Australian Broker Call

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October 08, 2018

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COMPANIES DISCUSSED IN THIS ISSUE

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

Last Updated: 12:09 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
A2M - A2 MILK Upgrade to Neutral from Sell Citi
PGH - PACT GROUP Upgrade to Outperform from Neutral Credit Suisse
SXY - SENEX ENERGY Downgrade to Lighten from Accumulate Ord Minnett
WPL - WOODSIDE PETROLEUM Downgrade to Lighten from Hold Ord Minnett
A2M  THE A2 MILK COMPANY LIMITED

Dairy

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Overnight Price: $9.64

Citi rates A2M as Upgrade to Neutral from Sell (3) -

Citi had been expressing concerns around excess inventory in daigou channels and this underpinned its negative view. The analysts have now become more comfortable.

If there is any weakness on the horizon, and that still is a chance in Citi's view, it will likely prove temporary. Earnings estimates have been lifted.

Price target jumps by 8% to $10.40. Rating upgraded to Neutral from Sell.

Target price is $10.40 Current Price is $9.64 Difference: $0.76
If A2M meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $11.75, suggesting upside of 17.4% (ex-dividends)

Forecast for FY19:

Current consensus EPS estimate is 31.1, implying annual growth of N/A.

Current consensus DPS estimate is 6.8, implying a prospective dividend yield of 0.7%.

Current consensus EPS estimate suggests the PER is 32.2.

Forecast for FY20:

Current consensus EPS estimate is 39.7, implying annual growth of 27.7%.

Current consensus DPS estimate is 14.2, implying a prospective dividend yield of 1.4%.

Current consensus EPS estimate suggests the PER is 25.2.

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

Market Sentiment: 0.5

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

AQG  ALACER GOLD CORP

Gold & Silver

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Overnight Price: $2.46

Credit Suisse rates AQG as Outperform (1) -

Credit Suisse assumes September quarter production was entirely oxide, with any contribution for the commissioning of the sulphide operation being from oxide ore.

First sulphide production was initially expected in the September quarter but this has not been specifically mentioned, which suggests to the broker some minor slippage. The company still expects a sulphide contribution in the December quarter 2018.

Outperform and $5.30 target retained.

Target price is $5.30 Current Price is $2.46 Difference: $2.84
If AQG meets the Credit Suisse target it will return approximately 115% (excluding dividends, fees and charges).

Current consensus price target is $3.91, suggesting upside of 61.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Credit Suisse forecasts a full year FY18 dividend of 3.49 cents and EPS of 6.08 cents.
At the last closing share price the estimated dividend yield is 1.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.1, implying annual growth of N/A.

Current consensus DPS estimate is 1.3, implying a prospective dividend yield of 0.5%.

Current consensus EPS estimate suggests the PER is 115.7.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 21.31 cents and EPS of 52.37 cents.
At the last closing share price the estimated dividend yield is 8.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.0, implying annual growth of 1423.8%.

Current consensus DPS estimate is 8.4, implying a prospective dividend yield of 3.5%.

Current consensus EPS estimate suggests the PER is 7.6.

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


UBS rates AQG as Buy (1) -

The company has affirmed that 2018 production will be at the lower end of the guidance range of 160-230,000 ounces. While oxide production was below UBS estimates in the September quarter and ramp-up of the sulphide project remains a heightened risk because of technical difficulties, the stock has begun to re-rate.

The broker believes there is more potential for re-rating and the share price could move closer to its unrisked valuation of $4.39 a share, if the sulphide project is delivered as scheduled. Buy rating and $3.75 target maintained.

Target price is $3.75 Current Price is $2.46 Difference: $1.29
If AQG meets the UBS target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $3.91, suggesting upside of 61.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 13.17 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.1, implying annual growth of N/A.

Current consensus DPS estimate is 1.3, implying a prospective dividend yield of 0.5%.

Current consensus EPS estimate suggests the PER is 115.7.

Forecast for FY19:

UBS forecasts a full year FY19 dividend of 0.00 cents and EPS of 31.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.0, implying annual growth of 1423.8%.

Current consensus DPS estimate is 8.4, implying a prospective dividend yield of 3.5%.

Current consensus EPS estimate suggests the PER is 7.6.

