Australian Broker Call

December 06, 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: 11:53 AM

Your daily news report on the latest recommendation, valuation, forecast and opinion changes.

This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.

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
AWC - ALUMINA Upgrade to Accumulate from Hold Ord Minnett
BAP - BAPCOR LIMITED Upgrade to Add from Hold Morgans
DOW - DOWNER EDI Downgrade to Underperform from Neutral Credit Suisse
DUE - DUET Upgrade to Neutral from Underperform Credit Suisse
Upgrade to Hold from Reduce Morgans
WHC - WHITEHAVEN COAL Upgrade to Accumulate from Hold Ord Minnett
AMA  AMA GROUP LIMITED

Retailing

Overnight Price: $0.92

UPDATED

UBS rates AMA as Initiation of coverage with Buy (1) -

Via a series of acquisitions, AMA Group has become the key consolidator and largest player in the fragmented Australian panel beating industry. The industry is undergoing major change, the broker notes, through consolidation, the closure of smaller players and a preference from insurers to use larger players.

A similar process has already begun playing out in the US and UK and the broker sees Australia following the same path. On a solid growth profile, the broker initiates coverage of AMA with a Buy rating and $1.25 target.

Target price is $1.25 Current Price is $0.92 Difference: $0.335
If AMA meets the UBS target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 3.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.30.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 3.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.30.

Market Sentiment: 1.0

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

ASX  ASX LIMITED

Diversified Financials

Overnight Price: $47.65

Macquarie rates ASX as Underperform (5) -

November activity signals to Macquarie that the stock is trading at a maximum premium. SFE trading results were varied while cash market activity was higher because of one more trading day.

The broker finds the relative valuation unattractive and retains a Underperform rating. Target is raised to $42.90 from $42.50.

Target price is $42.90 Current Price is $47.65 Difference: minus $4.75 (current price is over target).
If ASX meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.67, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 205.30 cents and EPS of 228.10 cents.
At the last closing share price the estimated dividend yield is 4.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 223.7, implying annual growth of 1.5%.

Current consensus DPS estimate is 200.5, implying a prospective dividend yield of 4.2%.

Current consensus EPS estimate suggests the PER is 21.3.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 212.90 cents and EPS of 236.50 cents.
At the last closing share price the estimated dividend yield is 4.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 236.3, implying annual growth of 5.6%.

Current consensus DPS estimate is 210.5, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 20.2.

Market Sentiment: -0.4

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

AWC  ALUMINA LIMITED

Materials

Overnight Price: $1.70

UPDATED

Ord Minnett rates AWC as Upgrade to Accumulate from Hold (2) -

Ord Minnett has increased its forecasts for coal, iron ore and copper, while downgrading near-term gold price forecasts. The broker also raises forecasts for alumina. Spot alumina continues to look strong at US$325/t and presents upside potential to the broker's earnings estimates.

The broker upgrades AWC to Accumulate from Hold and raises the target to $1.80 from $1.60. The upgrade is driven by a higher valuation and strong forecasts for free cash flow.

Target price is $1.80 Current Price is $1.70 Difference: $0.1
If AWC meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.50, suggesting downside of -13.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Ord Minnett forecasts a full year FY16 dividend of 9.42 cents and EPS of 2.69 cents.
At the last closing share price the estimated dividend yield is 5.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 63.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.6, implying annual growth of N/A.

Current consensus DPS estimate is 9.4, implying a prospective dividend yield of 5.4%.

Current consensus EPS estimate suggests the PER is 37.9.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 5.38 cents and EPS of 4.04 cents.
At the last closing share price the estimated dividend yield is 3.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.0, implying annual growth of 52.2%.

Current consensus DPS estimate is 8.1, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 24.9.

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

BAP  BAPCOR LIMITED

Retailing

Overnight Price: $4.99

Macquarie rates BAP as Neutral (3) -

The company has increased its offer for Hellaby to NZ$3.60. Hellaby directors have indicated they will not support the revised offer unless an NZ$0.18 dividend is paid out pre-acquisition.

