Australian Broker Call

July 06, 2017

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COMPANIES DISCUSSED IN THIS ISSUE

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

Last Updated: 01:27 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
BHP - BHP BILLITON Upgrade to Buy from Hold Deutsche Bank
FLT - FLIGHT CENTRE Downgrade to Sell from Neutral Citi
Downgrade to Underperform from Outperform Credit Suisse
MFG - MAGELLAN FINANCIAL GROUP Downgrade to Neutral from Outperform Credit Suisse
ORG - ORIGIN ENERGY Upgrade to Buy from Neutral Citi
ALL  ARISTOCRAT LEISURE LIMITED

Gaming

Overnight Price: $22.11

Citi rates ALL as Buy (1) -

Citi analysts continue to see upside risk to their forecasts. They note Lightening Links has underpinned FY17 earnings and expect the Dragon Link to underpin that momentum into FY18.

Citi analysts believe Aristocrat has enough in the product pipeline to drive growth until 2022. On this basis, the broker's bull case valuation is $30 and the analysts believe this target looks achievable "given the strength we are seeing in market share growth".

No double guessing as to why this stock remains Citi's pick of the sector, otherwise known as a High Conviction Buy. Given prospects, the broker argues this stock is not expensively priced.

Target price is $25.45 Current Price is $22.11 Difference: $3.34
If ALL meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $24.43, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Citi forecasts a full year FY17 dividend of 33.00 cents and EPS of 84.30 cents.
At the last closing share price the estimated dividend yield is 1.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 85.5, implying annual growth of 55.2%.

Current consensus DPS estimate is 34.0, implying a prospective dividend yield of 1.5%.

Current consensus EPS estimate suggests the PER is 26.3.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 41.00 cents and EPS of 98.40 cents.
At the last closing share price the estimated dividend yield is 1.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.3, implying annual growth of 17.3%.

Current consensus DPS estimate is 46.3, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 22.4.

Market Sentiment: 0.8

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

ASG  AUTOSPORTS GROUP LIMITED

Automobiles & Components

Overnight Price: $2.02

ADDED

UBS rates ASG as Buy (1) -

Household cash flow is currently weak and UBS suspects that, should house prices stop rising or even fall, there is potential for these wealth affects to hit prestige/luxury new car sales.

Partially offsetting this is the ramp up in the company's back-end revenues in the form of servicing income that should materialise over the medium term, given strength in high-end car sales over the past three years. Buy rating and $3 target retained.

Target price is $3.00 Current Price is $2.02 Difference: $0.98
If ASG meets the UBS target it will return approximately 49% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 5.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 2.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.43.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 11.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 5.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.22.

Market Sentiment: 1.0

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

ASX  ASX LIMITED

Wealth Management & Investments

Overnight Price: $53.29

ADDED

Citi rates ASX as Sell (5) -

Q4 data have triggered a small upgrade to forecasts as higher ASX futures collateral balances should imply higher interest income, point out the analysts.

Increased estimates have pushed up Citi's valuation to $46.10, from $44.60, and the broker continues to apply a 10% premium, hence the new target is set at $50 (was $49).

As this remains below the share price, the rating remains Sell.

Target price is $50.00 Current Price is $53.29 Difference: minus $3.29 (current price is over target).
If ASX meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.05, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Citi forecasts a full year FY17 dividend of 203.90 cents and EPS of 226.70 cents.
At the last closing share price the estimated dividend yield is 3.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 225.8, implying annual growth of 2.5%.

Current consensus DPS estimate is 202.3, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 23.7.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 212.20 cents and EPS of 235.70 cents.
At the last closing share price the estimated dividend yield is 3.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 234.0, implying annual growth of 3.6%.

Current consensus DPS estimate is 208.9, implying a prospective dividend yield of 3.9%.

Current consensus EPS estimate suggests the PER is 22.8.

Market Sentiment: -0.6

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


UPDATED

Credit Suisse rates ASX as Underperform (5) -

Credit Suisse is now forecasting just 1% revenue growth year-on-year in the second half because of weak activity in most businesses. Capital raising was down -20% in the second half and ASX24 derivatives were flat.

While the decision to proceed with the cash equities post-trade system replacement is nigh, the broker is hesitant to assume it will be positive for earnings.

Underperform rating. Target is $49.

