Australian Broker Call

Produced and copyrighted by at www.fnarena.com

May 27, 2020

Access Broker Call Report Archives here

COMPANIES DISCUSSED IN THIS ISSUE

Click on symbol for fast access.

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

Last Updated: 05:00 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
AIZ - Air New Zealand Downgrade to Underperform from Neutral Credit Suisse
AX1 - Accent Group Upgrade to Add from Hold Morgans
CCL - Coca-Cola Amatil Downgrade to Neutral from Outperform Macquarie
MTS - Metcash Upgrade to Buy from Neutral UBS
NCM - Newcrest Mining Upgrade to Neutral from Sell UBS
NGI - Navigator Global Investments Upgrade to Outperform from Neutral Macquarie
ACF  ACROW FORMWORK AND CONSTRUCTION SERVICES LIMITED

Building Products & Services

More Research Tools In Stock Analysis - click HERE

Overnight Price: $0.28

Morgans rates ACF as Add (1) -

Acrow Formwork and Construction Services had a positive March with better than expected earnings and general trading environment.

Morgans notes weakness in commercial and residential activity and while civil infrastructure activity remains strong, it is not enough to offset the decline in the other two areas.

The broker has lowered FY20 operating income estimate by -11% to $14.1m but notes the stock is leveraged to increasing civil infrastructure activity.

Add rating retained by the broker with target reduced to $0.34 from $0.38.

Target price is $0.38 Current Price is $0.28 Difference: $0.1
If ACF meets the Morgans target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 1.20 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 4.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.00.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 2.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 7.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.60.

Market Sentiment: 1.0

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

ADI  APN INDUSTRIA REIT

REITs

More Research Tools In Stock Analysis - click HERE

Overnight Price: $2.50

Morgans rates ADI as Add (1) -

APN Industria REIT confirmed a fourth-quarter dividend distribution and while this was not quantified, Morgans expects it to be $0.041. REIT management has also announced a buy-back for up to 5% of issued securities.

The broker is comfortable with the gearing position and notes the main risk factors to be a tougher leasing market and covid-19 related uncertainty.

The broker retains its Add rating with a target price of $2.68.

Target price is $2.68 Current Price is $2.50 Difference: $0.18
If ADI meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 17.20 cents and EPS of 19.40 cents.
At the last closing share price the estimated dividend yield is 6.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.89.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 17.80 cents and EPS of 20.10 cents.
At the last closing share price the estimated dividend yield is 7.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.44.

Market Sentiment: 0.5

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

AIZ  AIR NEW ZEALAND LIMITED

Transportation & Logistics

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.27

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

As a result of actions to cut expenditure, Air New Zealand expects its FY21 monthly cash burn to reduce a further -NZ$50-60m, excluding any benefit from passenger revenue.

This suggests to Credit Suisse the cash burn reduces to -NZ$100m per month. A labour reduction of -30% has been confirmed.

The broker downgrades to Underperform from Neutral, forecasting material losses in both FY20 and FY21. Target is reduced to NZ$0.84 from NZ$0.95.

Current Price is $1.27. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 13.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -12.6, implying annual growth of N/A.

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

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

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 20.14 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -25.2, 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 N/A.

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

Market Sentiment: -1.0

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


UBS rates AIZ as Sell (5) -

Air New Zealand expects cash burn to reduce by -NZ$50-60m per month in FY21, which UBS calculates implies cash burn of around -NZ$115m per month.

UBS considers the level of cash burn from the pandemic remains very uncertain. At this stage the broker includes a dilutive NZ$1.2bn equity recapitalisation into its base case.

Sell rating maintained. Target is NZ$0.60.

Current Price is $1.27. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 10.93 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -12.6, implying annual growth of N/A.

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

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

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 9.59 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -25.2, 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 N/A.

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

Market Sentiment: -1.0

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

AWC  ALUMINA LIMITED

Aluminium, Bauxite & Alumina

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.52

Morgan Stanley rates AWC as Overweight (1) -

The pandemic has exacerbated the aluminium market surplus that was already building into 2020, Morgan Stanley asserts, as supply growth in China met reduced automotive demand.

