Australian Broker Call

Produced and copyrighted by at www.fnarena.com

March 14, 2018

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)

THIS REPORT WILL BE UPDATED SHORTLY

Last Updated: 10:36 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
IDX - INTEGRAL DIAGNOSTICS Upgrade to Buy from Hold Ord Minnett
RRL - REGIS RESOURCES Upgrade to Outperform from Neutral Macquarie
SXL - SOUTHERN CROSS MEDIA Upgrade to Outperform from Neutral Macquarie
A2M  THE A2 MILK COMPANY LIMITED

Dairy

More Research Tools In Stock Analysis - click HERE

Overnight Price: $12.95

Morgans rates A2M as Initiation of coverage with Add (1) -

Morgans initiates coverage with an Add rating and $14.40 target. The broker expects strong growth over the coming years as the company wins market share across its product range in larger markets such as China.

The broker believes the premium products the company has developed, and which generate high margins, mean the stock deserves a premium rating.

Target price is $14.40 Current Price is $12.95 Difference: $1.45
If A2M meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $13.80, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of 25.83 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.1, implying annual growth of N/A.

Current consensus DPS estimate is 1.6, implying a prospective dividend yield of 0.1%.

Current consensus EPS estimate suggests the PER is 51.6.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of 40.59 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.8, implying annual growth of 42.6%.

Current consensus DPS estimate is 7.5, implying a prospective dividend yield of 0.6%.

Current consensus EPS estimate suggests the PER is 36.2.

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

Market Sentiment: 0.8

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

APE  AP EAGERS LIMITED

Automobiles & Components

More Research Tools In Stock Analysis - click HERE

Overnight Price: $8.45

ADDED

Credit Suisse rates APE as Neutral (3) -

Credit Suisse believes AP Eagers should be in a position to grow car retailing earnings. The outcome will be influenced by the national car sales data, particularly in Queensland, where year to date they have been supportive. Consolidation remains a driver, more likely in FY19 than FY18.

The broker considers the valuation fair and retains a Neutral rating. Target is raised to $8.65 from $8.40.

Target price is $8.65 Current Price is $8.45 Difference: $0.2
If APE meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $8.19, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 32.53 cents and EPS of 47.86 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.0, implying annual growth of -0.6%.

Current consensus DPS estimate is 34.9, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 16.9.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 34.31 cents and EPS of 50.54 cents.
At the last closing share price the estimated dividend yield is 4.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.6, implying annual growth of 5.2%.

Current consensus DPS estimate is 36.8, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 16.1.

Market Sentiment: 0.0

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

AZJ  AURIZON HOLDINGS LIMITED

Transportation & Logistics

More Research Tools In Stock Analysis - click HERE

Overnight Price: $4.41

Macquarie rates AZJ as Outperform (1) -

The company has provided its response to the draft proposal from the Queensland Competition Authority. Macquarie suggests Aurizon has dug in and emphasised the inadequate compensation.

The question is now whether the QCA will soften its hard line. The stock has been de-rated since December because of the impact around the draft decision, combined with rising rates and the end of the share buyback, and Macquarie considers this excessive. Outperform rating and $4.91 target maintained.

Target price is $4.91 Current Price is $4.41 Difference: $0.5
If AZJ meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.69, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 27.70 cents and EPS of 27.50 cents.
At the last closing share price the estimated dividend yield is 6.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.4, implying annual growth of N/A.

Current consensus DPS estimate is 26.8, implying a prospective dividend yield of 6.1%.

Current consensus EPS estimate suggests the PER is 16.1.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 24.40 cents and EPS of 26.70 cents.
At the last closing share price the estimated dividend yield is 5.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.7, implying annual growth of -2.6%.

Current consensus DPS estimate is 25.7, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 16.5.

Market Sentiment: -0.1

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

CAR  CARSALES.COM LIMITED

Automobiles & Components

More Research Tools In Stock Analysis - click HERE

Overnight Price: $14.46

Morgan Stanley rates CAR as Overweight (1) -

Morgan Stanley considers the greatest risk to the equity value is a change in the competitive landscape. The company's main advantages are its dominant audience share and cost efficiency for dealers.

Nevertheless, the broker notes CarGurus has successfully disrupted the US online car classified marketplace and could present a risk if it were to land in Australia. Overweight rating, Attractive industry view and $16 target maintained.

Target price is $16.00 Current Price is $14.46 Difference: $1.54
If CAR meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $14.13, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 44.10 cents and EPS of 56.00 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 25.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.0, implying annual growth of 18.9%.

