Australian Broker Call
February 03, 2017
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COMPANIES DISCUSSED IN THIS ISSUE
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Last Updated: 12:51 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
| BXB - | BRAMBLES | Upgrade to Add from Hold | Morgans |
| CBA - | COMMBANK | Downgrade to Hold from Add | Morgans |
| NHF - | NIB HOLDINGS | Downgrade to Accumulate from Buy | Ord Minnett |
| SUN - | SUNCORP | Upgrade to Buy from Hold | Deutsche Bank |
Citi rates A2M as Sell (5) -
Citi analysts point out UK headquartered Reckitt Benckiser trying to purchase Mead Johnson suggests risk for infant formula companies in Australia in the event of M&A, but the broker retains its Sell ratings on continued belief earnings risks remain as skewed to the downside over the next 12 months.
Target price is $1.80 Current Price is $2.20 Difference: minus $0.4 (current price is over target).
If A2M meets the Citi target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $1.80, suggesting downside of -20.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 0.00 cents and EPS of 6.95 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.6, implying annual growth of N/A. Current consensus DPS estimate is 0.7, implying a prospective dividend yield of 0.3%. Current consensus EPS estimate suggests the PER is 29.9. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 2.82 cents and EPS of 9.11 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.8, implying annual growth of 28.9%. Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 0.7%. Current consensus EPS estimate suggests the PER is 23.2. |
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates AMC as Hold (3) -
The broker expects a fairly stable result from Amcor despite subdued global conditions given the defensive nature of the business.
Target falls to $14.59 from $14.68 on currency adjustments. Hold retained.
Target price is $14.59 Current Price is $14.09 Difference: $0.5
If AMC meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $15.46, suggesting upside of 9.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 54.81 cents and EPS of 78.88 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 75.5, implying annual growth of N/A. Current consensus DPS estimate is 57.3, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 18.8. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 54.81 cents and EPS of 85.56 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 85.5, implying annual growth of 13.2%. Current consensus DPS estimate is 63.8, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 16.6. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates AMP as Accumulate (2) -
The stock has suffered on the back of weak wealth protection trends but Ord Minnett believes more realistic assumptions, coupled with strong markets and a likely capital return, bode well for 2017.
The stock is the broker's large cap pick in the insurance/diversified financial sector and an Accumulate rating is retained. Target is raised to $6.00 from $5.50.
Target price is $6.00 Current Price is $5.07 Difference: $0.93
If AMP meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $5.43, suggesting upside of 7.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY16:
Ord Minnett forecasts a full year FY16 dividend of 28.00 cents and EPS of minus 9.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 13.4, implying annual growth of -59.8%. Current consensus DPS estimate is 28.2, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 37.7. |
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 28.00 cents and EPS of 33.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.6, implying annual growth of 158.2%. Current consensus DPS estimate is 29.3, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates ANZ as Overweight (1) -
Recent announcements from the Basel Committee and APRA suggest there will be no capital build initiatives in the first half results for the major banks. At the same time, Morgan Stanley now forecasts all of the majors to hold dividends flat in 2017.
ANZ is considered the best placed of the major banks in terms of a buy-back scenario, as it does not require a further build up of capital.
Overweight retained. Sector view is In-Line. Price target is raised to $30 from $29.
Target price is $30.00 Current Price is $29.39 Difference: $0.61
If ANZ meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $29.36, suggesting upside of 0.6% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 160.00 cents and EPS of 219.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 227.6, implying annual growth of 12.3%. Current consensus DPS estimate is 162.0, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 12.8. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 165.00 cents and EPS of 240.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 238.2, implying annual growth of 4.7%. Current consensus DPS estimate is 164.4, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 12.3. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates ANZ as Hold (3) -
Morgans believes the bank sector is now fully valued following the post US election rally, however an easing in capital requirement expectations supports the broker's view dividends will remain robust.
ANZ is Morgans' least preferred pick of the four. Hold and $25 target retained.
Target price is $25.00 Current Price is $29.39 Difference: minus $4.39 (current price is over target).
If ANZ meets the Morgans target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $29.36, suggesting upside of 0.6% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 160.00 cents and EPS of 222.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 227.6, implying annual growth of 12.3%. Current consensus DPS estimate is 162.0, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 12.8. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 160.00 cents and EPS of 218.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 238.2, implying annual growth of 4.7%. Current consensus DPS estimate is 164.4, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 12.3. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates BAL as Sell (5) -
Citi analysts point out UK headquartered Reckitt Benckiser trying to purchase Mead Johnson suggests risk for infant formula companies in Australia in the event of M&A, but the broker retains its Sell ratings on continued belief earnings risks remain as skewed to the downside over the next 12 months.
