Australian Broker Call
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April 19, 2018
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COMPANIES DISCUSSED IN THIS ISSUE
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
THIS REPORT WILL BE UPDATED SHORTLY
Last Updated: 10:50 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
| MGR - | MIRVAC | Upgrade to Buy from Hold | Deutsche Bank |
| SCG - | SCENTRE GROUP | Downgrade to Hold from Buy | Deutsche Bank |
Overnight Price: $25.36
Macquarie rates ALL as Outperform (1) -
Macquarie makes upgrades to digital forecasts ahead of the first half result, due May 24. The broker envisages the investor briefing on May 1 as a catalyst for the company to better educate the market on the recent Plarium/Big Fish acquisitions.
The broker continues to find the stock attractive. Target price is raised to $26.85 from $26.35. Outperform.
Target price is $26.85 Current Price is $25.36 Difference: $1.49
If ALL meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $28.04, suggesting upside of 10.6% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 45.00 cents and EPS of 111.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 107.6, implying annual growth of 38.5%. Current consensus DPS estimate is 45.3, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 23.6. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 66.50 cents and EPS of 133.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 129.6, implying annual growth of 20.4%. Current consensus DPS estimate is 62.8, implying a prospective dividend yield of 2.5%. Current consensus EPS estimate suggests the PER is 19.6. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates AMP as Accumulate (2) -
Ord Minnett envisages no immediate earnings risk from the company's appearance before the Royal Commission into banking and financial services. Actual remediation costs and client disadvantage requiring remediation are considered small for the particular issue of "fees for no service".
The bigger issue is misleading ASIC about practice and cultural issues and, the broker suggests, some sanctions may or may not follow but whether the ultimate fall-out is worth the $700m in downside to market capitalisation of AMP is yet to be determined.
However, the broker notes, AMP is undertaking a strategic review that involves considering asset disposals and the Royal Commission may only provide uncertainty to a potential acquirer, a negative for discussing price. Accumulate retained. Target is $5.90.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $5.90 Current Price is $4.41 Difference: $1.49
If AMP meets the Ord Minnett target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $5.60, suggesting upside of 26.9% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 29.00 cents and EPS of 31.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 33.7, implying annual growth of 15.0%. Current consensus DPS estimate is 29.1, implying a prospective dividend yield of 6.6%. Current consensus EPS estimate suggests the PER is 13.1. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 29.00 cents and EPS of 34.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.1, implying annual growth of 7.1%. Current consensus DPS estimate is 30.6, implying a prospective dividend yield of 6.9%. Current consensus EPS estimate suggests the PER is 12.2. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AZJ AURIZON HOLDINGS LIMITED
Transportation & Logistics
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Overnight Price: $4.51
Deutsche Bank rates AZJ as Sell (5) -
The company released above-rail volumes for the March quarter. Coal and bulk volumes were behind Deutsche Bank's expectations.
A final decision from the ACCC is due on May 24 in respect of the sale of Acacia Ridge and the Queensland IM business.
Deutsche Bank maintains a Sell rating and reduces the target to $4.10 from $4.25.
Target price is $4.10 Current Price is $4.51 Difference: minus $0.41 (current price is over target).
If AZJ meets the Deutsche Bank target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.59, suggesting upside of 1.7% (ex-dividends)
Forecast for FY18:
Current consensus EPS estimate is 26.6, implying annual growth of N/A. Current consensus DPS estimate is 25.8, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 17.0. |
Forecast for FY19:
Current consensus EPS estimate is 26.0, implying annual growth of -2.3%. Current consensus DPS estimate is 24.2, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 17.3. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates AZJ as Neutral (3) -
Aurizon reported above-rail volume growth of 1% in the March quarter. The company will cease rail services to iron ore customer Cliffs from June, which UBS had already assumed in forecasts.
The broker believes it is too early to gauge the impact of changes to the above-rail business. The broker also believes a decision on the UT5 is likely to drag into FY19 and a final decision is unlikely to change materially from the draft.
Neutral rating. Target is $4.90.
Target price is $4.90 Current Price is $4.51 Difference: $0.39
If AZJ meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $4.59, suggesting upside of 1.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 27.00 cents and EPS of 27.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.6, implying annual growth of N/A. Current consensus DPS estimate is 25.8, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 17.0. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 28.00 cents and EPS of 28.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.0, implying annual growth of -2.3%. Current consensus DPS estimate is 24.2, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 17.3. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $5.80
Morgan Stanley rates BAP as Overweight (1) -
A lack of near-term catalysts means the stock price has languished, and Morgan Stanley believes this presents a buying opportunity.
The broker reassesses all divisions and increases forecasts for the wholesale segment, where the opportunity to sell products through trade and retail is greater than it previously realised.