Current consensus DPS estimate is 44.0, implying a prospective dividend yield of 3.0%.

Current consensus EPS estimate suggests the PER is 26.8.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 49.70 cents and EPS of 63.00 cents.
At the last closing share price the estimated dividend yield is 3.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.6, implying annual growth of 12.2%.

Current consensus DPS estimate is 48.7, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 23.9.

Market Sentiment: 0.0

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

CGF  CHALLENGER LIMITED

Wealth Management & Investments

More Research Tools In Stock Analysis - click HERE

Overnight Price: $12.21

Morgan Stanley rates CGF as Underweight (5) -

The Department of Social Security has proposed new means test rules for lifetime retirement income products, including annuities. The target implementation date is the 2018 federal budget, although Morgan Stanley suggests this could prove optimistic.

The rules pave the way for a less favourable assessment of existing lifetime annuities for Social Security purposes. Morgan Stanley suggests annuity sales within the market segment motivated by Social Security benefits is likely to decline on this basis.

Underweight rating. Target is reduced to $11.00 from $11.50. Industry view: In-line.

Target price is $11.00 Current Price is $12.21 Difference: minus $1.21 (current price is over target).
If CGF meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.30, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 36.00 cents and EPS of 58.00 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 21.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.4, implying annual growth of -7.5%.

Current consensus DPS estimate is 35.2, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 18.7.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 38.30 cents and EPS of 61.00 cents.
At the last closing share price the estimated dividend yield is 3.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.2, implying annual growth of 8.9%.

Current consensus DPS estimate is 38.1, implying a prospective dividend yield of 3.1%.

Current consensus EPS estimate suggests the PER is 17.1.

Market Sentiment: -0.3

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

GEM  G8 EDUCATION LIMITED

Childcare

More Research Tools In Stock Analysis - click HERE

Overnight Price: $2.77

Morgans rates GEM as Initiation of coverage with Add (1) -

Morgans initiates coverage with an Add rating and $3.53 target. While recent industry challenges have put pressure on occupancy and wages, taking a medium-term view, the broker believes the company is well positioned to grow via acquisitions, as well as organically.

Operating efficiency should also improve with the more stable regulatory and supply backdrop. The company noted in its 2017 results that occupancy in January had been relatively stable with committed bookings heading in the right direction.

Target price is $3.53 Current Price is $2.77 Difference: $0.76
If GEM meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $3.69, suggesting upside of 33.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 20.00 cents and EPS of 23.30 cents.
At the last closing share price the estimated dividend yield is 7.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.3, implying annual growth of 28.4%.

Current consensus DPS estimate is 20.4, implying a prospective dividend yield of 7.4%.

Current consensus EPS estimate suggests the PER is 11.4.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 21.10 cents and EPS of 27.20 cents.
At the last closing share price the estimated dividend yield is 7.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.9, implying annual growth of 18.9%.

Current consensus DPS estimate is 22.5, implying a prospective dividend yield of 8.1%.

Current consensus EPS estimate suggests the PER is 9.6.

Market Sentiment: 0.7

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

IDX  INTEGRAL DIAGNOSTICS LIMITED

Medical Equipment & Devices

More Research Tools In Stock Analysis - click HERE

Overnight Price: $2.11

UPDATED

Ord Minnett rates IDX as Upgrade to Buy from Hold (1) -

Capitol Health ((CAJ)) will not be increasing or extending the takeover bid for Integral Diagnostics and the offer is now expected to lapse. The outcome was increasingly apparent to Ord Minnett given an acrimonious relationship between the companies and some key shareholders.

The broker considers each business positively on a standalone basis. Both are trading at discounts to health care peers, which Ord Minnett considers unjustified given the avenues to growth. Rating is upgraded to Buy from Hold and the target is $2.39.

Target price is $2.39 Current Price is $2.11 Difference: $0.28
If IDX meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.18, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 7.90 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.4, implying annual growth of 15.9%.

Current consensus DPS estimate is 8.2, implying a prospective dividend yield of 3.9%.

Current consensus EPS estimate suggests the PER is 17.0.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 10.10 cents and EPS of 14.90 cents.
At the last closing share price the estimated dividend yield is 4.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.0, implying annual growth of 12.9%.

Current consensus DPS estimate is 9.5, implying a prospective dividend yield of 4.5%.

Current consensus EPS estimate suggests the PER is 15.1.

Market Sentiment: 0.3

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

JHX  JAMES HARDIE INDUSTRIES N.V.