Target price is $3.75 Current Price is $4.26 Difference: minus $0.51 (current price is over target).
If BAL meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.07, suggesting downside of -4.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 0.00 cents and EPS of 17.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.0, implying annual growth of -59.8%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 26.8. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 0.00 cents and EPS of 14.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.3, implying annual growth of 1.9%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 26.3. |
Market Sentiment: -0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates BXB as Upgrade to Add from Hold (1) -
Brambles' recent first half trading update was a disappointment to Morgans, and the broker awaits new FY guidance at the company's result release. Earnings forecasts have been trimmed in the meantime.
But Morgans believes Brambles' longer term fundamentals remain solid, suggesting the recent pullback in price represents a buying opportunity. Target falls to $11.61 from $11.91. Upgrade to Add.
Target price is $11.61 Current Price is $10.22 Difference: $1.39
If BXB meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $11.79, suggesting upside of 12.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 29.41 cents and EPS of 54.81 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.8, implying annual growth of N/A. Current consensus DPS estimate is 31.8, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 18.7. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 30.75 cents and EPS of 61.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 62.6, implying annual growth of 12.2%. Current consensus DPS estimate is 34.2, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 16.7. |
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
Morgans rates CBA as Downgrade to Hold from Add (3) -
Morgans believes the bank sector is now fully valued following the post US election rally, however an easing in capital requirement expectations supports the broker's view dividends will remain robust.
CBA is downgraded to Hold. Target rises to $79.00 from $75.80.
Target price is $79.00 Current Price is $82.01 Difference: minus $3.01 (current price is over target).
If CBA meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $78.59, suggesting downside of -3.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 420.00 cents and EPS of 564.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 549.7, implying annual growth of -1.0%. Current consensus DPS estimate is 421.6, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 14.9. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 424.00 cents and EPS of 585.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 560.9, implying annual growth of 2.0%. Current consensus DPS estimate is 418.4, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates CHC as Outperform (1) -
Macquarie considers the timing of the company's investor briefing interesting, given the group is in "black-out" and the reporting season starts next week.
The broker believes the company is keen to promote the merits of its platform, given a potential proposal from Shopping Centres Australasia ((SCP)) for Charter Hall Retail ((CQR)).
With a scheme of arrangement requiring 75% approval from votes cast, and Charter Hall being able to vote its 18% interest, the broker suggests a likely outcome is an agreement whereby CQR offers some assets to SCP.
Outperform rating and $5.35 target retained.
Target price is $5.35 Current Price is $4.65 Difference: $0.7
If CHC meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $5.02, suggesting upside of 7.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 27.80 cents and EPS of 32.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 32.3, implying annual growth of -38.5%. Current consensus DPS estimate is 28.1, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 14.5. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 29.60 cents and EPS of 32.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 33.0, implying annual growth of 2.2%. Current consensus DPS estimate is 29.5, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 14.2. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates CSL as Outperform (1) -
Industry data signal IG growth is running slightly ahead of the upper level that plasma participants believe reflects underlying demand. Credit Suisse expects growth to remain at this high level throughout FY17, because of a relatively weak comparable period.
The broker notes a substantial number of plasma centre openings in recent years are enabling the collection of sufficient raw material to meet above-industry average growth. The broker suspects this is partly responsible for the company's recent upgrade to earnings guidance.
Outperform retained. Target is $119.50.
Target price is $119.50 Current Price is $112.11 Difference: $7.39
If CSL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $116.55, suggesting upside of 2.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 183.16 cents and EPS of 395.72 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 392.7, implying annual growth of N/A. Current consensus DPS estimate is 180.1, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 29.0. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 217.91 cents and EPS of 466.58 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 464.3, implying annual growth of 18.2%. Current consensus DPS estimate is 206.9, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 24.5. |
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
Citi rates DOW as Neutral (3) -
Downer EDI's interim performance was no less than 10% above Citi's expectation. There are some accountancy influences, such as lower D&A, but overall the analysts agree it was a strong performance.
Citi analysts highlight the backlog of work secured increased significantly on the back of two major rail contract wins. Cash conversion rose to 103% and was one of the stand-out features, in Citi's opinion.
One minus is that management indicated a higher dividend is unlikely to be fully franked. Estimates went up. The stock remains one of Citi's favourites in the sector. Target lifts to $7.30 from $6.15. Neutral.