Target price is $49.00 Current Price is $53.29 Difference: minus $4.29 (current price is over target).
If ASX meets the Credit Suisse target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.05, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 200.00 cents and EPS of 222.00 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 225.8, implying annual growth of 2.5%.

Current consensus DPS estimate is 202.3, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 23.7.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 201.00 cents and EPS of 223.00 cents.
At the last closing share price the estimated dividend yield is 3.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 234.0, implying annual growth of 3.6%.

Current consensus DPS estimate is 208.9, implying a prospective dividend yield of 3.9%.

Current consensus EPS estimate suggests the PER is 22.8.

Market Sentiment: -0.6

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


UPDATED

Deutsche Bank rates ASX as Hold (3) -

Over the past financial year ASX has experienced growth in cash market volumes of 13% and derivative and futures volumes of 5%. Deutsche Bank suspects that, despite the strong trading environment, a very weak market for capital raisings is likely to weigh on revenue in FY17.

Target is raised to $51.50 from $51.00 and a Hold rating is retained. The broker anticipates a more normal year in FY18, forecasting the market to facilitate $74bn in new capital raisings.

Target price is $51.50 Current Price is $53.29 Difference: minus $1.79 (current price is over target).
If ASX meets the Deutsche Bank target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.05, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 201.00 cents and EPS of 226.00 cents.
At the last closing share price the estimated dividend yield is 3.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 225.8, implying annual growth of 2.5%.

Current consensus DPS estimate is 202.3, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 23.7.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 203.00 cents and EPS of 231.00 cents.
At the last closing share price the estimated dividend yield is 3.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 234.0, implying annual growth of 3.6%.

Current consensus DPS estimate is 208.9, implying a prospective dividend yield of 3.9%.

Current consensus EPS estimate suggests the PER is 22.8.

Market Sentiment: -0.6

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


ADDED

UBS rates ASX as Neutral (3) -

UBS observes the company has ended FY17 on a stronger note, with cash equity average daily turnover up 13% and record monthly futures volumes.

UBS considers the stock fully priced, notwithstanding its infrastructure-like qualities and debt-free balance sheet. Neutral rating retained. Target rises to $51.60 from $49.10.

Target price is $51.60 Current Price is $53.29 Difference: minus $1.69 (current price is over target).
If ASX meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.05, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 200.00 cents and EPS of 225.00 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 225.8, implying annual growth of 2.5%.

Current consensus DPS estimate is 202.3, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 23.7.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 205.00 cents and EPS of 233.00 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 234.0, implying annual growth of 3.6%.

Current consensus DPS estimate is 208.9, implying a prospective dividend yield of 3.9%.

Current consensus EPS estimate suggests the PER is 22.8.

Market Sentiment: -0.6

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

BHP  BHP BILLITON LIMITED

Bulks

Overnight Price: $24.15

Deutsche Bank rates BHP as Upgrade to Buy from Hold (1) -

BHP has underperformed global mining peers over the past three years and Deutsche Bank finds automation, productivity and high returning growth are the most compelling features of the company's opportunities.

The broker believes a sharper focus on returns could create significant value for shareholders. Rating is upgraded to Buy from Hold and the target to $27.50 from $24.40.

Target price is $27.50 Current Price is $24.15 Difference: $3.35
If BHP meets the Deutsche Bank target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $27.52, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 106.07 cents and EPS of 167.06 cents.
At the last closing share price the estimated dividend yield is 4.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 194.2, implying annual growth of N/A.

Current consensus DPS estimate is 121.2, implying a prospective dividend yield of 5.0%.

Current consensus EPS estimate suggests the PER is 12.5.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 79.55 cents and EPS of 131.27 cents.
At the last closing share price the estimated dividend yield is 3.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 172.5, implying annual growth of -11.2%.

Current consensus DPS estimate is 105.0, implying a prospective dividend yield of 4.3%.

Current consensus EPS estimate suggests the PER is 14.1.

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

Market Sentiment: 0.8

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

BTT  BT INVESTMENT MANAGEMENT LIMITED

Wealth Management & Investments

Overnight Price: $11.20

Credit Suisse rates BTT as Neutral (3) -

Following the June marking to market Credit Suisse lowers earnings estimates by -1.3% and -5.2% for FY17 and FY18 respectively. Reductions are driven by weaker-than-expected markets which were only modestly offset by stronger net flows.