Morgan Stanley remains confident in the medium-term growth outlook, management's track record and the opportunity to extract benefits of scale.
Overweight rating retained. Target is $7.00. Industry view: In-line.
Target price is $7.00 Current Price is $5.80 Difference: $1.2
If BAP meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $6.62, suggesting upside of 14.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 18.90 cents and EPS of 31.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.2, implying annual growth of 31.3%. Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 18.6. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 EPS of 36.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.4, implying annual growth of 13.5%. Current consensus DPS estimate is 19.3, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 16.4. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $31.01
Macquarie rates BHP as Outperform (1) -
In an initial response to today's production report release, Macquarie analysts find thermal coal missed the mark, while guidance for iron ore has been reduced by -2%, and the range for copper was narrowed. Other operations performed pretty much in line with expectations.
All in all, Macquarie labels it a "solid" report, with the observation the slight negative regarding iron ore came unexpected. Outperform rating retained. Target unchanged at $35.70.
Target price is $35.70 Current Price is $31.01 Difference: $4.69
If BHP meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $32.80, suggesting upside of 5.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 132.97 cents and EPS of 220.89 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 213.7, implying annual growth of N/A. Current consensus DPS estimate is 145.1, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 14.5. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 95.53 cents and EPS of 190.29 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 204.5, implying annual growth of -4.3%. Current consensus DPS estimate is 129.2, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 15.2. |
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
CCP CREDIT CORP GROUP LIMITED
Business & Consumer Credit
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Overnight Price: $18.58
Morgans rates CCP as Add (1) -
The company has reaffirmed FY18 earnings guidance and targets. Morgans observes competitive pressure in the domestic business is high but expects incremental organic growth can be delivered by the lending and US divisions.
The broker considers the longer-term opportunity in the US business remains attractive. Add rating retained. Target is reduced to $23.00 from $23.60.
Target price is $23.00 Current Price is $18.58 Difference: $4.42
If CCP meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 67.00 cents and EPS of 134.00 cents. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 73.00 cents and EPS of 147.00 cents. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates CYB as Outperform (1) -
CYBG has announced an increase in payment protection insurance provisions of GBP350m. The broker has downgraded its FY18 "company defined" profit forecast by -65%. This does not impact on earnings forecasts.
The broker finds the quantum and the timing of the provision top-up disappointing but has not changed its positive view on the stock, which is a cost, revenue and capital story. Any share price weakness is a buying opportunity, the broker suggests.
Outperform and $6.00 target retained.
Target price is $6.00 Current Price is $5.30 Difference: $0.7
If CYB meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $5.86, suggesting upside of 10.6% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 6.89 cents and EPS of 46.49 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 48.0, implying annual growth of N/A. Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 1.2%. Current consensus EPS estimate suggests the PER is 11.0. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 20.66 cents and EPS of 56.82 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.8, implying annual growth of 16.2%. Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 10.1%. Current consensus EPS estimate suggests the PER is 9.5. |
This company reports in GBP. 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
Deutsche Bank rates CYB as Sell (5) -
Deutsche Bank retains a Sell rating. Increased PPI claims are higher than expected for the upcoming results, at GBP105m in aggregate over 2018-19.
Current Price is $5.30. Target price not assessed.
Current consensus price target is $5.86, suggesting upside of 10.6% (ex-dividends)
Forecast for FY18:
Current consensus EPS estimate is 48.0, implying annual growth of N/A. Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 1.2%. Current consensus EPS estimate suggests the PER is 11.0. |
Forecast for FY19:
Current consensus EPS estimate is 55.8, implying annual growth of 16.2%. Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 10.1%. Current consensus EPS estimate suggests the PER is 9.5. |
This company reports in GBP. 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
Macquarie rates CYB as Outperform (1) -
The company will increase its provision for PPI by GBP350m at the first half result. Macquarie acknowledges the implied capital reduction but envisages current share price weakness as an attractive buying opportunity.
The broker expects underlying profitability to improve materially over the medium term as a result of efficiency benefits, market share gains and also, ultimately, a higher interest rate environment.
Outperform. Target is $6.50.
Target price is $6.50 Current Price is $5.30 Difference: $1.2
If CYB meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $5.86, suggesting upside of 10.6% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 5.15 cents and EPS of 44.62 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 48.0, implying annual growth of N/A. Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 1.2%. Current consensus EPS estimate suggests the PER is 11.0. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 12.01 cents and EPS of 48.22 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.8, implying annual growth of 16.2%. Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 10.1%. Current consensus EPS estimate suggests the PER is 9.5. |
This company reports in GBP. 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
Overnight Price: $0.29
Macquarie rates EHL as Outperform (1) -
March quarter results were robust and revenue is 46% ahead of Macquarie's second half forecasts. Momentum heading into the fourth quarter is strong, following the mobilisation of a significant contract in Queensland.
