FINANCIAL NEWS

Ultra-Low Interest Rates Hobble Challenger

Disruptions to the adviser group and ultra-low interest rates are providing significant headwinds for Challenger. Brokers, while disappointed, welcome the re-setting of targets.

Jun 14 2019


Weekly Top Ten News Stories

Our top ten news stories from 06 June 2019 to 13 June 2019

Jun 14 2019


FNArena Book Review: Confusion De Confusiones

Confusion de Confusiones, first published in 1688, shows how little has changed in shares trading and human nature since.

Jun 14 2019


Next Week At A Glance

A brief look at important company events and economic data releases next week.

Jun 14 2019


The Wrap: Financials, Super And A-REITs

Weekly Broker Wrap: financial institutions; superannuation; A-REITs; and US demographics.

Jun 14 2019


UBS rates CAR as Neutral

The company intends to exit its 50.1% interest in Stratton. UBS considers this a positive move as Stratton provided a minor financial contribution relative to the significant effort by management required to deal with the issues.

Strategic reasons for owning the business have also subsided. The identities of potential acquirers are unknown but the broker expects a trade buyer may be the most interested.

After the company's guidance update the broker's FY19-21 forecasts for net profit are broadly unchanged. UBS maintains a Neutral rating and $14 target.

Credit Suisse rates CGF as Neutral

Credit Suisse has concluded that ongoing weak sales are a more severe earnings headwind for the company, compared with annuity spreads. The company has also guided to FY20, which implies -7-12% downgrades to forecasts.

Credit Suisse increases FY20 distributions by 7% on the assumption of a flat dividend in FY19. For the market to regain confidence, domestic sales need to demonstrate signs of a recovery, in the broker's view.

Neutral rating maintained. Target is reduced to $7.50 from $8.00.

Citi rates SGM as Upgrade to Buy from Neutral

Citi notes the stock has pulled back substantially and sector sentiment remains weak amid falling steel/scrap prices and minimal buying interest. Still, the broker suspects a market nadir may be close.

Given recent volatility and the sharp fall in scrap prices in the US, Citi reduces FY19 estimates by -5% and FY20-21 by -1%. A rising capital expenditure outlook reduces free cash flow but the company should be a beneficiary of improving scrap demand from expanded electric furnace capacity in the US.

Given a favourable risk/reward the rating is upgraded to Buy from Neutral. Target is steady at $11.50.

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ANALYSIS & DATA

MARKET CONSENSUS FORECAST

To display the stock analysis for a company please enter the company code:

CGF | CHALLENGER LIMITED

Abbreviated format - see the full version here


LAST PRICE CHANGE +/- CHANGE % VOLUME

$6.50

14 Jun
2019

-0.450

OPEN

$6.78

-6.47%

HIGH

$6.84

11,695,958

LOW

$6.38

TARGET
$7.358 13.2% upside
Franking for last dividend paid out: 100%
MARKET CONSENSUS FORECAST
CGF: 1
Title FY17
Actual
FY18
Actual
FY19
Forecast
FY20
Forecast
EPS (cps) 70.7 54.0 50.3 54.5
DPS (cps) 34.5 35.5 34.1 33.6
EPS Growth 20.9% - 23.6% - 6.8% 8.4%
DPS Growth 6.2% 2.9% - 3.8% - 1.6%
PE Ratio N/A N/A 12.9 11.9
Dividend Yield N/A N/A 5.3% 5.2%
Div Pay Ratio(%) 48.8% 65.7% 67.9% 61.6%

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DAILY FINANCIAL NEWS

Ultra-Low Interest Rates Hobble Challenger

Disruptions to the adviser group and ultra-low interest rates are providing significant headwinds for Challenger. Brokers, while disappointed, welcome the re-setting of targets.

Jun 14 2019 - Australia


FNArena Book Review: Confusion De Confusiones

Confusion de Confusiones, first published in 1688, shows how little has changed in shares trading and human nature since.

Jun 14 2019 - Book Reviews


Online retailer Catch Group is the purchase of the day for Wesfarmers, expected to enhance the offering from Kmart and Target.

Jun 13 2019 - Australia


Part 1 in a three-part series examines the global plastics context, the regulatory and tax landscape, the consumer and the ESG situation.

Jun 13 2019 - ESG Focus


As earnings levels peak, AGL Energy has sought a tie-up with telco infrastructure, making an offer for Vocus Group.

Jun 13 2019 - Australia


Brokers have taken the knife to Star Entertainment forecasts but most see valuation support.