Macquarie estimates, based on FY18 earnings and asset sales, that the acquisition would be around 10% accretive. The broker considers Burson a well-managed company with a defensible growth outlook and solid balance sheet but the near term trading multiples are full.

A Neutral rating is retained and the target is reduced to $5.19 from $6.89, given the uncertainty over the status of the offer.

Target price is $5.19 Current Price is $4.99 Difference: $0.2
If BAP meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.92, suggesting upside of 18.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 14.70 cents and EPS of 24.50 cents.
At the last closing share price the estimated dividend yield is 2.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.3, implying annual growth of 30.5%.

Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 18.20 cents and EPS of 30.30 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.0, implying annual growth of 24.5%.

Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 17.2.

Market Sentiment: 0.5

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


Morgans rates BAP as Upgrade to Add from Hold (1) -

The company has increased its takeover bid for Hellaby to NZ$3.60 and received irrevocable shareholder acceptances representing 40% of issued capital.

Morgans now factors in the acquisition, but notes there is some risk to Bapcor gaining full control.The broker acknowledges the company has been particularly accretive in recent years, which brings higher integration risk.

Nonetheless, the broker believes the deal stacks up from an accretion perspective. Morgans upgrades to Add from Hold and reduces the target to $5.75 from $6.36.

Target price is $5.75 Current Price is $4.99 Difference: $0.76
If BAP meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.92, suggesting upside of 18.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 14.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 2.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.3, implying annual growth of 30.5%.

Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 19.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 3.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.0, implying annual growth of 24.5%.

Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 17.2.

Market Sentiment: 0.5

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

CSL  CSL LIMITED

Pharmaceuticals & Biotechnology

Overnight Price: $95.64

UPDATED

Morgan Stanley rates CSL as Underweight (5) -

Morgan Stanley's investigations suggest the US uptake of Idelvion is progressing well. Nevertheless, the broker finds the market increasingly competitive as it is evolving from one player into five players.

The company's supply contract for Helixate is set to expire in 2017 and the broker removes the contribution of this product from forecasts.

Morgan Stanley retains a Underweight rating and reduces the target to $96 from $97. Industry view: In-Line.

Target price is $96.00 Current Price is $95.64 Difference: $0.36
If CSL meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $108.99, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Morgan Stanley forecasts a full year FY17 dividend of 191.50 cents and EPS of 366.76 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 26.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 374.2, implying annual growth of N/A.

Current consensus DPS estimate is 176.0, implying a prospective dividend yield of 1.8%.

Current consensus EPS estimate suggests the PER is 25.7.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 236.62 cents and EPS of 431.80 cents.
At the last closing share price the estimated dividend yield is 2.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 452.8, implying annual growth of 21.0%.

Current consensus DPS estimate is 205.7, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 21.2.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.3

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

DOW  DOWNER EDI LIMITED

Commercial Services & Supplies

Overnight Price: $6.00

Credit Suisse rates DOW as Downgrade to Underperform from Neutral (5) -

The company has been awarded the Sydney growth trains contract. The $1.7bn contract follows the contractual close on the Victorian government's $2bn high-capacity metro trains project.

Credit Suisse takes the opportunity to review its assumptions, noting  the company has positioned itself to diversify away from the challenged mining and engineering construction sectors. Over 55% of revenue is now generated from servicing public infrastructure customers in Australasia.

Despite raising the target to $5.30 from $4.70, the broker downgrades to Underperform from Neutral, as the business needs to prove its earnings now that it is trading almost on a market multiple where earnings estimates for FY19 will be roughly flat versus FY16.

Target price is $5.30 Current Price is $6.00 Difference: minus $0.7 (current price is over target).
If DOW meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.42, suggesting downside of -9.6% (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 39.07 cents.
At the last closing share price the estimated dividend yield is 4.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.9, implying annual growth of -3.5%.

Current consensus DPS estimate is 24.1, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 15.4.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 24.00 cents and EPS of 40.73 cents.
At the last closing share price the estimated dividend yield is 4.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.7, implying annual growth of 4.6%.