Target price is $7.30 Current Price is $7.07 Difference: $0.23
If DOW meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $6.13, suggesting downside of -10.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 25.00 cents and EPS of 40.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 40.6, implying annual growth of 0.7%. Current consensus DPS estimate is 26.0, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 16.9. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 26.00 cents and EPS of 43.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 42.9, implying annual growth of 5.7%. Current consensus DPS estimate is 26.2, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 16.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates DOW as Underperform (5) -
The company's first half earnings were very solid, running ahead of Credit Suisse forecasts. Management has raised FY17 net profit guidance to 175m. The broker makes earnings changes to reflect a higher FY17 base, upon which it assumes a similar earnings trajectory.
Nevertheless, the broker struggles to get a valuation that is close to the share price and retains an Underperform rating, noting that the result is unlikely to compel holders to sell, particularly if they suspect further earnings upside can be delivered. Target rises to $5.90 from $5.30.
Target price is $5.90 Current Price is $7.07 Difference: minus $1.17 (current price is over target).
If DOW meets the Credit Suisse target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $6.13, suggesting downside of -10.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 25.00 cents and EPS of 41.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 40.6, implying annual growth of 0.7%. Current consensus DPS estimate is 26.0, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 16.9. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 24.00 cents and EPS of 44.37 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 42.9, implying annual growth of 5.7%. Current consensus DPS estimate is 26.2, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 16.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates DOW as Hold (3) -
The company reported a stronger-than-expected first half result, with good performances across all divisions. Deutsche Bank was impressed by the cash flow, low debt levels, increased dividend pay-out, and the upgrade to FY17 guidance.
While the broker likes the company's potential to exceed its revised guidance, and its high level of recurring revenues, this is considered to be largely reflected in the share price.
Hence, a Hold rating is retained. Target is raised to $6.59 from $6.42.
Target price is $6.59 Current Price is $7.07 Difference: minus $0.48 (current price is over target).
If DOW meets the Deutsche Bank target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $6.13, suggesting downside of -10.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 29.00 cents and EPS of 42.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 40.6, implying annual growth of 0.7%. Current consensus DPS estimate is 26.0, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 16.9. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 30.00 cents and EPS of 42.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 42.9, implying annual growth of 5.7%. Current consensus DPS estimate is 26.2, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 16.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates DOW as Outperform (1) -
First half net profit of $78m beat Macquarie's forecasts and FY17 net profit guidance has been raised 7% to $175m. The main surprise was in technology & communication services, driven by the ramp up in the NBN, and work for Telstra ((TLS)).
The strong result confirms to Macquarie that the earnings recovery has started earlier than expected, with 8.6% growth in prospect for FY18. Outperform maintained. Target rises to $7.45 from $6.50.
Target price is $7.45 Current Price is $7.07 Difference: $0.38
If DOW meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $6.13, suggesting downside of -10.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 25.00 cents and EPS of 41.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 40.6, implying annual growth of 0.7%. Current consensus DPS estimate is 26.0, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 16.9. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 26.00 cents and EPS of 45.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 42.9, implying annual growth of 5.7%. Current consensus DPS estimate is 26.2, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 16.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates DOW as Equal-weight (3) -
The company has delivered an 8% improvement in first half net profit and upgraded guidance for FY17. Despite the upgraded guidance Morgan Stanley envisages downgrades to consensus earnings expectations in FY17 are likely.
Morgan Stanley retains a Equal-weight rating and $4.01 target. Industry view is Cautious.
Target price is $4.01 Current Price is $7.07 Difference: minus $3.06 (current price is over target).
If DOW meets the Morgan Stanley target it will return approximately minus 43% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $6.13, suggesting downside of -10.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 24.00 cents and EPS of 38.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 40.6, implying annual growth of 0.7%. Current consensus DPS estimate is 26.0, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 16.9. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 25.00 cents and EPS of 40.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 42.9, implying annual growth of 5.7%. Current consensus DPS estimate is 26.2, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 16.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates DRM as Neutral (3) -
Higher-than-expected gold production was offset by higher costs in the December quarter.
The transition to full production at Deflector is the main milestone for the company, Macquarie believes, particularly in light of the reduction in output from Andy Well.
Neutral maintained. Target is $0.50.
Target price is $0.50 Current Price is $0.44 Difference: $0.065
If DRM meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).
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 minus 0.10 cents. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 0.00 cents and EPS of 2.50 cents. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
EGS EASTERN GOLDFIELDS LIMITED
Materials
Overnight Price: $0.38
Morgans rates EGS as Initiation of coverage with Add (1) -
Gold explorer/developer Eastern Goldfields is about to commence production at the refurbished Davyhurst plant in WA.
