Australian Broker Call
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June 28, 2021
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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: 05:00 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
BLD - | Boral | Downgrade to Equal-weight from Overweight | Morgan Stanley |
EVN - | Evolution Mining | Downgrade to Underweight from Equal-weight | Morgan Stanley |
AGL AGL ENERGY LIMITED
Infrastructure & Utilities
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Overnight Price: $9.03
Ord Minnett rates AGL as Hold (3) -
Soft wholesale electricity prices throughout summer have tested Ord Minnett's conviction regarding long-term prices. The broker calculates prices would need to be $70-80/megawatt-hour across cycles to generate appropriate returns.
Summer was characterised by weaker demand because of mild weather and the pandemic as well as suppressed fuel costs and good generator availability.
While both AGL Energy and Origin Energy ((ORG)) offer leverage to rising electricity prices, the broker retains a preference for Origin Energy given the risk around AGL Energy's proposal to split its business and the implications for debt.
Hold rating and $8.80 target maintained.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $8.80 Current Price is $9.03 Difference: minus $0.23 (current price is over target).
If AGL meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $8.88, suggesting downside of -1.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 72.00 cents and EPS of 82.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 86.2, implying annual growth of -45.6%. Current consensus DPS estimate is 83.6, implying a prospective dividend yield of 9.3%. Current consensus EPS estimate suggests the PER is 10.4. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 78.00 cents and EPS of 77.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 61.8, implying annual growth of -28.3%. Current consensus DPS estimate is 62.3, implying a prospective dividend yield of 6.9%. Current consensus EPS estimate suggests the PER is 14.5. |
Market Sentiment: -0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ASB AUSTAL LIMITED
Commercial Services & Supplies
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Overnight Price: $2.06
Credit Suisse rates ASB as Outperform (1) -
Management has downgraded FY21 guidance amid pandemic-related restrictions and resource challenges as well as the ASIC proceedings.
Still recent contracts in the US enable Austal to demonstrate its capabilities and Credit Suisse believes these contracts provide evidence of the company's stance in the US defence market.
Credit Suisse cuts FY21 EBIT estimates by -7% to $116m, within the guidance range of $112-118m, because of risks to throughput across Australia and the Philippines. Outperform rating and $2.75 target maintained.
Target price is $2.75 Current Price is $2.06 Difference: $0.69
If ASB meets the Credit Suisse target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $2.80, suggesting upside of 35.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Credit Suisse forecasts a full year FY21 dividend of 8.25 cents and EPS of 22.97 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.4, implying annual growth of -10.3%. Current consensus DPS estimate is 8.4, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 9.2. |
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 12.13 cents and EPS of 24.14 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 20.3, implying annual growth of -9.4%. Current consensus DPS estimate is 9.4, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 10.1. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.76
Citi rates AX1 as Neutral (3) -
Citi highlights Nike's direct-to-consumer channel is now expected to contribute 60% of sales by FY25 which represents the medium-term risk to wholesale partners such as Accent Group.
Accent Group is seen mitigating the risk by increasing the penetration of licensed brands in its retail format, particularly Platypus, and investing in new verticals. Accent Group has previously indicated Nike represents just around 6% of group sales.
Neutral rating with a target price of $3.10.
Target price is $3.10 Current Price is $2.76 Difference: $0.34
If AX1 meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $2.92, suggesting upside of 6.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Citi forecasts a full year FY21 dividend of 12.00 cents and EPS of 13.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 13.9, implying annual growth of 34.8%. Current consensus DPS estimate is 12.6, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 19.8. |
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 12.50 cents and EPS of 14.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 14.8, implying annual growth of 6.5%. Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 18.6. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $7.34
Morgan Stanley rates BLD as Downgrade to Equal-weight from Overweight (3) -
Morgan Stanley commends Boral for its actions on the balance sheet and the sale of assets at attractive prices yet believes these are now reflected in the share price.
Boral has outperformed the ASX200 by 41% since January and the broker's building materials coverage by 18%. Capital management is now factored in, the analysts suggest.
Following the US divestments Boral will be a mature, Australia-focus construction materials operator. From here transformation benefits should boost earnings but outside of this future growth is less obvious to the broker.