Current consensus DPS estimate is 24.1, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 14.7.

Market Sentiment: 0.2

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

DUE  DUET GROUP

Utilities

Overnight Price: $2.74

Credit Suisse rates DUE as Upgrade to Neutral from Underperform (3) -

The company has confirmed a non-binding offer of $3.00 from Cheung Kong infrastructure. Credit Suisse observes the bid price is in line with the upper end of recent transactions in NSW for Transgrid and Ausgrid.

The high initial offer reduces the likelihood of a counter bid. The broker acknowledges some uncertainty regarding approval by the Foreign Investment Review Board.

Credit Suisse upgrades to Neutral from Underperform and raises the target to $2.80 from $2.30.

Target price is $2.80 Current Price is $2.74 Difference: $0.06
If DUE meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.69, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 18.50 cents and EPS of 10.30 cents.
At the last closing share price the estimated dividend yield is 6.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.0, implying annual growth of 195.0%.

Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 6.9%.

Current consensus EPS estimate suggests the PER is 27.1.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 19.00 cents and EPS of 10.31 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 26.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.9, implying annual growth of 9.0%.

Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 7.0%.

Current consensus EPS estimate suggests the PER is 24.8.

Market Sentiment: 0.3

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


Morgans rates DUE as Upgrade to Hold from Reduce (3) -

The company has confirmed that it is considering a takeover bid from Cheung Kong Infrastructure. Given the corporate activity, Morgans lifts its rating to Hold from Reduce.

The broker does not factor corporate activity into the target, including the takeover premium that the company may be willing to pay to gain control of the stock.The broker sets the target at the indicative bid price of $3.00.

Cheung Kong may be attracted to the yield but also could merge its Victorian distribution networks with DUET networks, the broker observes. Morgans expects cash flow supporting the distribution to materially fall away early next decade.

Target price is $3.00 Current Price is $2.74 Difference: $0.26
If DUE meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.69, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 19.00 cents and EPS of 6.00 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 45.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.0, implying annual growth of 195.0%.

Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 6.9%.

Current consensus EPS estimate suggests the PER is 27.1.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 19.00 cents and EPS of 7.00 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 39.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.9, implying annual growth of 9.0%.

Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 7.0%.

Current consensus EPS estimate suggests the PER is 24.8.

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 DUE as Hold (3) -

Ord Minnett believes the timing and $3.00 bid price by Cheung Kong Infrastructure caught the market by surprise, considering the rising interest rate environment.

The broker does not envisage a competing offer and expects the Foreign Investment Review Board will ultimately approve the transaction. The broker does not envisage enough reward in the offer price for the risk involved and maintains a Hold rating. Target is raised to $2.80 from $2.40.

Target price is $2.80 Current Price is $2.74 Difference: $0.06
If DUE meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.69, suggesting downside 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 19.00 cents and EPS of 10.00 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 27.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.0, implying annual growth of 195.0%.

Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 6.9%.

Current consensus EPS estimate suggests the PER is 27.1.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 19.00 cents and EPS of 11.00 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 24.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.9, implying annual growth of 9.0%.

Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 7.0%.

Current consensus EPS estimate suggests the PER is 24.8.

Market Sentiment: 0.3

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

ENN  ELANOR INVESTORS GROUP

Consumer Services

Overnight Price: $2.04

ADDED

Ord Minnett rates ENN as Initiation of coverage with Buy (1) -

Elanor Investors is a diversified investment and funds management business.  Assets under management have grown to an estimated $640m from $87m in 2014.

Ord Minnett believes the market does not fully appreciate the value of these assets,  which offer Investors an opportunity to get in early on a growing and historically successful funds management business for a fraction of its worth.

The broker initiates coverage with a Buy rating and $2.38 target.

Target price is $2.38 Current Price is $2.04 Difference: $0.34
If ENN meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 15.10 cents and EPS of 32.10 cents.
At the last closing share price the estimated dividend yield is 7.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.36.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 16.00 cents and EPS of 12.60 cents.
At the last closing share price the estimated dividend yield is 7.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.19.