While imminent production provides the near term catalyst, longer term the broker sees significant exploration upside potential.
Coverage initiated with an Add rating and 50c target.
Target price is $0.50 Current Price is $0.38 Difference: $0.12
If EGS meets the Morgans target it will return approximately 32% (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 0.40 cents. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of 4.50 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates FND as Add (1) -
Finders' Wetar copper project is now running close to nameplate capacity, the broker notes. Cash produced in the quarter helped to pay down debt but hedges required under the debt arrangement mean less exposure to the copper price.
Target rises to 30c from 28c. Add retained.
Target price is $0.30 Current Price is $0.18 Difference: $0.125
If FND meets the Morgans target it will return approximately 71% (excluding dividends, fees and charges).
The company's fiscal year ends in December.
Forecast for FY13:
Morgans forecasts a full year FY13 dividend of 0.00 cents and EPS of 20.40 cents. |
Forecast for FY14:
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates IAG as Hold (3) -
While the fundamentals are in place, valuations for the general insurance sector are approaching that of the broader market and Deutsche Bank takes up a neutral outlook on the sector.
The broker transfers coverage to another analyst and updates its thesis on the sector, highlighting a preference for Suncorp ((SUN)) as it is trading at a 20% discount to Insurance Australia Group, despite operating in broadly similar product lines.
Hold rating retained. Target is raised to $5.80 from $5.65.
Target price is $5.80 Current Price is $5.88 Difference: minus $0.08 (current price is over target).
If IAG meets the Deutsche Bank target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $5.86, suggesting upside of 0.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 25.20 cents and EPS of 35.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 33.9, implying annual growth of 31.4%. Current consensus DPS estimate is 27.2, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 17.2. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 26.00 cents and EPS of 36.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.9, implying annual growth of 5.9%. Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 16.2. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates ILU as Overweight (1) -
Morgan Stanley observes the rutile price increment and production at Sierra Rutile have created some anxiety, despite the quarterly report beating expectations. The broker reviews its outlook and concedes the rutile price increase is underwhelming.
While the lower production flagged at Sierra Rutile raises some concerns, the broker notes the company has maintained its three-year average production guidance.
Overweight rating and Attractive industry view retained. Target is raised to $8.05 from $7.25.
Target price is $8.05 Current Price is $7.28 Difference: $0.77
If ILU meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $7.22, suggesting upside of 2.7% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY16:
Morgan Stanley forecasts a full year FY16 dividend of 3.00 cents and EPS of minus 18.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -7.6, implying annual growth of N/A. Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 1.4%. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 4.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 14.0, implying annual growth of N/A. Current consensus DPS estimate is 9.3, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 50.2. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates MTS as Sell (5) -
UBS is becoming less negative on the Australian grocery market, as industry margins start to bottom while a more rational pricing backdrop is developing.
The broker upgrades FY17-19 estimates for earnings per share by 2-5%. Metcash remains the broker's least preferred supermarket stock. Sell rating retained. Target is raised to $1.80 from $1.70.
Target price is $1.80 Current Price is $2.13 Difference: minus $0.33 (current price is over target).
If MTS 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 $2.24, suggesting upside of 5.2% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 0.00 cents and EPS of 18.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.3, implying annual growth of -17.2%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 11.0. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 11.00 cents and EPS of 19.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 21.4, implying annual growth of 10.9%. Current consensus DPS estimate is 13.8, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 10.0. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates NAB as Hold (3) -
Morgans believes the bank sector is now fully valued following the post US election rally, however an easing in capital requirement expectations supports the broker's view dividends will remain robust.
Hold retained on NAB. Target rises to $29.50 from $26.90.
Target price is $29.50 Current Price is $30.40 Difference: minus $0.9 (current price is over target).
If NAB meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $30.29, suggesting downside of -0.3% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 198.00 cents and EPS of 248.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 238.2, implying annual growth of -2.8%. Current consensus DPS estimate is 189.7, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 12.8. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 198.00 cents and EPS of 253.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 240.0, implying annual growth of 0.8%. Current consensus DPS estimate is 185.7, implying a prospective dividend yield of 6.1%. Current consensus EPS estimate suggests the PER is 12.7. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates NHF as Downgrade to Accumulate from Buy (2) -
As the share price has rallied, Ord Minnett downgrades to Accumulate from Buy. The main issues the broker envisages in the upcoming first half results are Australian resident health insurance margins, claims inflation and growth trends.
