Australian Broker Call
August 08, 2017
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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: 01:45 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
| MTR - | MANTRA GROUP | Upgrade to Buy from Neutral | Citi |
| SGM - | SIMS METAL MANAGEMENT | Downgrade to Neutral from Buy | Citi |
| Downgrade to Neutral from Outperform | Macquarie | ||
| TME - | TRADE ME GROUP | Downgrade to Sell from Hold | Deutsche Bank |
Macquarie rates CPU as Neutral (3) -
The company will sell its 50% interest in the Indian venture Karvy Computershare Private. Computershare expects to realise US$90m upon completion of the sale. Proceeds will be used for acquisitions or capital management.
Macquarie notes recent press reports have indicated that the successful bidder for South Australia's land titles registry will be announced in coming weeks and the company has been cited as one of the interested parties.
Neutral rating and $12.03 target retained.
Target price is $12.03 Current Price is $14.13 Difference: minus $2.1 (current price is over target).
If CPU meets the Macquarie target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $13.96, suggesting downside of -1.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 35.54 cents and EPS of 75.18 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 69.7, implying annual growth of N/A. Current consensus DPS estimate is 37.6, implying a prospective dividend yield of 2.7%. Current consensus EPS estimate suggests the PER is 20.3. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 38.54 cents and EPS of 80.28 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 76.7, implying annual growth of 10.0%. Current consensus DPS estimate is 40.6, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 18.4. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates CSL as Equal-weight (3) -
Capital expenditure has increased, which Morgan Stanley believes is under appreciated by the market. The broker envisages the company reaching its target leverage of 1.5 times in FY18, which could reduce the risk of a buy-back beyond what has already been announced.
The broker expects solid 11% growth in earnings per share in FY18 but notes cash flow consumption is rising. Equal-weight rating and In-Line industry view are retained. Target is $122.
Target price is $122.00 Current Price is $126.57 Difference: minus $4.57 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $139.03, suggesting upside of 9.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 194.21 cents and EPS of 389.75 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 379.7, implying annual growth of N/A. Current consensus DPS estimate is 172.7, implying a prospective dividend yield of 1.4%. Current consensus EPS estimate suggests the PER is 33.3. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 225.92 cents and EPS of 434.67 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 455.7, implying annual growth of 20.0%. Current consensus DPS estimate is 204.6, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 27.8. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates CTX as Underweight (5) -
Morgan Stanley expects the first half result to be a catalyst, due to be reported on August 29. The broker expects details regarding an operating model review and a strategy to replace the lost Woolworths ((WOW)) earnings.
Underweight rating and $27 target retained. In-Line industry view.
Target price is $27.00 Current Price is $31.30 Difference: minus $4.3 (current price is over target).
If CTX meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $33.12, suggesting upside of 6.0% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 117.00 cents and EPS of 232.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 227.2, implying annual growth of -1.9%. Current consensus DPS estimate is 117.3, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 13.8. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 101.00 cents and EPS of 200.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 220.1, implying annual growth of -3.1%. Current consensus DPS estimate is 113.7, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 14.2. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates CZZ as Add (1) -
FY17 results proved largely in line with Morgans, albeit subdued. In value terms, export sales fell -18.6% as the company reduced its exposure to low-margin industrial bulk sales. Importantly, the broker observes gross profit margins rose to 42.3% from 41.4%.
Morgans holds a positive investment view, which was not based on this result as it was recognised to be a year of consolidation, and believes management has a clear strategy to resume its growth trajectory.
The broker retains an Add rating. Target is reduced to $18.05 from $18.95.
Target price is $18.05 Current Price is $16.20 Difference: $1.85
If CZZ meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 43.00 cents and EPS of 112.00 cents. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 47.00 cents and EPS of 126.00 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates IFL as Neutral (3) -
FY17 core earnings proved well above Citi's expectations. The analysts point at "significantly lower operating expenditure than expected" to explain the difference.
The analysts are congratulating management with their show of "exceptional cost control". They suspect investors will like it. Target $9.70. Neutral.
Target price is $9.70 Current Price is $10.75 Difference: minus $1.05 (current price is over target).
If IFL meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $9.34, suggesting downside of -12.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 53.00 cents and EPS of 53.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 54.5, implying annual growth of -17.0%. Current consensus DPS estimate is 52.8, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 19.7. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 55.00 cents and EPS of 58.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 58.9, implying annual growth of 8.1%. Current consensus DPS estimate is 53.1, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 18.2. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates IGO as Outperform (1) -
Credit Suisse suspects patience is required ahead of the Long Island study to be released most likely in December. Ahead of this, the broker extrapolates and acknowledges the numbers are a guess.