Management expects operating earnings to be in line with current forecasts for FY18 and Macquarie suggests there is upside risk to the numbers, given the quarterly performance. Outperform retained. Target is 35c.
Target price is $0.35 Current Price is $0.29 Difference: $0.06
If EHL meets the Macquarie target it will return approximately 21% (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 1.10 cents. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 0.00 cents and EPS of 2.00 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
FBU FLETCHER BUILDING LIMITED
Building Products & Services
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Overnight Price: $6.00
Morgan Stanley rates FBU as Overweight (1) -
Morgan Stanley suggests the NZ$750m capital raising addresses many of the investor concerns. Management has also announced it will divest Formica and the roof tile business. Morgan Stanley estimates a value of NZ$1.2bn for the combined businesses.
The company has also identified risks and cost increases for the Puhoi to Warkworth project and is currently reporting nil margins.
Overweight rating. Target is reduced to NZ$7.00 from NZ$8.00. Industry view is: Cautious.
Current Price is $6.00. Target price not assessed.
Current consensus price target is N/A
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 6.47 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -7.0, implying annual growth of N/A. Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 0.5%. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 11.10 cents and EPS of 42.53 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 52.4, implying annual growth of N/A. Current consensus DPS estimate is 23.2, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 11.5. |
This company reports in NZD. 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
Overnight Price: $4.31
Macquarie rates IOF as Outperform (1) -
Macquarie assesses the financial implications of National Australia Bank ((NAB)) leaving 105-151 Miller Street on expiry of its lease in September 2020.
The broker believes, while a number of asset management strategies are under consideration, the most likely outcome is an immediate re-letting to minimise downtime and reduce capital expenditure requirements should the bank depart.
The broker downgrades FY21 estimates by -3.9% to capture nine months of downtime. Outperform retained. Target is $4.97.
Target price is $4.97 Current Price is $4.31 Difference: $0.66
If IOF meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $4.70, suggesting upside of 9.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 20.30 cents and EPS of 24.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.2, implying annual growth of -63.3%. Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 15.3. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 20.30 cents and EPS of 23.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.0, implying annual growth of -0.7%. Current consensus DPS estimate is 20.5, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 15.4. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
LNK LINK ADMINISTRATION HOLDINGS LIMITED
Wealth Management & Investments
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Overnight Price: $8.38
Morgans rates LNK as Add (1) -
The company will make a $300m institutional placement and undertake a share purchase plan. Funds will be used to pursue opportunities. The main concern for Morgans is that management is overstretching.
There are concerns that balance sheet repair is the main driver of the capital raising compared with funding future growth, yet the broker suspects this underestimates the company's ability to de-leverage.
Add rating maintained. Target is reduced to $9.20 from $9.50.
Target price is $9.20 Current Price is $8.38 Difference: $0.82
If LNK meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $9.14, suggesting upside of 9.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 17.20 cents and EPS of 39.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 40.5, implying annual growth of 79.0%. Current consensus DPS estimate is 16.9, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 20.7. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 22.10 cents and EPS of 46.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 46.9, implying annual growth of 15.8%. Current consensus DPS estimate is 23.6, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 17.9. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.19
Deutsche Bank rates MGR as Upgrade to Buy from Hold (1) -
Deutsche Bank upgrades to Buy from Hold after analysing the retail tenancy mix. The conclusion is that the leases are affected by online, given the over-exposure to food catering and retail services. Mirvac has the lowest exposure to apparel.
The upgrade is based on upside to the current share price, the high quality retail and office portfolio and the stock trading at a -2% discount to NTA.
Current Price is $2.19. Target price not assessed.
Current consensus price target is $2.40, suggesting upside of 9.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 11.00 cents and EPS of 16.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 15.7, implying annual growth of -50.0%. Current consensus DPS estimate is 11.0, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 13.9. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 11.00 cents and EPS of 15.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.2, implying annual growth of 3.2%. Current consensus DPS estimate is 11.4, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $6.97
Morgan Stanley rates NXT as Overweight (1) -
The company has announced three new data centre developments, signalling a 150% lift versus the current footprint's potential. The scale, not the expansion, was the surprise for Morgan Stanley.
The broker considers the move a large, long-dated investment. The company has reiterated its confidence in the demand, and the broker envisages little reason for earnings to disappoint in the near term.
Overweight rating, In-Line industry view maintained. Target is lifted to $9.20 from $8.10.