Jun 12 2019 - Australia


RUDI'S VIEWS

US Bonds Warning Versus RBA Rate Cuts

In this week's Weekly Insights: -The One That Got Away From Morgan Stanley -No Weekly Insights Next Week -Conviction Calls…

Jun 06 2019

DAILY MARKET REPORTS

The Overnight Report: Just a Flesh Wound

Wall Street has shrugged of rising Middle East tensions, preferring to focus inward. Dow up 101.

Jun 14 2019


Today’s Financial Calendar

Significant Scheduled Events For 14 June, 2019

Jun 14 2019


The Overnight Report: I’m The One

Donald Trump last night explained he is the one holding up a US-China trade deal. Dow down -43.

Jun 13 2019


Today’s Financial Calendar

Significant Scheduled Events For 13 June, 2019

Jun 13 2019


Australian Broker Call *Extra* Edition – Jun 12, 2019

Extra Edition of the Broker Call Report

Jun 12 2019


The Overnight Report: Rally Fatigue

Wall Street snapped a six-day winning streak last night as US indices took a breather. Dow down -14.

Jun 12 2019


Today’s Financial Calendar

Significant Scheduled Events For 12 June, 2019

Jun 12 2019


WEEKLY REPORTS

Weekly Top Ten News Stories

Our top ten news stories from 06 June 2019 to 13 June 2019

Jun 14 2019

Next Week At A Glance

A brief look at important company events and economic data releases next week.

Jun 14 2019

The Wrap: Financials, Super And A-REITs

Weekly Broker Wrap: financial institutions; superannuation; A-REITs; and US demographics.

Jun 14 2019


The Short Report

FNArena’s weekly update on short positions in the Australian share market.

Jun 13 2019

Australian Corporate Bond Price Tables

FNArena provides a weekly update of Australian listed corporate bond issues, current pricing and yield data.

Jun 13 2019

Uranium Week: Finding A Level

The uranium spot price has posted its first weekly increase in almost two months.

Jun 12 2019


Share Buybacks – Who’s Doing It?

Weekly Update on ASX-listed companies buying in their own stock.

Jun 12 2019

Weekly Ratings, Targets, Forecast Changes

Weekly update on stockbroker recommendation, target price, and earnings forecast changes.

Jun 11 2019

Weekly Top Ten News Stories

Our top ten news stories from 30 May 2019 to 06 June 2019

Jun 07 2019


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THE MARKETS

    Click item/line to change chart

  • Australia

    16 June 2019   Updated : 20:12   AEDT

    SPI Overnight (Jun)

