Australian Broker Call
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December 05, 2017
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COMPANIES DISCUSSED IN THIS ISSUE
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
Last Updated: 10:59 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
| DHG - | DOMAIN HOLDINGS | Upgrade to Neutral from Underperform | Macquarie |
| EHE - | ESTIA HEALTH | Downgrade to Neutral from Buy | UBS |
| FBU - | FLETCHER BUILDING | Upgrade to Overweight from Equal-weight | Morgan Stanley |
| LLC - | LEND LEASE CORP | Upgrade to Buy from Neutral | Citi |
| MFG - | MAGELLAN FINANCIAL GROUP | Upgrade to Buy from Neutral | UBS |
| MTS - | METCASH | Downgrade to Underperform from Neutral | Credit Suisse |
| OSH - | OIL SEARCH | Upgrade to Buy from Sell | Citi |
| REA - | REA GROUP | Downgrade to Underperform from Neutral | Macquarie |
Morgan Stanley rates ASX as Equal-weight (3) -
Morgan Stanley expects the company will proceed with its replacement of CHESS using blockchain/DLT. The broker envisages cost and revenue benefits in the medium term.
The decision is due this month and if the company doesn't proceed this could drive a re-rating, in the broker's opinion.
Equal-weight retained. Target is $53. Industry view: In-Line.
Target price is $53.00 Current Price is $56.92 Difference: minus $3.92 (current price is over target).
If ASX meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $51.44, suggesting downside of -9.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 216.10 cents and EPS of 240.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 231.8, implying annual growth of 3.3%. Current consensus DPS estimate is 208.0, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 24.6. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 236.40 cents and EPS of 263.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 244.5, implying annual growth of 5.5%. Current consensus DPS estimate is 218.1, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 23.3. |
Market Sentiment: -0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates BPT as Neutral (3) -
UBS raises 2018 oil price estimates to US$60/bbl after the recent news flow. OPEC and allied producers have confirmed that quotas will stay in place until the end of 2018.
In conjunction with the oil price increase the broker also increases its forecast oil production from Beach Energy's western flank assets.
The broker retains a Neutral rating and raises the target to $1.05 from $0.93.
Target price is $1.05 Current Price is $1.13 Difference: minus $0.08 (current price is over target).
If BPT meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.90, suggesting downside of -20.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 0.00 cents and EPS of 7.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.1, implying annual growth of -61.0%. Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 14.0. |
Forecast for FY19:
UBS forecasts a full year FY19 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 9.3, implying annual growth of 14.8%. Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 12.2. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates CLW as Underperform (5) -
The A-REIT will acquire Virgin Australia's ((VAH)) head office in Brisbane, to be funded by a $94.1m non-renounceable entitlement offer.
Macquarie estimates limited earnings impact from the transaction given the cost of the funding source is largely in line with the acquisition price.
The broker believes the stock offers a stable distribution for income-focused investors. Offsetting this is limited upside from deployment.
Underperform retained and target raised to $3.91 from $3.82.
Target price is $3.91 Current Price is $4.30 Difference: minus $0.39 (current price is over target).
If CLW meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.20, suggesting downside of -1.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 26.30 cents and EPS of 26.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.8, implying annual growth of 12.8%. Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 15.9. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 27.90 cents and EPS of 28.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.0, implying annual growth of 4.5%. Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 6.6%. Current consensus EPS estimate suggests the PER is 15.2. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates CLW as Accumulate (2) -
The A-REIT will acquire Virgin Australia's ((VAH)) headquarters in Brisbane. The price tag of $90m is below expectations and Ord Minnett suggests this is a sound purchase.
The decision to fund the acquisition with equity reduces gearing. Lower gearing, along with a high acquisition yield, should mean the share price continues to perform, in the broker's opinion.
The broker retains an Accumulate rating and raises the target to $4.45 from $4.35.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $4.45 Current Price is $4.30 Difference: $0.15
If CLW meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $4.20, suggesting downside of -1.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 27.00 cents and EPS of 27.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.8, implying annual growth of 12.8%. Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 15.9. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 28.00 cents and EPS of 28.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.0, implying annual growth of 4.5%. Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 6.6%. Current consensus EPS estimate suggests the PER is 15.2. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates CLW as Neutral (3) -
The A-REIT will acquire Virgin Australia's ((VAH)) head office in Brisbane, which will be funded by a $94.1m entitlement offer.
Benefits of the transaction include an increase in net tangible assets, a reduction in gearing and improved portfolio diversification.