Market Sentiment: 1.0

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

FPH  FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Health Care Equipment & Services

Overnight Price: $7.99

UBS rates FPH as Neutral (3) -

FP Healthcare has had preliminary injunctions granted to ResMed ((RMD)) in Germany overturned, allowing the company to resume sales of its full face masks. The broker sees no material impact in the near term.

In the longer term, the broker warns the story is not over yet, with a German or European patent court yet to be involved and moves afoot in the US as well. The broker has no previous guide as to what might transpire. Neutral and NZ$9.50 target retained.

Current Price is $7.99. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 18.48 cents and EPS of 26.80 cents.
At the last closing share price the estimated dividend yield is 2.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.2, implying annual growth of 18.0%.

Current consensus DPS estimate is 18.5, implying a prospective dividend yield of 2.4%.

Current consensus EPS estimate suggests the PER is 28.8.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 21.47 cents and EPS of 32.67 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.3, implying annual growth of 18.7%.

Current consensus DPS estimate is 22.6, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 24.2.

Market Sentiment: 0.4

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

FTT  FACTOR THERAPEUTICS LIMITED

Healthcare

Overnight Price: $0.08

Morgans rates FTT as Add (1) -

The AGM update has outlined a number of catalysts for 2017. A read out of the phase 2 venous leg ulcer trial is expected in the third or fourth quarter.

The company continues to identify expanded applications for its technology, including the treatment of diabetic foot ulcers and potential ocular indications.

Morgans retains an Add rating and 9.3c target.

Target price is $0.09 Current Price is $0.08 Difference: $0.016
If FTT meets the Morgans target it will return approximately 21% (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 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.00.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.56.

Market Sentiment: 1.0

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

GNC  GRAINCORP LIMITED

Food, Beverage & Tobacco

Overnight Price: $8.85

Morgan Stanley rates GNC as Overweight (1) -

In addition to the robust grain receival data, supportive of a record FY17 east coast crop, Morgan Stanley notes the recent sell down by ADM and rapid repair of the balance sheet eliminates two overhangs on sentiment.

The broker believes the stock is more than just a FY17 harvest story and FY18 earnings estimates look compelling. The broker also notes confidence in consensus upgrades is growing with each harvest update.

The broker retains a Overweight rating, Attractive industry view and $10.00 target.

Target price is $10.00 Current Price is $8.85 Difference: $1.15
If GNC meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $9.12, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Morgan Stanley forecasts a full year FY17 dividend of 34.00 cents and EPS of 71.00 cents.
At the last closing share price the estimated dividend yield is 3.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.6, implying annual growth of 406.3%.

Current consensus DPS estimate is 22.5, implying a prospective dividend yield of 2.5%.

Current consensus EPS estimate suggests the PER is 18.2.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 29.00 cents and EPS of 60.00 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.6, implying annual growth of 12.3%.

Current consensus DPS estimate is 27.2, implying a prospective dividend yield of 3.1%.

Current consensus EPS estimate suggests the PER is 16.2.

Market Sentiment: 0.3

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

MFG  MAGELLAN FINANCIAL GROUP LIMITED

Diversified Financials

Overnight Price: $22.38

Credit Suisse rates MFG as Outperform (1) -

Strong flows were reported in November with funds under management up 6% in the month. Credit Suisse observes these strong flows emanate despite a more muted environment and market volatility.

The broker expects the company to continue to attract flows above the rates of its peers, which will underpin future earnings growth. The broker maintains an Outperform rating and $26 target.

Target price is $26.00 Current Price is $22.38 Difference: $3.62
If MFG meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $25.21, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 86.00 cents and EPS of 119.00 cents.
At the last closing share price the estimated dividend yield is 3.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 110.9, implying annual growth of -10.2%.