Neutral retained. Target is reduced to $11.20 from $11.40.

Target price is $11.20 Current Price is $11.20 Difference: $0
If BTT meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $11.77, suggesting upside of 6.1% (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 54.00 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.4, implying annual growth of 1.8%.

Current consensus DPS estimate is 45.9, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 20.0.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 56.00 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.2, implying annual growth of 15.9%.

Current consensus DPS estimate is 53.4, implying a prospective dividend yield of 4.8%.

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

CCL  COCA-COLA AMATIL LIMITED

Food, Beverages & Tobacco

Overnight Price: $9.22

Deutsche Bank rates CCL as Hold (3) -

Following a tender process, Domino's Pizza ((DMP)) will transition its beverage volume for Australian stores to Pepsi/Schweppes from Coca-Cola Amatil. This will occur from September.

Deutsche Bank believes this is clearly a negative development. While large accounts tend to deliver low margins, the broker notes this was a ready-to-drink account and not a post-mix account and should have had a relatively high margin.

While some of the costs associated with servicing the account may be removed the broker believes the -3% hit to volumes is meaningful when considering associated operating de-leverage.

Target is $9.50. Hold retained.

Target price is $9.50 Current Price is $9.22 Difference: $0.28
If CCL meets the Deutsche Bank target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $9.62, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 50.00 cents and EPS of 56.00 cents.
At the last closing share price the estimated dividend yield is 5.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.7, implying annual growth of 69.9%.

Current consensus DPS estimate is 46.3, implying a prospective dividend yield of 5.2%.

Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 51.00 cents and EPS of 58.00 cents.
At the last closing share price the estimated dividend yield is 5.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.7, implying annual growth of 3.7%.

Current consensus DPS estimate is 47.4, implying a prospective dividend yield of 5.3%.

Current consensus EPS estimate suggests the PER is 15.8.

Market Sentiment: -0.1

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

CGC  COSTA GROUP HOLDINGS LIMITED

Agriculture

Overnight Price: $4.94

ADDED

Ord Minnett rates CGC as Lighten (4) -

The company will acquire Lankester Avocado in Queensland. Ord Minnett believes the acquisition is a good strategic fit as it would increase the year-round avocado growing exposure.

The broker upgrades forecasts for earnings per share by 12% in FY18 but reduces FY19 by -3%. Despite the acquisition, the broker maintains a Lighten rating and prefers the salmon-producing stocks in the agricultural sector because of a superior risk/reward profile.

Target is raised to $4.04 from $3.79.

Target price is $4.04 Current Price is $4.94 Difference: minus $0.9 (current price is over target).
If CGC meets the Ord Minnett target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 11.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 2.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.88.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 13.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 2.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.45.

Market Sentiment: 0.0

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


ADDED

UBS rates CGC as Buy (1) -

The company has announced the acquisition of Lankester Avocado and its packing operations. The farms have a similar growing season to Avocado Ridge which was acquired in December.

UBS estimates the deal will add 1-2% to FY18 operating earnings (EBITDA). The broker remains positive on the stock based on organic growth and expansion projects across berries and mushrooms.  Buy rating and $4.80 target retained.

Target price is $4.80 Current Price is $4.94 Difference: minus $0.14 (current price is over target).
If CGC meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 12.00 cents and EPS of 18.60 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.56.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 14.00 cents and EPS of 21.20 cents.
At the last closing share price the estimated dividend yield is 2.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.30.

Market Sentiment: 0.0

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

CL1  CLASS LIMITED

Wealth Management & Investments

Overnight Price: $3.08

ADDED

UBS rates CL1 as Buy (1) -

The June quarter was soft in terms of the addition of new accounts, although UBS observes any delay in loading new accounts in the fourth quarter is likely be be picked up in the subsequent quarter.

The broker observes the company continues to benefit from growth in self managed super funds in Australia and the structural shift to cloud-based solutions. Buy rating and $3.40 target retained.

Target price is $3.40 Current Price is $3.08 Difference: $0.32
If CL1 meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.54, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 4.40 cents and EPS of 6.60 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.6, implying annual growth of 43.5%.

Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 1.2%.