The margins were upgraded at the AGM largely on the back of more favourable claims environment but the company also increased its drawing rate inflation range. The broker awaits further clarity from the commentary on claims inflation trends. Target rises to $5.00 from $4.90.
Target price is $5.00 Current Price is $4.59 Difference: $0.41
If NHF meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $4.70, suggesting upside of 3.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 15.00 cents and EPS of 21.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.7, implying annual growth of 11.8%. Current consensus DPS estimate is 15.6, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 19.2. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 17.00 cents and EPS of 25.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.3, implying annual growth of 6.8%. Current consensus DPS estimate is 16.6, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 18.0. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates OGC as Buy (1) -
Amidst uncertainty whether Didipio will soon be forced to close on command from the Philippines authorities, Citi analysts point out their valuation of Didipio is $1.10/share and this has pretty much been wiped off the share price since early news reports started to emerge.
While awaiting more news/confirmation, the analysts have elected to make no changes to either $4.70 price target or the Buy/High Risk rating.
Target price is $4.70 Current Price is $3.84 Difference: $0.86
If OGC meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $4.62, suggesting upside of 8.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY16:
Citi forecasts a full year FY16 dividend of 2.67 cents and EPS of 34.63 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 32.0, implying annual growth of N/A. Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 1.1%. Current consensus EPS estimate suggests the PER is 13.3. |
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 4.01 cents and EPS of 26.87 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 44.8, implying annual growth of 40.0%. Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 1.0%. Current consensus EPS estimate suggests the PER is 9.5. |
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
Credit Suisse rates OGC as Outperform (1) -
The company and the market has learned from Bloomberg of the shock suspension order for the Didipio gold mine in the Philippines. Credit Suisse notes the company has received no formal notification of this.
The mine appears to be one of six operations in the country which have been issued with a suspension order for alleged mining impact on agriculture.
This is despite passing the recent government audit and being confirmed by the government as the most environmentally and socially responsible mine for a second straight year.
A positive aspect is that the mine was not amongst the additional 23 operations that were listed for closure. Credit Suisse retains an Outperform rating and $4.20 target and continues to assume that the mine continues to operate.
Target price is $4.20 Current Price is $3.84 Difference: $0.36
If OGC meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $4.62, suggesting upside of 8.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY16:
Credit Suisse forecasts a full year FY16 dividend of 5.35 cents and EPS of 31.59 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 32.0, implying annual growth of N/A. Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 1.1%. Current consensus EPS estimate suggests the PER is 13.3. |
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 2.67 cents and EPS of 55.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 44.8, implying annual growth of 40.0%. Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 1.0%. Current consensus EPS estimate suggests the PER is 9.5. |
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
UBS rates OGC as Sell (5) -
News wires are reporting that the Philippines government has confirmed the Didipio mine will be suspended, citing alleged declining agricultural production.
In response, the company has released a statement noting it has not received any formal suspension order and the mine continues to operate as normal.
Until there is certainty on the operating outlook, UBS believes exposure to the stock is difficult to justify given the alternatives. Sell rating and $3.77 target retained.
Target price is $3.77 Current Price is $3.84 Difference: minus $0.07 (current price is over target).
If OGC 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 $4.62, suggesting upside of 8.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY16:
UBS forecasts a full year FY16 dividend of 6.68 cents and EPS of 32.09 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 32.0, implying annual growth of N/A. Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 1.1%. Current consensus EPS estimate suggests the PER is 13.3. |
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 6.68 cents and EPS of 53.48 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 44.8, implying annual growth of 40.0%. Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 1.0%. Current consensus EPS estimate suggests the PER is 9.5. |
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
Morgans rates ORE as Add (1) -
Orocobre's Dec Q lithium production has the miner on track to reach nameplate capacity mid-year. The broker forecasts FY production marginally ahead of guidance. Olaroz stage 2 will double capacity and reduce costs.
The company also expects to fast track a lithium hydroxide plant in Japan with financial support from the Japanese govt. Target falls to $5.46 from $5.66 on higher near term costs. Add retained.
Target price is $5.46 Current Price is $4.12 Difference: $1.34
If ORE meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $4.79, suggesting upside of 18.1% (ex-dividends)
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 10.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 2.0, 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 202.7. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of 24.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 13.5, implying annual growth of 575.0%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 30.0. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates PRY as Underperform (5) -
Credit Suisse postulates that the significant growth in home-based, after-hours services has affected rooms-based GP consultation volume growth.