Building Products & Services

More Research Tools In Stock Analysis - click HERE

Overnight Price: $22.49

UPDATED

Deutsche Bank rates JHX as Buy (1) -

Buy rating retained while the price target lifts to $24.98 from $24.11 after the analysts tried to get a better grip on the underlying demand dynamics for James Hardie's PDG product. The conclusion has been a positive one.

Part of the optimism seems to be built on the observation that some US builders have indicated they are considering switching back to James Hardie's product, having stopped using it in the recent past. Production issues experienced by the company are seen as the culprit.

Target price is $24.98 Current Price is $22.49 Difference: $2.49
If JHX meets the Deutsche Bank target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $24.54, suggesting upside of 9.1% (ex-dividends)

Forecast for FY18:

Current consensus EPS estimate is 80.6, implying annual growth of N/A.

Current consensus DPS estimate is 50.2, implying a prospective dividend yield of 2.2%.

Current consensus EPS estimate suggests the PER is 27.9.

Forecast for FY19:

Current consensus EPS estimate is 99.7, implying annual growth of 23.7%.

Current consensus DPS estimate is 60.2, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 22.6.

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

KAR  KAROON GAS AUSTRALIA LIMITED

Crude Oil

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.15

Macquarie rates KAR as Outperform (1) -

The interim loss of -$28.2m was larger than Macquarie expected, because of the impairments. The broker believes the market is discounting Echidna's development, which should provide a positive catalyst in the near term as FEED is finalised.

The company remains committed to acquiring production assets and, with cash of $320m and no exploration commitments, the broker believes it should be well funded to undertake an acquisition. Outperform rating maintained. Target is reduced by -10% to $1.35.

Target price is $1.35 Current Price is $1.15 Difference: $0.2
If KAR meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 10.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.85.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 8.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.07.

Market Sentiment: 0.5

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

MYR  MYER HOLDINGS LIMITED

Household & Personal Products

More Research Tools In Stock Analysis - click HERE

Overnight Price: $0.42

UPDATED

Ord Minnett rates MYR as Lighten (4) -

The company will report its first half results on March 21. Ord Minnett forecasts an underlying net profit of $39.4m, down -37.2% on the prior corresponding half but in line with guidance.

The broker observes that, while retail sales have been stronger than expected recently, the department store category is structurally challenged and, while the company's strategy is sound, execution mis-steps have resulted in disappointing sales and earnings growth.

Lighten and 50c target retained.

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

Target price is $0.50 Current Price is $0.42 Difference: $0.08
If MYR meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $0.46, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 3.00 cents and EPS of 3.00 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 14.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.5, implying annual growth of -45.8%.

Current consensus DPS estimate is 2.5, implying a prospective dividend yield of 6.0%.

Current consensus EPS estimate suggests the PER is 9.3.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 3.00 cents and EPS of 3.00 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 14.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.4, implying annual growth of -2.2%.

Current consensus DPS estimate is 2.5, implying a prospective dividend yield of 6.0%.

Current consensus EPS estimate suggests the PER is 9.5.

Market Sentiment: -0.8

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: $20.14

ADDED

Credit Suisse rates NCM as Underperform (5) -

In the wake of the dam wall failure at Cadia and the cessation of production, Credit Suisse suggests lost production is likely to be more significant than the repair and remediation costs.

The Cadia Hill pit was under active consideration for tailings containment and potentially offers a near-term alternative, the broker notes. Expansion commitments may be delayed following the failure and the broker suggests it might be increasingly challenging for the company to commit more capital to a large-scale operation following two mine-stopping events in 12 months.

Underperform and $18.50 target maintained.

Target price is $18.50 Current Price is $20.14 Difference: minus $1.64 (current price is over target).
If NCM meets the Credit Suisse target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.82, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 22.63 cents and EPS of 79.32 cents.
At the last closing share price the estimated dividend yield is 1.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 78.0, implying annual growth of N/A.

Current consensus DPS estimate is 28.4, implying a prospective dividend yield of 1.4%.

Current consensus EPS estimate suggests the PER is 25.8.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 38.87 cents and EPS of 133.26 cents.
At the last closing share price the estimated dividend yield is 1.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 113.0, implying annual growth of 44.9%.

Current consensus DPS estimate is 35.7, implying a prospective dividend yield of 1.8%.

Current consensus EPS estimate suggests the PER is 17.8.

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

OFX  OZFOREX GROUP LIMITED

Diversified Financials

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.59

Macquarie rates OFX as Outperform (1) -

The investor briefing highlighted positive operating metrics for the second half, Macquarie observes. No specific FY18 earnings guidance was provided.