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

BBN  BABY BUNTING GROUP LIMITED

Apparel & Footwear

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Overnight Price: $2.41

Morgans rates BBN as Add (1) -

Now that the disruption of industry consolidation has abated, the broker believes baby Bunting will emerge as the "category killer" and potentially increase market share to 20% from a current 12.6%. The natural maturity cycle of the store portfolio could increase margins to 14% by FY24 from a current 11%.

Analysis of of similar disruption periods in other retail segments suggest margins bounce back within two years, the broker notes. Add retained, target rises to $2.78 from $2.65.

Target price is $2.78 Current Price is $2.41 Difference: $0.37
If BBN meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.69, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 7.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 2.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.3, implying annual growth of 78.3%.

Current consensus DPS estimate is 8.0, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 20.4.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 10.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 4.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.3, implying annual growth of 24.4%.

Current consensus DPS estimate is 10.3, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 16.4.

Market Sentiment: 0.8

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

BPT  BEACH ENERGY LIMITED

Crude Oil

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Overnight Price: $2.11

Ord Minnett rates BPT as Hold (3) -

As expected, Beach Energy will sell down its Otway gas assets in Victoria, divesting a 40% stake to Ofer Global for $344m in cash. Ord Minnett notes estimated gearing has reduced to 13% by the end of the year while there is no change to the development profile for the asset.

The broker maintains a Hold rating and $2.10 target.

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

Target price is $2.10 Current Price is $2.11 Difference: minus $0.01 (current price is over target).
If BPT meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.74, suggesting downside of -13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 2.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 0.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.6, implying annual growth of 13.9%.

Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 1.0%.

Current consensus EPS estimate suggests the PER is 8.9.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 4.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 1.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.1, implying annual growth of -2.2%.

Current consensus DPS estimate is 2.8, implying a prospective dividend yield of 1.4%.

Current consensus EPS estimate suggests the PER is 9.1.

Market Sentiment: -0.2

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

CKF  COLLINS FOODS LIMITED

Food, Beverages & Tobacco

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Overnight Price: $6.45

Morgans rates CKF as Add (1) -

Collins Foods has announced a new deal with Yum! Brands to open Taco Bell outlets alongside stablemate KFC outlets, initially in Collins' core operating regions of Qld, Vic and WA. This provides the company with a medium term growth story, the broker notes, leveraging off existing back office services.

The stock has re-rated of late but is offering 12.6% compound annual earnings growth, Morgans forecasts, and risk is to the upside. Add retained, target rises to $6.84 from $5.97.

Target price is $6.84 Current Price is $6.45 Difference: $0.39
If CKF meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.48, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 20.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 3.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.0, implying annual growth of 41.4%.

Current consensus DPS estimate is 19.8, implying a prospective dividend yield of 3.0%.

Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 21.00 cents and EPS of 42.00 cents.
At the last closing share price the estimated dividend yield is 3.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.1, implying annual growth of 7.8%.

Current consensus DPS estimate is 21.6, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 15.1.

Market Sentiment: 1.0

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

EVN  EVOLUTION MINING LIMITED

Gold & Silver

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Overnight Price: $2.72

Credit Suisse rates EVN as Neutral (3) -

The Cowal mine in NSW has been granted regulatory approval to increase the processing rate to 9.8mtpa from 7.5mtpa.

FY19 guidance for 240-250,000 ounces assumed the lower throughput and, hence, this capacity addition adds modest upside, Credit Suisse observes. Neutral rating and $2.65 target maintained.

Target price is $2.65 Current Price is $2.72 Difference: minus $0.07 (current price is over target).
If EVN meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.99, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 9.00 cents and EPS of 14.61 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 18.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.6, implying annual growth of -6.2%.

Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 18.9.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 10.00 cents and EPS of 18.02 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.2, implying annual growth of 24.7%.

Current consensus DPS estimate is 9.4, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 15.2.

Market Sentiment: 0.4

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

HRL  HRL HOLDINGS LTD

Industrial Sector Contractors & Engineers

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Overnight Price: $0.19

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

HRL Holdings provides field sampling, lab testing and cloud-based data management and reporting solution services across a number of industries. For example, HRL is dominant in NZ's dairy and honey industries but services also extend through environmental (including asbestos) to geo-tech testing.

Such segments are supported by positive fundamentals, Morgans suggests, favourable regulation and a society's growing demand for safety assurances. The broker forecasts strong earnings growth, solid cash flow and impressive return on capital.  Coverage initiated with an Add rating and 22c target.

