Australian Broker Call
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November 11, 2021
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COMPANIES DISCUSSED IN THIS ISSUE
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1).
Last Updated: 05:00 PM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.
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Today's Upgrades and Downgrades
ASB - | Austal | Upgrade to Outperform from Neutral | Credit Suisse |
SRV - | Servcorp | Downgrade to Neutral from Buy | UBS |
SSG - | Shaver Shop | Upgrade to Accumulate from Hold | Ord Minnett |
UWL - | Uniti Group | Upgrade to Accumulate from Hold | Ord Minnett |
Morgan Stanley rates 29M as Overweight (1) -
While retaining an Overweight rating, Morgan Stanley lowers its target price for 29Metals to $2.90 from $3.10 following September quarter results. Gold and zinc production were -21% and -10% misses, while copper production beat the analyst's estimate by 5%.
All-in sustaining costs (AISC) were 62% higher and management now expects combined C1 costs and AISC to be circa -$50m-70m higher than forecast. This reflects an expectation for lower by-product revenue and higher operating costs in the second half.
Capex guidance was unchanged. The industry view is In-Line.
Target price is $2.90 Current Price is $2.70 Difference: $0.2
If 29M meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $3.12, suggesting upside of 16.7% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY21:
Morgan Stanley forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.4, implying annual growth of -7.4%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 41.7. |
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.6, implying annual growth of 81.2%. Current consensus DPS estimate is 5.7, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 23.0. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ALG ARDENT LEISURE GROUP LIMITED
Travel, Leisure & Tourism
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Overnight Price: $1.66
Citi rates ALG as Buy (1) -
In the wake of the AGM update, Citi suspects there could be upside to its forecasts for Main Event earnings in FY22. Nevertheless, given the potential for sales growth to normalise over FY22, forecasts are left intact.
The broker was surprised at the decrease in the cash balance and revolving credit, which is down -$8m from the FY21 result. The broker suspects this probably reflects the increased roll-out in the timing of working capital payments. Buy rating and $1.80 target maintained.
Target price is $1.80 Current Price is $1.66 Difference: $0.14
If ALG meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.10 cents. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.80 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AQZ ALLIANCE AVIATION SERVICES LIMITED
Transportation & Logistics
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Overnight Price: $3.97
Morgans rates AQZ as Add (1) -
Following an AGM trading update by Alliance Aviation Services, Morgans increases its FY22 underlying profit (PBT) estimate by 4.5% and retains the FY23/24 forecasts. The target price edges up to $5.15 from $5.10 and the Add rating is unchanged.
The analyst believes the update was better than feared and expects a rebound in domestic travel activity in 2022 will favour the company. Recent share underperformance is attributed to the potential for delays to the E190 fleet deployment.
Morgans feels these concerns should be rectified by commentary at 1H results.
Target price is $5.15 Current Price is $3.97 Difference: $1.18
If AQZ meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $5.20, suggesting upside of 25.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 8.00 cents and EPS of 26.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.7, implying annual growth of 27.1%. Current consensus DPS estimate is 10.4, implying a prospective dividend yield of 2.5%. Current consensus EPS estimate suggests the PER is 15.5. |
Forecast for FY23:
Morgans forecasts a full year FY23 dividend of 17.00 cents and EPS of 35.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.8, implying annual growth of 30.3%. Current consensus DPS estimate is 17.5, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 11.9. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ASB AUSTAL LIMITED
Commercial Services & Supplies
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Overnight Price: $1.78
Credit Suisse rates ASB as Upgrade to Outperform from Neutral (1) -
Austal has received approval to take on the lease of Marine Group Boat Works in the port of San Diego. Credit Suisse observes this is a major development for Austal, particularly given the environmental and regulatory pressures with respect to new or expanded dry docks in the area.
A dry dock in San Diego could support the awarding of contracts for Austal as a prime contractor. The broker raises FY22 and FY23 forecasts by 2% and 6%, respectively. Rating is upgraded to Outperform from Neutral and the target increased to $2.50 from $2.25.
Target price is $2.50 Current Price is $1.78 Difference: $0.72
If ASB meets the Credit Suisse target it will return approximately 40% (excluding dividends, fees and charges).
Current consensus price target is $2.63, suggesting upside of 40.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 10.25 cents and EPS of 20.41 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.2, implying annual growth of -14.9%. Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 9.7. |
Forecast for FY23:
Credit Suisse forecasts a full year FY23 dividend of 12.11 cents and EPS of 24.11 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 17.6, implying annual growth of -8.3%. Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 10.6. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $23.81
Credit Suisse rates AUB as Outperform (1) -
AUB Group has reaffirmed guidance for net profit in FY22 of $70-73m. A number of acquisitions have been completed including a new broking software business.