Current consensus DPS estimate is 83.9, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 20.0.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 103.00 cents and EPS of 144.00 cents.
At the last closing share price the estimated dividend yield is 4.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 130.0, implying annual growth of 17.2%.

Current consensus DPS estimate is 97.7, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 17.1.

Market Sentiment: 0.2

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


Macquarie rates MFG as Outperform (1) -

Funds under management were up 6.2% in November with positive net inflows. Fund performance is mixed but does not appear to be impacting on flows.

Macquarie notes the fund flows in the year to date, up 17.6%, continue to exceed expectations and supports an Outperform rating. Target is raised to $24.95 from $24.19.

Target price is $24.95 Current Price is $22.38 Difference: $2.57
If MFG meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $25.21, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 88.40 cents and EPS of 114.80 cents.
At the last closing share price the estimated dividend yield is 3.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 110.9, implying annual growth of -10.2%.

Current consensus DPS estimate is 83.9, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 20.0.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 94.40 cents and EPS of 122.60 cents.
At the last closing share price the estimated dividend yield is 4.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 130.0, implying annual growth of 17.2%.

Current consensus DPS estimate is 97.7, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 17.1.

Market Sentiment: 0.2

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

MGC  MG UNIT TRUST

Food Beverage & Tobacco

Overnight Price: $0.96

Macquarie rates MGC as Neutral (3) -

The company will terminate its framework agreement with Mead Johnson Nutrition. The agreement was negotiating a strategic alliance for the supply of nutritional products to China. Chinese regulatory changes make the existing framework unworkable.

While Macquarie did not include this agreement in its numbers it concedes this was a growth area for the business, and the announcement is a setback on underwriting the new facility. A Neutral rating and $1.15 target are retained.

Target price is $1.15 Current Price is $0.96 Difference: $0.195
If MGC meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 6.30 cents and EPS of 6.30 cents.
At the last closing share price the estimated dividend yield is 6.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.16.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 8.80 cents and EPS of 8.80 cents.
At the last closing share price the estimated dividend yield is 9.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.85.

Market Sentiment: 0.0

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

MML  MEDUSA MINING LIMITED

Materials

Overnight Price: $0.52

Citi rates MML as Neutral (3) -

Citi's outlook has turned positive on resources sector in general for the two years ahead, but not so for gold. Neutral/High Risk rating retained. Target falls to 62c from 70c. Estimates have been reduced.

Target price is $0.62 Current Price is $0.52 Difference: $0.105
If MML meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $0.61, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Citi forecasts a full year FY17 dividend of 0.00 cents and EPS of 29.33 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.4, 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 1.4.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 0.00 cents and EPS of 32.96 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.56.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.0

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

NCM  NEWCREST MINING LIMITED

Materials

Overnight Price: $18.88

Citi rates NCM as Buy (1) -

Citi's outlook has turned positive on resources sector in general for the two years ahead, but not so for gold. Buy rating retained, but price target reduced to $24.60 from $26.20.

Target price is $24.60 Current Price is $18.88 Difference: $5.72
If NCM meets the Citi target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $20.58, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Citi forecasts a full year FY17 EPS of 105.33 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.4, implying annual growth of 43.0%.

Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 0.8%.

Current consensus EPS estimate suggests the PER is 22.3.

Forecast for FY18:

Citi forecasts a full year FY18 EPS of 124.43 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 99.9, implying annual growth of 19.8%.

Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 1.4%.

Current consensus EPS estimate suggests the PER is 18.6.

Market Sentiment: -0.4

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

NST  NORTHERN STAR RESOURCES LTD

Materials

Overnight Price: $3.47

Citi rates NST as Buy (1) -

Citi's outlook has turned positive on resources sector in general for the two years ahead, but not so for gold. Buy rating retained. Price target gains 10c to $4.80.

Target price is $4.80 Current Price is $3.47 Difference: $1.33
If NST meets the Citi target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $4.64, suggesting upside of 35.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Citi forecasts a full year FY17 EPS of 37.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.4, implying annual growth of 56.3%.

Current consensus DPS estimate is 11.6, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 8.7.