Target price is $0.22 Current Price is $0.19 Difference: $0.03
If HRL meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.75.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 0.00 cents and EPS of 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.27.

Market Sentiment: 1.0

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

IMD  IMDEX LIMITED

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Overnight Price: $1.30

UPDATED

Deutsche Bank rates IMD as Resume coverage with Buy (1) -

Deutsche Bank resumes coverage of Imdex with a Buy rating and $1.58 target. The broker believes a combination of higher prices and supply deficit would be a sweet spot for exploration-related stocks, particularly Imdex.

The company's volume and revenue has been increasing in a decreasing macro environment (exploration spend) driven by its own product investment and clients paying more for better product and services.

The broker believes the company can surpass $60m EBITDA by FY20 which would put the stock at around 7x EBITDA at current levels.

Target price is $1.58 Current Price is $1.30 Difference: $0.28
If IMD meets the Deutsche Bank target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Deutsche Bank forecasts a full year FY19 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.67.

Forecast for FY20:

Deutsche Bank forecasts a full year FY20 dividend of 4.00 cents and EPS of 8.00 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 16.25.

Market Sentiment: 1.0

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

NHC  NEW HOPE CORPORATION LIMITED

Coal

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Overnight Price: $3.99

Credit Suisse rates NHC as Neutral (3) -

Credit Suisse refreshes its calculations and incorporates the recent Bengalla transaction, the FY18 result and new coal price forecasts. The broker acknowledges stage 3 approvals remain the biggest upside and downside risk to the valuation.

Neutral rating maintained. Target is lifted to $4.10 from $2.25.

Target price is $4.10 Current Price is $3.99 Difference: $0.11
If NHC meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.75, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 12.00 cents and EPS of 44.39 cents.
At the last closing share price the estimated dividend yield is 3.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.7, implying annual growth of 170.6%.

Current consensus DPS estimate is 18.4, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 8.2.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 12.00 cents and EPS of 31.43 cents.
At the last closing share price the estimated dividend yield is 3.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.8, implying annual growth of -38.8%.

Current consensus DPS estimate is 13.6, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 13.5.

Market Sentiment: 0.0

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

NWH  NRW HOLDINGS LIMITED

Mining Sector Contracting

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Overnight Price: $2.09

Deutsche Bank rates NWH as Resume coverage with Hold (3) -

Deutsche Bank resumes coverage with a Hold rating and $2.00 price target. NRW is a different company than in the last iron ore boom, with better client, commodity and geographic diversity, and is also far less capital intensive, in the broker's opinion.

The broker estimates around $500m to $1bn worth of earthworks and civil works are in the pipeline for Fortescue ((FMG)) and Rio Tinto ((RIO)) and the company should win at least one of the two contracts.

Deutsche Bank estimates the company's revenue will peak in FY20/21 with consensus FY20 EPS forecast at 16cps.

Target price is $2.00 Current Price is $2.09 Difference: minus $0.09 (current price is over target).
If NWH meets the Deutsche Bank target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.08, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Deutsche Bank forecasts a full year FY19 dividend of 2.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 0.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.8, implying annual growth of 19.0%.

Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY20:

Deutsche Bank forecasts a full year FY20 dividend of 2.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 0.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.7, implying annual growth of 13.8%.

Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 2.0%.

Current consensus EPS estimate suggests the PER is 13.1.

Market Sentiment: 0.7

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

OFX  OZFOREX GROUP LIMITED

Diversified Financials

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Overnight Price: $2.32

Deutsche Bank rates OFX as Hold (3) -

The company's first half FX environment was not conducive to gaining new clients, Deutsche Bank observes, although this should be offset by the depreciation of the Australian dollar which will drive higher average transaction volumes. The broker believes the strategy of focusing on higher value corporate customers has been successful.

Nevertheless, some increased regulatory risks are envisaged as the ACCC has announced an inquiry into foreign exchange. Hold rating maintained. Target rises to $2.10 from $2.00.

Target price is $2.10 Current Price is $2.32 Difference: minus $0.22 (current price is over target).
If OFX meets the Deutsche Bank target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Market Sentiment: 0.0

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

ORG  ORIGIN ENERGY LIMITED

NatGas

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Overnight Price: $8.59

Ord Minnett rates ORG as Accumulate (2) -

Ord Minnett updates earnings estimates based on a review of the Brent crude forward price curve and its forecasts are now significantly above the market. The broker believes the sector is fully valued on an average price to net present value basis.