The office segment share in the business increases to 31% from 26%. Neutral rating and $4.25 target maintained.
Target price is $4.25 Current Price is $4.30 Difference: minus $0.05 (current price is over target).
If CLW meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.20, suggesting downside of -1.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 26.40 cents and EPS of 26.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.8, implying annual growth of 12.8%. Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 15.9. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 27.70 cents and EPS of 27.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.0, implying annual growth of 4.5%. Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 6.6%. Current consensus EPS estimate suggests the PER is 15.2. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates CSL as Outperform (1) -
Credit Suisse changes analysts, with the target raised to $155 from $150. Outperform maintained. Immunoglobulin growth remains robust and the broker believes the stock is well-placed.
Current data suggests that US IG volume growth is running ahead of the upper level that most plasma participants have pointed to, reflecting strong underlying demand. Nevertheless moderation in growth is expected as tougher comparables are cycled.
Target price is $155.00 Current Price is $144.39 Difference: $10.61
If CSL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $142.34, suggesting downside of -1.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 210.71 cents and EPS of 447.59 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 450.7, implying annual growth of N/A. Current consensus DPS estimate is 197.8, implying a prospective dividend yield of 1.4%. Current consensus EPS estimate suggests the PER is 32.0. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 240.81 cents and EPS of 515.64 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 507.7, implying annual growth of 12.6%. Current consensus DPS estimate is 218.1, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 28.4. |
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
Macquarie rates DHG as Upgrade to Neutral from Underperform (3) -
Domain is positioned for growth given strong fundamentals in the sector. While the current valuation appears to reflect much of the opportunity, Macquarie considers it more attractive in a relative sense versus REA Group ((REA)).
The business has made significant investment in its platform over the last three years to allow participation in future segment revenue growth.
The broker upgrades to Neutral from Underperform, primarily because of the correction in the share price since listing. Target is raised to $3.50 from $3.40..
Target price is $3.50 Current Price is $3.43 Difference: $0.07
If DHG meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $3.69, suggesting upside of 7.5% (ex-dividends)
Forecast for FY17:
Current consensus EPS estimate is N/A, 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:
Macquarie forecasts a full year FY18 dividend of 4.50 cents and EPS of 9.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.4, implying annual growth of N/A. Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 36.5. |
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates EHE as Downgrade to Neutral from Buy (3) -
Over 2017 the company has significantly outperformed its peers in the residential aged care sector. UBS observes this is coupled with guidance for modestly higher growth and upside risks to margins through cost rationalisation and refurbishment investments.
This meant the stock has re-rated to be the most expensive in the sector. UBS downgrades to Neutral from Buy. Target is raised to $3.75 from $3.50.
Target price is $3.75 Current Price is $3.69 Difference: $0.06
If EHE meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $3.48, suggesting downside of -5.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 13.00 cents and EPS of 19.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 17.9, implying annual growth of -1.6%. Current consensus DPS estimate is 12.6, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 20.6. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 14.00 cents and EPS of 20.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.4, implying annual growth of 8.4%. Current consensus DPS estimate is 13.6, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 19.0. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates FBU as Upgrade to Overweight from Equal-weight (1) -
The share price has underperformed since the update at the AGM. Morgan Stanley suspects the current uncertainty will prove to be an opportunity for those with a longer investment horizon.
The broker is unable to say definitely whether construction losses are at an end, but believes value is too significant at this point to ignore.
Rating is upgraded to Overweight from Equal-weight. Target is NZ$8.50. Industry view is: Cautious.
Current Price is $6.31. Target price not assessed.
Current consensus price target is N/A
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 28.84 cents and EPS of 40.93 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 38.3, implying annual growth of N/A. Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 16.5. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 38.14 cents and EPS of 54.88 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 52.9, implying annual growth of 38.1%. Current consensus DPS estimate is 36.1, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 11.9. |
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
Deutsche Bank rates GEM as Hold (3) -
G8 has downgraded second half profit guidance by what amounts to -14%, given softer than expected occupancy over what the broker considers a surprisingly broad range of locations. Management expects this challenge to continue for 6-9 months.
Management also expects a boost from the recent acquisition and expects the government child care package to be positive. But the broker does not expect excess supply to exit the industry and highlights high fixed cost leverage to occupancy levels, suggesting risk to the downside.
Target falls to $3.75 from $4.50. Hold retained.
