Australian Broker Call
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January 19, 2018
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COMPANIES DISCUSSED IN THIS ISSUE
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
THIS REPORT WILL BE UPDATED SHORTLY
Last Updated: 10:17 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
| FLT - | FLIGHT CENTRE | Upgrade to Buy from Neutral | UBS |
| WHC - | WHITEHAVEN COAL | Downgrade to Sell from Neutral | Citi |
Overnight Price: $23.20
Citi rates ALL as Buy (1) -
Citi incorporates upgrades to underlying earnings forecasts from the North America and digital business as well as the impact of US tax cuts.
The broker's estimates for net profit in FY18-19 imply 27-28% growth year-on-year. Buy rating maintained. Target rises to $31.50 from $28.90.
Target price is $31.50 Current Price is $23.20 Difference: $8.3
If ALL meets the Citi target it will return approximately 36% (excluding dividends, fees and charges).
Current consensus price target is $26.44, suggesting upside of 14.0% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 45.00 cents and EPS of 107.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 103.2, implying annual growth of 32.8%. Current consensus DPS estimate is 45.9, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 22.5. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 83.00 cents and EPS of 137.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 123.3, implying annual growth of 19.5%. Current consensus DPS estimate is 61.8, implying a prospective dividend yield of 2.7%. Current consensus EPS estimate suggests the PER is 18.8. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.44
Citi rates AWC as Buy (1) -
Following Alcoa's December quarter result Citi updates estimates, with the main change being a -5-7% cut to forecasts for FY18-20, driven by upgrades to Australian dollar forecasts.
Buy rating retained, given the leverage to one of the broker's preferred commodities, alumina/aluminium. Target is $2.50.
Target price is $2.50 Current Price is $2.44 Difference: $0.06
If AWC meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $2.29, suggesting downside of -6.0% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 13.52 cents and EPS of 19.76 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.7, implying annual growth of N/A. Current consensus DPS estimate is 14.7, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 14.6. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 20.41 cents and EPS of 20.41 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.9, implying annual growth of 1.2%. Current consensus DPS estimate is 16.7, implying a prospective dividend yield of 6.8%. Current consensus EPS estimate suggests the PER is 14.4. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $30.78
Citi rates BHP as Buy (1) -
December quarter production was mixed, with petroleum better than Citi expected but coal worse than expected. Buy rating maintained on strong cash flow and the potential exit of US shale, as well as upside risk to estimates from spot commodity prices.
The broker makes 4-6% upgrades to medium-term earnings estimates, driven by marking to market commodity prices and modest revisions to FX forecasts. This offsets lower metallurgical coal guidance.Target is $32.
Target price is $32.00 Current Price is $30.78 Difference: $1.22
If BHP meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $31.34, suggesting upside of 1.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 149.51 cents and EPS of 248.31 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 202.5, implying annual growth of N/A. Current consensus DPS estimate is 117.0, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 15.2. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 118.31 cents and EPS of 195.92 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 175.7, implying annual growth of -13.2%. Current consensus DPS estimate is 104.6, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 17.5. |
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
Morgan Stanley rates BHP as Overweight (1) -
December quarter production disappointed Morgan Stanley although price realisation had a positive impact for the first half.
The broker believes the disposal of the US onshore business and return of capital remain the drivers of the investment case. The disposal process is progressing although the data room opens in March, which is two months later than the broker had envisaged.
Overweight rating, Attractive sector view retained. Target is $34.25.
Target price is $34.25 Current Price is $30.78 Difference: $3.47
If BHP meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $31.34, suggesting upside of 1.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 118.31 cents and EPS of 193.71 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 202.5, implying annual growth of N/A. Current consensus DPS estimate is 117.0, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 15.2. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 89.70 cents and EPS of 140.41 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 175.7, implying annual growth of -13.2%. Current consensus DPS estimate is 104.6, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 17.5. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates BHP as Buy (1) -
December quarter results were largely in line with UBS although metallurgical coal production was -15% below estimates. FY18 guidance for metallurgical coal has been revised to 41-43mt from 44-46mt. Iron ore guidance is steady at 239-243mt.