Current consensus EPS estimate suggests the PER is 47.3.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 5.80 cents and EPS of 8.10 cents.
At the last closing share price the estimated dividend yield is 1.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.3, implying annual growth of 25.8%.

Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 1.8%.

Current consensus EPS estimate suggests the PER is 37.6.

Market Sentiment: 0.7

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

FLT  FLIGHT CENTRE LIMITED

Travel, Leisure & Tourism

Overnight Price: $44.10

UPDATED

Citi rates FLT as Downgrade to Sell from Neutral (5) -

Ultimately, it took five downgrades in three years, note the analysts at Citi, but Flight Centre has -finally!- managed to publish an upwardly revised guidance for FY17; towards the top end of the previous range.

In addition, management has announced an efficiency program which should drive the PBT / TTV ratio from 1.6% to 1.9% over five years. Citi analysts note the supply-demand outlook for airfare pricing has clearly improved.

Citi has implemented double-digit earnings upgrades in FY18 and FY19, Target price moves to $40.00 from $30.90 as a result. Alas, following yesterday's jump in the share price, the analysts are also of the view the share price has factored in a rather optimistic organic growth profile and/or major cost out program. Downgrade to Sell from Neutral.

Target price is $40.00 Current Price is $44.10 Difference: minus $4.1 (current price is over target).
If FLT meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Citi forecasts a full year FY17 dividend of 133.60 cents and EPS of 225.20 cents.
At the last closing share price the estimated dividend yield is 3.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 223.1, implying annual growth of -8.0%.

Current consensus DPS estimate is 137.0, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 19.4.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 149.20 cents and EPS of 248.60 cents.
At the last closing share price the estimated dividend yield is 3.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 237.2, implying annual growth of 6.3%.

Current consensus DPS estimate is 146.3, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 18.2.

Market Sentiment: -0.5

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


Credit Suisse rates FLT as Downgrade to Underperform from Outperform (5) -

The recent gains in the share price have overshot valuation, Credit Suisse believes. The broker downgrades to Underperform from Outperform.

The broker increases FY17 earnings estimates in line with recent guidance and, despite the rating change, notes several avenues for improvements to valuation are emerging. Target is raised to $37.41 from $34.90.

Target price is $37.41 Current Price is $44.10 Difference: minus $6.69 (current price is over target).
If FLT meets the Credit Suisse target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 142.00 cents and EPS of 226.00 cents.
At the last closing share price the estimated dividend yield is 3.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 223.1, implying annual growth of -8.0%.

Current consensus DPS estimate is 137.0, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 19.4.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 155.00 cents and EPS of 252.00 cents.
At the last closing share price the estimated dividend yield is 3.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 237.2, implying annual growth of 6.3%.

Current consensus DPS estimate is 146.3, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 18.2.

Market Sentiment: -0.5

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


UPDATED

Deutsche Bank rates FLT as Hold (3) -

Deutsche Bank was pleased with the new guidance which suggests underlying FY17 pre-tax profit of $325-330m, at top end of the prior guidance range. This implies second half pre-tax profit growth of 2.5-4.9%.

The broker increases FY17 pre-tax profit estimates by 5.3%. Deutsche Bank notes there has been some moderation in airfare deflation but strong volume growth has continued which, given a weak market, indicates market share gains.

Hold retained. Target is raised to $40 from $31.

Target price is $40.00 Current Price is $44.10 Difference: minus $4.1 (current price is over target).
If FLT 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 $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 141.00 cents and EPS of 227.00 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 223.1, implying annual growth of -8.0%.

Current consensus DPS estimate is 137.0, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 19.4.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 149.00 cents and EPS of 240.00 cents.
At the last closing share price the estimated dividend yield is 3.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 237.2, implying annual growth of 6.3%.

Current consensus DPS estimate is 146.3, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 18.2.

Market Sentiment: -0.5

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


Macquarie rates FLT as Underperform (5) -

The company has revised underlying FY17 pre-tax profit guidance to $325-330m, highlighting the US and UK businesses are expected to deliver record results.

Nonetheless, Macquarie maintains a view that continued softness in airfares in FY18 and medium-term margin decline, coupled with valuation pressure, suggests the risks are skewed to the downside.

The broker believes the stock is expensive on both an absolute and relative basis. Underperform maintained. Target rises to $28.70.

