Australian Broker Call
October 02, 2017
Access Broker Call Report Archives here
COMPANIES DISCUSSED IN THIS ISSUE
Click on symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
THIS REPORT WILL BE UPDATED SHORTLY
Last Updated: 09:49 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
| LLC - | LEND LEASE CORP | Upgrade to Underweight from Overweight | Morgan Stanley |
Morgan Stanley rates KMD as Equal-weight (3) -
Kathmandu grew like-for-like sales 5.5% in FY17, with Morgan Stanley noting a solid result in a difficult market. The business has turned around and the balance sheet and operational improvements are welcomed.
Morgan Stanley considers it still too early to bank on offshore growth and believes the outlook for stable, low growth is well reflected in the share price.
The broker retains an Equal-weight rating. Target is raised to $2.15 from $1.90. Industry view is In-Line.
Target price is $2.15 Current Price is $2.17 Difference: minus $0.02 (current price is over target).
If KMD meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.34, suggesting upside of 7.6% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 13.60 cents and EPS of 19.69 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.8, implying annual growth of N/A. Current consensus DPS estimate is 12.6, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 11.5. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 14.81 cents and EPS of 21.56 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 20.0, implying annual growth of 6.4%. Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 10.9. |
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
Morgan Stanley rates LLC as Upgrade to Underweight from Overweight (1) -
Morgan Stanley increases its weighting towards capital-light developers with better growth by upgrading Lend Lease to Overweight from Underweight.
The stock is the broker's preferred development exposure with its low gearing, large pipeline and expanding funds platform.
Target is raised to $19.75 from $16.45. Industry view is Cautious.
Target price is $19.75 Current Price is $17.92 Difference: $1.83
If LLC meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $18.13, suggesting upside of 1.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 70.00 cents and EPS of 140.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 147.2, implying annual growth of 13.1%. Current consensus DPS estimate is 70.4, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 12.2. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 77.10 cents and EPS of 154.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 154.5, implying annual growth of 5.0%. Current consensus DPS estimate is 78.8, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 11.6. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates ORL as Buy (1) -
FY17 results were in line with guidance. The company continues to progress with its strategic review and notes FX will remain a headwind going into FY18.
Citi found the result messy, with a large number of one-offs. Exit from Gap is now expected in the next six months.
Buy, High Risk retained. Target is $1.20.
Target price is $1.20 Current Price is $0.78 Difference: $0.42
If ORL meets the Citi target it will return approximately 54% (excluding dividends, fees and charges).
Current consensus price target is $1.20, suggesting upside of 53.8% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 0.00 cents and EPS of 0.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 0.9, implying annual growth of -95.1%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 86.7. |
Forecast for FY19:
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates PLS as Buy (1) -
The company has a binding offtake agreement with Great Wall Motor Co for spodumene from Pilgangoora stage 2. The terms involve an equity subscription of $28m to secure 75,000tpa of chemical grade for initial five years.
Citi observes the announcement reinforces the need for the automotive and battery manufacturers to secure materials.
Price target 68c. Buy/High Risk rating.
Target price is $0.68 Current Price is $0.64 Difference: $0.045
If PLS meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 1.10 cents. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 0.00 cents and EPS of 4.30 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates SKI as Underperform (5) -
The draft determination for TransGrid 2018-23 allows for around 5% higher revenue than Credit Suisse forecast and -8% below the proposal.
The regulator allowed for -40% less capital expenditure than requested, citing over-estimation of reliability risk.
The broker updates numbers to allow for the determination, leading to a 0.5% increase in proportionate operating earnings.
Underperform retained. Target is $2.40.
Target price is $2.40 Current Price is $2.52 Difference: minus $0.12 (current price is over target).
If SKI meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.56, suggesting upside of 1.4% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 15.25 cents and EPS of 5.83 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.8, implying annual growth of 61.8%. Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 6.1%. Current consensus EPS estimate suggests the PER is 32.3. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 16.00 cents and EPS of 6.08 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.1, implying annual growth of 3.8%. Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 6.4%. Current consensus EPS estimate suggests the PER is 31.1. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Summaries
| KMD - | KATHMANDU | Equal-weight - Morgan Stanley | Overnight Price $2.17 |
| LLC - | LEND LEASE CORP | Upgrade to Underweight from Overweight - Morgan Stanley | Overnight Price $17.92 |
| ORL - | OROTONGROUP | Buy - Citi | Overnight Price $0.78 |
| PLS - | PILBARA MINERALS | Buy - Citi | Overnight Price $0.64 |
| SKI - | SPARK INFRASTRUCTURE | Underperform - Credit Suisse | Overnight Price $2.52 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 3 |
| 3. Hold | 1 |
| 5. Sell | 1 |
Monday 02 October 2017
Access Broker Call Report Archives here
Disclaimer:
The content of this information does in no way reflect the opinions of
FNArena, or of its journalists. In fact we don't have any opinion about
the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe
and comment on. By doing so we believe we provide intelligent investors
with a valuable tool that helps them in making up their own minds, reading
market trends and getting a feel for what is happening beneath the surface.
This document is provided for informational purposes only. It does not
constitute an offer to sell or a solicitation to buy any security or other
financial instrument. FNArena employs very experienced journalists who
base their work on information believed to be reliable and accurate, though
no guarantee is given that the daily report is accurate or complete. Investors
should contact their personal adviser before making any investment decision.
Latest News
| 1 |
The Market In Numbers – 23 Nov 20249:09 AM - Australia |
| 2 |
ASX Winners And Losers Of Today – 22-11-24Nov 22 2024 - Daily Market Reports |
| 3 |
FNArena Corporate Results Monitor – 22-11-2024Nov 22 2024 - Australia |
| 4 |
Next Week At A Glance – 25-29 Nov 2024Nov 22 2024 - Weekly Reports |
| 5 |
Weekly Top Ten News Stories – 22 November 2024Nov 22 2024 - Weekly Reports |