The broker's preferred stock is Origin Energy, based on its valuation and ongoing de-leveraging process. Accumulate rating maintained. Target is reduced to $9.25 from $9.30.

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

Target price is $9.25 Current Price is $8.59 Difference: $0.66
If ORG meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $9.24, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 25.00 cents and EPS of 60.00 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.5, implying annual growth of 337.1%.

Current consensus DPS estimate is 29.0, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 12.3.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 40.00 cents and EPS of 80.00 cents.
At the last closing share price the estimated dividend yield is 4.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 79.2, implying annual growth of 14.0%.

Current consensus DPS estimate is 38.3, implying a prospective dividend yield of 4.5%.

Current consensus EPS estimate suggests the PER is 10.8.

Market Sentiment: 0.4

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

PGH  PACT GROUP HOLDINGS LTD

Paper & Packaging

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Overnight Price: $3.56

Credit Suisse rates PGH as Upgrade to Outperform from Neutral (1) -

Credit Suisse considers the stock is now less expensive and upgrades to Outperform from Neutral. Acknowledging there are challenges, the broker lowers the target to $4.00 from $4.35 and downgrades estimates for earnings per share by -5-12% over the forecast period.

The company is currently seeking a new CEO and it remains possible the new one will not endorse the FY19 guidance issued in August. Credit Suisse is already forecasting earnings below company guidance of $270-285m.

Target price is $4.00 Current Price is $3.56 Difference: $0.44
If PGH meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.64, suggesting upside of 28.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 20.00 cents and EPS of 27.06 cents.
At the last closing share price the estimated dividend yield is 5.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.1, implying annual growth of 28.6%.

Current consensus DPS estimate is 22.5, implying a prospective dividend yield of 6.2%.

Current consensus EPS estimate suggests the PER is 12.0.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 18.00 cents and EPS of 28.16 cents.
At the last closing share price the estimated dividend yield is 5.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.1, implying annual growth of 6.6%.

Current consensus DPS estimate is 22.4, implying a prospective dividend yield of 6.2%.

Current consensus EPS estimate suggests the PER is 11.2.

Market Sentiment: 0.4

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

QAN  QANTAS AIRWAYS LIMITED

Transportation & Logistics

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Overnight Price: $5.66

Credit Suisse rates QAN as Outperform (1) -

At the company's first quarter trading update on October 25 Credit Suisse expects guidance for fuel costs in FY19 to rise to $4.04bn. The broker reduces FY19 estimates for pre-tax profit accordingly.

While the stock is down over -16% since the result was announced in August, and is at an attractive entry point, the broker suggests there is a risk from a further rally in Brent. Target is reduced to $6.70 from $7.40. Outperform rating maintained.

Target price is $6.70 Current Price is $5.66 Difference: $1.04
If QAN meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $6.60, suggesting upside of 19.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 20.00 cents and EPS of 58.21 cents.
At the last closing share price the estimated dividend yield is 3.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.7, implying annual growth of 6.6%.

Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 9.3.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 20.00 cents and EPS of 58.10 cents.
At the last closing share price the estimated dividend yield is 3.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.4, implying annual growth of 6.2%.

Current consensus DPS estimate is 27.7, implying a prospective dividend yield of 5.0%.

Current consensus EPS estimate suggests the PER is 8.7.

Market Sentiment: 0.3

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

RCR  RCR TOMLINSON LIMITED

Mining Sector Contracting

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Overnight Price: $1.02

Deutsche Bank rates RCR as Initiation of coverage with Hold (3) -

Deutsche Bank initiates coverage with a Hold rating and $1.10 price target. The broker notes that this is not the first, or likely the last, time a contractor has had a major project issue and often this presents a good opportunity for investors.

However, at the moment the broker prefers to sit on the sideline and monitor the business and wait for a better risk/reward entry point. Following a material earnings downgrade, equity raising and management change the broker expects the stock to continue to trade at distressed levels.

Target price is $1.10 Current Price is $1.02 Difference: $0.08
If RCR meets the Deutsche Bank target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.25, suggesting upside of 22.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Deutsche Bank forecasts a full year FY19 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.9, 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 9.4.

Forecast for FY20:

Deutsche Bank forecasts a full year FY20 dividend of 0.00 cents and EPS of 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.8, implying annual growth of 8.3%.

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

Current consensus EPS estimate suggests the PER is 8.6.