Rating is downgraded to Equal-weight from Overweight. Target is $7.60. Industry view is in-line.
Target price is $7.60 Current Price is $7.34 Difference: $0.26
If BLD meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $6.82, suggesting downside of -7.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Morgan Stanley forecasts a full year FY21 dividend of 10.00 cents and EPS of 21.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 20.7, implying annual growth of N/A. Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 0.6%. Current consensus EPS estimate suggests the PER is 35.5. |
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 14.00 cents and EPS of 31.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.8, implying annual growth of 24.6%. Current consensus DPS estimate is 15.6, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 28.4. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $15.64
Citi rates CHC as Buy (1) -
Citi suggests further upside to FY21 guidance after Charter Hall reported funds under management will increase to $52bn as of June 30 2021.
The broker retains the stock as a top pick because of the strong operations and undemanding valuation and forecasts FY21 earnings per share of 58.7c.
Citi reiterates a Buy rating. The target is raised to $17.50 from $17.00.
Target price is $17.50 Current Price is $15.64 Difference: $1.86
If CHC meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $16.81, suggesting upside of 7.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Citi forecasts a full year FY21 dividend of 37.90 cents and EPS of 58.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 57.7, implying annual growth of -22.3%. Current consensus DPS estimate is 37.9, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 27.0. |
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 40.10 cents and EPS of 76.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 72.7, implying annual growth of 26.0%. Current consensus DPS estimate is 40.1, implying a prospective dividend yield of 2.6%. Current consensus EPS estimate suggests the PER is 21.5. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates CHC as Neutral (3) -
Credit Suisse revises earnings estimates upwards after Charter Hall announced funds under management have increased to $52bn. This reflects 12% growth over the June half.
Credit Suisse anticipates a flow-on benefit to FY22 forecasts from increased base management fees.
Guidance is for earnings per security of at least $0.57 and the broker would not be surprised if the actual outcome is higher. Neutral rating maintained. Target rises to $15.43 from $14.40.
Target price is $15.43 Current Price is $15.64 Difference: minus $0.21 (current price is over target).
If CHC meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $16.81, suggesting upside of 7.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Credit Suisse forecasts a full year FY21 dividend of 38.00 cents and EPS of 57.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 57.7, implying annual growth of -22.3%. Current consensus DPS estimate is 37.9, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 27.0. |
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 40.00 cents and EPS of 72.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 72.7, implying annual growth of 26.0%. Current consensus DPS estimate is 40.1, implying a prospective dividend yield of 2.6%. Current consensus EPS estimate suggests the PER is 21.5. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates CHC as Outperform (1) -
Charter Hall Group reported June-21 funds under management (FUM), which was $3bn ahead of Macquarie's estimate. Acquisitions and revaluations were also greater than expectations. The group announced positive revaluations of $3.3bn in the second half.
The broker now forecasts FY21 earnings (operating EPS) of 58.3cps, which is 2.2% ahead of guidance of at least 57cps. It's felt the increase in FUM bodes positively for upgrades to FY22 earnings.
The analyst lifts the target price to $17.42 from $16.12 to reflect higher funds management earnings, and an increase in net tangible assets (NTA) post the announced revaluations.
Target price is $17.42 Current Price is $15.64 Difference: $1.78
If CHC meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $16.81, suggesting upside of 7.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Macquarie forecasts a full year FY21 dividend of 37.90 cents and EPS of 58.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 57.7, implying annual growth of -22.3%. Current consensus DPS estimate is 37.9, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 27.0. |
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 40.10 cents and EPS of 80.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 72.7, implying annual growth of 26.0%. Current consensus DPS estimate is 40.1, implying a prospective dividend yield of 2.6%. Current consensus EPS estimate suggests the PER is 21.5. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates CHC as Buy (1) -
Charter Hall has announced funds under management of $52bn, ahead of UBS estimates. The broker revises up estimates for earnings per security by 2% for FY21 and by 5% for FY22.
No further update was provided on earnings for FY21, having upgraded guidance to $0.57 per security in May.
Guidance does not include any accrual for performance fees, and UBS assesses some performance fees in FY21 will be collected in FY22, so upside is possible. Buy rating maintained. Target rises to $17.00 from $16.10.