The broker now forecasts a surplus of 3.8mt in 2020, depressing the price in the medium term. A better outcome is contingent on smelters cutting production but the response so far has been muted and China's capacity continues to expand.

The broker retains an Overweight rating and reduces the target to $2.05 from $2.45. In-Line industry view.

Target price is $2.05 Current Price is $1.52 Difference: $0.53
If AWC meets the Morgan Stanley target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $1.65, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 10.71 cents and EPS of 11.90 cents.
At the last closing share price the estimated dividend yield is 7.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.3, implying annual growth of N/A.

Current consensus DPS estimate is 7.7, implying a prospective dividend yield of 5.1%.

Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 11.45 cents and EPS of 7.44 cents.
At the last closing share price the estimated dividend yield is 7.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.4, implying annual growth of 13.3%.

Current consensus DPS estimate is 10.8, implying a prospective dividend yield of 7.1%.

Current consensus EPS estimate suggests the PER is 16.2.

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

Market Sentiment: 0.2

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

AX1  ACCENT GROUP LIMITED

Apparel & Footwear

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.37

Morgans rates AX1 as Upgrade to Add from Hold (1) -

Accent Group stores reopened in early May and the group is pursuing rent relief to cater to in-store sales deficits.

While store rollout has been a major growth driver, Morgans expects this to become difficult with an increase in online penetration. The broker believes this to be an enduring trend.

The factors in the group's favour are a dominant market position and covid-19 stimulus packages which could lead to a quicker pick up in sales.

Morgans upgrades its rating to Add from Hold and its target almost doubled to $1.45 from $0.74.

Target price is $1.45 Current Price is $1.37 Difference: $0.08
If AX1 meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.66, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 5.20 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 3.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of -16.2%.

Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 3.5%.

Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 3.30 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 2.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.3, implying annual growth of 10.7%.

Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 14.7.

Market Sentiment: 0.7

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

CAJ  CAPITOL HEALTH LIMITED

Healthcare services

More Research Tools In Stock Analysis - click HERE

Overnight Price: $0.23

Credit Suisse rates CAJ as Outperform (1) -

Credit Suisse suggests the focus is now on the recovery profile of the broader radiology industry and how this compares with other industrial sectors in a difficult economic environment.

The broker considers the stock cheap, with close to zero debt at the end of FY21. Conditions have improved into May and, with cost initiatives going to plan, the earnings performance is now ahead of expectations.

While making material upgrades to estimates, Credit Suisse points out the new numbers still carry upside risk. Outperform maintained. Target rises to $0.29 from $0.25.

Target price is $0.29 Current Price is $0.23 Difference: $0.06
If CAJ meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 0.50 cents and EPS of 0.90 cents.
At the last closing share price the estimated dividend yield is 2.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.56.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.00.

Market Sentiment: 0.5

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

CCL  COCA-COLA AMATIL LIMITED

Food, Beverages & Tobacco

More Research Tools In Stock Analysis - click HERE

Overnight Price: $8.76

Citi rates CCL as Buy (1) -

Citi expects volume trends will improve materially in the second half, with the company's swift action on cost savings and lower capital expenditure expected to mitigate the large drop in volumes in April and the first three weeks of May.

Citi reiterates a Buy rating and $9.85 target. EBIT is expected to be down -30% in the first half and down -8% in the second half.

Target price is $9.85 Current Price is $8.76 Difference: $1.09
If CCL meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $9.38, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 25.00 cents and EPS of 46.90 cents.
At the last closing share price the estimated dividend yield is 2.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.1, implying annual growth of -16.6%.

Current consensus DPS estimate is 25.2, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 20.3.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 44.00 cents and EPS of 53.10 cents.
At the last closing share price the estimated dividend yield is 5.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.5, implying annual growth of 14.8%.

Current consensus DPS estimate is 40.6, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.7.

Market Sentiment: 0.3

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


Credit Suisse rates CCL as Outperform (1) -

Credit Suisse believes Coca-Cola Amatil can achieve a flat outcome for earnings per share in 2021 on the back of its cost reduction efforts.