Market Sentiment: -0.3

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

SXY  SENEX ENERGY LIMITED

Crude Oil

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Overnight Price: $0.52

Ord Minnett rates SXY as Downgrade to Lighten from Accumulate (4) -

Ord Minnett updates earnings estimates based on a review of the Brent crude forward price curve and its forecasts are now significantly above the market. The broker believes the sector is fully valued on an average price to net present value basis.

Hence, Senex Energy is downgraded to Lighten from Accumulate. Brent crude prices have increased 15% to US$85/bbl since the broker's last update and the forward curve remains backwardated. Target is raised to $0.47 from $0.46.

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

Target price is $0.47 Current Price is $0.52 Difference: minus $0.05 (current price is over target).
If SXY meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.50, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.6, 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 31.3.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.0, implying annual growth of 87.5%.

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

Current consensus EPS estimate suggests the PER is 16.7.

Market Sentiment: 0.5

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

TAH  TABCORP HOLDINGS LIMITED

Gaming

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Overnight Price: $4.80

Credit Suisse rates TAH as Outperform (1) -

There is a general expectation, Credit Suisse observes, that price rises will eventuate as a result of the point of consumption tax, as bookmakers look to offset higher costs. Legislation has been passed by the Victorian state government and will be implemented from January 1, 2019. NSW is also expected to commence on January 1.

Based on Victorian fixed odds data, prices appear to have been moving higher and the broker anticipates the trend will continue through the introduction of the tax. Outperform rating and $5.15 target maintained.

Target price is $5.15 Current Price is $4.80 Difference: $0.35
If TAH meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.26, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 22.00 cents and EPS of 19.64 cents.
At the last closing share price the estimated dividend yield is 4.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.4, implying annual growth of 973.7%.

Current consensus DPS estimate is 22.3, implying a prospective dividend yield of 4.7%.

Current consensus EPS estimate suggests the PER is 23.3.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 24.00 cents and EPS of 21.42 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 22.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.8, implying annual growth of 11.8%.

Current consensus DPS estimate is 24.3, implying a prospective dividend yield of 5.1%.

Current consensus EPS estimate suggests the PER is 20.9.

Market Sentiment: 0.9

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

TWE  TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco

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Overnight Price: $17.85

Morgan Stanley rates TWE as Equal-weight (3) -

Morgan Stanley observes broad softness in the US wine market and disruption from distribution changes mean risks are growing to margin forecasts for Treasury Wine in FY19.

Nevertheless, the broker considers tightening grape supply a positive for the company given its relatively premium portfolio. Equal-weight rating and $20 target retained. Industry view: Cautious.

Target price is $20.00 Current Price is $17.85 Difference: $2.15
If TWE meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $18.32, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 46.70 cents and EPS of 66.00 cents.
At the last closing share price the estimated dividend yield is 2.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.0, implying annual growth of 28.8%.

Current consensus DPS estimate is 42.6, implying a prospective dividend yield of 2.4%.

Current consensus EPS estimate suggests the PER is 27.2.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 56.60 cents and EPS of 80.00 cents.
At the last closing share price the estimated dividend yield is 3.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.7, implying annual growth of 18.3%.

Current consensus DPS estimate is 50.7, implying a prospective dividend yield of 2.9%.

Current consensus EPS estimate suggests the PER is 23.0.

Market Sentiment: -0.1

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

VHT  VOLPARA HEALTH TECHNOLOGIES LIMITED

Medical Equipment & Devices

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Overnight Price: $1.18

Morgans rates VHT as Add (1) -

The regulator has provided Volpara with new clearance which will expand the scope of information that can be provided to clinicians. The broker notes this will provide for higher prices per screen to be charged, hence an increase in price assumptions from FY21.

This leads to a target price increase to $1.17 from 93c. Add retained.

Target price is $1.17 Current Price is $1.18 Difference: minus $0.01 (current price is over target).
If VHT meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in March.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 4.53 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.03.

Forecast for FY20:

Morgans forecasts a full year FY20 dividend of 0.00 cents and EPS of 2.22 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.20.

Market Sentiment: 1.0

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

WES  WESFARMERS LIMITED

Food, Beverages & Tobacco

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Overnight Price: $49.57

Citi rates WES as Sell (5) -

Wesfarmers has indicated that Coles will persevere with most of the strategies from previous management, Citi observes. The scheme booklet suggests that cash flow is not as strong as the broker expected and, combined with capital expenditure rising in FY19 and a stated 80-90% pay-out ratio, the scope to re-invest in service or price is considered limited.