Target price is $9.20 Current Price is $6.97 Difference: $2.23
If NXT meets the Morgan Stanley target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $7.58, suggesting upside of 8.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 0.00 cents and EPS of 2.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 3.7, implying annual growth of -55.7%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 188.4. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 7.00 cents and EPS of 2.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.0, implying annual growth of 62.2%. Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.1%. Current consensus EPS estimate suggests the PER is 116.2. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
REH REECE AUSTRALIA LIMITED
Furniture & Renovation
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Overnight Price: $10.61
Citi rates REH as Buy (1) -
Today's update includes a reiteration of the Buy recommendation and a 9% increase to Citi's price target, to $12.12. The analysts have lifted forecasts on the back of the interim result which, by the way, was released circa two months ago.
Lower margin acquisitions will put pressure on group margins for FY18, the analysts note. Citi expects the shares to trade at a 30% premium to long term PE and a
25% premium to the market multiple.
Target price is $12.12 Current Price is $10.61 Difference: $1.51
If REH meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 24.00 cents and EPS of 47.20 cents. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 24.00 cents and EPS of 47.40 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $81.19
Citi rates RIO as Buy (1) -
Citi found the quarterly production performance "mixed" with iron ore surprising by 1%, but that is apparently where the positive surprises stopped. The analysts do see ongoing strong potential for capital management, and for more benefits for shareholders.
Target price lifts to $86 from $82, supported by strong commodities pricing. Buy.
Target price is $86.00 Current Price is $81.19 Difference: $4.81
If RIO meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $85.69, suggesting upside of 5.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 397.63 cents and EPS of 671.06 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 704.8, implying annual growth of N/A. Current consensus DPS estimate is 399.2, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 11.5. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 340.82 cents and EPS of 566.49 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 611.8, implying annual growth of -13.2%. Current consensus DPS estimate is 364.1, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 13.3. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates RIO as Outperform (1) -
Rio's March Q production was a little soft, the broker suggests. Iron ore, nevertheless, had a reasonable quarter given assumed disruption for Cyclone Marcus. It's a little academic as the broker has substantially lifted its aluminium and alumina price forecasts given the current turmoil in those markets.
Free cash flow is already incredibly strong and the balance sheet couldn't really be any stronger, the broker suggests. Outperform and $82 target retained.
Target price is $82.00 Current Price is $81.19 Difference: $0.81
If RIO meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $85.69, suggesting upside of 5.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 419.57 cents and EPS of 711.34 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 704.8, implying annual growth of N/A. Current consensus DPS estimate is 399.2, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 11.5. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 361.48 cents and EPS of 611.93 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 611.8, implying annual growth of -13.2%. Current consensus DPS estimate is 364.1, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 13.3. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates RIO as Buy (1) -
Deutsche Bank retains a Buy rating and $89 target on the stock post the March quarter result. Production was -3% below estimates in copper equivalent terms.
The stock remains one of the broker's top picks in the mining sector.
Target price is $89.00 Current Price is $81.19 Difference: $7.81
If RIO meets the Deutsche Bank target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $85.69, suggesting upside of 5.5% (ex-dividends)
Forecast for FY18:
Current consensus EPS estimate is 704.8, implying annual growth of N/A. Current consensus DPS estimate is 399.2, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 11.5. |
Forecast for FY19:
Current consensus EPS estimate is 611.8, implying annual growth of -13.2%. Current consensus DPS estimate is 364.1, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 13.3. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates RIO as Outperform (1) -
Macquarie observes solid production from the Pilbara iron ore business offset a weaker contribution from hard coking coal and labour disruptions in the first quarter.
Capital management capacity remains relatively high, the broker acknowledges. Outperform rating retained. Target is $93.
Target price is $93.00 Current Price is $81.19 Difference: $11.81
If RIO meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $85.69, suggesting upside of 5.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 432.48 cents and EPS of 731.09 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 704.8, implying annual growth of N/A. Current consensus DPS estimate is 399.2, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 11.5. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 371.81 cents and EPS of 618.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 611.8, implying annual growth of -13.2%. Current consensus DPS estimate is 364.1, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 13.3. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates RIO as Overweight (1) -
First quarter production was slightly below Morgan Stanley's estimates. The broker makes no major changes to the investment case.
Overweight rating maintained. Target is $83.50. Industry view: Attractive.
Target price is $83.50 Current Price is $81.19 Difference: $2.31
If RIO meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $85.69, suggesting upside of 5.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 352.44 cents and EPS of 502.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 704.8, implying annual growth of N/A. Current consensus DPS estimate is 399.2, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 11.5. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 324.04 cents and EPS of 462.17 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 611.8, implying annual growth of -13.2%. Current consensus DPS estimate is 364.1, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 13.3. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates RIO as Add (1) -
Production volumes were firm in the March quarter albeit slightly below Morgans estimates in some areas.