The company is reviewing its cost structure in preparation for changes in consumption patterns and the possibility of a recession impacting demand.

A cost reduction program has not been announced as such but Credit Suisse models $65m in savings. In addition, around half of the $120m previously announced for cost reductions can be preserved in 2021.

The broker considers the balance sheet in good shape and retains an Outperform rating. Target is $10.

Target price is $10.00 Current Price is $8.76 Difference: $1.24
If CCL meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $9.38, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 31.00 cents and EPS of 38.96 cents.
At the last closing share price the estimated dividend yield is 3.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.1, implying annual growth of -16.6%.

Current consensus DPS estimate is 25.2, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 20.3.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 31.00 cents and EPS of 38.99 cents.
At the last closing share price the estimated dividend yield is 3.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.5, implying annual growth of 14.8%.

Current consensus DPS estimate is 40.6, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.7.

Market Sentiment: 0.3

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


Macquarie rates CCL as Downgrade to Neutral from Outperform (3) -

Coca-Cola Amatil has noted Australian grocery volumes were down -10% in April as consumers appeared to be disinclined to replicate restaurant consumption at home.

New Zealand was strong, despite more stringent restrictions on movement. Indonesia remains weak with a negative impact from social distancing that affected Ramadan consumption.

Volumes are improving as Australia's restrictions ease, although Macquarie notes profitability remains challenged.

The broker remains concerned that some consumption habits may have structurally changed, downgrading to Neutral from Outperform and lowering the target to $9.30 from $10.00.

Target price is $9.30 Current Price is $8.76 Difference: $0.54
If CCL meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $9.38, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 23.60 cents and EPS of 44.30 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 19.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.1, implying annual growth of -16.6%.

Current consensus DPS estimate is 25.2, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 20.3.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 38.20 cents and EPS of 50.90 cents.
At the last closing share price the estimated dividend yield is 4.36%.
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 49.5, implying annual growth of 14.8%.

Current consensus DPS estimate is 40.6, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.7.

Market Sentiment: 0.3

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


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

Group volume declines of -33% in April and -26% in the first three weeks of May were worse than anticipated. Morgan Stanley notes New Zealand and PNG appear to be tracking better than Australia and Indonesia.

The leverage through the second quarter is the greatest source of uncertainty, in the broker's view, with channel shift and a loss of scale driving pronounced declines in earnings (EBIT) despite the cost savings.

Equal-weight rating. Target is $9.50. Cautious industry view.

Target price is $9.50 Current Price is $8.76 Difference: $0.74
If CCL meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $9.38, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 28.90 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 3.30%.
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 43.1, implying annual growth of -16.6%.

Current consensus DPS estimate is 25.2, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 20.3.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 46.10 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 5.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.5, implying annual growth of 14.8%.

Current consensus DPS estimate is 40.6, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.7.

Market Sentiment: 0.3

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


Morgans rates CCL as Hold (3) -

Coca-Cola Amatil’s trading remains weak especially in the higher margin on-the-go channels. Morgans fears social distancing will continue to impact such channels for some time.

The broker has lowered forecasts due to uncertain earnings and weaker volumes. Earnings forecasts have been lowered for FY20-21 by -13.6% and -4%.

The broker holds onto its Hold rating with target price lowered to $8.93 from $8.96.

Target price is $8.93 Current Price is $8.76 Difference: $0.17
If CCL meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $9.38, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 18.00 cents and EPS of 36.00 cents.
At the last closing share price the estimated dividend yield is 2.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.1, implying annual growth of -16.6%.

Current consensus DPS estimate is 25.2, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 20.3.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 38.00 cents and EPS of 46.00 cents.
At the last closing share price the estimated dividend yield is 4.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.5, implying annual growth of 14.8%.

Current consensus DPS estimate is 40.6, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.7.

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 CCL as Hold (3) -

Restrictions have resulted in significant weakness in volumes in revenue in April and the beginning of May, Coca-Cola Amatil pointed out at its AGM.

Management has reiterated the importance of the fourth quarter and remains confident, but Ord Minnett envisages a risk around the consumer returning in this period as fiscal stimulus unwinds in Australia.