Target price is $3.75 Current Price is $3.55 Difference: $0.2
If GEM meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $4.13, suggesting upside of 16.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 EPS of 23.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.7, implying annual growth of -8.0%. Current consensus DPS estimate is 19.4, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 15.6. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 EPS of 24.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.7, implying annual growth of 13.2%. Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 13.8. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates GEM as Neutral (3) -
The company now expects underlying operating earnings to be around $160m in 2017, versus prior guidance of the mid $170m range.
Macquarie considers the valuation undemanding but remains cautious, envisaging supply-driven risks to earnings into the first half of 2018.
Industry dynamics are expected to improve post rebate changes from July 1, 2018 but the broker wants more evidence of improved occupancy before becoming more confident in the outlook.
Neutral rating maintained. Target is lowered to $3.60 from $4.10.
Target price is $3.60 Current Price is $3.55 Difference: $0.05
If GEM meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $4.13, suggesting upside of 16.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 14.70 cents and EPS of 22.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.7, implying annual growth of -8.0%. Current consensus DPS estimate is 19.4, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 15.6. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 20.00 cents and EPS of 25.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.7, implying annual growth of 13.2%. Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 13.8. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates GEM as Buy (1) -
The company now expects underlying operating earnings of around $160m in 2017, versus guidance for the mid $170m range previously.
Ord Minnett does not believe this suggests any new industry or specific issues. Given the share price reaction, the broker believes investors now have a second chance before earnings start to move higher, particularly from the second half.
Buy rating retained. Target is reduced to $4.90 from $5.10.
Target price is $4.90 Current Price is $3.55 Difference: $1.35
If GEM meets the Ord Minnett target it will return approximately 38% (excluding dividends, fees and charges).
Current consensus price target is $4.13, suggesting upside of 16.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 24.00 cents and EPS of 22.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.7, implying annual growth of -8.0%. Current consensus DPS estimate is 19.4, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 15.6. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 20.00 cents and EPS of 28.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.7, implying annual growth of 13.2%. Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 13.8. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates GEM as Buy (1) -
Incremental costs have affected 2017 and UBS observes the occupancy recovery is taking longer to come through. The broker continues to believe 2018 will have a challenging first half and a materially better second half.
The company expects underlying operating earnings of around $160m in 2017, which compares with prior guidance of "mid $170m".
While expecting the next seven months to be challenging UBS maintains a Buy rating on a 12-month view. Target is reduced to $4.25 from $4.60.
Target price is $4.25 Current Price is $3.55 Difference: $0.7
If GEM meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $4.13, suggesting upside of 16.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 19.60 cents and EPS of 22.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.7, implying annual growth of -8.0%. Current consensus DPS estimate is 19.4, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 15.6. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 20.00 cents and EPS of 25.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.7, implying annual growth of 13.2%. Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 13.8. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates GXY as Neutral (3) -
As expected, the company has announced a significant increase in the mineral resources at its Canadian hard rock project, James Bay, and Citi analysts are looking forward to the feasibility study, noting management has indicated the possibility of further upgrades to resources/reserves in 1H 2018.
Also, Citi believes an update on SDV funding partnership could mark a material positive event for the share price. The share price target has increased to $4.40 from $3.70, including an updated James Bay valuation.
Neutral rating retained.
Target price is $4.40 Current Price is $3.74 Difference: $0.66
If GXY meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $3.83, suggesting upside of 2.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 0.00 cents and EPS of 7.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.3, implying annual growth of -82.4%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 51.2. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 0.00 cents and EPS of 34.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.5, implying annual growth of 249.3%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 14.7. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates GXY as Neutral (3) -
The company has lifted lithium resources at its James Bay project in Quebec. Macquarie observes this represents an important step towards defining a maiden reserve.
Galaxy has a clear pipeline of growth but this is already fully valued by investors, as Mount Cattlin accounts for only 39% of the broker's valuation.
Macquarie maintains a Neutral rating and raises the target to $3.90 from $3.60.
Target price is $3.90 Current Price is $3.74 Difference: $0.16
If GXY meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $3.83, suggesting upside of 2.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 0.00 cents and EPS of 9.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.3, implying annual growth of -82.4%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 51.2. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 0.00 cents and EPS of 22.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.5, implying annual growth of 249.3%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 14.7. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates LLC as Upgrade to Buy from Neutral (1) -
A new analyst in charge has adopted a fresh approach on Lend Lease, arguing the company should consider spinning off its Engineering division via an in specie distribution to shareholders.
On Citi's projections, the Engineering spin-off could unlock no less than 37% upside. Otherwise, Engineering is seen as the key downside risk, with EPS estimates rising because, as Citi puts it, the company's urban regeneration pipeline continues to be activated.
