Australian Broker Call
May 12, 2017
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COMPANIES DISCUSSED IN THIS ISSUE
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Last Updated: 01:25 PM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.
For more info about the different terms used by stockbrokers, as well as the different methodologies behind similar sounding ratings, download our guide HERE
Today's Upgrades and Downgrades
| AOG - | AVEO | Upgrade to Accumulate from Hold | Ord Minnett |
| BTT - | BT INVEST MANAGEMENT | Downgrade to Neutral from Outperform | Macquarie |
| GNC - | GRAINCORP | Downgrade to Neutral from Outperform | Macquarie |
| HSO - | HEALTHSCOPE | Downgrade to Hold from Accumulate | Ord Minnett |
| OGC - | OCEANAGOLD | Upgrade to Neutral from Sell | UBS |
| SAR - | SARACEN MINERAL | Upgrade to Outperform from Neutral | Macquarie |
| VTG - | VITA GROUP | Downgrade to Hold from Add | Morgans |
| XRO - | XERO | Downgrade to Neutral from Outperform | Credit Suisse |
Citi rates AMP as Neutral (3) -
Citi analysts spotted a weak quarterly performance for the wealth management division ("net outflows") but there were offsets from a strong performance in banking and a positive marking-to-market.
Investors are likely to remain sceptical, predict the analysts. They do point out flows are likely to improve in 2Q17 and AMP’s first investor day for a while comes up in two weeks. Neutral rating retained. Target unchanged at $5.60.
Target price is $5.60 Current Price is $5.30 Difference: $0.3
If AMP meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $5.62, suggesting upside of 7.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 31.00 cents and EPS of 34.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.8, implying annual growth of N/A. Current consensus DPS estimate is 29.7, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 15.1. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 34.00 cents and EPS of 36.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.0, implying annual growth of 3.4%. Current consensus DPS estimate is 30.6, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates AMP as Neutral (3) -
March quarter cash flows revealed to Credit Suisse similar trends to those seen across the industry. The broker believes the extent of money coming out of higher-margin products and into lower-margin products is what will drive earnings.
The company has guided to a -5% margin headwind in FY17. Any additional pressure after the MySuper transition remains a risk in the broker's opinion.
Neutral retained. Target is raised to $5.50 from $5.20.
Target price is $5.50 Current Price is $5.30 Difference: $0.2
If AMP meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $5.62, suggesting upside of 7.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 29.00 cents and EPS of 33.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.8, implying annual growth of N/A. Current consensus DPS estimate is 29.7, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 15.1. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 30.00 cents and EPS of 35.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.0, implying annual growth of 3.4%. Current consensus DPS estimate is 30.6, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates AMP as Neutral (3) -
March quarter cash flows were positive as was wealth management.
Macquarie notes that final MySuper transitions were completed in April and around $500m moved with WaterCorp in the June quarter, supporting an improvement in underlying flows ahead of the superannuation contribution changes from July 1.
Neutral retained. Target is raised to $5.35 from $5.10.
Target price is $5.35 Current Price is $5.30 Difference: $0.05
If AMP meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $5.62, suggesting upside of 7.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 28.40 cents and EPS of 33.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.8, implying annual growth of N/A. Current consensus DPS estimate is 29.7, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 15.1. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 28.80 cents and EPS of 34.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.0, implying annual growth of 3.4%. Current consensus DPS estimate is 30.6, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates AMP as Overweight (1) -
Morgan Stanley observes, while activity levels increased with stronger inflows in the March quarter, outflows were also elevated.
The broker believes the company is struggling to retain business as default customers are moved under MySuper ahead of the July 1 deadline. Industry fund consolidation campaigns are considered to be the likely beneficiaries.
Overall, stronger markets offset the weaker-than-expected flows. Overweight retained. Target is $5.90. Industry view: In-line.
Target price is $5.90 Current Price is $5.30 Difference: $0.6
If AMP meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $5.62, suggesting upside of 7.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 30.00 cents and EPS of 34.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.8, implying annual growth of N/A. Current consensus DPS estimate is 29.7, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 15.1. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 32.00 cents and EPS of 37.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.0, implying annual growth of 3.4%. Current consensus DPS estimate is 30.6, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates AMP as Add (1) -
The broker suggests AMP's first half flows were rather soft. Contemporary Wealth Management saw -$188m in outflows in the March Q compared to $242m of inflows in the same period last year. AMP nevertheless notes flows have improved in the June quarter so far.
Life insurance is now performing as expected under revised assumptions. The broker trims earnings forecasts and drops its target to $5.88 from $5.99 while retaining Add.