Target price is $28.70 Current Price is $44.10 Difference: minus $15.4 (current price is over target).
If FLT meets the Macquarie target it will return approximately minus 35% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 132.30 cents and EPS of 221.90 cents.
At the last closing share price the estimated dividend yield is 3.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 223.1, implying annual growth of -8.0%.

Current consensus DPS estimate is 137.0, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 19.4.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 146.00 cents and EPS of 224.60 cents.
At the last closing share price the estimated dividend yield is 3.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 237.2, implying annual growth of 6.3%.

Current consensus DPS estimate is 146.3, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 18.2.

Market Sentiment: -0.5

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


Morgan Stanley rates FLT as Underweight (5) -

The company's improved guidance for FY17 is marginally better than Morgan Stanley expected. The broker cites faster moderation in international deflation and recent improvements in the Australian consumer cycle as the drivers.

Morgan Stanley does not believe the announcement explains the 50% rise in the share price since March and considers this move is overdone. The broker still expects earnings to decline in FY18.

Underweight retained. Target is raised to $30 from $25. Industry view is Cautious.

Target price is $30.00 Current Price is $44.10 Difference: minus $14.1 (current price is over target).
If FLT meets the Morgan Stanley target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Morgan Stanley forecasts a full year FY17 dividend of 136.00 cents and EPS of 221.00 cents.
At the last closing share price the estimated dividend yield is 3.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 223.1, implying annual growth of -8.0%.

Current consensus DPS estimate is 137.0, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 19.4.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 133.00 cents and EPS of 222.00 cents.
At the last closing share price the estimated dividend yield is 3.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 237.2, implying annual growth of 6.3%.

Current consensus DPS estimate is 146.3, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 18.2.

Market Sentiment: -0.5

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


Morgans rates FLT as Hold (3) -

Flight Centre now expects FY17 underlying net profit to be at the top end of its prior guidance range. The upgrade reflects growth in the second half and a better performance across a number of the businesses.

The return of earnings growth in the second half illustrates the issues for the company have been more cyclical in nature, Morgans asserts, and not the structural threat some feared. The broker is encouraged by the decision to pursue internal improvements through the business transformation program.

Nevertheless, the recent share price appreciation has largely factored in the benefits and a Hold rating is retained. Target is raised to $40.00 from $31.40.

Target price is $40.00 Current Price is $44.10 Difference: minus $4.1 (current price is over target).
If FLT meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 138.00 cents and EPS of 227.00 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 223.1, implying annual growth of -8.0%.

Current consensus DPS estimate is 137.0, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 19.4.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 148.00 cents and EPS of 246.00 cents.
At the last closing share price the estimated dividend yield is 3.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 237.2, implying annual growth of 6.3%.

Current consensus DPS estimate is 146.3, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 18.2.

Market Sentiment: -0.5

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


ADDED

UBS rates FLT as Neutral (3) -

Following stronger second half trading results the company now expects second half pre-tax profit to be up 2.5-4.9%. UBS upgrades its earnings per share estimates for FY17-20 by around 6%.

While believing the company is in a strong position to grow earnings in FY18, the broker is cautious on the Australian consumer outlook and suspects this could limit further upside, given Australia makes up over 70% of Flight Centre earnings.

Neutral rating retained. Target rises to $41.00 from $37.60.

Target price is $41.00 Current Price is $44.10 Difference: minus $3.1 (current price is over target).
If FLT meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 138.00 cents and EPS of 226.00 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 223.1, implying annual growth of -8.0%.

Current consensus DPS estimate is 137.0, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 19.4.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 152.00 cents and EPS of 250.00 cents.
At the last closing share price the estimated dividend yield is 3.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 237.2, implying annual growth of 6.3%.

Current consensus DPS estimate is 146.3, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 18.2.

Market Sentiment: -0.5

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

GEM  G8 EDUCATION LIMITED

Childcare

Overnight Price: $3.87

ADDED

Ord Minnett rates GEM as Buy (1) -

The company has announced the early redemption of its $70m 7.65% corporate notes. Ord Minnett considers the decision financially astute and a sign of confidence in the earnings/cash flow outlook.

The broker continues to envisage a number of positive catalysts including the potential club bank facility, improving confidence in occupancy and value accretion from the development book.

Buy rating retained. Target is $4.30.