The broker expects an interim profit of US$4.8bn and a US$0.58 per share dividend. Buy rating and $31.50 target maintained.
Target price is $31.50 Current Price is $30.78 Difference: $0.72
If BHP meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $31.34, suggesting upside of 1.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 149.51 cents and EPS of 232.71 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 202.5, implying annual growth of N/A. Current consensus DPS estimate is 117.0, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 15.2. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 124.81 cents and EPS of 208.01 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 175.7, implying annual growth of -13.2%. Current consensus DPS estimate is 104.6, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 17.5. |
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
FLT FLIGHT CENTRE LIMITED
Travel, Leisure & Tourism
More Research Tools In Stock Analysis - click HERE
Overnight Price: $46.84
UBS rates FLT as Upgrade to Buy from Neutral (1) -
UBS lifts FY18-21 estimates for earnings per share by 5-10%. The broker is more confident in the 3-5 year gross profit targets. Estimates are also closer to the company's target for 7% transaction growth and 2% pre-tax profit margin in FY20.
On the medium-term view, the broker believes Flight Centre is well-placed to outperform and upgrades to Buy from Neutral. Target is lifted to $53.60 from $47.50.
Target price is $53.60 Current Price is $46.84 Difference: $6.76
If FLT meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $45.74, suggesting downside of -2.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 159.00 cents and EPS of 265.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 250.8, implying annual growth of 9.8%. Current consensus DPS estimate is 153.9, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 18.7. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 176.00 cents and EPS of 293.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 275.2, implying annual growth of 9.7%. Current consensus DPS estimate is 170.0, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 17.0. |
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $6.25
Morgan Stanley rates IEL as Overweight (1) -
Morgan Stanley expects the the company to deliver a strong first half, with earnings certainty underpinned by strong student visa data. IDP continues to be the broker's preference, notwithstanding it is trading on a higher multiple because of a faster growth trajectory versus Navitas ((NVT)).
Morgan Stanley lifts the price target to $6.40 from $5.85 and maintains an Overweight rating. Industry view is In-Line.
Target price is $6.40 Current Price is $6.25 Difference: $0.15
If IEL meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $5.46, suggesting downside of -12.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 14.50 cents and EPS of 19.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.9, implying annual growth of 20.0%. Current consensus DPS estimate is 14.8, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 31.4. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 17.00 cents and EPS of 22.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.5, implying annual growth of 13.1%. Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 2.7%. Current consensus EPS estimate suggests the PER is 27.8. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates NTD as Initiation of coverage with Add (1) -
National Tyre & Wheel holds exclusive rights to import and distribute Cooper and Mickey Thompson branded passenger, SUV and light truck tyres.
Morgans considers the acquisition of wholesale businesses is key to providing meaningful growth in earnings, and therefore valuation upside. Management's track record makes the broker confident this can continue.
Morgans initiates coverage with an Add rating and $1.37 target.
Target price is $1.37
The company's fiscal year ends in June.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 3.30 cents and EPS of 12.00 cents. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 5.30 cents and EPS of 12.00 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $5.30
Morgan Stanley rates NVT as Equal-weight (3) -
Morgan Stanley makes incremental upgrades to forecasts and lifts the target to $5.05 from $4.50. While maintaining a preference for IDP Education ((IEL)), the broker acknowledges Navitas could surprise on the upside in FY18.
The broker envisages upside to market expectations if the company executes well on its contract renewals and the leadership transition.
Equal-weight rating retained. Industry view: In-Line.
Target price is $5.05 Current Price is $5.30 Difference: minus $0.25 (current price is over target).
If NVT meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.77, suggesting downside of -10.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 19.50 cents and EPS of 21.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 21.4, implying annual growth of -3.2%. Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 24.8. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 20.60 cents and EPS of 24.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 24.5, implying annual growth of 14.5%. Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 21.6. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.23
Citi rates OGC as Buy (1) -
Citi liked the December quarter result, with a strong ramp-up performance at the new Haile gold mine in the US.
Even with the High Risk attached to the rating from lingering political uncertainty surrounding Didipio in the Philippines, the stock presents compelling value in the broker's opinion. Buy rating and $4.70 target.