Target price is $5.88 Current Price is $5.30 Difference: $0.58
If AMP meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $5.62, suggesting upside of 7.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 29.60 cents and EPS of 36.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.8, implying annual growth of N/A. Current consensus DPS estimate is 29.7, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 15.1. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 30.10 cents and EPS of 37.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.0, implying annual growth of 3.4%. Current consensus DPS estimate is 30.6, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates AMP as Accumulate (2) -
March quarter results were slightly better than Ord Minnett expected. Net flows were affected by increased superannuation consolidation across the industry, the migration of default funds into MySuper and fewer corporate super mandate inflows.
The broker believes a rise in outflows to industry funds needs to be monitored. The offset is that the AMP Bank was strong. The broker assumes weaker flows going forward.
Ord Minnett maintains an Accumulate rating and reduces the target to $5.80 from $6.00.
Target price is $5.80 Current Price is $5.30 Difference: $0.5
If AMP meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $5.62, suggesting upside of 7.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 28.00 cents and EPS of 32.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.8, implying annual growth of N/A. Current consensus DPS estimate is 29.7, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 15.1. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 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 36.0, implying annual growth of 3.4%. Current consensus DPS estimate is 30.6, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates AMP as Neutral (3) -
March quarter cash flows were particularly soft, and this continues the trend of disappointing data for the flagship business, UBS contends.
The broker believes the revenue environment is becoming incrementally tougher and holds back from adopting a more positive view. Neutral rating and $5.30 target retained.
Target price is $5.30 Current Price is $5.30 Difference: $0
If AMP meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $5.62, suggesting upside of 7.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 30.00 cents and EPS of 36.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.8, implying annual growth of N/A. Current consensus DPS estimate is 29.7, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 15.1. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 30.00 cents and EPS of 38.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.0, implying annual growth of 3.4%. Current consensus DPS estimate is 30.6, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates AOG as Add (1) -
Having attended a site tour of Aveo's retirement developments in SE Qld, the broker has come away with greater confidence in this key growth driver. Further confidence was gained in material earnings upside from the rollout of the company's Freedom care model through existing serviced apartments.
The model offers a higher level of care in serviced apartments than in independent living units. The broker notes Aveo is trading at a -2% discount to net tangible assets and a PE discount to retirement peers. Add retained, target rises to $4.10 from $4.03.
Target price is $4.10 Current Price is $3.20 Difference: $0.9
If AOG meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $4.09, suggesting upside of 23.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 9.00 cents and EPS of 19.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.9, implying annual growth of -14.5%. Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 2.7%. Current consensus EPS estimate suggests the PER is 17.5. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 10.00 cents and EPS of 21.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 20.6, implying annual growth of 9.0%. Current consensus DPS estimate is 10.6, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 16.0. |
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates AOG as Upgrade to Accumulate from Hold (2) -
Ord Minnett is more positive about the company's prospects after an investor briefing. Earnings forecasts are lifted because of higher assumed development completions.The broker now has greater confidence in delivery and increased margins.
Ord Minnett assumes 10.7% growth in earnings per share in FY17 and 8.4% for FY18. Rating is raised to Accumulate from Hold. Target rises to $3.70 from $3.40.
Target price is $3.70 Current Price is $3.20 Difference: $0.5
If AOG meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $4.09, suggesting upside of 23.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 9.00 cents and EPS of 19.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.9, implying annual growth of -14.5%. Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 2.7%. Current consensus EPS estimate suggests the PER is 17.5. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 12.00 cents and EPS of 20.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 20.6, implying annual growth of 9.0%. Current consensus DPS estimate is 10.6, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 16.0. |
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates BDR as Neutral (3) -
Analysts at Citi believe the upgrade plan for Tucano looks attractive and could lift earnings in CY18 and beyond. Shorter term, however, they remain concerned about grade and mine planning in CY17.
The analysts have tinkered with their projections which seems to have pushed up estimates beyond 2017. Neutral/High Risk rating and $0.28 price target left unchanged.
Target price is $0.28 Current Price is $0.23 Difference: $0.055
If BDR meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $0.27, suggesting upside of 16.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 0.00 cents and EPS of 0.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 2.2, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 10.7. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 1.00 cents and EPS of 4.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 4.8, implying annual growth of 118.2%. Current consensus DPS estimate is 0.3, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 4.9. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates BTT as Neutral (3) -
First half results beat expectations although Credit Suisse highlights that this was largely because of one-off cost benefits.
The broker upgrades earnings estimates by 4-8% for FY17-19, given better operating conditions. Upgrades are primarily driven by higher JO Hambro assumptions.
Neutral retained. Target is increased to $11.40 from $10.00.
Target price is $11.40 Current Price is $12.23 Difference: minus $0.83 (current price is over target).
If BTT meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $11.94, suggesting upside of 1.0% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 47.00 cents and EPS of 55.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.5, implying annual growth of 2.0%. Current consensus DPS estimate is 45.9, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 21.3. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 59.00 cents and EPS of 71.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 65.6, implying annual growth of 18.2%. Current consensus DPS estimate is 54.4, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 18.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates BTT as Downgrade to Neutral from Outperform (3) -
First half results beat Macquarie's forecasts but were in line with expectations after adjusting for one-off items. The company's key operating metrics are meeting the broker's fund manager investment criteria.