For the company, this could show up as a small decrease in GP volume growth versus the long-term historical average. The broker is not aware of any intention by Primary to move into the provision of after-hours services in patient homes.
Underperform rating and $3.90 target retained.
Target price is $3.90 Current Price is $3.74 Difference: $0.16
If PRY meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $3.98, suggesting upside of 4.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 12.00 cents and EPS of 20.78 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 20.6, implying annual growth of 43.1%. Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 18.5. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 13.00 cents and EPS of 22.03 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.5, implying annual growth of 9.2%. Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 16.9. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates SUN as Upgrade to Buy from Hold (1) -
While the fundamentals are in place, valuations for the general insurance sector are approaching that of the broader market and Deutsche Bank takes up a neutral outlook on the sector.
The broker transfers coverage to another analyst and updates its thesis on the sector, highlighting a preference for Suncorp as it is trading at a 20% discount to Insurance Australia Group ((IAG)), despite operating in broadly similar product lines.
Rating is upgraded to Buy from Hold. Target is raised to $14.00 from $13.70.
Target price is $14.00 Current Price is $13.20 Difference: $0.8
If SUN meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $13.64, suggesting upside of 3.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 75.00 cents and EPS of 91.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 95.2, implying annual growth of 16.9%. Current consensus DPS estimate is 75.8, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 13.8. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 79.00 cents and EPS of 95.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 97.1, implying annual growth of 2.0%. Current consensus DPS estimate is 77.9, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates TAH as Sell (5) -
Citi analysts are willing to label the slight miss in Tabcorp's interim performance as "broadly in line". They point out the result included larger-than-anticipated losses from UK start-up Sun Bets.
Estimates have been trimmed. Citi is awaiting more news on the proposed merger with Tatts ((TTS)). Target $4.05. Sell.
Target price is $4.05 Current Price is $4.50 Difference: minus $0.45 (current price is over target).
If TAH meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.65, suggesting upside of 3.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 25.00 cents and EPS of 23.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.0, implying annual growth of 12.7%. Current consensus DPS estimate is 24.8, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 19.5. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 26.00 cents and EPS of 24.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.4, implying annual growth of 10.4%. Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 17.6. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates TAH as Outperform (1) -
Wagering marred the first half result, Credit Suisse observes. First half wagering revenue was -1% shy of the broker's forecasts. FY18 forecasts for organic domestic wagering EBIT growth are reduced to 3%.
The broker considers the stock to be modestly cheap with an attractive yield, offering the prospect of acquisition growth and integration benefits. Credit Suisse assumes the Tatts ((TTS)) merger proceeds.
Outperform retained. Targets slips to $5.00 from $5.35..
Target price is $5.00 Current Price is $4.50 Difference: $0.5
If TAH meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $4.65, suggesting upside of 3.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 24.50 cents and EPS of 19.73 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.0, implying annual growth of 12.7%. Current consensus DPS estimate is 24.8, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 19.5. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 23.00 cents and EPS of 22.91 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.4, implying annual growth of 10.4%. Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 17.6. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates TAH as Hold (3) -
First half results were characterised by lower-than-anticipated wagering revenue growth and higher costs growth, albeit net profit was slightly above Deutsche Bank's forecast.
The company continues to progress its merger proposal with Tatts ((TTS)). Deutsche Bank retains a Hold rating and lowers the target to $5.00 from $5.30.
Target price is $5.00 Current Price is $4.50 Difference: $0.5
If TAH meets the Deutsche Bank target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $4.65, suggesting upside of 3.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 25.00 cents and EPS of 24.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.0, implying annual growth of 12.7%. Current consensus DPS estimate is 24.8, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 19.5. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 27.00 cents and EPS of 26.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.4, implying annual growth of 10.4%. Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 17.6. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates TAH as No Rating (-1) -
First half results were slightly below Macquarie's expectations. In wagering, while retail revenues fell -2.5% digital revenues grew 13.8%, suggesting to the broker a retention of market share in digital, which is projected to grow at around 15%.
Macquarie is currently restricted on ratings and target.
Current Price is $4.50. Target price not assessed.
Current consensus price target is $4.65, suggesting upside of 3.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 24.50 cents and EPS of 24.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.0, implying annual growth of 12.7%. Current consensus DPS estimate is 24.8, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 19.5. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 28.00 cents and EPS of 27.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.4, implying annual growth of 10.4%. Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 17.6. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates TAH as Lighten (4) -
First half net profit was just below Ord Minnett's forecast. The broker notes the result was boosted by low quality drivers, while operating expenses as a proportion of revenue are rising as competition intensifies.