Target price is $4.30 Current Price is $3.87 Difference: $0.43
If GEM meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.01, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Ord Minnett forecasts a full year FY17 dividend of 24.00 cents and EPS of 25.60 cents.
At the last closing share price the estimated dividend yield is 6.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.4, implying annual growth of 2.9%.

Current consensus DPS estimate is 22.3, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 15.0.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 24.00 cents and EPS of 31.10 cents.
At the last closing share price the estimated dividend yield is 6.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.5, implying annual growth of 12.2%.

Current consensus DPS estimate is 22.4, implying a prospective dividend yield of 5.9%.

Current consensus EPS estimate suggests the PER is 13.4.

Market Sentiment: 0.8

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

GMG  GOODMAN GROUP

Infra & Property Developers

Overnight Price: $7.90

Citi rates GMG as Neutral (3) -

Citi analysts point out E-Commerce is a direct tailwind for Goodman Group. The analysts think current multiples don’t fully reflect the upside risk to consensus earnings.

Citi suggests earnings revisions for the company should remain positive near term with moderating growth in development EBIT offset by GMG turning to potentially a net buyer (accretive), growth in funds management via performance fees and a reduction in borrowing costs.

No changes made at this stage, but the analysts are of the view this one is worth watching in the REITS space.

Target price is $7.74 Current Price is $7.90 Difference: minus $0.16 (current price is over target).
If GMG meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.06, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Citi forecasts a full year FY17 dividend of 25.90 cents and EPS of 43.10 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.6, implying annual growth of -38.1%.

Current consensus DPS estimate is 25.9, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 18.0.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 26.50 cents and EPS of 45.70 cents.
At the last closing share price the estimated dividend yield is 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.9, implying annual growth of 2.9%.

Current consensus DPS estimate is 27.3, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 17.5.

Market Sentiment: 0.1

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

IFL  IOOF HOLDINGS LIMITED

Wealth Management & Investments

Overnight Price: $9.72

Credit Suisse rates IFL as Neutral (3) -

Following the June marking to market Credit Suisse increases earnings estimates by 0.1% and 0.3% for FY17 and FY18 respectively.

Credit Suisse envisages the company's business offers a more stable, but lower growth, play on Australia's superannuation industry versus a fund manager, as it is not exposed to changes in asset allocation trends or fund performance..

Neutral retained. Target is upgraded to $9.75 from  $8.70.

Target price is $9.75 Current Price is $9.72 Difference: $0.03
If IFL meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $8.95, suggesting downside of -7.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 51.00 cents and EPS of 55.00 cents.
At the last closing share price the estimated dividend yield is 5.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.3, implying annual growth of -17.3%.

Current consensus DPS estimate is 52.5, implying a prospective dividend yield of 5.4%.

Current consensus EPS estimate suggests the PER is 17.9.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 57.00 cents and EPS of 63.00 cents.
At the last closing share price the estimated dividend yield is 5.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.5, implying annual growth of 7.7%.

Current consensus DPS estimate is 52.7, implying a prospective dividend yield of 5.4%.

Current consensus EPS estimate suggests the PER is 16.6.

Market Sentiment: -0.2

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

JHG  JANUS HENDERSON GROUP PLC.

Wealth Management & Investments

Overnight Price: $42.79

Morgan Stanley rates JHG as Overweight (1) -

Morgan Stanley envisages upside risk to flow forecasts given the turnaround in former Henderson retail flows. Former Janus US mutual fund retail flows also experienced a positive month in May with around US$270m driven by US equities.

The stock is the broker's top pick among Australian asset managers, given the higher earnings quality, undemanding trading multiples, and flows benefiting from cross selling geographically diverse products.

Overweight retained. Industry view is In-Line.

Current Price is $42.79. Target price not assessed.

Current consensus price target is $45.30, suggesting upside of 6.0% (ex-dividends)

Forecast for FY17:

Current consensus EPS estimate is 260.6, implying annual growth of N/A.

Current consensus DPS estimate is 205.1, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY18:

Current consensus EPS estimate is 341.3, implying annual growth of 31.0%.

Current consensus DPS estimate is 247.3, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 12.5.