Rating is downgraded to Neutral from Outperform following recent share price performance. The stock is trading at more than 20x FY17 and FY18 earnings forecasts and is the highest-rated fund manager under the broker's coverage.
The downgrade comes despite the broker's acknowledgement of the company's capacity and demonstrated ability to deliver net inflows. Target is reduced to $11.70 from $11.92.
Target price is $11.70 Current Price is $12.23 Difference: minus $0.53 (current price is over target).
If BTT meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $11.94, suggesting upside of 1.0% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 44.00 cents and EPS of 51.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.5, implying annual growth of 2.0%. Current consensus DPS estimate is 45.9, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 21.3. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 51.00 cents and EPS of 58.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 65.6, implying annual growth of 18.2%. Current consensus DPS estimate is 54.4, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 18.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates BTT as Overweight (1) -
While Morgan Stanley was disappointed with the cost outlook and the redemptions among institutions in Australia in the first half, the improving outlook for higher-margin JO Hambro flows are welcomed. FX is a further tailwind.
The broker was less than impressed by profit beating expectations as it was driven by one-of cost savings.
Overweight rating retained. Industry view: In-line. Target is raised to $13.50 from $11.30.
Target price is $13.50 Current Price is $12.23 Difference: $1.27
If BTT meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $11.94, suggesting upside of 1.0% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 49.50 cents and EPS of 62.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.5, implying annual growth of 2.0%. Current consensus DPS estimate is 45.9, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 21.3. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 61.50 cents and EPS of 73.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 65.6, implying annual growth of 18.2%. Current consensus DPS estimate is 54.4, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 18.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates BTT as Hold (3) -
Net of one-offs, BT's headline result was in line with the broker. Operating margins improved but fee margins were weaker. Funds under management have grown and the weaker GBP will provide a tailwind in the second half, the broker notes.
At 22.2x FY17 forecast earnings, BT is fair value at present, the broker suggests. Longer term the macro backdrop offers upside through the manager's international offerings. Hold retained, target falls to $12.54 from $12.62.
Target price is $12.54 Current Price is $12.23 Difference: $0.31
If BTT meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $11.94, suggesting upside of 1.0% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 47.00 cents and EPS of 55.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.5, implying annual growth of 2.0%. Current consensus DPS estimate is 45.9, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 21.3. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 54.00 cents and EPS of 63.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 65.6, implying annual growth of 18.2%. Current consensus DPS estimate is 54.4, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 18.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates BTT as Neutral (3) -
First half results were strong, driven by lower costs but partly assisted by one-off write-backs, UBS observes.
The other key takeaway is a first-time decline in base management fee margins, which the broker suspects reflects a mix shift towards lower-margin institutional mandates.
UBS envisages little scope for margin expansion at this point in time and believes the outlook now relies on maintaining momentum in assets under management.
Neutral rating maintained. Target rises to $12.00 from $10.20.
Target price is $12.00 Current Price is $12.23 Difference: minus $0.23 (current price is over target).
If BTT meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $11.94, suggesting upside of 1.0% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 44.00 cents and EPS of 53.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.5, implying annual growth of 2.0%. Current consensus DPS estimate is 45.9, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 21.3. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 50.00 cents and EPS of 60.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 65.6, implying annual growth of 18.2%. Current consensus DPS estimate is 54.4, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 18.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates COH as Underperform (5) -
The company has acquired Sycle, a US provider of audiology practice management software. Credit Suisse believes the acquisition makes sense as it provides an opportunity to strengthen the relationship between hearing aid and cochlear implant clinicians.
Over time, the analysts suggest, the products can be expanded to provide a solution directly for cochlear implant clinics. Underperform. Target is raised to $129 from $121.
Target price is $129.00 Current Price is $147.11 Difference: minus $18.11 (current price is over target).
If COH meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $127.12, suggesting downside of -13.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 270.00 cents and EPS of 383.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 386.3, implying annual growth of 16.8%. Current consensus DPS estimate is 270.6, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 38.0. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 313.00 cents and EPS of 444.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 436.3, implying annual growth of 12.9%. Current consensus DPS estimate is 306.6, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 33.6. |
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates COH as Equal-weight (3) -
The company has acquired a US audiology practice management software company, Sycle, which expands its presence into retail-based hearing aid audiology.
This increases the company's access to implant candidates, Morgan Stanley observes, and lays a foundation for higher upgrades.
Equal-weight rating retained. Target is $138. Industry view: In-Line.
Target price is $138.00 Current Price is $147.11 Difference: minus $9.11 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $127.12, suggesting downside of -13.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 280.70 cents and EPS of 401.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 386.3, implying annual growth of 16.8%. Current consensus DPS estimate is 270.6, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 38.0. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 328.00 cents and EPS of 469.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 436.3, implying annual growth of 12.9%. Current consensus DPS estimate is 306.6, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 33.6. |
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates COH as Hold (3) -
The company has bought Sycle for US$78m, the largest provider of audiology practice management software.