Price target lifts to $18 (from $16.56 in August). Citi continues to see further upside potential.
Target price is $18.00 Current Price is $15.83 Difference: $2.17
If LLC meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $17.97, suggesting upside of 13.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 65.80 cents and EPS of 131.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 140.5, implying annual growth of 8.0%. Current consensus DPS estimate is 67.1, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 11.3. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 73.30 cents and EPS of 146.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 150.8, implying annual growth of 7.3%. Current consensus DPS estimate is 76.9, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 10.5. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates LVH as Add (1) -
The company has obtained its fifth major new account in the past five months. The contract is to supply its recruitment software for the Australasian and Singapore operations of a global IT company.
Morgans suggests, while the stock trades close to valuation, a number of potential re-rating events could occur in the first half of 2018.
Morgans retains an Add rating and $1.10 target.
Target price is $1.10 Current Price is $1.12 Difference: minus $0.02 (current price is over target).
If LVH meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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 minus 2.30 cents. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 1.80 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates MFG as Upgrade to Buy from Neutral (1) -
UBS notes that while rising equity markets and strong net flows suggest the business is on track for 15% growth in assets under management in the first half, the shares have declined -13%.
Large one-off costs from the Global Trust raising will affect the first half result but the broker suggests growth in assets under management provides support heading into 2018.
Hence, UBS upgrades to Buy from Neutral and raises the target to $30.00 from $27.30.
Target price is $30.00 Current Price is $25.25 Difference: $4.75
If MFG meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $28.34, suggesting upside of 12.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 99.00 cents and EPS of 103.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 118.6, implying annual growth of 1.5%. Current consensus DPS estimate is 99.3, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 21.3. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 114.00 cents and EPS of 115.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 146.3, implying annual growth of 23.4%. Current consensus DPS estimate is 113.4, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 17.3. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates MTS as Neutral (3) -
Helped by a low base in Food & Grocery and the acquisition in hardware, Metcash delivered a double digit percentage growth result for H1. Citi analysts have been forced to increase EPS estimates by 4% and 3% in FY18-FY19.
These increases should be supported by lower corporate costs in 1H18 and higher Hardware synergies over the next two years. Looking through yesterday's positive surprise, Citi analysts highlight the Food & Grocery segment remains reliant on cost savings to stabilise earnings.
If Citi's projections prove correct, shareholders should expect a gradual rise in dividend payout ratio from 60% currently to 70% over the next two years. Target lifts to $2.90 from $2.50. Neutral rating retained.
Target price is $2.90 Current Price is $3.13 Difference: minus $0.23 (current price is over target).
If MTS 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 $2.82, suggesting downside of -9.9% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 13.00 cents and EPS of 21.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.0, implying annual growth of 22.9%. Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 14.2. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 15.00 cents and EPS of 22.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.2, implying annual growth of 5.5%. Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates MTS as Downgrade to Underperform from Neutral (5) -
First half results were in line with Credit Suisse. In the near-term further cost reductions in supermarkets and growth in hardware provides potential for moderate growth.
In terms of capital management, the broker suspects the company will probably move to a higher dividend pay-out or a buyback in the absence of significant initiatives.
The broker is not confident that free cash flow yield of 8% adequately compensates for the downside in medium-term earnings and downgrades to Underperform from Neutral. Target is raised to $2.70 from $2.26.
Target price is $2.70 Current Price is $3.13 Difference: minus $0.43 (current price is over target).
If MTS 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 $2.82, suggesting downside of -9.9% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 15.54 cents and EPS of 22.03 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.0, implying annual growth of 22.9%. Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 14.2. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 17.26 cents and EPS of 24.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.2, implying annual growth of 5.5%. Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates MTS as Hold (3) -
Given challenges in food retailing, Metcash has delivered a strong result, the broker suggests. Sales are still declining but the supermarket sales trend has not deteriorated and may have even improved.
Liquor has room for growth and Hardware is performing well while cost-cutting in Food and potential capital management underpin valuation, the broker notes. But cost-cutting can only go so far. Hold retained. Target rises to $3.00 from $2.30.
Target price is $3.00 Current Price is $3.13 Difference: minus $0.13 (current price is over target).