    6555.00

    +9.00

    0.14%

    All Ordinaries

    6633.60

    +14.50

    0.22%

    S&P ASX 200

    6554.00

    +11.60

    0.18%

    S&P ASX 300

    6502.60

    +11.70

    0.18%

    Consumer Discretionary

    2441.20

    -16.50

    -0.67%

    Consumer Staples

    11291.60

    -44.20

    -0.39%

    Energy

    10731.90

    +177.70

    1.68%

    Financials

    6239.50

    -51.80

    -0.82%

    Health Care

    33331.70

    +72.70

    0.22%

    Industrials

    6684.40

    -17.70

    -0.26%

    Info Technology

    1313.40

    +4.00

    0.31%

    Materials

    13852.90

    +270.90

    1.99%

    Telecommunication

    1344.40

    +5.80

    0.43%

    Utilities

    8287.90

    +53.30

    0.65%

  • Asia

    16 June 2019   Updated : 20:12   AEDT

    NZ50

    9214.870

    -42.310

    -0.460%

    Nikkei 225

    21116.89

    +84.89

    0.40%

    Hang Seng

    27118.35

    -176.36

    -0.65%

    Click item/line to change chart

  • Australasia

    16 June 2019   Updated : 20:12   AEDT

    AUD/USD

    0.6874

    0.00

    -0.33%

    AUD/NZD

    1.0591

    +0.00

    0.35%

    NZD/USD

    0.6491

    0.00

    -0.67%

    AUD/JPY

    74.63

    0.00

    -0.01%

    SGD/AUD

    1.06

    +0.00

    0.29%

    AUD/EUR

    0.6117

    0.00

    -0.07%

    AUD/GBP

    0.5458

    +0.00

    0.11%

    AUDCAD

    0.9244

    +0.00

    0.51%

  • World

    16 June 2019   Updated : 20:12   AEDT

    CAD/USD

    0.7435

    -0.01

    -0.85%

    EUR/JPY

    122.00

    +0.07

    0.06%

    EUR/USD

    1.1237

    0.00

    -0.28%

    GBP/USD

    1.2593

    -0.01

    -0.44%

    USD/JPY

    108.57

    +0.35

    0.33%

    Click item/line to change chart

  • World

    16 June 2019   Updated : 20:12   AEDT

    FTSE100

    7345.78

    -22.79

    -0.31%

    DAX30

    12096.40

    -72.65

    -0.60%

    DJIA

    26089.61

    -17.16

    -0.07%

    S&P500

    2886.98

    -4.66

    -0.16%

    Nasdaq Comp

    7796.66

    -40.47

    -0.52%

    S&P500 VIX

    15.28

    -0.54

    -3.41%

    US 10-year yield

    2.093

    +0.002

    0.100%

    USD Index

    97.04

    +0.07

    0.07%

  • Aus Stocks

    16 June 2019   Updated : 20:12   AEDT

    BHP (UK)

    1573.00

    0.00

    0.00%

    Rio (UK)

    4770.00

    -36.00

    -0.75%

    BHP (US)

    54.97

    -0.50

    -0.90%

    Rio (US)

    60.77

    -0.80

    -1.30%

    ResMed (US)

    118.09

    -1.35

    -1.13%

    South32 (UK)

    178.00

    +2.00

    1.14%

    James Hardie (US)

    12.76

    -0.05

    -0.39%

    Telstra (US)

    13.25

    0.00

    0.00%

    Westpac (US)

    19.23

    -0.32

    -1.64%

    Click item/line to change chart

  • Spot Metals & Minerals

    14 June 2019   Updated : 07:34   AEDT

    Gold (oz)

    1341.90

    +8.80

    0.66%

    Silver (oz)

    14.89

    +0.14

    0.95%

    Copper (lb)

    2.6475

    +0.01

    0.27%

    Aluminium (lb)

    0.7886

    0.00

    -0.55%

    Lead (lb)

    0.8687

    0.00

    -0.13%

    Nickel (lb)

    5.3622

    +0.01

    0.13%

    Zinc (lb)

    1.1875

    -0.02

    -1.37%

    Copper (t)

    5837.00

    +16.00

    0.27%

    Aluminium (t)

    1739.00

    -10.00

    -0.57%

    Lead (t)

    1915.00

    -2.00

    -0.10%

    Nickel (t)

    11822.00

    +16.00

    0.14%

    Zinc (t)

    2618.00

    -36.00

    -1.36%

    Uranium (lb) weekly

    24.60

    +0.60

    2.50%

  • Commodities Futures

    14 June 2019   Updated : 08:41   AEDT

    West Texas Crude

    52.20

    +1.12

    2.19%

    Brent Crude

    61.36

    +1.53

    2.56%

    Iron Ore (t) futures

    110.20

    +3.70

    3.47%

CALENDAR

Monday, 17 June 2019
NZ services PMI, May
US housing sentiment index, Jun
JYC ex-div 1.7c (100%)
Tuesday, 18 June 2019
AU house prices, Q1
AU minutes of RBA meeting
EZ CPI, May
EZ trade balance, Apr
US housing starts, May
COL investor day
LNK investor day
Wednesday, 19 June 2019
NZ current account, Q1

ALL WEATHER STOCKS

Code Company Price
AMC AMCOR LIMITED

$15.65

ARB ARB CORPORATION LIMITED

$18.25

CSL CSL LIMITED

$212.87

REA REA GROUP LIMITED

$92.76

RMD RESMED INC

$17.21

WEEKLY PDF

Stories To Read From FNArena


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FNARENA WINDOWS

Window on WEALTH MANAGEMENT & INVESTMENTS

Ultra-Low Interest Rates Hobble Challenger

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Jun 14 2019


Window on CONSUMER PRODUCTS & SERVICES

Wesfarmers Nets Catch Group

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Jun 13 2019


Window on PAPER & PACKAGING

ESG Focus: Plastic – Not So Fantastic But Pretty Elastic

Part 1 in a three-part series examines the global plastics context, the regulatory and tax landscape, the consumer and the ESG situation.

Jun 13 2019


SMSFUNDAMENTALS

SMSFundamentals: ETFs Get Active

A change of heart from the US SEC may open the door for rapid growth of actively managed ETFs both in the US and Australia.

Apr 16 2019


FEATURE STORIES

Australian Banks: New Horizons?

Thanks to a surprise election win, a surprise APRA announcement and a big hint from the RBA, the skies are suddenly looking a lot brighter for Australia’s banks. But have the fundamentals really changed?

Jun 03 2019