The broker notes revenue opportunity in the fragmented FX and cross-border market remains attractive, albeit not without risk of competition. Outperform rating maintained. Target rises to $1.71 from $1.54.

Target price is $1.71 Current Price is $1.59 Difference: $0.12
If OFX meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 5.40 cents and EPS of 7.70 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.65.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 6.30 cents and EPS of 8.40 cents.
At the last closing share price the estimated dividend yield is 3.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.93.

Market Sentiment: 0.5

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

OSH  OIL SEARCH LIMITED

NatGas

More Research Tools In Stock Analysis - click HERE

Overnight Price: $7.03

ADDED

Credit Suisse rates OSH as Neutral (3) -

The company has provided its first capital expenditure guidance for PNG expansion, this being a range of US$2.75-3.5bn in total net capital commitments.

Credit Suisse suggests the balance sheet is maintaining a fine line, although remains confident in management's judgement. Neutral rating and $7.55 target maintained.

Target price is $7.55 Current Price is $7.03 Difference: $0.52
If OSH meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $8.16, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 17.90 cents and EPS of 36.71 cents.
At the last closing share price the estimated dividend yield is 2.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.8, implying annual growth of N/A.

Current consensus DPS estimate is 13.5, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 21.4.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 17.78 cents and EPS of 36.47 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.3, implying annual growth of 1.5%.

Current consensus DPS estimate is 14.8, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 21.1.

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

RRL  REGIS RESOURCES LIMITED

Gold & Silver

More Research Tools In Stock Analysis - click HERE

Overnight Price: $4.58

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

The company has delivered a maiden inferred underground resource estimate for Rosemont of 1.4mt at 5.1g/t for 230,000 ozs, using a 2.0g/t cut-off grade. This may be only an inferred resource but Macquarie suggests it highlights the options the company has in the Duketon portfolio to extend mine life.

Grades at Rosemont Main are particularly encouraging. Macquarie raises the target to $5.00 from $4.60. Rating is upgraded to Outperform from Neutral. The addition of the underground resources in FY20 means estimates for earnings per share lift 26% in that year.

Target price is $5.00 Current Price is $4.58 Difference: $0.42
If RRL meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.75, suggesting downside of -18.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 26.00 cents and EPS of 30.70 cents.
At the last closing share price the estimated dividend yield is 5.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.9, implying annual growth of 15.6%.

Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 4.4%.

Current consensus EPS estimate suggests the PER is 14.4.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 23.00 cents and EPS of 39.70 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 11.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.6, implying annual growth of 5.3%.

Current consensus DPS estimate is 19.4, implying a prospective dividend yield of 4.2%.

Current consensus EPS estimate suggests the PER is 13.6.

Market Sentiment: -0.5

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

SXL  SOUTHERN CROSS MEDIA GROUP

Print, Radio & TV

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.07

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

The stock has sold off since the February result and improved operating momentum in metro radio and regional TV does not appear to be priced in at current levels.

Macquarie suggests, while one rating survey does not guarantee a successful year, if sustained it represents upside risk to forecasts. Rating is upgraded to Outperform from Neutral. Target is $1.18.

Target price is $1.18 Current Price is $1.07 Difference: $0.11
If SXL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.12, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 7.50 cents and EPS of 9.90 cents.
At the last closing share price the estimated dividend yield is 7.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.2, implying annual growth of -27.8%.

Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 6.8%.

Current consensus EPS estimate suggests the PER is 10.5.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 7.20 cents and EPS of 9.60 cents.
At the last closing share price the estimated dividend yield is 6.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.3, implying annual growth of 1.0%.

Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 7.3%.

Current consensus EPS estimate suggests the PER is 10.4.

Market Sentiment: 0.2

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

TPM  TPG TELECOM LIMITED

Telecommunication

More Research Tools In Stock Analysis - click HERE

Overnight Price: $6.03

Ord Minnett rates TPM as Lighten (4) -

The company will report its first half result on March 20. Ord Minnett envisages downside risk to consensus estimates and remains concerned that the weaker consumer broadband margins witnessed at Telstra ((TLS)) and Vocus ((VOC)) in the first half could also pressure TPG Telecom.

TPG is more susceptible because its consumer segment accounts for 70% of revenue and 60% of operating earnings. Lighten rating and $4.90 target maintained.

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

Target price is $4.90 Current Price is $6.03 Difference: minus $1.13 (current price is over target).
If TPM meets the Ord Minnett target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.74, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 0.00 cents and EPS of 37.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.2, implying annual growth of -16.1%.

Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 0.7%.