If MTS 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 $2.82, suggesting downside of -9.9% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 14.00 cents and EPS of 23.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.0, implying annual growth of 22.9%. Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 14.2. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 14.00 cents and EPS of 23.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.2, implying annual growth of 5.5%. Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates MTS as Outperform (1) -
Macquarie observes the business is now net cash and, while the capital management strategy will be reviewed in the second half, a buyback makes sense at the current earnings multiple.
The company has previously targeted $120m in gross savings from its working smarter program for FY17-19, with $70m now realised.
Whilst competition remains tough, a controllable cost agenda underpins reasonable growth prospects over the next three years, Macquarie suggests.
Outperform retained. Target is raised to $3.19 from $2.60.
Target price is $3.19 Current Price is $3.13 Difference: $0.06
If MTS meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $2.82, suggesting downside of -9.9% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 13.00 cents and EPS of 21.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.0, implying annual growth of 22.9%. Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 14.2. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 14.00 cents and EPS of 23.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.2, implying annual growth of 5.5%. Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates MTS as Overweight (1) -
First half earnings were stronger than expected, even after adjusting for one-off benefits. Cash flow was robust.
Morgan Stanley considers the shares still cheap despite the recent performance. The broker expects the market will appreciate the longer-term hardware opportunity, a turnaround in food & grocery and potential capital management.
Hence, the stock is expected to re-rate. Overweight rating maintained. Cautious sector view. Target is raised to $3.40 from $3.00.
Target price is $3.40 Current Price is $3.13 Difference: $0.27
If MTS meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $2.82, suggesting downside of -9.9% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 13.70 cents and EPS of 23.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.0, implying annual growth of 22.9%. Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 14.2. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 14.20 cents and EPS of 24.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.2, implying annual growth of 5.5%. Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates MTS as Lighten (4) -
First half net profit was in line with Ord Minnett forecasts. The broker recognises stable supermarkets earnings, an improved balance sheet and a low price/earnings multiple but believes the lack of valuation support and long-dated challenges in supermarkets are only offset by finite cost savings.
A Lighten rating is maintained. Target rises to $2.65 from $2.30.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $2.65 Current Price is $3.13 Difference: minus $0.48 (current price is over target).
If MTS meets the Ord Minnett target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.82, suggesting downside of -9.9% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 14.00 cents and EPS of 21.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.0, implying annual growth of 22.9%. Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 14.2. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 15.00 cents and EPS of 22.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.2, implying annual growth of 5.5%. Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates MTS as Sell (5) -
First half results were better than UBS expected. The broker believes the outlook is improving and cost cutting is on track. Earnings estimates are upgraded 6-9% for FY18-20.
Potential capital management is envisaged in the form of an off-market buyback or special dividend. Few catalysts for underperformance are considered likely in the short to medium term, as cost reductions and hardware synergies offset top-line pressures.
Sell rating maintained for now. Target is $1.90.
Target price is $1.90 Current Price is $3.13 Difference: minus $1.23 (current price is over target).
If MTS meets the UBS target it will return approximately minus 39% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.82, suggesting downside of -9.9% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 13.00 cents and EPS of 21.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.0, implying annual growth of 22.9%. Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 14.2. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 13.00 cents and EPS of 22.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.2, implying annual growth of 5.5%. Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates NHC as Hold (3) -
The resilience of thermal coal prices has surpassed assumptions and Morgans upgrades its FY18-19 price deck. The broker also observes the company now has the best opportunity to prevail in the assessment of Acland stage 3 and lowers its risk weighting to reflect this.
The broker also notes that majority shareholder Washington H Soul Pattinson ((SOL)) has sold down its holding to 50.01% from 59.7% as growth funding options are being evaluated.
A Hold rating is maintained. Target is raised to $2.11 from $1.83.
Target price is $2.11 Current Price is $2.30 Difference: minus $0.19 (current price is over target).
If NHC meets the Morgans target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.29, suggesting downside of -0.6% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 10.00 cents and EPS of 24.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.0, implying annual growth of 53.8%. Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 8.8. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 7.00 cents and EPS of 16.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.8, implying annual growth of -23.8%. Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 11.6. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates ORI as Neutral (3) -
Credit Suisse notes Orica has quietly launched a new agriculture segment in Australia. The company is moving into the liquid ammonia and UAN markets on the east coast.
Credit Suisse observes this is not particularly significant in terms of capital expenditure, or near-term earnings, but the downstream product diversification is likely to have a small benefit.
The broker retains a Neutral rating and $18.19 target.