Target price is $4.70 Current Price is $3.23 Difference: $1.47
If OGC meets the Citi target it will return approximately 46% (excluding dividends, fees and charges).
Current consensus price target is $4.46, suggesting upside of 38.0% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 1.30 cents and EPS of 34.71 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.0, implying annual growth of N/A. Current consensus DPS estimate is 2.7, implying a prospective dividend yield of 0.8%. Current consensus EPS estimate suggests the PER is 10.8. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 3.90 cents and EPS of 33.28 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 33.4, implying annual growth of 11.3%. Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 1.1%. Current consensus EPS estimate suggests the PER is 9.7. |
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
Overnight Price: $5.31
UBS rates TAH as Neutral (3) -
UBS expects tax changes, such as the introduction of a point of consumption tax, will be a net positive for Tabcorp. The broker also incorporates the Tatts business and an improved growth outlook into estimates.
Despite all the positives, a 30% outperformance in the share price from recent lows provides limited upside to valuation and UBS maintains a Neutral rating. Target rises to $5.60 from $4.49.
Target price is $5.60 Current Price is $5.31 Difference: $0.29
If TAH meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $5.55, suggesting upside of 4.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 22.50 cents and EPS of 19.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.5, implying annual growth of N/A. Current consensus DPS estimate is 22.9, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 32.2. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 25.00 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 40.6%. Current consensus DPS estimate is 24.5, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 22.9. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.18
Morgans rates VMY as Add (1) -
The company notes recent actions by leading uranium miners, which are idling production capacity in an over-supplied market, will have an impact on both spot and long-term contract pricing.
Vimy Resources has previously announced three uranium converter contracts to process its Mulga Rock concentrate for nuclear fuel in Canada, the US and France. Morgans will revise valuation in light of the impending definitive feasibility study, due in the current quarter.
Add rating and $0.38 target unchanged.
Target price is $0.38 Current Price is $0.18 Difference: $0.2
If VMY meets the Morgans target it will return approximately 111% (excluding dividends, fees and charges).
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 2.20 cents. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 1.40 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $4.40
Citi rates WHC as Downgrade to Sell from Neutral (5) -
December quarter production missed Citi's estimates and the rating is downgraded to Sell from Neutral. Target is raised to $4.20 from $4.00 as a result of marking to market coal prices, offsetting lower FY18 production and higher costs for Narrabri.
The main risk to the recommendation, in the broker's view, is if thermal coal prices, which are at US$107/t, remain above Citi's forecasts for US$89/t in 2018 and US$75/t in 2019.
Target price is $4.20 Current Price is $4.40 Difference: minus $0.2 (current price is over target).
If WHC 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 $4.08, suggesting downside of -7.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 18.00 cents and EPS of 52.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 48.5, implying annual growth of 17.7%. Current consensus DPS estimate is 20.7, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 9.1. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 13.00 cents and EPS of 39.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 37.9, implying annual growth of -21.9%. Current consensus DPS estimate is 15.4, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 11.6. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates WHC as Hold (3) -
The company has downgraded FY18 sales guidance to 20.5-21.0mt because of changes at Narrabri, which represents a -7-9% downgrade to prior forecasts.
Morgans was disappointed with the downgrade but finds it unsurprising in the context of complex, high-capacity longwall operations. While making significant upgrades to coal price estimates, the broker considers the stock stretched versus valuation.
Hold rating retained. Target rises to $3.95 from $3.35.
Target price is $3.95 Current Price is $4.40 Difference: minus $0.45 (current price is over target).
If WHC meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.08, suggesting downside of -7.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 22.00 cents and EPS of 49.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 48.5, implying annual growth of 17.7%. Current consensus DPS estimate is 20.7, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 9.1. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 18.00 cents and EPS of 42.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 37.9, implying annual growth of -21.9%. Current consensus DPS estimate is 15.4, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 11.6. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates WHC as Buy (1) -
The company has revised production guidance down for FY18 because of unfavourable conditions in Narrabri. FY18 saleable coal guidance has been reduced to 20.5-21.0mt. Meanwhile, Maules Creek and Gunnedah performed well in the December quarter.