The broker assesses the stock is somewhat of a play on a recovery in Australasia following the pandemic-induced weakness.

The economic risk is in Fiji, Indonesia and PNG, in the broker's assessment, which could stem upside. Hold rating maintained. Target is $9.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $9.00 Current Price is $8.76 Difference: $0.24
If CCL meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $9.38, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 30.00 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 3.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.1, implying annual growth of -16.6%.

Current consensus DPS estimate is 25.2, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 20.3.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 dividend of 41.00 cents and EPS of 50.00 cents.
At the last closing share price the estimated dividend yield is 4.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.5, implying annual growth of 14.8%.

Current consensus DPS estimate is 40.6, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.7.

Market Sentiment: 0.3

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


UBS rates CCL as Neutral (3) -

The trading update was slightly better than UBS expected. Group volumes fell -33% in April but the first three weeks of May improved on this as lockdown restrictions eased.

Despite cost reductions, a negative mix in Australia has had a material impact on group margins and the broker factors this into short-term estimates.

UBS retains a Neutral rating and $9.10 target, noting longer-term margin risk still exists.

Target price is $9.10 Current Price is $8.76 Difference: $0.34
If CCL meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $9.38, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 20.00 cents and EPS of 42.20 cents.
At the last closing share price the estimated dividend yield is 2.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.1, implying annual growth of -16.6%.

Current consensus DPS estimate is 25.2, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 20.3.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 46.00 cents and EPS of 53.60 cents.
At the last closing share price the estimated dividend yield is 5.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.5, implying annual growth of 14.8%.

Current consensus DPS estimate is 40.6, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.7.

Market Sentiment: 0.3

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

CRN  CORONADO GLOBAL RESOURCES

Coal

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.10

Credit Suisse rates CRN as Outperform (1) -

Coronado Global will recommence production at Buchanan and Logan from June 1. While this is a positive development, Credit Suisse points out there was no quantification of the levels of production as the business is only to operate at levels sufficient to satisfy domestic metallurgical contracts and limit its exposure to the volatility of European and Brazilian markets.

The company has also noted lenders have agreed to waive debt covenants until February 28, 2021. Credit Suisse considers the idling of US operations was prudent but if another leg down in pricing were to occur then there would be more pressure on the balance sheet.

Outperform maintained. Target is reduced to $2.60 from $2.80.

Target price is $2.60 Current Price is $1.10 Difference: $1.5
If CRN meets the Credit Suisse target it will return approximately 136% (excluding dividends, fees and charges).

Current consensus price target is $2.22, suggesting upside of 101.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 0.00 cents and EPS of 5.77 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.5, implying annual growth of N/A.

Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 1.4%.

Current consensus EPS estimate suggests the PER is 14.7.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 12.32 cents and EPS of 17.63 cents.
At the last closing share price the estimated dividend yield is 11.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of 146.7%.

Current consensus DPS estimate is 10.2, implying a prospective dividend yield of 9.3%.

Current consensus EPS estimate suggests the PER is 5.9.

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

Market Sentiment: 0.7

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

EHE  ESTIA HEALTH LIMITED

Aged Care & Seniors

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.57

UBS rates EHE as Neutral (3) -

The company has revealed occupancy declined to 91.7% on April 26, where it has since stabilised. While duplicated costs and occupancy pressures should ease into FY21, UBS envisages limited scope for outperformance ahead of the final report from the Royal Commission.

The broker reduces estimates for earnings per share by -20% for FY21-22, predominantly on lower occupancy assumptions and higher staffing costs. Neutral maintained. Target is reduced to $1.55 from $2.30.

Target price is $1.55 Current Price is $1.57 Difference: minus $0.02 (current price is over target).
If EHE meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.66, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 9.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 5.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.6, implying annual growth of -39.4%.

Current consensus DPS estimate is 7.2, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 8.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 5.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.9, implying annual growth of -7.3%.

Current consensus DPS estimate is 8.1, implying a prospective dividend yield of 5.2%.

Current consensus EPS estimate suggests the PER is 17.6.