Target price is $18.19 Current Price is $17.31 Difference: $0.88
If ORI meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $18.08, suggesting upside of 4.5% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 55.03 cents and EPS of 99.49 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 101.8, implying annual growth of -0.9%. Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 17.0. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 65.70 cents and EPS of 118.65 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 114.5, implying annual growth of 12.5%. Current consensus DPS estimate is 61.3, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 15.1. |
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates OSH as Upgrade to Buy from Sell (1) -
Analysts at Macquarie have lifted medium term and spot LNG prices forecasts and upgraded Oil Search to Outperform as a direct result. Price target increases to $7.80.
Macquarie remains concerned about global oversupply of LNG, but the analysts are also of the view PNG LNG remains one of the leading projects under development, while Asian buyers are looking for diversification in supply.
Target price is $7.80 Current Price is $7.28 Difference: $0.52
If OSH meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $8.06, suggesting upside of 10.7% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 11.78 cents and EPS of 25.65 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 24.0, implying annual growth of N/A. Current consensus DPS estimate is 10.4, implying a prospective dividend yield of 1.4%. Current consensus EPS estimate suggests the PER is 30.3. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 7.59 cents and EPS of 17.01 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.0, implying annual growth of 4.2%. Current consensus DPS estimate is 10.4, implying a prospective dividend yield of 1.4%. Current consensus EPS estimate suggests the PER is 29.1. |
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
UBS rates QAN as Buy (1) -
UBS observes Qantas shares have underperformed by -15% since the first quarter update amid fears about over capacity within the international division. UBS notes partial offsets include upside from higher unit revenue growth in the domestic market.
The broker continues to envisage an attractive earnings outlook with average growth in earnings per share of 9% over the next three years. Buy rating retained. Target rises to $6.70 from $6.60.
Target price is $6.70 Current Price is $5.53 Difference: $1.17
If QAN meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $6.55, suggesting upside of 18.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 25.00 cents and EPS of 61.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 58.6, implying annual growth of 27.4%. Current consensus DPS estimate is 21.6, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 9.4. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 25.00 cents and EPS of 67.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 64.6, implying annual growth of 10.2%. Current consensus DPS estimate is 23.8, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 8.6. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates REA as Downgrade to Underperform from Neutral (5) -
While the operating outlook is positive, Macquarie believes the implied multiple is too high at current levels. The broker believes there is heightened risk that future growth in earnings is absorbed by a relative de-rating.
There is justification, on a DCF analysis, for $80 a share. This implies core earnings growth rates will be sustained at current levels and operating earnings will double over the next six years. While doable, the broker believes this is a lot to pay for today.
Rating is downgraded to Underperform from Neutral. Target is raised to $74 from $66.
Target price is $74.00 Current Price is $76.19 Difference: minus $2.19 (current price is over target).
If REA meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $74.38, suggesting downside of -2.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 107.50 cents and EPS of 215.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 218.7, implying annual growth of 26.2%. Current consensus DPS estimate is 109.7, implying a prospective dividend yield of 1.4%. Current consensus EPS estimate suggests the PER is 34.8. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 173.00 cents and EPS of 247.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 261.4, implying annual growth of 19.5%. Current consensus DPS estimate is 134.4, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 29.1. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates RIO as Buy (1) -
Rio Tinto's Investor Day highlighted the message that management is focused on achieving cumulative US$5bn in additional free cash flow over the next five years, to be achieved through further productivity gains.
Return on Capital Employed is expected to further increase by 3% on top of the 15% achieved in the year to June 2017. Citi reports, despite ongoing focus on productivity improvements, iron ore costs look under pressure from increased haulage distances/maintenance in 2018.
On Citi's assumptions, Rio Tinto could return US$8b in 2019 and US$4.5b in 2020 through capital management, on top of the projected dividend yield of 5-6%. Target price remains $82. Buy.
Target price is $82.00 Current Price is $71.59 Difference: $10.41
If RIO meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $76.69, suggesting upside of 7.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 420.10 cents and EPS of 665.75 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 618.3, implying annual growth of N/A. Current consensus DPS estimate is 367.4, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 11.6. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 366.44 cents and EPS of 621.65 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 560.8, implying annual growth of -9.3%. Current consensus DPS estimate is 324.5, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 12.8. |
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
Credit Suisse rates RIO as Outperform (1) -
Credit Suisse observes the investor briefing was focused on productivity, with a program to deliver US$5bn and incremental free cash flow over five years. Two thirds of the opportunity comes from aluminium and iron ore.
The broker does not envisage capital expenditure or acquisitions as significant investment risks. Growing exposure to copper and/or other future oriented electrified metals may be the next leg of value creation, the broker surmises.