Ord Minnett considers the earnings implications minimal for the near term, while the company points to the strategic value in the opportunity to increase referrals from the hearing aid channel.
Hold rating is maintained. The target is $125.
Target price is $125.00 Current Price is $147.11 Difference: minus $22.11 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $127.12, suggesting downside of -13.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 271.00 cents and EPS of 390.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 386.3, implying annual growth of 16.8%. Current consensus DPS estimate is 270.6, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 38.0. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 299.00 cents and EPS of 431.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 436.3, implying annual growth of 12.9%. Current consensus DPS estimate is 306.6, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 33.6. |
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates COH as Sell (5) -
The company has acquired Sycle for US$78m, a provider of audiology practice management software, which is used in over 7000 clinics across the US, UK and Canada.
Management has indicated the primary reason for the deal is the strategic value. The company has previously estimated that the 3-5% of the patients who use super-powered hearing aids are candidates for cochlear implants.
UBS points out that competitor, Sonova, has an integrated hearing aid and cochlear implant retail/manufacturing operation with no apparent benefit to sales at this juncture.
The broker considers the run up in the share price ahead of the acquisition is unwarranted. Sell rating retained. Target is $125.
Target price is $125.00 Current Price is $147.11 Difference: minus $22.11 (current price is over target).
If COH meets the UBS target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $127.12, suggesting downside of -13.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 273.00 cents and EPS of 384.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 386.3, implying annual growth of 16.8%. Current consensus DPS estimate is 270.6, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 38.0. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 303.00 cents and EPS of 417.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 436.3, implying annual growth of 12.9%. Current consensus DPS estimate is 306.6, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 33.6. |
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates GNC as Neutral (3) -
First half results were slightly stronger than Credit Suisse expected. The broker believes there is upside to guidance, based on a stronger-than-expected profit margin in marketing and potential intake of grain from on-farm storage in the second half.
The broker notes the oils business improved off a low base but continues to experience challenging market conditions. Neutral retained. Target is reduced to $9.48 from $9.82.
Target price is $9.48 Current Price is $9.88 Difference: minus $0.4 (current price is over target).
If GNC meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $9.86, suggesting upside of 1.3% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 23.54 cents and EPS of 65.04 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 67.0, implying annual growth of 597.9%. Current consensus DPS estimate is 26.9, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 14.5. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 31.19 cents and EPS of 65.35 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 57.3, implying annual growth of -14.5%. Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 17.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates GNC as Hold (3) -
First half results were positive, in Deutsche Bank's view, and ahead of forecasts. This was driven by better operating benefits in both storage & logistics and marketing and more than offset weaker outcomes in malt & oil.
The focus now shifts to the crop projections for FY18 where, despite the good planting conditions and the benefit of efficiency programs, earnings are expected to fall because of the record FY17 crop.
Hold rating retained. Target rises to $10.20 from $10.10.
Target price is $10.20 Current Price is $9.88 Difference: $0.32
If GNC meets the Deutsche Bank target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $9.86, suggesting upside of 1.3% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 30.00 cents and EPS of 68.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 67.0, implying annual growth of 597.9%. Current consensus DPS estimate is 26.9, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 14.5. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 29.00 cents and EPS of 57.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 57.3, implying annual growth of -14.5%. Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 17.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates GNC as Downgrade to Neutral from Outperform (3) -
First half results beat Macquarie's expectations with a strong performance from the upstream businesses.
The company has flagged higher gas and electricity costs in FY18 and beyond, relevant for its oil processing & malt businesses. Macquarie factors in a -$7-9m impact to EBIT in FY18 and beyond.
The broker downgrades to Neutral from Outperform and reduces the target to $10.00 from $10.50.
Target price is $10.00 Current Price is $9.88 Difference: $0.12
If GNC meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $9.86, suggesting upside of 1.3% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 31.90 cents and EPS of 67.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 67.0, implying annual growth of 597.9%. Current consensus DPS estimate is 26.9, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 14.5. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 26.20 cents and EPS of 52.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 57.3, implying annual growth of -14.5%. Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 17.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates GNC as Hold (3) -
While a bumper crop was known, an industrial dispute with its rail provider in the period was expected to impact on Graincorp's earnings result. Thus the extent of the company's consensus earnings beat was impressive, the broker suggests.
The next crop is also looking good but at the end of the day it all comes down to the weather, the broker notes. Hold retained. Target rises to $9.90 from $9.75.