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

MFG  MAGELLAN FINANCIAL GROUP LIMITED

Wealth Management & Investments

Overnight Price: $28.02

Credit Suisse rates MFG as Downgrade to Neutral from Outperform (3) -

Weaker Australian equity markets have negatively affected earnings in June. Following around 20% outperformance in 2017 Credit Suisse is downgrading to Neutral from Outperform.

The broker envisages the current trading multiples are justified, considering the double-digit earnings growth outlook, but there is limited upside from this point. Target is reduced to $27.00 from $27.50.

Target price is $27.00 Current Price is $28.02 Difference: minus $1.02 (current price is over target).
If MFG 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 $27.13, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 89.00 cents and EPS of 121.00 cents.
At the last closing share price the estimated dividend yield is 3.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 117.3, implying annual growth of -5.0%.

Current consensus DPS estimate is 89.0, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 23.7.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 107.00 cents and EPS of 148.00 cents.
At the last closing share price the estimated dividend yield is 3.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 134.9, implying annual growth of 15.0%.

Current consensus DPS estimate is 101.4, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 20.6.

Market Sentiment: 0.2

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

ORG  ORIGIN ENERGY LIMITED

NatGas

Overnight Price: $7.06

Citi rates ORG as Upgrade to Buy from Neutral (1) -

Citi has upgraded to Buy from Neutral while lifting the target price by 14% to $8.59 as increased cash flows should assist with rebuilding the balance sheet.

The analysts explain their modeling now includes the increased asset divestments announced May 19th, plus a mark to mark on electricity/gas prices and tariffs.

Both have been partially offset by higher costs. The risk, suggest the analysts, is that without an oil price recovery, any share price recovery may be longer dated.

Target price is $8.59 Current Price is $7.06 Difference: $1.53
If ORG meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $7.80, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Citi forecasts a full year FY17 dividend of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.6, implying annual growth of N/A.

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

Current consensus EPS estimate suggests the PER is 44.9.

Forecast for FY18:

Citi forecasts a full year FY18 dividend of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.6, implying annual growth of 256.4%.

Current consensus DPS estimate is 9.3, implying a prospective dividend yield of 1.3%.

Current consensus EPS estimate suggests the PER is 12.6.

Market Sentiment: 0.5

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

SBM  ST BARBARA LIMITED

Gold & Silver

Overnight Price: $2.75

Credit Suisse rates SBM as Outperform (1) -

June quarter production was above expectations. Credit Suisse is pleased with the result, given the strong contribution from both assets.

The broker observes, with Simberi nearing the end of its life, the company will be under increasing pressure to define a growth plan, and an addition to the portfolio is needed to avoid becoming a single asset business.

Outperform and $2.60 target retained.

Target price is $2.60 Current Price is $2.75 Difference: minus $0.15 (current price is over target).
If SBM meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.93, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Credit Suisse forecasts a full year FY17 dividend of 0.00 cents and EPS of 29.35 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.3, implying annual growth of -2.7%.

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

Current consensus EPS estimate suggests the PER is 8.4.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 19.24 cents and EPS of 38.48 cents.
At the last closing share price the estimated dividend yield is 7.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.2, implying annual growth of 5.7%.

Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 2.3%.

Current consensus EPS estimate suggests the PER is 8.0.

Market Sentiment: 1.0

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


UPDATED

Macquarie rates SBM as Outperform (1) -

The company has revealed preliminary production of 94,200 ounces for the June quarter, around 5% above Macquarie's expectations. The company has exceeded annual guidance at both the Gwalia and Simberi operations.

Macquarie is also impressed by the cash generation in the quarter, which implies a free cash flow yield of 18% on an annualised basis. Outperform rating and $3.10 target maintained.

Target price is $3.10 Current Price is $2.75 Difference: $0.35
If SBM meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.93, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 0.00 cents and EPS of 36.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.3, implying annual growth of -2.7%.

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

Current consensus EPS estimate suggests the PER is 8.4.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 0.00 cents and EPS of 37.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.2, implying annual growth of 5.7%.

Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 2.3%.

Current consensus EPS estimate suggests the PER is 8.0.

Market Sentiment: 1.0

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

VCX  VICINITY CENTRES

REITs

Overnight Price: $2.54

Morgan Stanley rates VCX as Underweight (5) -

There is potential for around 2.2% in upside from a 5% buy-back but Morgan Stanley considers a real buy-back is unlikely.