Outperform rating and $75 target retained.
Target price is $75.00 Current Price is $71.59 Difference: $3.41
If RIO meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $76.69, suggesting upside of 7.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 386.08 cents and EPS of 663.53 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 618.3, implying annual growth of N/A. Current consensus DPS estimate is 367.4, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 11.6. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 336.34 cents and EPS of 575.84 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 560.8, implying annual growth of -9.3%. Current consensus DPS estimate is 324.5, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 12.8. |
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
Deutsche Bank rates RIO as Buy (1) -
Rio's investor day featured more detail on the company's US$5bn productivity target and value over volume strategy. Pilbara production guidance for 2018 was a bit underwhelming, the broker suggests.
Capex guidance for 2017 has been lowered but 2019-20 guidance has been increased due to new projects and expansion. Buy retained, target falls to $79 from $80.
Target price is $79.00 Current Price is $71.59 Difference: $7.41
If RIO meets the Deutsche Bank target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $76.69, suggesting upside of 7.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 335.04 cents and EPS of 609.87 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 618.3, implying annual growth of N/A. Current consensus DPS estimate is 367.4, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 11.6. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 336.34 cents and EPS of 619.03 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 560.8, implying annual growth of -9.3%. Current consensus DPS estimate is 324.5, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 12.8. |
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
Macquarie rates RIO as Outperform (1) -
Management is focused on delivering productivity improvements and maintaining strong capital discipline. Production guidance for 2018 is broadly in line with Macquarie's forecasts.
Capital expenditure guidance has been reduced for 2017 but raised for 2019 and 2020. Macquarie notes cost pressures are starting to emerge in iron ore and aluminium.
Outperform rating. Target is reduced to $82 from $84.
Target price is $82.00 Current Price is $71.59 Difference: $10.41
If RIO meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $76.69, suggesting upside of 7.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 393.93 cents and EPS of 648.34 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 618.3, implying annual growth of N/A. Current consensus DPS estimate is 367.4, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 11.6. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 282.69 cents and EPS of 476.12 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 560.8, implying annual growth of -9.3%. Current consensus DPS estimate is 324.5, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 12.8. |
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
Ord Minnett rates RIO as Hold (3) -
Ord Minnett trims 2018 iron ore production forecasts and increases its medium-term capital expenditure estimates. While the broker is positive on the company, the stock appears fair value and there are limited near-term catalysts.
The broker notes costs are under pressure, with productivity improvements required to offset inflation. Hold rating retained. Target is reduced to $75 from $77.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $75.00 Current Price is $71.59 Difference: $3.41
If RIO meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $76.69, suggesting upside of 7.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 357.28 cents and EPS of 591.55 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 618.3, implying annual growth of N/A. Current consensus DPS estimate is 367.4, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 11.6. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 344.20 cents and EPS of 569.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 560.8, implying annual growth of -9.3%. Current consensus DPS estimate is 324.5, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 12.8. |
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
Credit Suisse rates SDA as Outperform (1) -
The company has confirmed that its energy business has stabilised. Credit Suisse is more confident that this business will return to organic growth in FY18 as the macro environment is improving.
Cruise revenue is expected to benefit from changes in bandwidth demand for the next 3-5 years. The broker upgrades FY18 and FY19 estimates for earnings per share by 2% and 4% respectively.
Outperform retained. Target is raised to $6.00 from $4.50.
Target price is $6.00 Current Price is $5.40 Difference: $0.6
If SDA meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $4.90, suggesting downside of -9.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 12.74 cents and EPS of 23.77 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.8, implying annual growth of N/A. Current consensus DPS estimate is 9.6, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 22.7. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 19.98 cents and EPS of 37.27 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 33.1, implying annual growth of 39.1%. Current consensus DPS estimate is 12.9, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 16.3. |
This company reports in USD. 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
Credit Suisse rates SDF as Outperform (1) -
The company has acquired Whitbread Insurance for $95m. The deal is slightly dilutive on Credit Suisse numbers. Incorporating the acquisition, and the equity raising of $131m, results in minimal changes to the broker's forecasts.
Credit Suisse maintains an Outperform rating and raises the target to $3.20 from $3.10.
Target price is $3.20 Current Price is $2.92 Difference: $0.28
If SDF meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $3.03, suggesting upside of 3.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 7.00 cents and EPS of 13.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.9, implying annual growth of 33.7%. Current consensus DPS estimate is 7.1, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 24.5. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 9.00 cents and EPS of 15.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 13.4, implying annual growth of 12.6%. Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 21.8. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates SDF as No Rating (-1) -
The company will acquire Whitbread Insurance for $95m. FY18 guidance has been reaffirmed for operating earnings of $155-165m and net profit of $70-75m, excluding the acquisition.