Target price is $9.90 Current Price is $9.88 Difference: $0.02
If GNC meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $9.86, suggesting upside of 1.3% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 34.00 cents and EPS of 70.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 67.0, implying annual growth of 597.9%. Current consensus DPS estimate is 26.9, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 14.5. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 29.00 cents and EPS of 58.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 57.3, implying annual growth of -14.5%. Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 17.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates HSO as Downgrade to Hold from Accumulate (3) -
Ord Minnett raises concerns about the NSW decision to reduce the number of public beds along with a requirement that Healthscope meet private conversion targets from patients entering the new Northern Beaches Hospital.
This may prove challenging, in the broker's opinion, especially in light of the downgrading of private health cover and increased consumer sensitivity to out-of-pocket health costs. The broker reduces FY17 forecast by -1.5% to reflect the likely impact of the Easter/Anzac Day holidays on volumes.
Target is reduced to $2.45 from $2.70. The broker believes investment risk has risen and reduces its rating to Hold from Accumulate.
Target price is $2.45 Current Price is $2.28 Difference: $0.17
If HSO meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $2.59, suggesting upside of 15.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 8.00 cents and EPS of 10.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 10.9, implying annual growth of 4.8%. Current consensus DPS estimate is 7.7, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 20.6. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 8.00 cents and EPS of 11.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.4, implying annual growth of 4.6%. Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 19.7. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
IDT INSTITUTE OF DRUG TECHNOLOGY AUSTRALIA LIMITED
Pharmaceuticals & Biotech/Lifesciences
Overnight Price: $0.14
Morgans rates IDT as Add (1) -
IDT has recently announced drug approvals and new product launches but the share price has gone nowhere, the broker notes. This is likely a reflection of competitive pressures in the US generic sector, despite IDT's operational improvements.
The broker retains Add, suggesting subsequent quarters should see a move closer to profitability. Target falls to 22c from 26c.
Target price is $0.22 Current Price is $0.14 Difference: $0.08
If IDT meets the Morgans target it will return approximately 57% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 0.00 cents and EPS of 2.00 cents. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 1.20 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates MPL as Neutral (3) -
The Senate has released recommendations for regulation associated with the prosthesis list. The review concluded that costs need to be reduced and savings to be delivered as soon as possible.
Macquarie expects any savings to be neutral to earnings per share as health funds have committed to passing on all cost savings.
The broker retains a Neutral rating and $3.00 target.
Target price is $3.00 Current Price is $3.01 Difference: minus $0.01 (current price is over target).
If MPL meets the Macquarie target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.71, suggesting downside of -9.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 11.50 cents and EPS of 15.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 15.7, implying annual growth of 3.3%. Current consensus DPS estimate is 11.7, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 19.0. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 11.50 cents and EPS of 14.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 15.0, implying annual growth of -4.5%. Current consensus DPS estimate is 11.7, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 19.9. |
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates MTR as Initiation of coverage with Buy (1) -
The company is the second largest provider of accommodation services in Australia. Ord Minnett observes its investment appeal lies with the exposure to a number of positive themes in the travel and tourism sector, without the need to own the properties outright.
The broker initiates coverage with a Buy rating and $3.57 target. Airbnb remains a long-term risk but the broker believes the short-term impact is likely to be modest.
Target price is $3.57 Current Price is $3.05 Difference: $0.52
If MTR meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $3.45, suggesting upside of 13.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 11.30 cents and EPS of 16.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 17.3, implying annual growth of 21.8%. Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 17.5. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 12.50 cents and EPS of 17.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.1, implying annual growth of 10.4%. Current consensus DPS estimate is 12.7, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 15.9. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates MYR as Buy (1) -
Clearly, the pressure is on and Myer's Q3 trading update revealed as much. Citi analysts say it in different wordings, but the end result is the same. The analysts draw confidence from small positives, such as an increase in online sales and the fact management kept guidance intact.
While the analysts remain cautious on the sales outlook for Myer, given Q3 disappointed, they also see gross margin support and cost reduction continuing. Both factors are seen as the key drivers to reaching the FY17 guidance.
Buy rating retained, alongside a $1.20 (-10c) price target.
Target price is $1.20 Current Price is $0.98 Difference: $0.22
If MYR meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $1.05, suggesting upside of 9.3% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 6.00 cents and EPS of 8.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.5, implying annual growth of 10.4%. Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 11.3. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 7.00 cents and EPS of 9.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.2, implying annual growth of 8.2%. Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 10.4. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates MYR as Hold (3) -
Deutsche Bank observes sales growth has waned over the past six months after the company was beginning to show signs of a turnaround.
Some of the challenges may be temporary but the broker observes industry is becoming more competitive and remains unconvinced that the new offering is resonating strongly enough with customers.
Hold rating retained. Target is reduced to $1.00 from $1.30.
Target price is $1.00 Current Price is $0.98 Difference: $0.02
If MYR meets the Deutsche Bank target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $1.05, suggesting upside of 9.3% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 5.00 cents and EPS of 9.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.5, implying annual growth of 10.4%. Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 11.3. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 6.00 cents and EPS of 9.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.2, implying annual growth of 8.2%. Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 10.4. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates MYR as Neutral (3) -
March quarter sales were down -3.3%. While moderation was expected, the decline in comparable sales of -2.0% disappointed Macquarie.