Current consensus EPS estimate suggests the PER is 15.0.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 0.00 cents and EPS of 18.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.5, implying annual growth of -31.6%.

Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 0.6%.

Current consensus EPS estimate suggests the PER is 21.9.

Market Sentiment: -0.4

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

WHC  WHITEHAVEN COAL LIMITED

Coal

More Research Tools In Stock Analysis - click HERE

Overnight Price: $4.18

UBS rates WHC as Buy (1) -

Media reports indicate Whitehaven Coal is one of the companies bidding for Rio Tinto's ((RIO)) remaining coal assets. Given the low cost of funding, the potential acquisition would be highly accretive to FY19 earnings, UBS suggests, assuming a US$2bn estimate for the assets.

The broker believes Whitehaven Coal has capacity to bid for one or all of the assets. Buy rating maintained. Target is $5.35.

Target price is $5.35 Current Price is $4.18 Difference: $1.17
If WHC meets the UBS target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $4.51, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 24.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 5.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.1, implying annual growth of 24.0%.

Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 6.7%.

Current consensus EPS estimate suggests the PER is 8.2.

Forecast for FY19:

UBS forecasts a full year FY19 dividend of 25.00 cents and EPS of 50.00 cents.
At the last closing share price the estimated dividend yield is 5.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.3, implying annual growth of -13.3%.

Current consensus DPS estimate is 21.6, implying a prospective dividend yield of 5.2%.

Current consensus EPS estimate suggests the PER is 9.4.

Market Sentiment: 0.2

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

WPL  WOODSIDE PETROLEUM LIMITED

NatGas

More Research Tools In Stock Analysis - click HERE

Overnight Price: $28.71

UBS rates WPL as Buy (1) -

Woodside has moved to a 75% interest in the Scarborough gasfield and will become operator following an agreement with partner BHP Billiton ((BHP)). BHP will waive its pre-emptive rights and receive an option to acquire a further 10% stake in Scarborough under the same terms as the Woodside deal with ExxonMobil.

UBS believes the agreement provides Woodside with a way to have greater control of the timeframe and development of the project. The broker is more confident Scarborough will achieve FEED in 2019 with the final investment decision planned for 2020.

Buy rating and $34.70 target maintained.

Target price is $34.70 Current Price is $28.71 Difference: $5.99
If WPL meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $30.76, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 125.44 cents and EPS of 156.47 cents.
At the last closing share price the estimated dividend yield is 4.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 186.4, implying annual growth of N/A.

Current consensus DPS estimate is 138.0, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 15.4.

Forecast for FY19:

UBS forecasts a full year FY19 dividend of 124.14 cents and EPS of 155.18 cents.
At the last closing share price the estimated dividend yield is 4.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 184.8, implying annual growth of -0.9%.

Current consensus DPS estimate is 132.3, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 15.5.

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

Summaries
A2M A2 MILK Initiation of coverage with Add - Morgans Overnight Price $12.95
APE AP EAGERS Neutral - Credit Suisse Overnight Price $8.45
AZJ AURIZON HOLDINGS Outperform - Macquarie Overnight Price $4.41
CAR CARSALES.COM Overweight - Morgan Stanley Overnight Price $14.46
CGF CHALLENGER Underweight - Morgan Stanley Overnight Price $12.21
GEM G8 EDUCATION Initiation of coverage with Add - Morgans Overnight Price $2.77
IDX INTEGRAL DIAGNOSTICS Upgrade to Buy from Hold - Ord Minnett Overnight Price $2.11
JHX JAMES HARDIE Buy - Deutsche Bank Overnight Price $22.49
KAR KAROON GAS Outperform - Macquarie Overnight Price $1.15
MYR MYER Lighten - Ord Minnett Overnight Price $0.42
NCM NEWCREST MINING Underperform - Credit Suisse Overnight Price $20.14
OFX OZFOREX GROUP Outperform - Macquarie Overnight Price $1.59
OSH OIL SEARCH Neutral - Credit Suisse Overnight Price $7.03
RRL REGIS RESOURCES Upgrade to Outperform from Neutral - Macquarie Overnight Price $4.58
SXL SOUTHERN CROSS MEDIA Upgrade to Outperform from Neutral - Macquarie Overnight Price $1.07
TPM TPG TELECOM Lighten - Ord Minnett Overnight Price $6.03
WHC WHITEHAVEN COAL Buy - UBS Overnight Price $4.18
WPL WOODSIDE PETROLEUM Buy - UBS Overnight Price $28.71
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

12

3. Hold

2

4. Reduce

2

5. Sell

2

Wednesday 14 March 2018

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.