While the company has defensive cash flows and a consistent history of returning capital to shareholders, it is exposed to declining wagering yields and this is expected to remain a significant challenge.
The broker retains a Lighten rating and reduces the target to $4.20 from $4.25.
Target price is $4.20 Current Price is $4.50 Difference: minus $0.3 (current price is over target).
If TAH meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.65, suggesting upside of 3.8% (ex-dividends)
Forecast for FY17:
Current consensus EPS estimate is 23.0, implying annual growth of 12.7%. Current consensus DPS estimate is 24.8, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 19.5. |
Forecast for FY18:
Current consensus EPS estimate is 25.4, implying annual growth of 10.4%. Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 17.6. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates TAH as No Rating (-1) -
Operationally, the first half result was soft, with Tabcorp's $270m in EBITDA -2.5% below UBS forecast.
Wagering growth was negatively affected by a weak gaming backdrop and larger-than-expected declines in the parimutuel business. Nevertheless, the broker suspects there are several areas of upside in the second half.
UBS remains restricted on rating and price target.
Current Price is $4.50. Target price not assessed.
Current consensus price target is $4.65, suggesting upside of 3.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 24.50 cents and EPS of 23.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.0, implying annual growth of 12.7%. Current consensus DPS estimate is 24.8, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 19.5. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 26.00 cents and EPS of 24.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.4, implying annual growth of 10.4%. Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 17.6. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates TLS as Underperform (5) -
Credit Suisse considers the possibility of a reduction in the dividend is a key risk to the share price at the upcoming results, particularly given the company's large retail shareholder base.
The broker expects the first half dividend to be flat versus the prior corresponding half, at 15.5c. Underperform rating is unchanged. Target is $4.80.
Target price is $4.80 Current Price is $5.03 Difference: minus $0.23 (current price is over target).
If TLS 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 $5.04, suggesting downside of -0.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 31.00 cents and EPS of 33.92 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.2, implying annual growth of -27.8%. Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 14.9. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 31.00 cents and EPS of 36.74 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.7, implying annual growth of 4.4%. Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 14.2. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates VOC as Buy (1) -
Citi analysts stick to a positive outlook for Vocus, albeit with the admission that not much clarity might emerge until the second half performance of FY17 is being released.
The reasoning is that self-inflicted damage, as has been the case with Vocus, should be easier to fix than the margin pressure that is bugging Telstra ((TLS)) and TPG Telecom ((TPM)) elsewhere in the industry.
On this reasoning, Buy rating retained. Target $6.85.
Target price is $6.85 Current Price is $4.18 Difference: $2.67
If VOC meets the Citi target it will return approximately 64% (excluding dividends, fees and charges).
Current consensus price target is $5.95, suggesting upside of 45.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 20.00 cents and EPS of 36.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.3, implying annual growth of 81.9%. Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 11.9. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 23.00 cents and EPS of 38.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 38.4, implying annual growth of 12.0%. Current consensus DPS estimate is 20.1, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 10.6. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates VVR as Buy (1) -
Deutsche Bank notes the company has announced a distribution per unit of 5.28c for the part year that it will report, ahead of its prospectus forecast 5.09c.
The broker believes the variation is because of lower-than-expected interest charges. Buy retained. Target is reduced to $2.56 from $2.75.
Target price is $2.56 Current Price is $2.33 Difference: $0.23
If VVR meets the Deutsche Bank target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in December.
Forecast for FY16:
Deutsche Bank forecasts a full year FY16 dividend of 5.30 cents and EPS of 5.30 cents. |
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 14.00 cents and EPS of 14.00 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates WBC as Add (1) -
Morgans believes the bank sector is now fully valued following the post US election rally, however an easing in capital requirement expectations supports the broker's view dividends will remain robust.
Westpac is Morgans' preferred pick of the four. Target rises to $33.50 from $31.50, Add retained.
Target price is $33.50 Current Price is $32.01 Difference: $1.49
If WBC meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $32.73, suggesting upside of 2.4% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 189.00 cents and EPS of 249.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 236.0, implying annual growth of 0.2%. Current consensus DPS estimate is 186.3, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 13.5. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 191.00 cents and EPS of 262.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 242.8, implying annual growth of 2.9%. Current consensus DPS estimate is 181.3, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 13.2. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates WOW as Buy (1) -
UBS is becoming less negative on the Australian grocery market, as industry margins start to bottom while a more rational pricing backdrop is developing.
Woolworths is the major beneficiary of a revised sector view and this is why the broker has upgraded the stock to Buy from Sell, raising the price target to $27.30 from $19.10 (see our update yesterday).