UBS maintains a Buy rating, with a view there is upside potential as the market continues to price in higher long-term coal prices. Target is lifted to $4.90 from $4.50.
Target price is $4.90 Current Price is $4.40 Difference: $0.5
If WHC meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $4.08, suggesting downside of -7.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 23.00 cents and EPS of 46.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 48.5, implying annual growth of 17.7%. Current consensus DPS estimate is 20.7, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 9.1. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 26.00 cents and EPS of 53.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 37.9, implying annual growth of -21.9%. Current consensus DPS estimate is 15.4, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 11.6. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $33.40
Citi rates WPL as Sell (5) -
December quarter revenue beat Citi's estimates on the back of LNG production and the spot price. The broker increases 2018 earnings estimates by 9%. The company has guided to 2018 production of 85-90 mmboe.
Citi envisages the share price being fully priced at a long-term forecasts for oil of US$55/bbl while calculating the current share price infers a US$79/bbl price. The broker also notes a risk of Gorgon backfilling North West Shelf and Pluto re-pricing risk in 2019.
Sell rating retained. Target rises to $26.86 from $26.79.
Target price is $26.86 Current Price is $33.40 Difference: minus $6.54 (current price is over target).
If WPL meets the Citi target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $31.28, suggesting downside of -6.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 122.21 cents and EPS of 150.81 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 147.8, implying annual growth of N/A. Current consensus DPS estimate is 117.0, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 22.6. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 139.11 cents and EPS of 188.51 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 167.6, implying annual growth of 13.4%. Current consensus DPS estimate is 130.8, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 19.9. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates WPL as Overweight (1) -
December quarter production results were in line with Morgan Stanley's estimates. Guidance for FY18 is 85-90 mmboe, which is lower than Morgan Stanley's estimates of 94.1 mmboe. Yet, LNG guidance is higher while the lower value North West Shelf pipeline gas is lower than the broker's estimate.
Production growth in FY18 is considered important as this, in combination with higher commodity prices, should push earnings and dividends higher during the year.
Target is $35.55. Overweight rating and In-Line industry view retained.
Target price is $35.55 Current Price is $33.40 Difference: $2.15
If WPL meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $31.28, suggesting downside of -6.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 115.71 cents and EPS of 143.01 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 147.8, implying annual growth of N/A. Current consensus DPS estimate is 117.0, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 22.6. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 132.15 cents and EPS of 164.86 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 167.6, implying annual growth of 13.4%. Current consensus DPS estimate is 130.8, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 19.9. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Summaries
| ALL | ARISTOCRAT LEISURE | Buy - Citi | Overnight Price $23.20 |
| AWC | ALUMINA | Buy - Citi | Overnight Price $2.44 |
| BHP | BHP BILLITON | Buy - Citi | Overnight Price $30.78 |
| Overweight - Morgan Stanley | Overnight Price $30.78 | ||
| Buy - UBS | Overnight Price $30.78 | ||
| FLT | FLIGHT CENTRE | Upgrade to Buy from Neutral - UBS | Overnight Price $46.84 |
| IEL | IDP EDUCATION | Overweight - Morgan Stanley | Overnight Price $6.25 |
| NTD | Initiation of coverage with Add - Morgans | Overnight Price $0.00 | |
| NVT | NAVITAS | Equal-weight - Morgan Stanley | Overnight Price $5.30 |
| OGC | OCEANAGOLD | Buy - Citi | Overnight Price $3.23 |
| TAH | TABCORP HOLDINGS | Neutral - UBS | Overnight Price $5.31 |
| VMY | VIMY RESOURCES | Add - Morgans | Overnight Price $0.18 |
| WHC | WHITEHAVEN COAL | Downgrade to Sell from Neutral - Citi | Overnight Price $4.40 |
| Hold - Morgans | Overnight Price $4.40 | ||
| Buy - UBS | Overnight Price $4.40 | ||
| WPL | WOODSIDE PETROLEUM | Sell - Citi | Overnight Price $33.40 |
| Overweight - Morgan Stanley | Overnight Price $33.40 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 12 |
| 3. Hold | 3 |
| 5. Sell | 2 |
Friday 19 January 2018
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This document is provided for informational purposes only. It does not
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