The main surprise for the broker after a visit to Tropicana, is the implied increase in the remaining life-of-mine strip ratio. Outperform rating and $3.30 target retained.
Target price is $3.30 Current Price is $3.13 Difference: $0.17
If IGO meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $3.55, suggesting upside of 12.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 1.71 cents and EPS of 6.19 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.2, implying annual growth of N/A. Current consensus DPS estimate is 1.8, implying a prospective dividend yield of 0.6%. Current consensus EPS estimate suggests the PER is 50.6. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 7.95 cents and EPS of 29.92 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.8, implying annual growth of 332.3%. Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 2.5%. Current consensus EPS estimate suggests the PER is 11.7. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates IGO as Buy (1) -
Deutsche Bank observes the regional and underground prospectivity of Tropicana is intact, although it is at too early a stage to value, while the Long Island study will be released in November which should provide more certainty for shareholders as to what the future holds.
For now, the broker believes the outlook for gold, cash costs and cash flow for years 5-10 remains unclear. Buy rating and $3.80 target maintained.
Target price is $3.80 Current Price is $3.13 Difference: $0.67
If IGO meets the Deutsche Bank target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $3.55, suggesting upside of 12.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 2.00 cents and EPS of 3.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.2, implying annual growth of N/A. Current consensus DPS estimate is 1.8, implying a prospective dividend yield of 0.6%. Current consensus EPS estimate suggests the PER is 50.6. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 6.00 cents and EPS of 19.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.8, implying annual growth of 332.3%. Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 2.5%. Current consensus EPS estimate suggests the PER is 11.7. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates MIN as Outperform (1) -
Macquarie updates forecasts to incorporate recent profit guidance and the fourth quarter production figures. The broker now incorporates more lithium volume growth and expects lithium production to account for 50-60% of group EBITDA over the next two years.
The broker expects the stock to re-rate as it provides further details on the development of Wodgina. Strength in iron ore prices could deliver material upside to base case forecasts, Macquarie acknowledges. Outperform rating. Target is raised to $16.00 from $14.51.
Target price is $16.00 Current Price is $13.37 Difference: $2.635
If MIN meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $14.10, suggesting upside of 7.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 55.80 cents and EPS of 121.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 107.3, implying annual growth of N/A. Current consensus DPS estimate is 39.2, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 12.3. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 65.50 cents and EPS of 133.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 113.5, implying annual growth of 5.8%. Current consensus DPS estimate is 59.9, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 11.6. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates MTR as Upgrade to Buy from Neutral (1) -
Mantra has made its first major acquisition since the first half result, and will acquire The Art Series group of boutique hotels. It is unclear to Citi how these fit with the portfolio but considers operating such hotels is a reasonable strategy against Airbnb.
While some synergies exist, the broker believes others may be harder to achieve, compared with an acquisition of stock more closely related to existing product.
Citi returns to Buy from Neutral, given this unforeseen acquisition delivers FY19 accretion to earnings per share of around 5% and the share price has fallen -8% since beginning of the month. Target is raised to $3.25 from $3.15.
Target price is $3.25 Current Price is $2.90 Difference: $0.35
If MTR meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $3.28, suggesting upside of 12.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 11.00 cents and EPS of 17.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.9, implying annual growth of 19.0%. Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 17.2. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 12.00 cents and EPS of 18.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.5, implying annual growth of 9.5%. Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 4.2%. 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
Credit Suisse rates MTR as Neutral (3) -
The acquisition of The Art Series group of boutique hotels appears broadly consistent with the company stated's strategy although Credit Suisse notes it underlines the importance of acquisitions as a growth lever, given the anaemic organic improvement across the rest of the portfolio.
The added properties are largely leasehold and make Melbourne, already the company's largest contributor to room nights in the CBD division, even more important. Neutral rating retained. Target is reduced to $3.05 from $3.15.
Target price is $3.05 Current Price is $2.90 Difference: $0.15
If MTR meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $3.28, suggesting upside of 12.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 9.99 cents and EPS of 17.09 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.9, implying annual growth of 19.0%. Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 17.2. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 10.97 cents and EPS of 18.57 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.5, implying annual growth of 9.5%. Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 4.2%. 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
Deutsche Bank rates MTR as Hold (3) -
Deutsche Bank considers the acquisition of The Art Series Hotel for $52.5m is a positive. The acquisition multiple is attractive and there is immediate accretion to earnings per share in FY18.