Market Sentiment: 0.0

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

EHL  EMECO HOLDINGS LTD

Mining Sector Contracting

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.05

Morgans rates EHL as Add (1) -

Emeco Holdings has been able to implement covid-19 safe work practices along with sustaining volumes. The company notes no adverse impact due to the pandemic except for some incremental costs related to hygiene and distancing, reports Morgans.

However, the bnrker is concerned about a weak met coal outlook which will hit FY21 utilisation. Morgans has trimmed FY21-22 free cash flow estimates by -14-19%.

However, the broker feels a -50% share price fall is overdone and the stock is thus labeled a contrarian value buy.

The broker maintains its Add rating with the target reduced to $1.80 from $2.85.

Target price is $1.80 Current Price is $1.05 Difference: $0.75
If EHL meets the Morgans target it will return approximately 71% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Morgans forecasts a full year FY20 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 5.00.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 0.00 cents and EPS of 19.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.53.

Market Sentiment: 1.0

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

FXL  FLEXIGROUP LIMITED

Business & Consumer Credit

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.19

UBS rates FXL as Buy (1) -

UBS considers FlexiGroup a play on the re-opening of the economy. The broker's survey has indicated the decline in spending intentions has been less than feared.

Uncertainties remain but recent feedback is generally positive with respect to customer arrears and the resilience of the sector. UBS retains a Buy rating and $1.60 target.

Target price is $1.60 Current Price is $1.19 Difference: $0.41
If FXL meets the UBS target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $1.28, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 3.90 cents and EPS of 13.40 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 8.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.8, implying annual growth of -6.9%.

Current consensus DPS estimate is 4.9, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 8.0.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 4.50 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 3.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.7, implying annual growth of -14.2%.

Current consensus DPS estimate is 3.7, implying a prospective dividend yield of 3.1%.

Current consensus EPS estimate suggests the PER is 9.4.

Market Sentiment: 0.5

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

MOE  MOELIS AUSTRALIA LIMITED

Wealth Management & Investments

More Research Tools In Stock Analysis - click HERE

Overnight Price: $3.61

Ord Minnett rates MOE as Buy (1) -

Moelis Australia expects underlying earnings in the first half will be similar to the prior corresponding half, excluding mark to market income. Ord Minnett assesses this would be a solid outcome, given current conditions.

Corporate advisory has experienced an elevated level of activity, with the company linked to several restructuring engagements and executing on a number of deals.

Some headwinds remain, including the potential write-down of assets across hospitality and retail real estate. Ord Minnett retains a Buy rating and reduces the target to $4.65 from $5.88.

Target price is $4.65 Current Price is $3.61 Difference: $1.04
If MOE meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 11.00 cents and EPS of 20.40 cents.
At the last closing share price the estimated dividend yield is 3.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.70.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 dividend of 12.00 cents and EPS of 28.60 cents.
At the last closing share price the estimated dividend yield is 3.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.62.

Market Sentiment: 1.0

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

MTS  METCASH LIMITED

Food, Beverages & Tobacco

More Research Tools In Stock Analysis - click HERE

Overnight Price: $2.66

UBS rates MTS as Upgrade to Buy from Neutral (1) -

UBS notes Metcash has underperformed the ASX 200 since its capital raising in April, despite ongoing strength in the grocery sector.

The strong market backdrop and the outperformance of independent grocers as well as an improving outlook for hardware has caused the broker to upgrade to Buy from Neutral.

Forecasts remain unchanged but the near-term upside risk is building, UBS suspects, because of the favourable trends. Target is $2.85.

Target price is $2.85 Current Price is $2.66 Difference: $0.19
If MTS meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.87, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 13.00 cents and EPS of 22.80 cents.
At the last closing share price the estimated dividend yield is 4.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.8, implying annual growth of 9.6%.

Current consensus DPS estimate is 12.6, implying a prospective dividend yield of 4.7%.

Current consensus EPS estimate suggests the PER is 11.7.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 12.00 cents and EPS of 19.90 cents.
At the last closing share price the estimated dividend yield is 4.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.0, implying annual growth of -16.7%.