The company has announced a partnership with Witron to build two automated distribution centres, although the broker notes little detail was provided other than the fact one would be in Queensland in 2022 and one in NSW in 2023. Citi maintains a Sell rating and $46.30 target.

Target price is $46.30 Current Price is $49.57 Difference: minus $3.27 (current price is over target).
If WES meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $48.25, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Citi forecasts a full year FY19 dividend of 232.00 cents and EPS of 262.00 cents.
At the last closing share price the estimated dividend yield is 4.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 274.9, implying annual growth of 159.7%.

Current consensus DPS estimate is 228.8, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.9.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 240.00 cents and EPS of 271.30 cents.
At the last closing share price the estimated dividend yield is 4.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 273.3, implying annual growth of -0.6%.

Current consensus DPS estimate is 236.0, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 18.0.

Market Sentiment: -0.3

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


Credit Suisse rates WES as Neutral (3) -

Credit Suisse found no surprises in the details on the Coles demerger. A shareholder vote will occur on November 15. First quarter sales data is scheduled for October 15 and is expected to show an acceleration in sales growth for Coles from the fourth quarter of FY18.

The next issue for Wesfarmers will be capital deployment. Credit Suisse believes the market underestimates the potential for returns in the high teens on investments within the existing industrials business. Neutral rating and $48.51 target maintained.

Target price is $48.51 Current Price is $49.57 Difference: minus $1.06 (current price is over target).
If WES meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $48.25, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Credit Suisse forecasts a full year FY19 dividend of 210.00 cents and EPS of 257.00 cents.
At the last closing share price the estimated dividend yield is 4.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 274.9, implying annual growth of 159.7%.

Current consensus DPS estimate is 228.8, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.9.

Forecast for FY20:

Credit Suisse forecasts a full year FY20 dividend of 217.00 cents and EPS of 265.00 cents.
At the last closing share price the estimated dividend yield is 4.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 273.3, implying annual growth of -0.6%.

Current consensus DPS estimate is 236.0, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 18.0.

Market Sentiment: -0.3

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


Deutsche Bank rates WES as Hold (3) -

In addition to segment disclosure in the Coles de-merger booklet,  Wesfarmers provided information regarding a plan to invest in two automated distribution centres.

Deutsche Bank suspects operating cash conversion for Coles is unlikely to be as strong as management previously indicated but there should be sufficient free cash to fund the dividend.

The broker also suspects that the newfound sales momentum at Coles could be short lived. Hold rating. Target is $48.

Target price is $48.00 Current Price is $49.57 Difference: minus $1.57 (current price is over target).
If WES 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 $48.25, suggesting downside of -2.0% (ex-dividends)

Forecast for FY19:

Current consensus EPS estimate is 274.9, implying annual growth of 159.7%.

Current consensus DPS estimate is 228.8, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.9.

Forecast for FY20:

Current consensus EPS estimate is 273.3, implying annual growth of -0.6%.

Current consensus DPS estimate is 236.0, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 18.0.

Market Sentiment: -0.3

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


Macquarie rates WES as No Rating (-1) -

Wesfarmers has released its scheme booklet as part of the Coles de-merger. The vote is scheduled on November 15. Wesfarmers will focus subsequently on businesses which have higher future earnings growth prospects and expects to retain the flexibility to invest in opportunities to create value when such arise.

Meanwhile, Coles has entered into a agreement with Witron to develop two new automated distribution centres over the next five years. Capital expenditure in FY19 associated with this project is included in Coles capital expenditure guidance of $600-800m.

Macquarie remains under research restrictions and cannot offer a rating or target.

Current Price is $49.57. Target price not assessed.

Current consensus price target is $48.25, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 244.30 cents and EPS of 271.40 cents.
At the last closing share price the estimated dividend yield is 4.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 274.9, implying annual growth of 159.7%.

Current consensus DPS estimate is 228.8, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.9.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 252.90 cents and EPS of 281.00 cents.
At the last closing share price the estimated dividend yield is 5.10%.
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 273.3, implying annual growth of -0.6%.

Current consensus DPS estimate is 236.0, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 18.0.