The company continues to expect a return to net profit growth, provided there is no return to conditions that existed around the January stock-take period.
Macquarie believes cost reductions remain a key factor to support earnings over the short term and recent corporate activity suggests some support for the share price. Nevertheless, ongoing sales weakness continues to be a risk, in the broker's opinion.
Neutral retained. Target is lowered to $1.05 from $1.21.
Target price is $1.05 Current Price is $0.98 Difference: $0.07
If MYR meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $1.05, suggesting upside of 9.3% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 5.00 cents and EPS of 8.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.5, implying annual growth of 10.4%. Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 11.3. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 5.00 cents and EPS of 9.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.2, implying annual growth of 8.2%. Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 10.4. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates MYR as Equal-weight (3) -
Morgan Stanley expects guidance will be tough to meet following a weaker-than-expected performance in the March quarter. The broker observes weak early-season sales usually lead to higher levels of clearance, which pressures margin.
Hence, a risk to FY17 guidance for margin expansion is envisaged. Equal -weighted rating retained. Target is $1.10. Industry view: In-Line.
Target price is $1.10 Current Price is $0.98 Difference: $0.12
If MYR meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $1.05, suggesting upside of 9.3% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 5.90 cents and EPS of 8.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.5, implying annual growth of 10.4%. Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 11.3. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 7.00 cents and EPS of 9.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.2, implying annual growth of 8.2%. Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 10.4. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates MYR as Hold (3) -
Like-for-like sales were weak for the 13 weeks to April 29, down -2% versus Ord Minnett's forecast. Guidance for FY17 operating margin expansion and net profit growth was reiterated. The broker acknowledges the takeover speculation of recent months, which clearly increases the attraction of the stock.
The broker also notes the opportunity for management to re-shape the company after a poor financial performance for many years. Still, the outlook is challenging and the broker maintains a Hold rating. Target is reduced to $1.15 from $1.30.
Target price is $1.15 Current Price is $0.98 Difference: $0.17
If MYR meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $1.05, suggesting upside of 9.3% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 6.00 cents and EPS of 8.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.5, implying annual growth of 10.4%. Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 11.3. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 7.00 cents and EPS of 8.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.2, implying annual growth of 8.2%. Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 10.4. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates MYR as Neutral (3) -
March quarter sales were weak in a lacklustre market, UBS observes. The broker was also disappointed with the deceleration in like-for-like momentum.
The broker believes the company's judicious approach to discounting has exacerbated the negative impact of competitive intensity. Nevertheless, progress to enhance efficiencies are pleasing.
Neutral retained. Target is reduced to $1.00 from $1.10.
Target price is $1.00 Current Price is $0.98 Difference: $0.02
If MYR meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $1.05, suggesting upside of 9.3% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 4.00 cents and EPS of 8.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.5, implying annual growth of 10.4%. Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 11.3. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 5.00 cents and EPS of 10.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.2, implying annual growth of 8.2%. Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 10.4. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates OGC as Upgrade to Neutral from Sell (3) -
UBS believes the appointment of a new mining minister in the Philippines has materially reduced the risk of the suspension order on Didipio from being enforced.
This should allow the market to re-focus on growth opportunities at Haile and at NZ operations.
The broker upgrades to Neutral from Sell. Target is raised to $4.35 from $3.41.
Target price is $4.35 Current Price is $4.30 Difference: $0.05
If OGC meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $4.68, suggesting upside of 7.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 6.65 cents and EPS of 37.25 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 40.7, implying annual growth of N/A. Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 0.8%. Current consensus EPS estimate suggests the PER is 10.7. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 6.65 cents and EPS of 53.21 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 42.5, implying annual growth of 4.4%. Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 0.8%. Current consensus EPS estimate suggests the PER is 10.3. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates QUB as Buy (1) -
Citi analysts have participated in a NSW site tour and report company management indicated trading conditions have broadly remained the same after the February results, with the company reiterating guidance to deliver growth in both divisions.
In addition, the IMEX terminal at Moorebank is required to accept the first train by January 2019, but management is confident of achieving this six months ahead of schedule, report the analysts.
No changes have been made to forecasts. Buy rating and $3.01 price target retained.
Target price is $3.01 Current Price is $2.64 Difference: $0.37
If QUB meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $2.67, suggesting downside of -0.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 5.50 cents and EPS of 8.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.7, implying annual growth of -6.0%. Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 34.7. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 5.80 cents and EPS of 10.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.0, implying annual growth of 16.9%. Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 2.2%. Current consensus EPS estimate suggests the PER is 29.7. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates QUB as Buy (1) -
Ord Minnett's confidence is reinforced after a site tour of the Patrick operations and the intermodal precinct. The broker believes a combination of ship-side and land-side improvement could mean Patrick's terminal productivity grows 15-25%.