Forecast for FY18:

Citi forecasts a full year FY18 EPS of 40.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.0, implying annual growth of 32.0%.

Current consensus DPS estimate is 13.3, implying a prospective dividend yield of 3.9%.

Current consensus EPS estimate suggests the PER is 6.6.

Market Sentiment: 0.2

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

OGC  OCEANAGOLD CORPORATION

Materials

Overnight Price: $3.87

Citi rates OGC as Buy (1) -

Citi's outlook has turned positive on resources sector in general for the two years ahead, but not so for gold. Buy/High Risk rating retained, as well as the $5.10 price target. Small adjustments have been made to forecasts.

Target price is $5.10 Current Price is $3.87 Difference: $1.23
If OGC meets the Citi target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $4.94, suggesting upside of 29.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Citi forecasts a full year FY16 EPS of 33.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.3, implying annual growth of N/A.

Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 1.3%.

Current consensus EPS estimate suggests the PER is 11.8.

Forecast for FY17:

Citi forecasts a full year FY17 EPS of 40.76 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.9, implying annual growth of 73.1%.

Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 1.2%.

Current consensus EPS estimate suggests the PER is 6.8.

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

OZL  OZ MINERALS LIMITED

Materials

Overnight Price: $8.09

UPDATED

Citi rates OZL as Buy (1) -

Citi's outlook has turned positive on resources sector in general for the two years ahead, but not so for gold. Buy rating retained, while price target jumps to $10.20 from $8.80.

Target price is $10.20 Current Price is $8.09 Difference: $2.11
If OZL meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $7.56, suggesting downside of -9.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Citi forecasts a full year FY16 EPS of 47.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.6, implying annual growth of -12.4%.

Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 1.3%.

Current consensus EPS estimate suggests the PER is 22.1.

Forecast for FY17:

Citi forecasts a full year FY17 EPS of 77.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.7, implying annual growth of 16.2%.

Current consensus DPS estimate is 13.4, implying a prospective dividend yield of 1.6%.

Current consensus EPS estimate suggests the PER is 19.0.

Market Sentiment: 0.1

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

PRU  PERSEUS MINING LIMITED

Materials

Overnight Price: $0.57

Citi rates PRU as Neutral (3) -

Citi's outlook has turned positive on resources sector in general for the two years ahead, but not so for gold. Neutral rating retained. Target lifts by 1c to 59c

Target price is $0.59 Current Price is $0.57 Difference: $0.02
If PRU meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $0.73, suggesting upside of 30.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Citi forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 57.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.2, 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 280.0.

Forecast for FY18:

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

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.4, implying annual growth of 2100.0%.

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

Current consensus EPS estimate suggests the PER is 12.7.

Market Sentiment: 0.6

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: $11.50

Macquarie rates QBE as Outperform (1) -

Macquarie reviews the recent increase in investment yields. With QBE having rallied around 27% from its lows of late September it has closed the gap to the broker's benchmark and is now at 1% premium to peers.

Nevertheless, during 2015 the stock traded at 15.2 times one-year forward price/earnings, which would support a share price on FY17 earnings per share estimates of $13.44.

Hence, Macquarie retains an Outperform rating and raises the target to $12.34 from $11.30.

Target price is $12.34 Current Price is $11.50 Difference: $0.84
If QBE meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $11.29, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Macquarie forecasts a full year FY16 dividend of 54.88 cents and EPS of 75.46 cents.
At the last closing share price the estimated dividend yield is 4.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.0, implying annual growth of N/A.

Current consensus DPS estimate is 53.6, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.5.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 58.11 cents and EPS of 83.67 cents.
At the last closing share price the estimated dividend yield is 5.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.7, implying annual growth of 24.9%.

Current consensus DPS estimate is 56.8, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 14.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.4

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

SAI  SAI GLOBAL LIMITED

Commercial Services & Supplies

Overnight Price: $4.73

UBS rates SAI as Neutral (3) -

SAI shareholders yesterday voted in favour of the $4.75ps takeover offer from private equity. Assuming government approval, the shares will cease trading on December 12, the broker notes.