The broker suggests recent trends in metal prices are likely to have a greater bearing on first half earnings, with aluminium at a seven-year high, copper just shy of a three-year high and good premiums for lump iron ore.
Add rating maintained, target rises to $84.01 from $81.51.
Target price is $84.01 Current Price is $81.19 Difference: $2.82
If RIO meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $85.69, suggesting upside of 5.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 374.39 cents and EPS of 748.77 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 704.8, implying annual growth of N/A. Current consensus DPS estimate is 399.2, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 11.5. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 369.22 cents and EPS of 738.45 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 611.8, implying annual growth of -13.2%. Current consensus DPS estimate is 364.1, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 13.3. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates RIO as Hold (3) -
Ord Minnett marks to market first quarter prices and makes lower assumptions on currency, increasing earnings forecasts.
The broker believes the business is in good shape and asset sale proceeds could be used for further capital management.
However, with the stock trading close to valuation, a Hold rating is maintained. Target is raised to $78 from $76.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $78.00 Current Price is $81.19 Difference: minus $3.19 (current price is over target).
If RIO meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $85.69, suggesting upside of 5.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 427.32 cents and EPS of 933.39 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 704.8, implying annual growth of N/A. Current consensus DPS estimate is 399.2, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 11.5. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 405.37 cents and EPS of 673.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 611.8, implying annual growth of -13.2%. Current consensus DPS estimate is 364.1, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 13.3. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates RIO as Buy (1) -
Apart from iron ore, bauxite and diamonds, production in all other major commodities fell short of UBS estimates in the March quarter.
The broker notes 2018 guidance is unchanged, although aluminium will be reviewed following the completed sale of the Dunkerque and ISAL smelters.
Buy rating and $90 target maintained.
Target price is $90.00 Current Price is $81.19 Difference: $8.81
If RIO meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $85.69, suggesting upside of 5.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 402.79 cents and EPS of 658.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 704.8, implying annual growth of N/A. Current consensus DPS estimate is 399.2, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 11.5. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 387.30 cents and EPS of 631.29 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 611.8, implying annual growth of -13.2%. Current consensus DPS estimate is 364.1, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 13.3. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $4.84
Citi rates RRL as Sell (5) -
March quarter production was in line with expectations and Citi continues to hold a positive view on the stock but believes the shares are still too expensive.
This view is based on the uncertainty around the scale and cost of underground mining at Duketon and delays to McPhillamys. Sell rating maintained. Target rises to $4.00 from $3.90.
Target price is $4.00 Current Price is $4.84 Difference: minus $0.84 (current price is over target).
If RRL meets the Citi target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.95, suggesting downside of -18.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 18.00 cents and EPS of 35.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.7, implying annual growth of 14.9%. Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 15.3. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 19.00 cents and EPS of 37.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.6, implying annual growth of 9.1%. Current consensus DPS estimate is 19.4, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 14.0. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates RRL as Neutral (3) -
Regis reported softer production in the March Q, as had been flagged, but production is still tracking at the top end of FY guidance and a strong June Q is anticipated.
The broker has now included the Rosemont underground project and the Discovery Ridge project at McPhillamys into its valuation model, and also de-risked McPhillamys to 85% from 75% on development progress. Target rises to $4.55 from $3.85, Neutral retained.
Target price is $4.55 Current Price is $4.84 Difference: minus $0.29 (current price is over target).
If RRL meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.95, suggesting downside of -18.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 18.00 cents and EPS of 33.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.7, implying annual growth of 14.9%. Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 15.3. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 24.70 cents and EPS of 41.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.6, implying annual growth of 9.1%. Current consensus DPS estimate is 19.4, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 14.0. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates RRL as Outperform (1) -
March quarter production was in line with expectations. Macquarie observes the company continues to generate solid cash flow despite adverse weather affecting movements and head grade.
Outperform rating and $5 target maintained.
Target price is $5.00 Current Price is $4.84 Difference: $0.16
If RRL meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $3.95, suggesting downside of -18.3% (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 31.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.7, implying annual growth of 14.9%. Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 15.3. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 24.00 cents and EPS of 41.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.6, implying annual growth of 9.1%. Current consensus DPS estimate is 19.4, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 14.0. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.93
Macquarie rates S32 as Outperform (1) -
In a preliminary assessment of today's quarterly production report release, Macquarie notes manganese and nickel output were both "strong". Alumina and aluminium on the other hand were not as impressive.
Carrington missed expectations yet again, while guidance for Illawarra was downgraded. All in all, a "mixed" report, in Macquarie's view. Outperform rating retained. Target $3.70.
Target price is $3.70 Current Price is $3.93 Difference: minus $0.23 (current price is over target).
