Australian Broker Call
September 11, 2017
Access Broker Call Report Archives here
COMPANIES DISCUSSED IN THIS ISSUE
Click on symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
Last Updated: 10:18 AM
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
| BRG - | BREVILLE GROUP | Downgrade to Hold from Accumulate | Ord Minnett |
Deutsche Bank rates AMC as Buy (1) -
The Bemis share price has rallied 10% on press reports Amcor is exploring the potential acquisition. Deutsche Bank notes Amcor has simply stated it is continually reviewing opportunities to improve shareholder value.
The broker believes acquiring Bemis will be strategically sound and consistent with a strategy of increasing Amcor's share of the North American flexibles market.
Buy rating retained. Target is $17.90.
Target price is $17.90 Current Price is $15.40 Difference: $2.5
If AMC meets the Deutsche Bank target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $16.29, suggesting upside of 5.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 63.19 cents and EPS of 90.84 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 84.7, implying annual growth of N/A. Current consensus DPS estimate is 59.8, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 18.2. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 72.41 cents and EPS of 101.37 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 91.5, implying annual growth of 8.0%. Current consensus DPS estimate is 65.1, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 16.8. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates AMC as Outperform (1) -
The company has noted press speculation regarding the potential acquisition of Bemis, stating it regularly reviews opportunities.
An acquisition makes sense to Macquarie as Bemis is the biggest player in US flexibles and the company intends to increase its market share is this segment.
This is a large acquisition and if a deal eventuated it would require a large equity raising, the broker notes.
Target is $17.49. Outperform.
Target price is $17.49 Current Price is $15.40 Difference: $2.09
If AMC meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $16.29, suggesting upside of 5.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 63.06 cents and EPS of 88.47 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 84.7, implying annual growth of N/A. Current consensus DPS estimate is 59.8, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 18.2. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 67.93 cents and EPS of 95.18 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 91.5, implying annual growth of 8.0%. Current consensus DPS estimate is 65.1, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 16.8. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates BHP as Neutral (3) -
Further analysis of the potential sale of BHP’s onshore assets could add up to $10 to Citi's Net Present Value, report Citi analysts this morning. Underpinning this scenario is the belief that BHP will generate higher cash flow without the US onshore business.
Citi's calculations suggest BHP can generate an additional US$1.6bn from the onshore business, with the extra cash then be used for debt servicing plus an additional buyback.
Neutral rating retained, as well as the $26 price target. Citi prefers Rio Tinto ((RIO)) and Glencore in the sector.
Target price is $26.00 Current Price is $27.26 Difference: minus $1.26 (current price is over target).
If BHP meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $28.36, suggesting upside of 4.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 106.64 cents and EPS of 176.67 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 154.5, implying annual growth of N/A. Current consensus DPS estimate is 94.7, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 17.6. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 79.18 cents and EPS of 130.91 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 144.9, implying annual growth of -6.2%. Current consensus DPS estimate is 91.6, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 18.8. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates BRG as Downgrade to Hold from Accumulate (3) -
Ord Minnett suggests the improved earnings outlook is increasingly reflected in the share price. On that basis, the broker downgrades to Hold from Accumulate and lowers the target to $11.00 from $11.50.
The broker remains upbeat on the prospects for earnings growth, noting some prospect of a working capital release, although offset by increasing capital expenditure.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $11.00 Current Price is $10.53 Difference: $0.47
If BRG meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $10.89, suggesting upside of 3.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 34.00 cents and EPS of 46.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 45.5, implying annual growth of 9.9%. Current consensus DPS estimate is 33.0, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 23.1. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 39.00 cents and EPS of 53.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 51.0, implying annual growth of 12.1%. Current consensus DPS estimate is 37.1, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 20.6. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates CBA as Neutral (3) -
Credit Suisse downgrades FY18-19 estimates by -1% to incorporate additional operating costs associated with addressing the AUSTRAC allegations.
The broker envisages downside risk to the share price in the near-term as the stock is overshadowed by uncertainties and previous price/earnings benchmarks are now unreliable. Neutral retained. Target is reduced to $75 from $80.
Target price is $75.00 Current Price is $73.45 Difference: $1.551
If CBA meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $78.85, suggesting upside of 7.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 435.00 cents and EPS of 583.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 575.1, implying annual growth of -0.4%. Current consensus DPS estimate is 433.5, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 12.8. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 457.00 cents and EPS of 605.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 579.4, implying annual growth of 0.7%. Current consensus DPS estimate is 444.7, implying a prospective dividend yield of 6.1%. Current consensus EPS estimate suggests the PER is 12.7. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates CGF as Underweight (5) -
Morgan Stanley suggests bullish expectations around the MyRetirement growth opportunity underpin the stock's high multiple and suspects opt-in rates, asset allocations and the contestable market will probably disappoint.