While the market appears to be pricing an improved outlook for the company, UBS believes this is still subdued, creating scope for upside.
Target price is $27.30 Current Price is $25.29 Difference: $2.01
If WOW meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $24.31, suggesting downside of -4.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 76.00 cents and EPS of 113.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 112.0, implying annual growth of N/A. Current consensus DPS estimate is 78.1, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 22.7. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 89.00 cents and EPS of 134.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 123.9, implying annual growth of 10.6%. Current consensus DPS estimate is 85.1, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 20.5. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Summaries
| A2M - | THE A2 MILK CO | Sell - Citi | Overnight Price $2.20 |
| AMC - | AMCOR | Hold - Morgans | Overnight Price $14.09 |
| AMP - | AMP | Accumulate - Ord Minnett | Overnight Price $5.07 |
| ANZ - | ANZ BANKING GROUP | Overweight - Morgan Stanley | Overnight Price $29.39 |
| Hold - Morgans | Overnight Price $29.39 | ||
| BAL - | BELLAMY'S AUSTRALIA | Sell - Citi | Overnight Price $4.26 |
| BXB - | BRAMBLES | Upgrade to Add from Hold - Morgans | Overnight Price $10.22 |
| CBA - | COMMBANK | Downgrade to Hold from Add - Morgans | Overnight Price $82.01 |
| CHC - | CHARTER HALL | Outperform - Macquarie | Overnight Price $4.65 |
| CSL - | CSL | Outperform - Credit Suisse | Overnight Price $112.11 |
| DOW - | DOWNER EDI | Neutral - Citi | Overnight Price $7.07 |
| Underperform - Credit Suisse | Overnight Price $7.07 | ||
| Hold - Deutsche Bank | Overnight Price $7.07 | ||
| Outperform - Macquarie | Overnight Price $7.07 | ||
| Equal-weight - Morgan Stanley | Overnight Price $7.07 | ||
| DRM - | DORAY MINERALS | Neutral - Macquarie | Overnight Price $0.44 |
| EGS - | EASTERN GOLDFIELDS | Initiation of coverage with Add - Morgans | Overnight Price $0.38 |
| FND - | FINDERS RESOURCES | Add - Morgans | Overnight Price $0.18 |
| IAG - | INSURANCE AUSTRALIA | Hold - Deutsche Bank | Overnight Price $5.88 |
| ILU - | ILUKA RESOURCES | Overweight - Morgan Stanley | Overnight Price $7.28 |
| MTS - | METCASH | Sell - UBS | Overnight Price $2.13 |
| NAB - | NATIONAL AUSTRALIA BANK | Hold - Morgans | Overnight Price $30.40 |
| NHF - | NIB HOLDINGS | Downgrade to Accumulate from Buy - Ord Minnett | Overnight Price $4.59 |
| OGC - | OCEANAGOLD | Buy - Citi | Overnight Price $3.84 |
| Outperform - Credit Suisse | Overnight Price $3.84 | ||
| Sell - UBS | Overnight Price $3.84 | ||
| ORE - | OROCOBRE | Add - Morgans | Overnight Price $4.12 |
| PRY - | PRIMARY HEALTH CARE | Underperform - Credit Suisse | Overnight Price $3.74 |
| SUN - | SUNCORP | Upgrade to Buy from Hold - Deutsche Bank | Overnight Price $13.20 |
| TAH - | TABCORP HOLDINGS | Sell - Citi | Overnight Price $4.50 |
| Outperform - Credit Suisse | Overnight Price $4.50 | ||
| Hold - Deutsche Bank | Overnight Price $4.50 | ||
| No Rating - Macquarie | Overnight Price $4.50 | ||
| Lighten - Ord Minnett | Overnight Price $4.50 | ||
| No Rating - UBS | Overnight Price $4.50 | ||
| TLS - | TELSTRA CORP | Underperform - Credit Suisse | Overnight Price $5.03 |
| VOC - | VOCUS COMMUNICATIONS | Buy - Citi | Overnight Price $4.18 |
| VVR - | VIVA ENERGY REIT | Buy - Deutsche Bank | Overnight Price $2.33 |
| WBC - | WESTPAC BANKING | Add - Morgans | Overnight Price $32.01 |
| WOW - | WOOLWORTHS | Buy - UBS | Overnight Price $25.29 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 17 |
| 2. Accumulate | 2 |
| 3. Hold | 10 |
| 4. Reduce | 1 |
| 5. Sell | 8 |
Friday 03 February 2017
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