Credit Suisse expects the strong start to FY22 will underpin the FY22 target for net profit growth through acquisitions of $1.5-2m.
The BizCover brand has launched a new direct insurance platform for small-medium enterprises in South Africa which leverages its technology.
Credit Suisse believes this should provide a good testing ground for what appears to be a long-term strategy to expand geographically. Outperform rating maintained. Target is $25.70.
Target price is $25.70 Current Price is $23.81 Difference: $1.89
If AUB meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $25.67, suggesting upside of 7.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 56.00 cents and EPS of 96.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 93.8, implying annual growth of -1.4%. Current consensus DPS estimate is 57.0, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 25.4. |
Forecast for FY23:
Credit Suisse forecasts a full year FY23 dividend of 60.00 cents and EPS of 101.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 100.7, implying annual growth of 7.4%. Current consensus DPS estimate is 63.0, implying a prospective dividend yield of 2.6%. Current consensus EPS estimate suggests the PER is 23.7. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates AUB as Outperform (1) -
AUB Group reiterated guidance at its AGM September-quarter trading update, noting FY21 momentum continues to flow into early FY22.
Premium rates rose slightly higher than expected and the company was very busy on the M&A front, finalising the purchase of GibbsCorp and Vaughan & Monaghan, the portfolio merger of Hiller Marine and SURA Marine, plus a string of other deals and launches.
Management is expanding its geographic ambitions beyond Australian shores, and plans wholesale brokerage investments, moving up the value chain.
Macquarie says management's new five-year EPS targets sharply exceed the broker's.
Outperform and $25.52 target retained.
Target price is $25.52 Current Price is $23.81 Difference: $1.71
If AUB meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $25.67, suggesting upside of 7.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 56.00 cents and EPS of 97.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 93.8, implying annual growth of -1.4%. Current consensus DPS estimate is 57.0, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 25.4. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 61.00 cents and EPS of 105.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 100.7, implying annual growth of 7.4%. Current consensus DPS estimate is 63.0, implying a prospective dividend yield of 2.6%. Current consensus EPS estimate suggests the PER is 23.7. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
COL COLES GROUP LIMITED
Food, Beverages & Tobacco
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Overnight Price: $17.63
Macquarie rates COL as Outperform (1) -
Coles Group's AGM trading update met Macquarie's estimates, the company guiding to strong Christmas trading, both supermarket and liquor sales rising during lockdowns.
Covid disruptions are set to ease, which should support the company's construction plans (capital expenditure was less than expected), says the broker.
Bunnings and Officeworks ((WES)) are soon to become Flybuys partners. Outperform rating and $19.80 target price retained.
Target price is $19.80 Current Price is $17.63 Difference: $2.17
If COL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $18.38, suggesting upside of 4.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 61.20 cents and EPS of 76.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 74.0, implying annual growth of -1.8%. Current consensus DPS estimate is 59.7, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 23.7. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 65.10 cents and EPS of 81.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 80.2, implying annual growth of 8.4%. Current consensus DPS estimate is 64.9, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 21.8. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $19.20
Citi rates CPU as Sell (5) -
The AGM has reaffirmed growth in earnings per share of 2%, in line with expectations. The company has reiterated FY22 margin income guidance of $145m and confirmed no major benefit from recent moves in interest rates.
Yet Citi suspects some may be disappointed amid expectations of upgrades, particularly as corporate actions were identified as an area of weakness.
The broker envisages few catalysts other than the volatility of interest-rate expectations. Citi also notes, if US mortgage servicing was benefiting from the moratorium on foreclosures coming to an end, it was not significant enough to be identified at the AGM.
Sell rating maintained. Target rises to $15.80 from $15.30.
Target price is $15.80 Current Price is $19.20 Difference: minus $3.4 (current price is over target).
If CPU meets the Citi target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $18.95, suggesting downside of -2.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 48.07 cents and EPS of 70.71 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 72.5, implying annual growth of N/A. Current consensus DPS estimate is 58.0, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 26.9. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 50.05 cents and EPS of 88.72 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 84.0, implying annual growth of 15.9%. Current consensus DPS estimate is 60.4, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 23.2. |
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
Macquarie rates CPU as Outperform (1) -
Computershare's AGM mixed trading update broadly met Macquarie's expectations and guidance.
Management reiterated full-year guidance and the broker suspects FY22 margin income could outpace guidance on current run rates.
The US Mortgage Servicing business continues to drag but the broker says the long-term growth picture is solid.
EPS forecasts rise 0.9% for FY22 and 0.7% for FY23, to reflect an expected rise in register maintenance revenue.
Outperform rating and $22 target price retained.