Limitations on the contestable market dampen the growth opportunity, in the broker's opinion.
Underweight. Target is $11.50. Industry view: In-line.
Target price is $11.50 Current Price is $12.25 Difference: minus $0.745 (current price is over target).
If CGF meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $11.98, suggesting downside of -2.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 39.70 cents and EPS of 66.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 66.7, implying annual growth of -5.7%. Current consensus DPS estimate is 35.4, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 18.4. |
Forecast for FY19:
Current consensus EPS estimate is 72.5, implying annual growth of 8.7%. Current consensus DPS estimate is 37.9, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 16.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates CTD as Overweight (1) -
While acknowledging the headwinds from a stronger Australian dollar, Morgan Stanley is confident in an upgrade to guidance in FY18 as the company's trading multiple, admittedly demanding at times, has de-rated.
The broker notes the exceptional operating leverage and under-stated momentum. The company also has a track record of delivering earnings upgrades.
Morgan Stanley retains an Overweight rating, In-Line industry view and $24.00 target.
Target price is $24.00 Current Price is $21.54 Difference: $2.46
If CTD meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $22.53, suggesting upside of 4.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 34.00 cents and EPS of 84.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 76.0, implying annual growth of 42.1%. Current consensus DPS estimate is 36.9, implying a prospective dividend yield of 1.7%. Current consensus EPS estimate suggests the PER is 28.3. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 47.00 cents and EPS of 95.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 86.9, implying annual growth of 14.3%. Current consensus DPS estimate is 46.1, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 24.8. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates MYR as Buy (1) -
The company is scheduled to report FY17 financials on Thursday and Citi's forecast is for core NPAT of $67m compared to guidance of $66-70m, plus FY17 DPS of 6cps.
The analysts are looking for 4Q LFL sales growth of -3.6%, 160bps less than the sales reported for 3Q17. In addition, they also expect to see Gross margins decline -41bps to 38.3% reflecting a shift towards the lower margin concession sales.
Given the above, and a general sense of a grim outlook, it should be no surprise Citi analysts find it difficult to get excited about MYR. The only upside would be from corporate activity, but Citi doesn't think here's a value proposition for Premier Investment ((PMV)) waiting to be snapped up.
Nevertheless, Buy rating retained.
Target price is $0.95 Current Price is $0.74 Difference: $0.215
If MYR meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $0.84, suggesting upside of 14.3% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 6.00 cents and EPS of 8.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.1, implying annual growth of -7.8%. Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 6.9%. Current consensus EPS estimate suggests the PER is 10.4. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 6.50 cents and EPS of 7.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.6, implying annual growth of 7.0%. Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 9.7. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates MYR as Hold (3) -
Deutsche Bank expects a -12 basis points decline in EBIT margin in FY17. FY17 guidance implies an earnings decline of up to -5% but the broker suggests the composition will be interesting.
Deutsche Bank expects a sharp sales decline with some offset from gross margin and lower costs. Hold rating and $0.80 target maintained.
Target price is $0.80 Current Price is $0.74 Difference: $0.065
If MYR meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $0.84, suggesting upside of 14.3% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 4.00 cents and EPS of 8.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.1, implying annual growth of -7.8%. Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 6.9%. Current consensus EPS estimate suggests the PER is 10.4. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 5.00 cents and EPS of 8.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.6, implying annual growth of 7.0%. Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 9.7. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates MYR as Lighten (4) -
Ord Minnett forecasts an FY17 underlying net profit of $68.8m, down -0.6% on FY16. The broker believes the consumer environment is challenged, and execution of the company strategy is proving insufficient to drive sales and earnings growth.
Lighten rating retained. Target is $1.30.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $1.30 Current Price is $0.74 Difference: $0.565
If MYR meets the Ord Minnett target it will return approximately 77% (excluding dividends, fees and charges).
Current consensus price target is $0.84, suggesting upside of 14.3% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 5.00 cents and EPS of 1.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.1, implying annual growth of -7.8%. Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 6.9%. Current consensus EPS estimate suggests the PER is 10.4. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 5.00 cents and EPS of 5.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.6, implying annual growth of 7.0%. Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 9.7. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates ORE as Add (1) -
Morgans observes Olaroz operated profitably even though it was below 70% of design throughout FY17. The long ramp up has reduced the broker's valuation. Target is reduced to $5.11 from $5.21.
The proposed expansion of Olaroz and construction of the lithium hydroxide plant can be funded from cash flow and conventional debt within the timeframe modelled, the broker suggests, contributing from 2020. Add retained.