If S32 meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.45, suggesting downside of -12.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 21.69 cents and EPS of 32.79 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 29.2, implying annual growth of N/A. Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 13.5. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 17.30 cents and EPS of 34.47 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.2, implying annual growth of 3.4%. Current consensus DPS estimate is 16.9, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 13.0. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates SCG as Downgrade to Hold from Buy (3) -
Deutsche Bank downgrades to Hold from Buy after analysing the retail tenancy mix. The broke notes the business is heavily exposed to high-risk online categories such as apparel and home wares.
The broker reduces the leasing spread forecast to -1.5% for the next five years.
Current Price is $3.90. Target price not assessed.
Current consensus price target is $4.53, suggesting upside of 16.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 22.00 cents and EPS of 25.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 24.8, implying annual growth of 933.3%. Current consensus DPS estimate is 22.3, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 15.7. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 23.00 cents and EPS of 27.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.2, implying annual growth of 5.6%. Current consensus DPS estimate is 22.9, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 14.9. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $5.24
UBS rates SGR as Buy (1) -
UBS reduces earnings-per-share forecasts by -5% for FY19 and -3% for FY20, incorporating the $490m equity raising, disruption to lower main floor revenues from the Sovereign room in Sydney, stronger VIP revenue and around 1% upside from the marketing opportunities with the new JV partnership.
Buy rating maintained. Target is $6.20.
Target price is $6.20 Current Price is $5.24 Difference: $0.96
If SGR meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $6.15, suggesting upside of 17.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 18.00 cents and EPS of 29.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.9, implying annual growth of -15.9%. Current consensus DPS estimate is 18.2, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 19.5. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 25.00 cents and EPS of 31.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.3, implying annual growth of 12.6%. Current consensus DPS estimate is 22.5, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 17.3. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TWE TREASURY WINE ESTATES LIMITED
Food, Beverages & Tobacco
More Research Tools In Stock Analysis - click HERE
Overnight Price: $17.80
Citi rates TWE as Sell (5) -
Citi analysts remain of the view that pricing pressure will at some point catch the market's attention, and trigger a de-rating for the shares. They have now further lowered estimates, placing themselves some -6% below market consensus for FY20.
The company continues to enjoy strong volume growth, but pricing is declining in Asia, highlight the analysts. Short term, they do believe EBITS margin can remain around 40%. Sell rating retained. Target $13.30.
Target price is $13.30 Current Price is $17.80 Difference: minus $4.5 (current price is over target).
If TWE meets the Citi target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $16.58, suggesting downside of -6.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 32.00 cents and EPS of 47.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 48.8, implying annual growth of 33.7%. Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 36.5. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 42.00 cents and EPS of 61.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 61.8, implying annual growth of 26.6%. Current consensus DPS estimate is 40.9, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 28.8. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.39
Ord Minnett rates VCX as Accumulate (2) -
The company and its JV partner have sold Brandon Park shopping centre in Melbourne for $135m, a 3.8% premium to book value.
Ord Minnett does not consider this a material transaction on its own but, given the negativity surrounding B-grade malls, judges the price outcome to be strong.
Accumulate rating and $2.95 target maintained.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $2.95 Current Price is $2.39 Difference: $0.56
If VCX meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $2.83, suggesting upside of 18.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 16.00 cents and EPS of 28.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.6, implying annual growth of 4.8%. Current consensus DPS estimate is 16.2, implying a prospective dividend yield of 6.8%. Current consensus EPS estimate suggests the PER is 12.2. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 17.00 cents and EPS of 18.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.5, implying annual growth of -5.6%. Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 7.0%. Current consensus EPS estimate suggests the PER is 12.9. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $41.60
Citi rates WES as Neutral (3) -
Citi expects retail sales will total $15bn in the March quarter, with growth of 3.8% on the prior year. The broker adjusts estimates to account for the Curragh sale, completed March 29, and downgrades to Bunnings UK & Ireland, partly offset by small upgrades to food and liquor.
Neutral rating maintained. Target reduced to $40.10 from $41.00.
Target price is $40.10 Current Price is $41.60 Difference: minus $1.5 (current price is over target).
If WES meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $42.82, suggesting upside of 2.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 225.00 cents and EPS of 243.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 231.4, implying annual growth of -9.1%. Current consensus DPS estimate is 216.6, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 18.0. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 225.00 cents and EPS of 247.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 249.8, implying annual growth of 8.0%. Current consensus DPS estimate is 219.0, implying a prospective dividend yield of 5.3%. Current consensus EPS estimate suggests the PER is 16.7. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $31.45
Citi rates WPL as Neutral (3) -
March quarter production was higher than Citi forecast, largely from good utilisation at LNG projects and helped by lower cyclone activity.