Target price is $17.00 Current Price is $15.64 Difference: $1.36
If CHC meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $16.81, suggesting upside of 7.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
UBS forecasts a full year FY21 dividend of 38.00 cents and EPS of 59.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 57.7, implying annual growth of -22.3%. Current consensus DPS estimate is 37.9, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 27.0. |
Forecast for FY22:
UBS forecasts a full year FY22 dividend of 40.00 cents and EPS of 67.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 72.7, implying annual growth of 26.0%. Current consensus DPS estimate is 40.1, implying a prospective dividend yield of 2.6%. Current consensus EPS estimate suggests the PER is 21.5. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
EHL EMECO HOLDINGS LIMITED
Mining Sector Contracting
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Overnight Price: $1.01
Macquarie rates EHL as Outperform (1) -
Emeco Holdings successfully priced $250m senior secured notes at 6.25%. The proceeds will fully repay the outstanding 9.25% March 2024 US notes and related hedges. Macquarie believes this reflects a strong medium-term outlook for the core equipment rental business.
The broker considers management's reconfirmed guidance for operating earnings (EBITDA) of $235-238m is positive, given some commissioning issues on PNP, flagged in April, 2021. The Outperform rating and $1.30 target are maintained.
Target price is $1.30 Current Price is $1.01 Difference: $0.29
If EHL meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY21:
Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of 10.80 cents. |
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of 15.40 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $4.69
Morgan Stanley rates EVN as Downgrade to Underweight from Equal-weight (5) -
The main opportunities are the expansion of Red Lake and Cowal underground and are now incorporated into Morgan Stanley's forecasts, which limits further earnings upside.
The broker expects substantial expansion at Red Lake despite the execution risks, with the project reflecting 34% of DCF value. Cowal is expected to reach its target of 350,000 ounces per annum by FY24 and reflects 42% of DCF value.
Rating is downgraded to Underweight from Equal-weight as Morgan Stanley believes there is better gold exposure elsewhere. Target is $4.30. Industry view: Attractive.
Target price is $4.30 Current Price is $4.69 Difference: minus $0.39 (current price is over target).
If EVN meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.59, suggesting upside of 1.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Morgan Stanley forecasts a full year FY21 dividend of 12.00 cents and EPS of 22.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.4, implying annual growth of 32.1%. Current consensus DPS estimate is 12.4, implying a prospective dividend yield of 2.7%. Current consensus EPS estimate suggests the PER is 19.4. |
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 7.00 cents and EPS of 19.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.7, implying annual growth of 1.3%. Current consensus DPS estimate is 10.8, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 19.2. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.14
Macquarie rates MPL as Neutral (3) -
In-line with the prior month, Macquarie estimates around 85 basis points (bps) of industry-margin expansion in the 2H21 versus 1H21, with every 50bps equating to 5-6% EPS impact for nib Holdings.
The broker concludes claims growth is around -20bps lower than the 4.7% experienced pre-covid, which is comfortably lower than provisions. It's therefore implied there will be sizeable releases over the coming 18 months.
With post-covid exposures of travel insurance, and international students and workers taking longer to rebound, Macquarie maintains a preference for Medibank Private over nib Holdings ((NHF)). The Neutral rating and $2.80 target are maintained.
Target price is $2.80 Current Price is $3.14 Difference: minus $0.34 (current price is over target).
If MPL meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.13, suggesting downside of -0.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Macquarie forecasts a full year FY21 dividend of 12.20 cents and EPS of 13.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 15.3, implying annual growth of 33.7%. Current consensus DPS estimate is 12.1, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 20.6. |
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 12.40 cents and EPS of 14.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 15.2, implying annual growth of -0.7%. Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 20.7. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $6.39
Macquarie rates NHF as Neutral (3) -
In-line with the prior month, Macquarie estimates around 85 basis points (bps) of industry-margin expansion in the 2H21 versus 1H21, with every 50bps equating to 5-6% EPS impact for nib Holdings.
The broker concludes claims growth is around 20bps lower than the 4.7% experienced pre-covid, which is comfortably lower than provisions. It's therefore implied there will be sizeable releases over the coming 18 months.