Target price is $5.11 Current Price is $4.09 Difference: $1.02
If ORE meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $4.16, suggesting upside of 1.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of 29.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 15.0, implying annual growth of 581.8%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 27.3. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of 42.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.3, implying annual growth of 28.7%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. 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
Macquarie rates PTM as Underperform (5) -
Inflows of around $100m in August and a material outperformance for the international fund are not sufficient to justify the current valuation, in Macquarie's view.
The broker acknowledges the risk to its view is a sustained turn around and an acceleration in inflows.
Underperform retained. Target rises to $4.56 from $4.25.
Target price is $4.56 Current Price is $6.00 Difference: minus $1.435 (current price is over target).
If PTM meets the Macquarie target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.48, suggesting downside of -25.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 27.00 cents and EPS of 27.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.1, implying annual growth of -11.5%. Current consensus DPS estimate is 27.1, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 21.3. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 26.00 cents and EPS of 27.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 27.7, implying annual growth of -1.4%. Current consensus DPS estimate is 26.4, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 21.6. |
Market Sentiment: -1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates RRL as Neutral (3) -
The company has produced a maiden reserve for McPhillamys. First gold is targeted for December 2019. The project will provide operating and geographical diversity, in Credit Suisse's view, at a time when peers are struggling to sustain production.
Neutral maintained. Target is $3.70.
Target price is $3.70 Current Price is $4.32 Difference: minus $0.62 (current price is over target).
If RRL meets the Credit Suisse target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.58, suggesting downside of -17.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 21.59 cents and EPS of 35.98 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.8, implying annual growth of 15.3%. Current consensus DPS estimate is 17.9, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 13.6. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 24.34 cents and EPS of 40.57 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 37.2, implying annual growth of 17.0%. Current consensus DPS estimate is 21.6, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 11.6. |
Market Sentiment: -0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates RRL as Underperform (5) -
The company has released a maiden reserve and pre-feasibility study for the McPhillamys project. Macquarie suggests the project is robust, with low capital expenditure and competitive costs, although the strip ratio is high and the grade relatively low in the early years.
McPhillamys adds significant value to the company but on the broker's forecasts this is already captured in the share price.
Rating is Underperform. Target is raised to $4.00 from $3.40.
Target price is $4.00 Current Price is $4.32 Difference: minus $0.32 (current price is over target).
If RRL 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 $3.58, suggesting downside of -17.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 21.00 cents and EPS of 35.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.8, implying annual growth of 15.3%. Current consensus DPS estimate is 17.9, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 13.6. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 27.00 cents and EPS of 46.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 37.2, implying annual growth of 17.0%. Current consensus DPS estimate is 21.6, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 11.6. |
Market Sentiment: -0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates RRL as Sell (5) -
The company has delivered a pre-feasibility study for the McPhillamys project. This is in line with expectations and UBS suggests the project is meaningful, lifting group production by 45% to 500,000 ounces per annum from FY20.
Production is weighted to the back end of the mine life as grade increases with depth. UBS notes the company continues to tick the right boxes but this is driving a premium valuation.
UBS continues to find better value elsewhere and retains a Sell rating. Nevertheless, if McPhillamys grows or gold prices rally further this could change. Target is raised to $3.38 from $3.16.
Target price is $3.38 Current Price is $4.32 Difference: minus $0.94 (current price is over target).
If RRL meets the UBS target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.58, suggesting downside of -17.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 19.00 cents and EPS of 33.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.8, implying annual growth of 15.3%. Current consensus DPS estimate is 17.9, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 13.6. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 22.00 cents and EPS of 36.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 37.2, implying annual growth of 17.0%. Current consensus DPS estimate is 21.6, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 11.6. |
Market Sentiment: -0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates SYR as Outperform (1) -
BTR has confirmed the first year of offtake from Balama for 30,000t of flake graphite.
Credit Suisse observes graphite prices are now rising, reflecting production cut-backs in China which is taking action to stem environmentally unsustainable operations.
Target is $7.45. Outperform retained.
Target price is $7.45 Current Price is $3.45 Difference: $4
If SYR meets the Credit Suisse target it will return approximately 116% (excluding dividends, fees and charges).
Current consensus price target is $4.67, suggesting upside of 35.4% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 10.25 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -9.0, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 0.00 cents and EPS of 20.64 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.1, 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 67.6. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates SYR as Buy (1) -
The company has signed an offtake agreement with BTR New Energy Materials for 30,000t from Balama over the first year. The company now has seven initial offtake agreements in place for approximately 170,000t.
This latest agreement, Deutsche Bank observes, represents the most significant volume of material placed into the Chinese battery anode market to date.
Buy retained. Target is $5.70.
Target price is $5.70 Current Price is $3.45 Difference: $2.25
If SYR meets the Deutsche Bank target it will return approximately 65% (excluding dividends, fees and charges).