Macquarie is currently on research restrictions and cannot advise a rating or target.
Current Price is $2.92. Target price not assessed.
Current consensus price target is $3.03, suggesting upside of 3.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 7.40 cents and EPS of 12.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.9, implying annual growth of 33.7%. Current consensus DPS estimate is 7.1, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 24.5. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 8.40 cents and EPS of 14.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 13.4, implying annual growth of 12.6%. Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 21.8. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Summaries
| ASX | ASX | Equal-weight - Morgan Stanley | Overnight Price $56.92 |
| BPT | BEACH ENERGY | Neutral - UBS | Overnight Price $1.13 |
| CLW | CHARTER HALL LONG WALE REIT | Underperform - Macquarie | Overnight Price $4.30 |
| Accumulate - Ord Minnett | Overnight Price $4.30 | ||
| Neutral - UBS | Overnight Price $4.30 | ||
| CSL | CSL | Outperform - Credit Suisse | Overnight Price $144.39 |
| DHG | DOMAIN HOLDINGS | Upgrade to Neutral from Underperform - Macquarie | Overnight Price $3.43 |
| EHE | ESTIA HEALTH | Downgrade to Neutral from Buy - UBS | Overnight Price $3.69 |
| FBU | FLETCHER BUILDING | Upgrade to Overweight from Equal-weight - Morgan Stanley | Overnight Price $6.31 |
| GEM | G8 EDUCATION | Hold - Deutsche Bank | Overnight Price $3.55 |
| Neutral - Macquarie | Overnight Price $3.55 | ||
| Buy - Ord Minnett | Overnight Price $3.55 | ||
| Buy - UBS | Overnight Price $3.55 | ||
| GXY | GALAXY RESOURCES | Neutral - Citi | Overnight Price $3.74 |
| Neutral - Macquarie | Overnight Price $3.74 | ||
| LLC | LEND LEASE CORP | Upgrade to Buy from Neutral - Citi | Overnight Price $15.83 |
| LVH | LIVEHIRE | Add - Morgans | Overnight Price $1.12 |
| MFG | MAGELLAN FINANCIAL GROUP | Upgrade to Buy from Neutral - UBS | Overnight Price $25.25 |
| MTS | METCASH | Neutral - Citi | Overnight Price $3.13 |
| Downgrade to Underperform from Neutral - Credit Suisse | Overnight Price $3.13 | ||
| Hold - Deutsche Bank | Overnight Price $3.13 | ||
| Outperform - Macquarie | Overnight Price $3.13 | ||
| Overweight - Morgan Stanley | Overnight Price $3.13 | ||
| Lighten - Ord Minnett | Overnight Price $3.13 | ||
| Sell - UBS | Overnight Price $3.13 | ||
| NHC | NEW HOPE CORP | Hold - Morgans | Overnight Price $2.30 |
| ORI | ORICA | Neutral - Credit Suisse | Overnight Price $17.31 |
| OSH | OIL SEARCH | Upgrade to Buy from Sell - Citi | Overnight Price $7.28 |
| QAN | QANTAS AIRWAYS | Buy - UBS | Overnight Price $5.53 |
| REA | REA GROUP | Downgrade to Underperform from Neutral - Macquarie | Overnight Price $76.19 |
| RIO | RIO TINTO | Buy - Citi | Overnight Price $71.59 |
| Outperform - Credit Suisse | Overnight Price $71.59 | ||
| Buy - Deutsche Bank | Overnight Price $71.59 | ||
| Outperform - Macquarie | Overnight Price $71.59 | ||
| Hold - Ord Minnett | Overnight Price $71.59 | ||
| SDA | SPEEDCAST INTERN | Outperform - Credit Suisse | Overnight Price $5.40 |
| SDF | STEADFAST GROUP | Outperform - Credit Suisse | Overnight Price $2.92 |
| No Rating - Macquarie | Overnight Price $2.92 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 17 |
| 2. Accumulate | 1 |
| 3. Hold | 14 |
| 4. Reduce | 1 |
| 5. Sell | 4 |
Tuesday 05 December 2017
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Disclaimer:
The content of this information does in no way reflect the opinions of
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the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe
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This document is provided for informational purposes only. It does not
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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.
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