With post-covid exposures of travel insurance, and international students and workers taking longer to rebound, Macquarie maintains a preference for Medibank Private ((MPL)) over nib Holdings. The Neutral rating and $5.95 target are maintained.
Target price is $5.95 Current Price is $6.39 Difference: minus $0.44 (current price is over target).
If NHF meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $6.27, suggesting downside of -1.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Macquarie forecasts a full year FY21 dividend of 24.00 cents and EPS of 36.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.1, implying annual growth of 82.8%. Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 17.6. |
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 19.00 cents and EPS of 28.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.8, implying annual growth of -14.7%. Current consensus DPS estimate is 19.6, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 20.6. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $4.73
Ord Minnett rates ORG as Buy (1) -
Soft wholesale electricity prices throughout summer have tested Ord Minnett's conviction regarding long-term prices. The broker calculates prices would need to be $70-80/megawatt-hour across cycles to generate appropriate returns.
Summer was characterised by weaker demand because of mild weather and the pandemic as well as suppressed fuel costs and good generator availability.
While both AGL Energy ((AGL)) and Origin Energy offer leverage to rising electricity prices, the broker retains a preference for Origin Energy because of the amount of free cash flow as higher commodity prices are absorbed.
Buy rating and $5.75 target maintained.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $5.75 Current Price is $4.73 Difference: $1.02
If ORG meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $5.06, suggesting upside of 7.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 23.00 cents and EPS of 19.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.7, implying annual growth of 317.4%. Current consensus DPS estimate is 19.2, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 23.9. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 20.00 cents and EPS of 30.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.9, implying annual growth of 36.5%. Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 17.5. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
PTB PTB GROUP LIMITED
Industrial Sector Contractors & Engineers
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Overnight Price: $0.71
Morgans rates PTB as Add (1) -
Morgans thinks the $4.3m acquisition of United Turbine by PTB Group should drive faster near-term growth in the US business. The target is raised to $0.93 from $0.89. United Turbine provides maintenance, repair and overhaul (MRO) services on PT6 turboprop engines.
After cash outflows (including the acquisition, expected to close on 15 July) in FY22 of -$12.1m, the broker estimates there will be a comfortable $5m margin. However, cash reserves may be tight by FY23, unless the company can refinance significant amounts of debt.
Alternatively, profits from US operations may grow faster than the analyst forecasts, if there is an accelerated uptake of the engine management program. The Add rating is unchanged.
Target price is $0.93 Current Price is $0.71 Difference: $0.22
If PTB meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY21:
Morgans forecasts a full year FY21 dividend of 3.80 cents and EPS of 6.40 cents. |
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 2.40 cents and EPS of 5.90 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
SVW SEVEN GROUP HOLDINGS LIMITED
Diversified Financials
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Overnight Price: $20.30
Ord Minnett rates SVW as Accumulate (2) -
Seven Group has announced its "last and final" offer for the shares in Boral ((BLD)) it does not own. The base offer is still $6.50 while the company is now offering $7.30 a share subject to acceptances sufficient to increase its interest to 29.5%, or more.
Alternatively $7.40 a share is on offer, subject to acceptances sufficient to increase its interest in Boral to 34.5%, or more. Seven Group has declared that under no circumstances will it offer more than $7.40 a share. The offer closes on July 2.
Ord Minnett retains an Accumulate rating and $26.50 target for Seven Group.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $26.50 Current Price is $20.30 Difference: $6.2
If SVW meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $27.14, suggesting upside of 33.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 47.00 cents and EPS of 142.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 141.4, implying annual growth of 313.9%. Current consensus DPS estimate is 46.3, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 14.3. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 50.00 cents and EPS of 155.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 156.6, implying annual growth of 10.7%. Current consensus DPS estimate is 47.0, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 12.9. |
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
SXL SOUTHERN CROSS MEDIA GROUP LIMITED
Print, Radio & TV
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Overnight Price: $2.12
UBS rates SXL as Buy (1) -
Southern Cross Media has signed an affiliation agreement with the Ten Network in selected markets, which UBS believes will remove an overhang.