Current consensus DPS estimate is 11.5, implying a prospective dividend yield of 4.3%.

Current consensus EPS estimate suggests the PER is 14.0.

Market Sentiment: 0.3

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

NCM  NEWCREST MINING LIMITED

Gold & Silver

More Research Tools In Stock Analysis - click HERE

Overnight Price: $29.40

UBS rates NCM as Upgrade to Neutral from Sell (3) -

UBS reviews the economics of Red Chris and Haveiron and, based on this work, upgrades to Neutral from Sell. Target is raised to $33 from $26.

The inclusion of these projects challenges market perceptions that production is peaking in 2020-21, the broker points out.

The broker estimates that Newcrest's interest in Red Chris could be worth around US$2bn or $3.50 while Haveiron could turn Telfer into a tier-2 asset.

Target price is $33.00 Current Price is $29.40 Difference: $3.6
If NCM meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $30.79, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

UBS forecasts a full year FY20 dividend of 22.31 cents and EPS of 130.89 cents.
At the last closing share price the estimated dividend yield is 0.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 122.2, implying annual growth of N/A.

Current consensus DPS estimate is 26.0, implying a prospective dividend yield of 0.9%.

Current consensus EPS estimate suggests the PER is 24.1.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 23.80 cents and EPS of 120.48 cents.
At the last closing share price the estimated dividend yield is 0.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 147.4, implying annual growth of 20.6%.

Current consensus DPS estimate is 28.1, implying a prospective dividend yield of 1.0%.

Current consensus EPS estimate suggests the PER is 19.9.

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

NGI  NAVIGATOR GLOBAL INVESTMENTS LIMITED

Wealth Management & Investments

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.40

Macquarie rates NGI as Upgrade to Outperform from Neutral (1) -

Funds under management in April were flat as the market impact offset the outflows.

Macquarie finds the valuation attractive, and while the company has previously highlighted an increase in redemptions, the vast majority are from a single platform client cutting hedge fund exposure.

To reflect the uncertainty over outflows, Macquarie includes around -US$3.1bn of net outflows across the second half and FY21.

The broker upgrades to Outperform from Neutral, supported by a valuation which already discounts the redemption risk. Target is reduced to $1.65 from $1.72.

Target price is $1.65 Current Price is $1.40 Difference: $0.25
If NGI meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 21.12 cents and EPS of 21.12 cents.
At the last closing share price the estimated dividend yield is 15.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.63.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 11.30 cents and EPS of 10.86 cents.
At the last closing share price the estimated dividend yield is 8.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.89.

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

Market Sentiment: 0.5

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

ORG  ORIGIN ENERGY LIMITED

NatGas

More Research Tools In Stock Analysis - click HERE

Overnight Price: $5.83

Credit Suisse rates ORG as Neutral (3) -

Credit Suisse warns Octopus Energy is not yet profitable and is operating in a UK market where the industry lost money in 2019. It is no longer the fastest-growing UK retailer, nor the first to go international.

Origin Energy, which announced a partnership and equity investment in Octopus on May 1, believes Octopus can deliver a -$100-150m cost reduction by FY24. Credit Suisse acknowledges there is enough evidence that, if delivered, this will translate to margin.

The broker reduces net profit forecast by -9.4% in FY21 and -2.5% in FY22, with accelerated depreciation of existing systems offsetting cost reductions in those years. The broker retains a Neutral rating and raises the target to $5.30 from $5.10.

Target price is $5.30 Current Price is $5.83 Difference: minus $0.53 (current price is over target).
If ORG meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.73, suggesting upside of 15.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 27.29 cents and EPS of 58.38 cents.
At the last closing share price the estimated dividend yield is 4.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.1, implying annual growth of -17.0%.

Current consensus DPS estimate is 25.4, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 10.2.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 19.95 cents and EPS of 21.45 cents.
At the last closing share price the estimated dividend yield is 3.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.1, implying annual growth of -54.3%.

Current consensus DPS estimate is 21.2, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 22.3.