The company has the most dated retail portfolios under coverage and, consequently, the broker envisages capital going to fund ongoing expenditure requirements and development, in order to reduce obsolescence risks.

Nevertheless, the broker acknowledges that even just the announcement of a buy-back may be a risk to its Underweight rating. Target is $2.65. Industry view: Cautious.

Target price is $2.65 Current Price is $2.54 Difference: $0.11
If VCX meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.95, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Morgan Stanley forecasts a full year FY17 dividend of 17.40 cents and EPS of 17.70 cents.
At the last closing share price the estimated dividend yield is 6.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.3, implying annual growth of -24.6%.

Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 6.8%.

Current consensus EPS estimate suggests the PER is 14.0.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 17.60 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 6.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 3.3%.

Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 7.0%.

Current consensus EPS estimate suggests the PER is 13.6.

Market Sentiment: -0.1

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

VOC  VOCUS COMMUNICATIONS LIMITED

Telecommunication

Overnight Price: $3.38

Deutsche Bank rates VOC as Hold (3) -

The board has granted KKR the opportunity to conduct due diligence on a non-exclusive basis after the preliminary, indicative and non-binding proposal of $3.50 a share was announced on June 7.

Deutsche Bank believes the decision to grant due diligence suggests the proposal must be reasonably close to the board's internal valuation of the company and therefore believes there is now greater likelihood of an offer being recommended.

Hold rating and $3.50 target retained.

Target price is $3.50 Current Price is $3.38 Difference: $0.12
If VOC meets the Deutsche Bank target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.29, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Deutsche Bank forecasts a full year FY17 dividend of 7.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 2.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.6, implying annual growth of 30.4%.

Current consensus DPS estimate is 9.6, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY18:

Deutsche Bank forecasts a full year FY18 dividend of 3.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 0.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.6, implying annual growth of -12.2%.

Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 2.2%.

Current consensus EPS estimate suggests the PER is 15.8.

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 Buy - Citi Overnight Price $22.11
ASG - AUTOSPORTS GROUP Buy - UBS Overnight Price $2.02
ASX - ASX Sell - Citi Overnight Price $53.29
Underperform - Credit Suisse Overnight Price $53.29
Hold - Deutsche Bank Overnight Price $53.29
Neutral - UBS Overnight Price $53.29
BHP - BHP BILLITON Upgrade to Buy from Hold - Deutsche Bank Overnight Price $24.15
BTT - BT INVEST MANAGEMENT Neutral - Credit Suisse Overnight Price $11.20
CCL - COCA-COLA AMATIL Hold - Deutsche Bank Overnight Price $9.22
CGC - COSTA GROUP Lighten - Ord Minnett Overnight Price $4.94
Buy - UBS Overnight Price $4.94
CL1 - CLASS Buy - UBS Overnight Price $3.08
FLT - FLIGHT CENTRE Downgrade to Sell from Neutral - Citi Overnight Price $44.10
Downgrade to Underperform from Outperform - Credit Suisse Overnight Price $44.10
Hold - Deutsche Bank Overnight Price $44.10
Underperform - Macquarie Overnight Price $44.10
Underweight - Morgan Stanley Overnight Price $44.10
Hold - Morgans Overnight Price $44.10
Neutral - UBS Overnight Price $44.10
GEM - G8 EDUCATION Buy - Ord Minnett Overnight Price $3.87
GMG - GOODMAN GRP Neutral - Citi Overnight Price $7.90
IFL - IOOF HOLDINGS Neutral - Credit Suisse Overnight Price $9.72
JHG - JANUS HENDERSON GROUP Overweight - Morgan Stanley Overnight Price $42.79
MFG - MAGELLAN FINANCIAL GROUP Downgrade to Neutral from Outperform - Credit Suisse Overnight Price $28.02
ORG - ORIGIN ENERGY Upgrade to Buy from Neutral - Citi Overnight Price $7.06
SBM - ST BARBARA Outperform - Credit Suisse Overnight Price $2.75
Outperform - Macquarie Overnight Price $2.75
VCX - VICINITY CENTRES Underweight - Morgan Stanley Overnight Price $2.54
VOC - VOCUS COMMUNICATIONS Hold - Deutsche Bank Overnight Price $3.38
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

10

3. Hold

11

4. Reduce

1

5. Sell

7

Thursday 06 July 2017

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The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.