The agreement covers regional Queensland, southern NSW and regional Victoria for two years commencing July 1, 2021. As the overhang has now been removed and advertising markets are continuing to improve, the broker retains a Buy rating. Target is $2.50.
Target price is $2.50 Current Price is $2.12 Difference: $0.38
If SXL meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $2.00, suggesting downside of -3.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
UBS forecasts a full year FY21 dividend of 0.00 cents and EPS of 17.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 17.4, implying annual growth of -1.6%. Current consensus DPS estimate is 1.3, implying a prospective dividend yield of 0.6%. Current consensus EPS estimate suggests the PER is 11.9. |
Forecast for FY22:
UBS forecasts a full year FY22 dividend of 12.00 cents and EPS of 16.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 17.5, implying annual growth of 0.6%. Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 11.8. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WOW WOOLWORTHS GROUP LIMITED
Food, Beverages & Tobacco
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Overnight Price: $36.78
Macquarie rates WOW as Neutral (3) -
Macquarie re-forecasts for Woolworths to reflect the new operating structure after the divestment of Endeavour Group ((EDV)). The broker revises EPS estimates for FY21-FY23 by 0%, -20% and -17% and the price target drops to $38.40 from $44.50.
The broker notes the next likely catalyst will be full year results on 26 August, where management will likely update the market on the core business. Within Staples, the analyst prefers Coles Group ((COL)). The Neutral rating is retained.
Target price is $38.40 Current Price is $36.78 Difference: $1.62
If WOW meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $40.67, suggesting upside of 7.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Macquarie forecasts a full year FY21 dividend of 95.40 cents and EPS of 160.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 153.7, implying annual growth of 65.9%. Current consensus DPS estimate is 105.3, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 24.6. |
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 93.90 cents and EPS of 129.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 152.9, implying annual growth of -0.5%. Current consensus DPS estimate is 111.3, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 24.8. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Today's Price Target Changes
Company | Last Price | Broker | New Target | Prev Target | Change | |
CHC | Charter Hall | $15.60 | Citi | 17.50 | 14.75 | 18.64% |
Credit Suisse | 15.43 | 14.40 | 7.15% | |||
Macquarie | 17.42 | 16.12 | 8.06% | |||
UBS | 17.00 | 16.10 | 5.59% | |||
EVN | Evolution Mining | $4.54 | Morgan Stanley | 4.30 | 4.10 | 4.88% |
PTB | PTB | $0.73 | Morgans | 0.93 | 0.89 | 4.49% |
WOW | Woolworths | $37.85 | Macquarie | 38.40 | 44.50 | -13.71% |
Summaries
AGL | AGL Energy | Hold - Ord Minnett | Overnight Price $9.03 |
ASB | Austal | Outperform - Credit Suisse | Overnight Price $2.06 |
AX1 | Accent | Neutral - Citi | Overnight Price $2.76 |
BLD | Boral | Downgrade to Equal-weight from Overweight - Morgan Stanley | Overnight Price $7.34 |
CHC | Charter Hall | Buy - Citi | Overnight Price $15.64 |
Neutral - Credit Suisse | Overnight Price $15.64 | ||
Outperform - Macquarie | Overnight Price $15.64 | ||
Buy - UBS | Overnight Price $15.64 | ||
EHL | Emeco | Outperform - Macquarie | Overnight Price $1.01 |
EVN | Evolution Mining | Downgrade to Underweight from Equal-weight - Morgan Stanley | Overnight Price $4.69 |
MPL | Medibank Private | Neutral - Macquarie | Overnight Price $3.14 |
NHF | NIB | Neutral - Macquarie | Overnight Price $6.39 |
ORG | Origin Energy | Buy - Ord Minnett | Overnight Price $4.73 |
PTB | PTB | Add - Morgans | Overnight Price $0.71 |
SVW | Seven | Accumulate - Ord Minnett | Overnight Price $20.30 |
SXL | Southern Cross Media | Buy - UBS | Overnight Price $2.12 |
WOW | Woolworths | Neutral - Macquarie | Overnight Price $36.78 |
RATING SUMMARY
Rating | No. Of Recommendations |
1. Buy | 8 |
2. Accumulate | 1 |
3. Hold | 7 |
5. Sell | 1 |
Monday 28 June 2021
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