The broker increases 2018 earnings estimates by 2%, given the early ramp up of train 2 at Wheatstone. Neutral rating maintained. Target is $28.34.
Target price is $28.34 Current Price is $31.45 Difference: minus $3.11 (current price is over target).
If WPL meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $30.88, suggesting downside of -1.8% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 152.34 cents and EPS of 190.55 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 201.7, implying annual growth of N/A. Current consensus DPS estimate is 157.9, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 15.6. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 107.43 cents and EPS of 134.61 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 197.4, implying annual growth of -2.1%. Current consensus DPS estimate is 151.0, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 15.9. |
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
Credit Suisse rates WPL as Underperform (5) -
The March Q proved a good start to the year for LNG production, tracking the top end of guidance, the broker notes, but its early days. Wheatstone train one is performing well and T2 is now 97% completed. Realised prices were strong with Brent holding above US$70/bbl.
The broker has lifted its oil price assumptions, leading to material earnings upgrades for the next two years. Underperform and $27.20 target retained.
Target price is $27.20 Current Price is $31.45 Difference: minus $4.25 (current price is over target).
If WPL meets the Credit Suisse target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $30.88, suggesting downside of -1.8% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 197.52 cents and EPS of 253.03 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 201.7, implying annual growth of N/A. Current consensus DPS estimate is 157.9, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 15.6. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 163.96 cents and EPS of 205.27 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 197.4, implying annual growth of -2.1%. Current consensus DPS estimate is 151.0, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 15.9. |
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
Macquarie rates WPL as Underperform (5) -
Macquarie observes Wheatstone subdued an otherwise strong first quarter. The broker anticipates the company will focus on the projects it can influence such as SNE in Senegal and Scarborough in WA.
While positive on Senegal, the broker continues to believe Scarborough will struggle to find a place in the next wave of LNG developments.
Underperform rating retained. Target is raised to $28.10 from $27.50.
Target price is $28.10 Current Price is $31.45 Difference: minus $3.35 (current price is over target).
If WPL meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $30.88, suggesting downside of -1.8% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 170.41 cents and EPS of 215.21 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 201.7, implying annual growth of N/A. Current consensus DPS estimate is 157.9, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 15.6. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 139.43 cents and EPS of 176.48 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 197.4, implying annual growth of -2.1%. Current consensus DPS estimate is 151.0, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 15.9. |
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
Morgan Stanley rates WPL as Overweight (1) -
First quarter production and revenue was slightly ahead of Morgan Stanley's estimates. So far, the broker notes the ramp up of production at Wheatstone is on track and risk is gradually reducing.
The broker believes the company is on the verge of production and earnings growth that could lead to dividend growth over time.
Target is $36. Overweight rating and In-Line industry view retained.
Target price is $36.00 Current Price is $31.45 Difference: $4.55
If WPL meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $30.88, suggesting downside of -1.8% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 169.29 cents and EPS of 216.94 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 201.7, implying annual growth of N/A. Current consensus DPS estimate is 157.9, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 15.6. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 166.06 cents and EPS of 207.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 197.4, implying annual growth of -2.1%. Current consensus DPS estimate is 151.0, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 15.9. |
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
Morgans rates WPL as Hold (3) -
First quarter production was slightly softer than Morgans expected. The broker retains some issues with the company's recent decisions but continues to like the earnings profile of the mostly mature projects.
The broker considers expansion of the WA-based LNG operations is likely to be the right move given the fundamentals which support the market for the next decade. Hold rating maintained. Target is reduced to $30.69 from $30.99.
Target price is $30.69 Current Price is $31.45 Difference: minus $0.76 (current price is over target).
If WPL meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $30.88, suggesting downside of -1.8% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 120.06 cents and EPS of 171.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 201.7, implying annual growth of N/A. Current consensus DPS estimate is 157.9, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 15.6. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 192.36 cents and EPS of 276.27 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 197.4, implying annual growth of -2.1%. Current consensus DPS estimate is 151.0, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 15.9. |
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
Ord Minnett rates WPL as Hold (3) -
March quarter production was strong, tracking at the top end of the guidance range, while realised prices were above Ord Minnett's estimates.
The Wheatstone train 2 is 97% complete and will commence production in the current quarter, which appears slightly ahead of plan.
Ord Minnett maintains a Hold rating and raises the target to $30.00 from $29.60.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $30.00 Current Price is $31.45 Difference: minus $1.45 (current price is over target).