The chain comprises seven luxury 4-5 star hotels in key Australian capital cities, predominantly Melbourne.
Deutsche Bank increases FY18 and FY19 EBITDA estimates by 3% and 7% respectively. Hold rating retained. Target rises to $3.10 from $3.00.
Target price is $3.10 Current Price is $2.90 Difference: $0.2
If MTR meets the Deutsche Bank target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $3.28, suggesting upside of 12.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 10.00 cents and EPS of 16.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.9, implying annual growth of 19.0%. Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 17.2. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 13.00 cents and EPS of 18.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.5, implying annual growth of 9.5%. Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 4.2%. 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
Morgans rates MTR as Hold (3) -
The company will acquire The Art Series Hotel chain. Morgans believes this is a high-quality portfolio which provides the company with first rights to future development.
The broker also believes it is a good use of excess balance-sheet capacity. Because of softer operating conditions in some CBD markets and the Gold Coast, the broker lowers forecasts.
With less than 10% upside to the price target, a Hold rating is retained. Target is $3.10.
Target price is $3.10 Current Price is $2.90 Difference: $0.2
If MTR meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $3.28, suggesting upside of 12.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 11.00 cents and EPS of 16.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.9, implying annual growth of 19.0%. Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 17.2. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 11.00 cents and EPS of 18.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.5, implying annual growth of 9.5%. Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 4.2%. 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
Ord Minnett rates PGH as Hold (3) -
Ord Minnett observes a valuation gap is emerging although sentiment towards the stock is likely to hinge on the outlook for top-line organic growth.
In this respect, the broker awaits commentary from management before considering a more positive recommendation and retains a Hold rating.
Target is lowered to $6.30 from $6.85. The company will report its FY17 result on August 16.
Target price is $6.30 Current Price is $5.70 Difference: $0.6
If PGH meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $6.48, suggesting upside of 15.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 22.00 cents and EPS of 33.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.1, implying annual growth of 17.6%. Current consensus DPS estimate is 23.3, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 16.5. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 26.00 cents and EPS of 40.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 39.3, implying annual growth of 15.2%. Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 14.3. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates SGM as Downgrade to Neutral from Buy (3) -
Citi believes the departure of management - both the CEO and the CFO have resigned - without explanation creates investment risk.
The lack of public engagement by the board and the lack of detail in the announcement mean too many questions are unanswered ahead of the August 25 results.
The broker downgrades to Neutral from Buy. Target is reduced to $14.00 from $14.10.
Target price is $14.00 Current Price is $13.72 Difference: $0.28
If SGM meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $13.11, suggesting downside of -1.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 48.00 cents and EPS of 71.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 70.3, implying annual growth of 30.9%. Current consensus DPS estimate is 39.7, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 18.9. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 52.00 cents and EPS of 85.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 82.9, implying annual growth of 17.9%. Current consensus DPS estimate is 42.1, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 16.0. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates SGM as Downgrade to Neutral from Outperform (3) -
The company has announced a trading update with earnings guidance between $180-185m for FY17 and has also announced the departure of its CEO and CFO. CEO Galdino Claro will be replaced by Alistair Field while Amit Patel will be acting CFO.
Macquarie was surprised at the sudden departures and suggests this indicates the succession strategy did not go to plan. While the stock price moved aggressively on the news, the broker believes it is prudent to await more clarity and downgrades to Neutral from Outperform. Target is $14.80.
Target price is $14.80 Current Price is $13.72 Difference: $1.08
If SGM meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $13.11, suggesting downside of -1.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 40.00 cents and EPS of 70.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 70.3, implying annual growth of 30.9%. Current consensus DPS estimate is 39.7, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 18.9. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 41.00 cents and EPS of 80.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 82.9, implying annual growth of 17.9%. Current consensus DPS estimate is 42.1, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 16.0. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates TME as Downgrade to Sell from Hold (5) -
Deutsche Bank observes the competitive environment for the company's marketplace business has deteriorated significantly and the entry of Amazon into Australia, likely to be followed by New Zealand, will increase pressure.
The broker argues that the best option for the company, to ensure it remains relevant, is to launch an all-you-can-eat shipping service, even though this will depress earnings growth.
