnight Price $4.97
DCN - DACIAN GOLD Outperform - Macquarie Overnight Price $3.07
GPT - GPT Upgrade to Buy from Hold - Ord Minnett Overnight Price $4.53
HSO - HEALTHSCOPE Equal-weight - Morgan Stanley Overnight Price $2.20
IDX - INTEGRAL DIAGNOSTICS Buy - UBS Overnight Price $1.16
IPD - IMPEDIMED Add - Morgans Overnight Price $1.24
KAR - KAROON GAS Buy - Deutsche Bank Overnight Price $1.97
NCM - NEWCREST MINING Sell - Deutsche Bank Overnight Price $20.93
Neutral - Macquarie Overnight Price $20.93
Lighten - Ord Minnett Overnight Price $20.93
Sell - UBS Overnight Price $20.93
OTW - Initiation of coverage with Add - Morgans Overnight Price $2.85
QAN - QANTAS AIRWAYS Buy - Ord Minnett Overnight Price $3.10
QBE - QBE INSURANCE Neutral - Credit Suisse Overnight Price $11.19
RHC - RAMSAY HEALTH CARE Equal-weight - Morgan Stanley Overnight Price $69.23
SCG - SCENTRE GROUP Upgrade to Buy from Hold - Ord Minnett Overnight Price $4.12
SMX - SMS MANAG & TECHNOL Neutral - Macquarie Overnight Price $1.28
SYR - SYRAH RESOURCES Underweight - Morgan Stanley Overnight Price $2.89
VCX - VICINITY CENTRES Underweight - Morgan Stanley Overnight Price $2.78
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

10

2. Accumulate

1

3. Hold

7

4. Reduce

1

5. Sell

6

Tuesday 22 November 2016

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Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.