Market Sentiment: -0.3

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


Morgan Stanley rates WES as Underweight (5) -

Wesfarmers has indicated that Coles will be allocated $28m in costs that previously sat with Wesfarmers. The de-merger scheme booklet indicates Coles will build two automated distribution centres over the coming five years and recognise provisions of $130-150m relating to redundancies and lease exits.

Morgan Stanley finds little has changed regarding the existing strategy, with the company intent on maintaining a competitive price position amid fewer deep promotions and more private-label offerings. Underweight rating, $45 target and Cautious industry view maintained.

Target price is $45.00 Current Price is $49.57 Difference: minus $4.57 (current price is over target).
If WES meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $48.25, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 229.00 cents and EPS of 263.00 cents.
At the last closing share price the estimated dividend yield is 4.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 274.9, implying annual growth of 159.7%.

Current consensus DPS estimate is 228.8, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.9.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 235.00 cents and EPS of 257.00 cents.
At the last closing share price the estimated dividend yield is 4.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 273.3, implying annual growth of -0.6%.

Current consensus DPS estimate is 236.0, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 18.0.

Market Sentiment: -0.3

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


Ord Minnett rates WES as Hold (3) -

Wesfarmers has released the Coles scheme booklet ahead of the shareholder vote on November 15. Ord Minnett is pleased by the investment in the supply chain yet notes the disclosure on capital expenditure is limited.

On the broker's analysis, Coles could fund growth capital expenditure of up to $1bn and still reduce debt. The broker maintains a Hold rating and $50 target price.

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

Target price is $50.00 Current Price is $49.57 Difference: $0.43
If WES meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $48.25, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 230.00 cents and EPS of 346.00 cents.
At the last closing share price the estimated dividend yield is 4.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 274.9, implying annual growth of 159.7%.

Current consensus DPS estimate is 228.8, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 17.9.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 240.00 cents and EPS of 294.00 cents.
At the last closing share price the estimated dividend yield is 4.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 273.3, implying annual growth of -0.6%.

Current consensus DPS estimate is 236.0, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 18.0.

Market Sentiment: -0.3

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

WOR  WORLEYPARSONS LIMITED

Energy Sector Contracting

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Overnight Price: $20.41

Ord Minnett rates WOR as Buy (1) -

Ord Minnett updates earnings estimates based on a review of the Brent crude forward price curve and its forecasts are now significantly above the market. The broker believes the sector is fully valued on an average price to net present value basis.

WorleyParsons remains one of the broker's preferred stocks for its exposure to longer-term improvement in the capital expenditure cycle. Buy rating maintained. Target is raised to $22.50 from $19.40.

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

Target price is $22.50 Current Price is $20.41 Difference: $2.09
If WOR meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $18.88, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 39.00 cents and EPS of 81.00 cents.
At the last closing share price the estimated dividend yield is 1.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.0, implying annual growth of 243.3%.

Current consensus DPS estimate is 39.1, implying a prospective dividend yield of 2.0%.

Current consensus EPS estimate suggests the PER is 24.9.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 54.00 cents and EPS of 92.00 cents.
At the last closing share price the estimated dividend yield is 2.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 94.1, implying annual growth of 17.6%.

Current consensus DPS estimate is 53.2, implying a prospective dividend yield of 2.7%.

Current consensus EPS estimate suggests the PER is 21.2.

Market Sentiment: 0.3

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

WPL  WOODSIDE PETROLEUM LIMITED

NatGas

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Overnight Price: $39.00

Ord Minnett rates WPL as Downgrade to Lighten from Hold (4) -

Ord Minnett updates earnings estimates based on a review of the Brent crude forward price curve and its forecasts are now significantly above the market.

The broker believes the sector is fully valued on an average price to net present value basis. Hence, Woodside is downgraded to Lighten from Hold. The broker's new Brent price estimates average US$75/bbl in 2018 and US$80/bbl in 2019. Target is raised to $37.00 from $34.50.

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

Target price is $37.00 Current Price is $39.00 Difference: minus $2 (current price is over target).
If WPL meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.04, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Ord Minnett forecasts a full year FY18 dividend of 153.33 cents and EPS of 180.61 cents.
At the last closing share price the estimated dividend yield is 3.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 213.8, implying annual growth of N/A.

Current consensus DPS estimate is 176.7, implying a prospective dividend yield of 4.6%.

Current consensus EPS estimate suggests the PER is 18.1.