Current consensus price target is $4.67, suggesting upside of 35.4% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 11.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -9.0, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 0.00 cents and EPS of 12.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.1, 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 67.6. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates SYR as Equal-weight (3) -
The company has converted its Memorandum of Understanding into a binding sales agreement with BTR for 30,000 tonnes of flake graphite. Pricing details remain confidential.
Morgan Stanley suspects the possibility that the sales agreement could have been achieved by granting significant discounts to current prices for flake graphite.
Equal-weight retained. Target is $2.90. Industry view is Attractive.
Target price is $2.90 Current Price is $3.45 Difference: minus $0.55 (current price is over target).
If SYR meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.67, suggesting upside of 35.4% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 14.55 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -9.0, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 0.00 cents and EPS of 1.32 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.1, 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 67.6. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates SYR as Buy (1) -
The company has a binding sales agreement with BTR for 30,000t of graphite from Balama. UBS considers the agreement strategically important as it is the first binding agreement with a battery anode manufacturer.
UBS retains a Buy rating and $3.80 target.
Target price is $3.80 Current Price is $3.45 Difference: $0.35
If SYR meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $4.67, suggesting upside of 35.4% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 1.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -9.0, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 0.00 cents and EPS of 3.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.1, 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 67.6. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates TPM as Neutral (3) -
The company has guided to FY17 EBITDA of $820-830m, implying a first half skew to earnings. This is a deviation from the usual skew to the second half. The company has attributed this to higher NBN migration and marketing costs.
UBS estimates the company's market share could have fallen by -1% over the last 12 months and also notes the acceleration of the NBN roll-out will result in lower consumer margins and higher one-off costs to connect customers to the NBN. There will also be further pressure on iiNet voice revenues.
UBS retains a Neutral rating and lowers the target to $5.75 from $6.00.
Target price is $5.75 Current Price is $5.34 Difference: $0.41
If TPM meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $6.60, suggesting upside of 23.7% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 15.00 cents and EPS of 48.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 46.8, implying annual growth of 19.1%. Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 11.4. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 12.00 cents and EPS of 39.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 38.6, implying annual growth of -17.5%. Current consensus DPS estimate is 13.8, implying a prospective dividend yield of 2.6%. Current consensus EPS estimate suggests the PER is 13.8. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Summaries
| AMC - | AMCOR | Buy - Deutsche Bank | Overnight Price $15.40 |
| Outperform - Macquarie | Overnight Price $15.40 | ||
| BHP - | BHP BILLITON | Neutral - Citi | Overnight Price $27.26 |
| BRG - | BREVILLE GROUP | Downgrade to Hold from Accumulate - Ord Minnett | Overnight Price $10.53 |
| CBA - | COMMBANK | Neutral - Credit Suisse | Overnight Price $73.45 |
| CGF - | CHALLENGER | Underweight - Morgan Stanley | Overnight Price $12.25 |
| CTD - | CORPORATE TRAVEL | Overweight - Morgan Stanley | Overnight Price $21.54 |
| MYR - | MYER | Buy - Citi | Overnight Price $0.74 |
| Hold - Deutsche Bank | Overnight Price $0.74 | ||
| Lighten - Ord Minnett | Overnight Price $0.74 | ||
| ORE - | OROCOBRE | Add - Morgans | Overnight Price $4.09 |
| PTM - | PLATINUM | Underperform - Macquarie | Overnight Price $6.00 |
| RRL - | REGIS RESOURCES | Neutral - Credit Suisse | Overnight Price $4.32 |
| Underperform - Macquarie | Overnight Price $4.32 | ||
| Sell - UBS | Overnight Price $4.32 | ||
| SYR - | SYRAH RESOURCES | Outperform - Credit Suisse | Overnight Price $3.45 |
| Buy - Deutsche Bank | Overnight Price $3.45 | ||
| Equal-weight - Morgan Stanley | Overnight Price $3.45 | ||
| Buy - UBS | Overnight Price $3.45 | ||
| TPM - | TPG TELECOM | Neutral - UBS | Overnight Price $5.34 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 8 |
| 3. Hold | 7 |
| 4. Reduce | 1 |
| 5. Sell | 4 |
Monday 11 September 2017
Access Broker Call Report Archives here
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.
Latest News
| 1 |
The Market In Numbers – 23 Nov 20249:09 AM - Australia |
| 2 |
ASX Winners And Losers Of Today – 22-11-24Nov 22 2024 - Daily Market Reports |
| 3 |
FNArena Corporate Results Monitor – 22-11-2024Nov 22 2024 - Australia |
| 4 |
Next Week At A Glance – 25-29 Nov 2024Nov 22 2024 - Weekly Reports |
| 5 |
Weekly Top Ten News Stories – 22 November 2024Nov 22 2024 - Weekly Reports |