The broker has not changed its $3.65 target or Neutral rating.

Target price is $3.65 Current Price is $4.73 Difference: minus $1.08 (current price is over target).
If SAI meets the UBS target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.28, suggesting downside of -9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 18.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 3.81%.
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 29.5, implying annual growth of 18.5%.

Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 16.1.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 19.00 cents and EPS of 32.00 cents.
At the last closing share price the estimated dividend yield is 4.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.8, implying annual growth of 7.8%.

Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 14.9.

Market Sentiment: 0.0

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

SRX  SIRTEX MEDICAL LIMITED

Pharmaceuticals & Biotechnology

Overnight Price: $26.19

Morgan Stanley rates SRX as Overweight (1) -

Morgan Stanley considers the recent update on colon cancers from the National Comprehensive Cancer Network will be supportive of the company's dose sales in the Americas over 2-5 years.The guidelines are widely used by US oncologists to help inform patient management.

Overweight rating and $40.80 target retained. Industry view is In-Line.

Target price is $40.80 Current Price is $26.19 Difference: $14.61
If SRX meets the Morgan Stanley target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $35.47, suggesting upside of 36.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Morgan Stanley forecasts a full year FY17 dividend of 28.80 cents and EPS of 114.00 cents.
At the last closing share price the estimated dividend yield is 1.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 109.6, implying annual growth of 17.0%.

Current consensus DPS estimate is 34.0, implying a prospective dividend yield of 1.3%.

Current consensus EPS estimate suggests the PER is 23.7.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 EPS of 138.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 132.5, implying annual growth of 20.9%.

Current consensus DPS estimate is 42.1, implying a prospective dividend yield of 1.6%.

Current consensus EPS estimate suggests the PER is 19.6.

Market Sentiment: 0.5

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

SYD  SYDNEY AIRPORT HOLDINGS LIMITED

Transportation

Overnight Price: $6.10

UPDATED

Morgan Stanley rates SYD as Overweight (1) -

Australia and China have entered into an open skies agreement, which should boost the international passenger growth outlook for Sydney Airport. Morgan Stanley remains constructive on both Australian and New Zealand airports.

The broker envisages a risk that the correlation with bond yields could be lower in 2017. The stock has benefited in past years from falling global bond yields and rising regional aviation, but in the near term the broker expects yields to remain a valuation headwind.

Morgan Stanley retains an Overweight rating alongside a Cautious sector view. Target is reduced to $7.06 from $7.37.

Target price is $7.06 Current Price is $6.10 Difference: $0.96
If SYD meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.89, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Morgan Stanley forecasts a full year FY16 dividend of 31.00 cents and EPS of 15.00 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 40.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.0, implying annual growth of 17.7%.

Current consensus DPS estimate is 31.0, implying a prospective dividend yield of 5.0%.

Current consensus EPS estimate suggests the PER is 40.9.

Forecast for FY17:

Morgan Stanley forecasts a full year FY17 dividend of 34.00 cents and EPS of 18.10 cents.
At the last closing share price the estimated dividend yield is 5.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.2, implying annual growth of 14.7%.

Current consensus DPS estimate is 33.4, implying a prospective dividend yield of 5.4%.

Current consensus EPS estimate suggests the PER is 35.7.

Market Sentiment: 0.3

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

WHC  WHITEHAVEN COAL LIMITED

Energy

Overnight Price: $2.90

Ord Minnett rates WHC as Upgrade to Accumulate from Hold (2) -

Ord Minnett has increased its forecasts for coal, iron ore and copper, while downgrading near-term gold price forecasts. The broker upgrades Whitehaven Coal to Accumulate from Hold and the target to $3.30 from $3.00.

The upgrade is driven by a higher valuation and a strong free cash flow forecast.  Ord Minnett recognises it is late in its call but estimates the stock will be net cash within a year.