The shares are trading 21% above the broker's revised target price and the rating is downgraded to Sell from Hold.
Target is reduced to NZ$4.30 from NZ$5.41.
Current Price is $4.57. Target price not assessed.
Current consensus price target is $5.10, suggesting upside of 12.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 17.94 cents and EPS of 21.72 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 21.6, implying annual growth of N/A. Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 21.0. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 18.88 cents and EPS of 23.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 24.3, implying annual growth of 12.5%. Current consensus DPS estimate is 19.4, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 18.6. |
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 WEB as Re-instate Coverage with Outperform (1) -
Credit Suisse renews coverage after a brief restriction, re-instating an Outperform rating and $13.15 target. The company's acquisition of JacTravel represents a step change to the fast-growing B2B business and, in the broker's opinion, further diversifies it away from the booking-fee-driven B2C business.
The broker acknowledges this is the company's biggest acquisition to date but considers the balance sheet healthy while there is trading momentum across all businesses.
Target price is $13.15 Current Price is $11.67 Difference: $1.48
If WEB meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $12.93, suggesting upside of 13.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 17.49 cents and EPS of 39.12 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 43.2, implying annual growth of 57.9%. Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 26.4. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 26.03 cents and EPS of 53.39 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.8, implying annual growth of 29.2%. Current consensus DPS estimate is 24.6, implying a prospective dividend yield of 2.2%. Current consensus EPS estimate suggests the PER is 20.4. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates WES as Hold (3) -
Ahead of the results on August 17, Morgans trims earnings estimates by -1%. Hold retained. Target is reduced to $39.16 from $39.26.
The broker considers the stock a core holding but believes the share price is likely to move sideways over the next 12 months on the back of concerns regarding Coles, Bunnings UK & Ireland and Target which will outweigh positive momentum in other areas of the business.
Target price is $39.16 Current Price is $40.60 Difference: minus $1.445 (current price is over target).
If WES 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 $40.36, suggesting downside of -1.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 213.00 cents and EPS of 253.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 257.7, implying annual growth of 611.9%. Current consensus DPS estimate is 217.3, implying a prospective dividend yield of 5.3%. Current consensus EPS estimate suggests the PER is 15.8. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 225.00 cents and EPS of 257.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 255.9, implying annual growth of -0.7%. Current consensus DPS estimate is 217.6, implying a prospective dividend yield of 5.3%. Current consensus EPS estimate suggests the PER is 15.9. |
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Summaries
| CPU - | COMPUTERSHARE | Neutral - Macquarie | Overnight Price $14.13 |
| CSL - | CSL | Equal-weight - Morgan Stanley | Overnight Price $126.57 |
| CTX - | CALTEX AUSTRALIA | Underweight - Morgan Stanley | Overnight Price $31.30 |
| CZZ - | CAPILANO HONEY | Add - Morgans | Overnight Price $16.20 |
| IFL - | IOOF HOLDINGS | Neutral - Citi | Overnight Price $10.75 |
| IGO - | INDEPENDENCE GROUP | Outperform - Credit Suisse | Overnight Price $3.13 |
| Buy - Deutsche Bank | Overnight Price $3.13 | ||
| MIN - | MINERAL RESOURCES | Outperform - Macquarie | Overnight Price $13.37 |
| MTR - | MANTRA GROUP | Upgrade to Buy from Neutral - Citi | Overnight Price $2.90 |
| Neutral - Credit Suisse | Overnight Price $2.90 | ||
| Hold - Deutsche Bank | Overnight Price $2.90 | ||
| Hold - Morgans | Overnight Price $2.90 | ||
| PGH - | PACT GROUP | Hold - Ord Minnett | Overnight Price $5.70 |
| SGM - | SIMS METAL MANAGEMENT | Downgrade to Neutral from Buy - Citi | Overnight Price $13.72 |
| Downgrade to Neutral from Outperform - Macquarie | Overnight Price $13.72 | ||
| TME - | TRADE ME GROUP | Downgrade to Sell from Hold - Deutsche Bank | Overnight Price $4.57 |
| WEB - | WEBJET | Re-instate Coverage with Outperform - Credit Suisse | Overnight Price $11.67 |
| WES - | WESFARMERS | Hold - Morgans | Overnight Price $40.60 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 6 |
| 3. Hold | 10 |
| 5. Sell | 2 |
Tuesday 08 August 2017
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