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
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.
Click here to see full report 
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 |
OPEN $6.78 |
HIGH $6.84 |
11,695,958 LOW $6.38 |
-0.450| TARGET | |||
| $7.358 13.2% upside | |||
| Franking for last dividend paid out: 100% |
| 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% |
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
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
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
WEEKLY REPORTS
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
THE MARKETS
-
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%
-
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%
-
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
Click item/line to change chart
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
WEEK 24
WEEK 23
WEEK 22
WEEK 21
WEEK 20
FNARENA TALKS
-
Click item/line to change chart
-
Click item/line to change chart
FNARENA WINDOWS
Window on WEALTH MANAGEMENT & INVESTMENTS
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
Window on CONSUMER PRODUCTS & SERVICES
Wesfarmers Nets Catch Group
Online retailer Catch Group is the purchase of the day for Wesfarmers, expected to enhance the offering from Kmart and Target.
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