Target price is $3.30 Current Price is $2.90 Difference: $0.4
If WHC meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.16, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 0.00 cents and EPS of 22.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.5, implying annual growth of 1304.8%.

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

Current consensus EPS estimate suggests the PER is 10.7.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 0.00 cents and EPS of 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.3, implying annual growth of -14.2%.

Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 1.2%.

Current consensus EPS estimate suggests the PER is 12.5.

Market Sentiment: 0.3

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

WSA  WESTERN AREAS NL

Materials

Overnight Price: $3.20

Citi rates WSA as Sell (5) -

Citi's outlook has turned positive on resources sector in general for the two years ahead. Sell rating retained. Target lifts to $1.92 from $1.83.

Target price is $1.92 Current Price is $3.20 Difference: minus $1.28 (current price is over target).
If WSA meets the Citi target it will return approximately minus 40% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.61, suggesting downside of -20.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Citi forecasts a full year FY17 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 160.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.8, implying annual growth of N/A.

Current consensus DPS estimate is 0.6, implying a prospective dividend yield of 0.2%.

Current consensus EPS estimate suggests the PER is 411.9.

Forecast for FY18:

Citi forecasts a full year FY18 EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.3, implying annual growth of 1562.5%.

Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 1.0%.

Current consensus EPS estimate suggests the PER is 24.8.

Market Sentiment: -0.1

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

Summaries
AMA - AMA GROUP Initiation of coverage with Buy - UBS Overnight Price $0.92
ASX - ASX Underperform - Macquarie Overnight Price $47.65
AWC - ALUMINA Upgrade to Accumulate from Hold - Ord Minnett Overnight Price $1.70
BAP - BAPCOR LIMITED Neutral - Macquarie Overnight Price $4.99
Upgrade to Add from Hold - Morgans Overnight Price $4.99
CSL - CSL Underweight - Morgan Stanley Overnight Price $95.64
DOW - DOWNER EDI Downgrade to Underperform from Neutral - Credit Suisse Overnight Price $6.00
DUE - DUET Upgrade to Neutral from Underperform - Credit Suisse Overnight Price $2.74
Upgrade to Hold from Reduce - Morgans Overnight Price $2.74
Hold - Ord Minnett Overnight Price $2.74
ENN - ELANOR INVESTORS Initiation of coverage with Buy - Ord Minnett Overnight Price $2.04
FPH - FISHER & PAYKEL HEALTHCARE Neutral - UBS Overnight Price $7.99
FTT - FACTOR THERAPEUTICS Add - Morgans Overnight Price $0.08
GNC - GRAINCORP Overweight - Morgan Stanley Overnight Price $8.85
MFG - MAGELLAN FINANCIAL GROUP Outperform - Credit Suisse Overnight Price $22.38
Outperform - Macquarie Overnight Price $22.38
MGC - MURRAY GOULBURN Neutral - Macquarie Overnight Price $0.96
MML - MEDUSA MINING Neutral - Citi Overnight Price $0.52
NCM - NEWCREST MINING Buy - Citi Overnight Price $18.88
NST - NORTHERN STAR Buy - Citi Overnight Price $3.47
OGC - OCEANAGOLD Buy - Citi Overnight Price $3.87
OZL - OZ MINERALS Buy - Citi Overnight Price $8.09
PRU - PERSEUS MINING Neutral - Citi Overnight Price $0.57
QBE - QBE INSURANCE Outperform - Macquarie Overnight Price $11.50
SAI - SAI GLOBAL Neutral - UBS Overnight Price $4.73
SRX - SIRTEX MEDICAL Overweight - Morgan Stanley Overnight Price $26.19
SYD - SYDNEY AIRPORT Overweight - Morgan Stanley Overnight Price $6.10
WHC - WHITEHAVEN COAL Upgrade to Accumulate from Hold - Ord Minnett Overnight Price $2.90
WSA - WESTERN AREAS Sell - Citi Overnight Price $3.20
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

14

2. Accumulate

2

3. Hold

9

5. Sell

4

Tuesday 06 December 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.