The broker also believes the intermodal precinct could be a game changer. This will be validated by the type of tenants signed up, the first of which is likely within the next 3-6 months. Buy rating retained. Target rises to $3.25 from $2.80.
Target price is $3.25 Current Price is $2.64 Difference: $0.61
If QUB meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $2.67, suggesting downside of -0.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 5.00 cents and EPS of 7.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.7, implying annual growth of -6.0%. Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 34.7. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 5.00 cents and EPS of 9.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.0, implying annual growth of 16.9%. Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 2.2%. Current consensus EPS estimate suggests the PER is 29.7. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates RIO as Outperform (1) -
Macquarie reviews the company's aluminium business and finds a stronger-for-longer thematic for aluminium prices, which should provide earnings and share price momentum over the next one-two years.
The broker notes the company's Canadian smelters are world-class and anchored to the bottom of the global cost curve thanks to the hydro network.
Target is upgraded to $76 from $75. FY17-19 forecasts for earnings per share are lifted by 1-4%. Outperform retained.
Target price is $76.00 Current Price is $59.58 Difference: $16.42
If RIO meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $71.76, suggesting upside of 19.7% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 343.22 cents and EPS of 574.03 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 707.4, implying annual growth of N/A. Current consensus DPS estimate is 383.5, implying a prospective dividend yield of 6.4%. Current consensus EPS estimate suggests the PER is 8.5. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 214.18 cents and EPS of 355.86 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 487.7, implying annual growth of -31.1%. Current consensus DPS estimate is 282.5, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 12.3. |
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 SAR as Upgrade to Outperform from Neutral (1) -
Macquarie reviews production forecasts in the light of recent exploration successes. The broker now expects production to exceed 300,000 ounces per annum over the next five years.
The broker believes mid-grade, high-tonnage, shallow underground mines can be highly profitable to run. The success at Karari underpins this mode of operation for the company.
Rating is upgraded to Outperform from Neutral. Target is raised to $1.30 from $1.00.
Target price is $1.30 Current Price is $0.94 Difference: $0.365
If SAR meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 1.00 cents and EPS of 6.00 cents. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 1.00 cents and EPS of 9.00 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates VOC as Hold (3) -
Ord Minnett has analysed the individual assets the company has acquired against the backdrop of the recent fall in the equity value of its stock and reports of private equity interest.
The broker concludes that there is a potential upside to the shares if the company was valued separately for its enterprise and consumer businesses and physical assets serve as a floor for the shares.
Nevertheless, while there is value in the company's assets, the broker maintains a Hold rating because of a lack of visibility in the business and low confidence in management. Target is reduced to $3.30 from $3.50.
Target price is $3.30 Current Price is $2.51 Difference: $0.79
If VOC meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $2.69, suggesting upside of 7.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 14.00 cents and EPS of 13.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 24.4, implying annual growth of 29.4%. Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 10.2. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 15.00 cents and EPS of 14.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 21.8, implying annual growth of -10.7%. Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 11.5. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates VTG as Downgrade to Hold from Add (3) -
Vita has suspended its plan to expand its store count until negotiations with Telstra ((TLS)) on remuneration are finalised, at a time as yet unknown. The company has issued revised FY17 guidance -6% below Morgan's prior forecast, representing a -16% fall in the second half from the first.
As the terms of Vita's future agreement with Telstra are uncertain, FY18 earnings uncertainty is very high, Morgans notes. Downgrade to Hold for now. Target falls to $1.67 from $3.49.
Target price is $1.67 Current Price is $1.55 Difference: $0.12
If VTG meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 16.00 cents and EPS of 24.00 cents. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 12.00 cents and EPS of 18.00 cents. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates XRO as Buy (1) -
Xero's FY17 financial performance turned out better than expected. The analysts note the implied 2H EBITDA loss of just -$2.7m was significantly better than market's and Citi's expectations.
Citi analysts predict a mild upgrade to market consensus projections, labeling the performance as "encouraging". Citi anticipates Xero to achieve cashflow breakeven position in FY18.
Xero's growth in Australia/New Zealand was above expectations and the analysts once again repeat their mantra it is their assessment both Xero and competitor MYOB ((MYO)) should continue to see solid growth in Australia/NZ subscribers.
Buy/High Risk rating retained. Price target jumps to NZ$29.10 from NZ$24.30. Forecasts have received a noticeable boost.
Current Price is $21.80. Target price not assessed.
Current consensus price target is $17.50, suggesting downside of -18.3% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 5.95 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -23.2, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 0.00 cents and EPS of 20.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.5, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 171.4. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates XRO as Downgrade to Neutral from Outperform (3) -
Credit Suisse observes Australasia remains strong, with no sign subscriber additions have peaked. Meanwhile, UK growth has stepped up and gross margins rebounded.