Market Sentiment: 0.6

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

S32  SOUTH32 LIMITED

Mining

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.97

Morgan Stanley rates S32 as Overweight (1) -

The pandemic has exacerbated the aluminium market surplus that was already building into 2020, Morgan Stanley asserts, as supply growth in China met reduced automotive demand.

The broker now forecasts a surplus of 3.8mt in 2020, depressing the price in the medium term. A better outcome is contingent on smelters cutting production but the response so far has been muted and China's capacity continues to expand.

The broker retains an Overweight rating. Target is reduced to $2.55 from $2.85. Industry view: In Line.

Target price is $2.55 Current Price is $1.97 Difference: $0.58
If S32 meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $2.41, suggesting upside of 22.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 EPS of 2.98 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 66.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.4, implying annual growth of N/A.

Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 2.4%.

Current consensus EPS estimate suggests the PER is 30.8.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 EPS of 7.44 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.9, implying annual growth of 132.8%.

Current consensus DPS estimate is 6.7, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 13.2.

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

SXY  SENEX ENERGY LIMITED

Crude Oil

More Research Tools In Stock Analysis - click HERE

Overnight Price: $0.24

Macquarie rates SXY as Outperform (1) -

FY20 earnings guidance has been upgraded by around 10% to $45-55m because of the narrowing of production guidance.

GLNG has requested the company divert 1PJ of gas through June-August to the domestic market, which will result in lower prices for the company.

Senex Energy remains one of Macquarie's preferred small energy stocks, given the strong gas growth profile in the Surat Basin.

While there is pressure on global LNG markets and east coast gas prices, the broker believes this is more than reflected in the share price.

Outperform rating maintained. Target is $0.29.

Target price is $0.29 Current Price is $0.24 Difference: $0.05
If SXY meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $0.35, suggesting upside of 45.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 0.00 cents and EPS of 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.2, implying annual growth of -13.0%.

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

Current consensus EPS estimate suggests the PER is 120.0.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.5, implying annual growth of 650.0%.

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

Current consensus EPS estimate suggests the PER is 16.0.

Market Sentiment: 0.9

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


Ord Minnett rates SXY as Accumulate (2) -

Senex Energy has signalled a strong performance from the Surat Basin assets. Of more interest to Ord Minnett, the company has also indicated GLNG has requested reduced supply from Roma North under the current contract to re-direct gas to the domestic market until August 2020.

Ord Minnett estimates GLNG production in May 2020 could fall by -10-20% as output is reduced because of weak LNG conditions. Senex Energy now expects production of 2.0-2.1mmboe in FY20 and operating earnings (EBITDA) of $45-55m.

Accumulate rating and $0.34 target maintained.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $0.34 Current Price is $0.24 Difference: $0.1
If SXY meets the Ord Minnett target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $0.35, suggesting upside of 45.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 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 0.2, implying annual growth of -13.0%.

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

Current consensus EPS estimate suggests the PER is 120.0.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 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 12.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.5, implying annual growth of 650.0%.

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

Current consensus EPS estimate suggests the PER is 16.0.

Market Sentiment: 0.9

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

TLS  TELSTRA CORPORATION LIMITED

Telecommunication

More Research Tools In Stock Analysis - click HERE

Overnight Price: $3.17

Credit Suisse rates TLS as Outperform (1) -

Credit Suisse suspects there will be a number of pandemic-related factors that will affect the company in FY21, including a further hit to roaming revenue and a reduction in net additions in mobile as well as lower expenditure by enterprises.

To take into account the impact, the broker lowers estimates for FY21 underlying operating earnings (EBITDA) to $7.1bn, with lower earnings in mobile the biggest contributor to the downgrade.

Nevertheless, Credit Suisse assesses current trading levels appear to be unduly penalising the stock for cyclical weakness and retains an Outperform rating. Target is reduced to $4.10 from $4.20.

Target price is $4.10 Current Price is $3.17 Difference: $0.93
If TLS meets the Credit Suisse target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $3.84, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 16.00 cents and EPS of 17.16 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 18.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.3, implying annual growth of 1.1%.

Current consensus DPS estimate is 15.7, implying a prospective dividend yield of 5.0%.