If WPL meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $30.88, suggesting downside of -1.8% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 163.96 cents and EPS of 205.27 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 201.7, implying annual growth of N/A. Current consensus DPS estimate is 157.9, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 15.6. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 163.96 cents and EPS of 207.85 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 197.4, implying annual growth of -2.1%. Current consensus DPS estimate is 151.0, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 15.9. |
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
UBS rates WPL as Buy (1) -
March quarter results were strong and signal to UBS that 2018 production could beat guidance.
The broker increases forecasts for 2018 towards the top end of guidance of 88-90 mmboe and notes the focus for investors is now on progressing Scarborough and Browse LNG developments.
In Senegal, the company has commenced the tender process for FPSO and supporting infrastructure. Buy rating and $34.70 target maintained.
Target price is $34.70 Current Price is $31.45 Difference: $3.25
If WPL meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $30.88, suggesting downside of -1.8% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 130.39 cents and EPS of 163.96 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 201.7, implying annual growth of N/A. Current consensus DPS estimate is 157.9, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 15.6. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 130.39 cents and EPS of 162.67 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 197.4, implying annual growth of -2.1%. Current consensus DPS estimate is 151.0, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 15.9. |
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
| ALL | ARISTOCRAT LEISURE | Outperform - Macquarie | Overnight Price $25.36 |
| AMP | AMP | Accumulate - Ord Minnett | Overnight Price $4.41 |
| AZJ | AURIZON HOLDINGS | Sell - Deutsche Bank | Overnight Price $4.51 |
| Neutral - UBS | Overnight Price $4.51 | ||
| BAP | BAPCOR LIMITED | Overweight - Morgan Stanley | Overnight Price $5.80 |
| BHP | BHP BILLITON | Outperform - Macquarie | Overnight Price $31.01 |
| CCP | CREDIT CORP | Add - Morgans | Overnight Price $18.58 |
| CYB | CYBG | Outperform - Credit Suisse | Overnight Price $5.30 |
| Sell - Deutsche Bank | Overnight Price $5.30 | ||
| Outperform - Macquarie | Overnight Price $5.30 | ||
| EHL | EMECO | Outperform - Macquarie | Overnight Price $0.29 |
| FBU | FLETCHER BUILDING | Overweight - Morgan Stanley | Overnight Price $6.00 |
| IOF | INVESTA OFFICE | Outperform - Macquarie | Overnight Price $4.31 |
| LNK | LINK ADMINISTRATION | Add - Morgans | Overnight Price $8.38 |
| MGR | MIRVAC | Upgrade to Buy from Hold - Deutsche Bank | Overnight Price $2.19 |
| NXT | NEXTDC | Overweight - Morgan Stanley | Overnight Price $6.97 |
| REH | REECE AUSTRALIA | Buy - Citi | Overnight Price $10.61 |
| RIO | RIO TINTO | Buy - Citi | Overnight Price $81.19 |
| Outperform - Credit Suisse | Overnight Price $81.19 | ||
| Buy - Deutsche Bank | Overnight Price $81.19 | ||
| Outperform - Macquarie | Overnight Price $81.19 | ||
| Overweight - Morgan Stanley | Overnight Price $81.19 | ||
| Add - Morgans | Overnight Price $81.19 | ||
| Hold - Ord Minnett | Overnight Price $81.19 | ||
| Buy - UBS | Overnight Price $81.19 | ||
| RRL | REGIS RESOURCES | Sell - Citi | Overnight Price $4.84 |
| Neutral - Credit Suisse | Overnight Price $4.84 | ||
| Outperform - Macquarie | Overnight Price $4.84 | ||
| S32 | SOUTH32 | Outperform - Macquarie | Overnight Price $3.93 |
| SCG | SCENTRE GROUP | Downgrade to Hold from Buy - Deutsche Bank | Overnight Price $3.90 |
| SGR | STAR ENTERTAINMENT | Buy - UBS | Overnight Price $5.24 |
| TWE | TREASURY WINE ESTATES | Sell - Citi | Overnight Price $17.80 |
| VCX | VICINITY CENTRES | Accumulate - Ord Minnett | Overnight Price $2.39 |
| WES | WESFARMERS | Neutral - Citi | Overnight Price $41.60 |
| WPL | WOODSIDE PETROLEUM | Neutral - Citi | Overnight Price $31.45 |
| Underperform - Credit Suisse | Overnight Price $31.45 | ||
| Underperform - Macquarie | Overnight Price $31.45 | ||
| Overweight - Morgan Stanley | Overnight Price $31.45 | ||
| Hold - Morgans | Overnight Price $31.45 | ||
| Hold - Ord Minnett | Overnight Price $31.45 | ||
| Buy - UBS | Overnight Price $31.45 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 25 |
| 2. Accumulate | 2 |
| 3. Hold | 8 |
| 5. Sell | 6 |
Thursday 19 April 2018
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