Forecast for FY19:

Ord Minnett forecasts a full year FY19 dividend of 181.91 cents and EPS of 228.69 cents.
At the last closing share price the estimated dividend yield is 4.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 269.2, implying annual growth of 25.9%.

Current consensus DPS estimate is 211.8, implying a prospective dividend yield of 5.5%.

Current consensus EPS estimate suggests the PER is 14.4.

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

Market Sentiment: 0.1

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

Today's Price Target Changes
Company Broker New Target Prev Target Change
A2M A2 MILK Citi 10.40 9.65 7.77%
BBN BABY BUNTING Morgans 2.78 2.65 4.91%
CKF COLLINS FOODS Morgans 6.84 5.97 14.57%
IMD IMDEX Deutsche Bank 1.58 0.70 125.71%
NHC NEW HOPE CORP Credit Suisse 4.10 2.25 82.22%
NWH NRW HOLDINGS Deutsche Bank 2.00 0.15 1233.33%
OFX OZFOREX GROUP Deutsche Bank 2.10 2.00 5.00%
ORG ORIGIN ENERGY Ord Minnett 9.25 9.30 -0.54%
OSH OIL SEARCH Ord Minnett 9.10 8.80 3.41%
PGH PACT GROUP Credit Suisse 4.00 4.35 -8.05%
QAN QANTAS AIRWAYS Credit Suisse 6.70 7.40 -9.46%
STO SANTOS Ord Minnett 7.35 7.20 2.08%
SXY SENEX ENERGY Ord Minnett 0.47 0.46 2.17%
VHT VOLPARA HEALTH TECHNOLOGIES Morgans 1.17 0.93 25.81%
WOR WORLEYPARSONS Ord Minnett 22.50 19.40 15.98%
WPL WOODSIDE PETROLEUM Ord Minnett 37.00 34.50 7.25%
Summaries
A2M A2 MILK Upgrade to Neutral from Sell - Citi Overnight Price $9.64
AQG ALACER GOLD Outperform - Credit Suisse Overnight Price $2.46
Buy - UBS Overnight Price $2.46
BBN BABY BUNTING Add - Morgans Overnight Price $2.41
BPT BEACH ENERGY Hold - Ord Minnett Overnight Price $2.11
CKF COLLINS FOODS Add - Morgans Overnight Price $6.45
EVN EVOLUTION MINING Neutral - Credit Suisse Overnight Price $2.72
HRL HRL HOLDINGS Initiation of coverage with Add - Morgans Overnight Price $0.19
IMD IMDEX Resume coverage with Buy - Deutsche Bank Overnight Price $1.30
NHC NEW HOPE CORP Neutral - Credit Suisse Overnight Price $3.99
NWH NRW HOLDINGS Resume coverage with Hold - Deutsche Bank Overnight Price $2.09
OFX OZFOREX GROUP Hold - Deutsche Bank Overnight Price $2.32
ORG ORIGIN ENERGY Accumulate - Ord Minnett Overnight Price $8.59
PGH PACT GROUP Upgrade to Outperform from Neutral - Credit Suisse Overnight Price $3.56
QAN QANTAS AIRWAYS Outperform - Credit Suisse Overnight Price $5.66
RCR RCR TOMLINSON Initiation of coverage with Hold - Deutsche Bank Overnight Price $1.02
SXY SENEX ENERGY Downgrade to Lighten from Accumulate - Ord Minnett Overnight Price $0.52
TAH TABCORP HOLDINGS Outperform - Credit Suisse Overnight Price $4.80
TWE TREASURY WINE ESTATES Equal-weight - Morgan Stanley Overnight Price $17.85
VHT VOLPARA HEALTH TECHNOLOGIES Add - Morgans Overnight Price $1.18
WES WESFARMERS Sell - Citi Overnight Price $49.57
Neutral - Credit Suisse Overnight Price $49.57
Hold - Deutsche Bank Overnight Price $49.57
No Rating - Macquarie Overnight Price $49.57
Underweight - Morgan Stanley Overnight Price $49.57
Hold - Ord Minnett Overnight Price $49.57
WOR WORLEYPARSONS Buy - Ord Minnett Overnight Price $20.41
WPL WOODSIDE PETROLEUM Downgrade to Lighten from Hold - Ord Minnett Overnight Price $39.00
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

11

2. Accumulate

1

3. Hold

11

4. Reduce

2

5. Sell

2

Monday 08 October 2018

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