Current consensus EPS estimate suggests the PER is 17.3.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 16.00 cents and EPS of 18.31 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 17.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.4, implying annual growth of -4.9%.

Current consensus DPS estimate is 15.4, implying a prospective dividend yield of 4.9%.

Current consensus EPS estimate suggests the PER is 18.2.

Market Sentiment: 0.6

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

Today's Price Target Changes
Company Last Price Broker New Target Prev Target Change
AWC Alumina $1.52 Morgan Stanley 2.05 2.60 -21.15%
AX1 Accent Group $1.37 Morgans 1.45 0.74 95.95%
CAJ Capitol Health $0.23 Credit Suisse 0.29 0.25 16.00%
CCL Coca-Cola Amatil $8.76 Citi 9.85 10.10 -2.48%
Macquarie 9.30 10.00 -7.00%
Morgans 8.93 8.96 -0.33%
CRN Coronado Global Resources $1.10 Credit Suisse 2.60 2.80 -7.14%
EHE Estia Health $1.57 UBS 1.55 2.30 -32.61%
EHL Emeco $1.05 Morgans 1.80 2.85 -36.84%
MOE Moelis Australia $3.61 Ord Minnett 4.65 5.88 -20.92%
MTS Metcash $2.66 UBS 2.85 2.90 -1.72%
NCM Newcrest Mining $29.40 UBS 33.00 26.00 26.92%
NGI Navigator Global Investments $1.40 Macquarie 1.65 1.72 -4.07%
ORG Origin Energy $5.83 Credit Suisse 5.30 5.10 3.92%
S32 South32 $1.97 Morgan Stanley 2.55 2.85 -10.53%
SXY Senex Energy $0.24 Macquarie 0.29 0.27 7.41%
TLS Telstra Corp $3.17 Credit Suisse 4.10 4.20 -2.38%
Summaries
ACF Acrow Formwork And Construction Add - Morgans Overnight Price $0.28
ADI APN Industria Reit Add - Morgans Overnight Price $2.50
AIZ Air New Zealand Downgrade to Underperform from Neutral - Credit Suisse Overnight Price $1.27
Sell - UBS Overnight Price $1.27
AWC Alumina Overweight - Morgan Stanley Overnight Price $1.52
AX1 Accent Group Upgrade to Add from Hold - Morgans Overnight Price $1.37
CAJ Capitol Health Outperform - Credit Suisse Overnight Price $0.23
CCL Coca-Cola Amatil Buy - Citi Overnight Price $8.76
Outperform - Credit Suisse Overnight Price $8.76
Downgrade to Neutral from Outperform - Macquarie Overnight Price $8.76
Equal-weight - Morgan Stanley Overnight Price $8.76
Hold - Morgans Overnight Price $8.76
Hold - Ord Minnett Overnight Price $8.76
Neutral - UBS Overnight Price $8.76
CRN Coronado Global Resources Outperform - Credit Suisse Overnight Price $1.10
EHE Estia Health Neutral - UBS Overnight Price $1.57
EHL Emeco Add - Morgans Overnight Price $1.05
FXL Flexigroup Buy - UBS Overnight Price $1.19
MOE Moelis Australia Buy - Ord Minnett Overnight Price $3.61
MTS Metcash Upgrade to Buy from Neutral - UBS Overnight Price $2.66
NCM Newcrest Mining Upgrade to Neutral from Sell - UBS Overnight Price $29.40
NGI Navigator Global Investments Upgrade to Outperform from Neutral - Macquarie Overnight Price $1.40
ORG Origin Energy Neutral - Credit Suisse Overnight Price $5.83
S32 South32 Overweight - Morgan Stanley Overnight Price $1.97
SXY Senex Energy Outperform - Macquarie Overnight Price $0.24
Accumulate - Ord Minnett Overnight Price $0.24
TLS Telstra Corp Outperform - Credit Suisse Overnight Price $3.17
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

16

2. Accumulate

1

3. Hold

8

5. Sell

2

Wednesday 27 May 2020

Access Broker Call Report Archives here

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.