The broker suspects further margin expansion is likely thanks to the AWS platform, while the challenge to build scale in North America remains the key uncertainty.
With the stock having gained 33% in six months, Credit Suisse downgrades to Neutral from Outperform. Target rises to NZ$23.50 from NZ$21.00.
Current Price is $21.80. Target price not assessed.
Current consensus price target is $17.50, suggesting downside of -18.3% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 28.42 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -23.2, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 0.00 cents and EPS of 4.25 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.5, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 171.4. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates XRO as Neutral (3) -
FY17 results revealed the cost of customer acquisition declined in the second half to 12 months from 14.
Macquarie believes this is the highlight of the result, as not only is this one of the key metrics for the business, it also reduces sales and marketing expenses on an absolute basis.
Neutral rating retained. Target is increased to NZ$23 from NZ$19.50.
Current Price is $21.80. Target price not assessed.
Current consensus price target is $17.50, suggesting downside of -18.3% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 17.28 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -23.2, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 0.00 cents and EPS of 13.12 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.5, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 171.4. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Summaries
| AMP - | AMP | Neutral - Citi | Overnight Price $5.30 |
| Neutral - Credit Suisse | Overnight Price $5.30 | ||
| Neutral - Macquarie | Overnight Price $5.30 | ||
| Overweight - Morgan Stanley | Overnight Price $5.30 | ||
| Add - Morgans | Overnight Price $5.30 | ||
| Accumulate - Ord Minnett | Overnight Price $5.30 | ||
| Neutral - UBS | Overnight Price $5.30 | ||
| AOG - | AVEO | Add - Morgans | Overnight Price $3.20 |
| Upgrade to Accumulate from Hold - Ord Minnett | Overnight Price $3.20 | ||
| BDR - | BEADELL RESOURCES | Neutral - Citi | Overnight Price $0.23 |
| BTT - | BT INVEST MANAGEMENT | Neutral - Credit Suisse | Overnight Price $12.23 |
| Downgrade to Neutral from Outperform - Macquarie | Overnight Price $12.23 | ||
| Overweight - Morgan Stanley | Overnight Price $12.23 | ||
| Hold - Morgans | Overnight Price $12.23 | ||
| Neutral - UBS | Overnight Price $12.23 | ||
| COH - | COCHLEAR | Underperform - Credit Suisse | Overnight Price $147.11 |
| Equal-weight - Morgan Stanley | Overnight Price $147.11 | ||
| Hold - Ord Minnett | Overnight Price $147.11 | ||
| Sell - UBS | Overnight Price $147.11 | ||
| GNC - | GRAINCORP | Neutral - Credit Suisse | Overnight Price $9.88 |
| Hold - Deutsche Bank | Overnight Price $9.88 | ||
| Downgrade to Neutral from Outperform - Macquarie | Overnight Price $9.88 | ||
| Hold - Morgans | Overnight Price $9.88 | ||
| HSO - | HEALTHSCOPE | Downgrade to Hold from Accumulate - Ord Minnett | Overnight Price $2.28 |
| IDT - | INSTITUTE OF DRUG TECH | Add - Morgans | Overnight Price $0.14 |
| MPL - | MEDIBANK PRIVATE | Neutral - Macquarie | Overnight Price $3.01 |
| MTR - | MANTRA GROUP | Initiation of coverage with Buy - Ord Minnett | Overnight Price $3.05 |
| MYR - | MYER | Buy - Citi | Overnight Price $0.98 |
| Hold - Deutsche Bank | Overnight Price $0.98 | ||
| Neutral - Macquarie | Overnight Price $0.98 | ||
| Equal-weight - Morgan Stanley | Overnight Price $0.98 | ||
| Hold - Ord Minnett | Overnight Price $0.98 | ||
| Neutral - UBS | Overnight Price $0.98 | ||
| OGC - | OCEANAGOLD | Upgrade to Neutral from Sell - UBS | Overnight Price $4.30 |
| QUB - | QUBE HOLDINGS | Buy - Citi | Overnight Price $2.64 |
| Buy - Ord Minnett | Overnight Price $2.64 | ||
| RIO - | RIO TINTO | Outperform - Macquarie | Overnight Price $59.58 |
| SAR - | SARACEN MINERAL | Upgrade to Outperform from Neutral - Macquarie | Overnight Price $0.94 |
| VOC - | VOCUS COMMUNICATIONS | Hold - Ord Minnett | Overnight Price $2.51 |
| VTG - | VITA GROUP | Downgrade to Hold from Add - Morgans | Overnight Price $1.55 |
| XRO - | XERO | Buy - Citi | Overnight Price $21.80 |
| Downgrade to Neutral from Outperform - Credit Suisse | Overnight Price $21.80 | ||
| Neutral - Macquarie | Overnight Price $21.80 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 12 |
| 2. Accumulate | 2 |
| 3. Hold | 27 |
| 5. Sell | 2 |
Friday 12 May 2017
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