Target price is $22.00 Current Price is $19.20 Difference: $2.8
If CPU meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $18.95, suggesting downside of -2.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 44.23 cents and EPS of 70.31 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 72.5, implying annual growth of N/A. Current consensus DPS estimate is 58.0, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 26.9. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 45.29 cents and EPS of 89.12 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 84.0, implying annual growth of 15.9%. Current consensus DPS estimate is 60.4, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 23.2. |
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
DBI DALRYMPLE BAY INFRASTRUCTURE LIMITED
Infrastructure & Utilities
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Overnight Price: $2.12
Morgans rates DBI as Add (1) -
To reflect Dalrymple Bay infrastructure's recent bond issue, as well as Morgans' updated interest and inflation rate assumptions, the broker's target falls to $2.36 from $2.49.
For investors comfortable with coal exposure the appeal is thought to be an attractive yield and earnings growth.
The analyst considers the final report by the Queensland Competition Authority (QCA) improves the infrastructure company's negotiating position with its customers. The Add rating is unchanged.
Target price is $2.36 Current Price is $2.12 Difference: $0.24
If DBI meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $2.59, suggesting upside of 21.6% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 18.25 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.6, implying annual growth of N/A. Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 8.7%. Current consensus EPS estimate suggests the PER is 22.2. |
Forecast for FY23:
Morgans forecasts a full year FY23 dividend of 18.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.4, implying annual growth of 18.8%. Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 8.8%. Current consensus EPS estimate suggests the PER is 18.7. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
FPH FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED
Medical Equipment & Devices
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Overnight Price: $30.88
Credit Suisse rates FPH as Neutral (3) -
Credit Suisse notes influenza and respiratory diseases have been largely absent during the pandemic although in recent months there are signs this is changing.
There has been a resurgence in flu-type respiratory diseases in both the US and UK as a result of opening up which supports nasal high flow product demand.
Along with continued covid-related demand, this signals a heightened call on this product heading into the northern hemisphere winter.
Fisher & Paykel Healthcare will report its first half results on November 25 and the broker forecasts net profit of NZ$216m. No guidance is expected given the continued uncertainty. Neutral maintained. Target rises to $33.00 from $32.50.
Target price is $33.00 Current Price is $30.88 Difference: $2.12
If FPH meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $33.00, suggesting upside of 7.2% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 36.67 cents and EPS of 62.05 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 62.9, implying annual growth of N/A. Current consensus DPS estimate is 38.5, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 49.0. |
Forecast for FY23:
Credit Suisse forecasts a full year FY23 dividend of 39.49 cents and EPS of 58.29 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 64.1, implying annual growth of 1.9%. Current consensus DPS estimate is 42.0, implying a prospective dividend yield of 1.4%. Current consensus EPS estimate suggests the PER is 48.0. |
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
Overnight Price: $7.20
Ord Minnett rates MNF as Buy (1) -
MNF Group has guided to FY22 operating earnings (EBITDA) of $35-38m which includes initial investments to launch and grow operations in Singapore. Malaysia is the next market in the company's plan, expected before the end of 2022.
The name change to Symbio with ASX ticker SYM has been approved. Ord Minnett believes the business has a superior growth story, given a large addressable market and strong competitive advantage. Buy rating retained. Target is raised to $7.90 from $7.33.
Target price is $7.90 Current Price is $7.20 Difference: $0.7
If MNF meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 8.10 cents and EPS of 16.20 cents. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 8.80 cents and EPS of 19.80 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $25.12
Credit Suisse rates NCM as Outperform (1) -
Newcrest Mining will acquire Pretium Resources, owner of the Brucejack mine for US$2.73bn, which will add an incremental 370,000 ozpa of gold over the medium term. The acquisition will be funded 50:50 in scrip and cash.
Credit Suisse notes the mine presents technical challenges which have meant reserves have been downgraded in recent years. Yet Newcrest Mining is confident it can deliver value to justify the premium paid. Outperform rating and $31 target maintained.
Target price is $31.00 Current Price is $25.12 Difference: $5.88
If NCM meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $29.57, suggesting upside of 15.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 19.86 cents and EPS of 126.63 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 128.1, implying annual growth of N/A. Current consensus DPS estimate is 34.2, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 20.0. |
Forecast for FY23:
Credit Suisse forecasts a full year FY23 dividend of 24.60 cents and EPS of 121.56 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 126.2, implying annual growth of -1.5%. Current consensus DPS estimate is 44.0, implying a prospective dividend yield of 1.7%. Current consensus EPS estimate suggests the PER is 20.3. |
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: $1.55
Macquarie rates PPH as Neutral (3) -
Pushpay Holdings' interim result fell short of Macquarie's forecasts across all three product categories as customer growth and total processing volumes lost momentum. Churn rates fell.
The broker suspects the volume slowdown may mean donations are still normalising, while Resi's metrics suggest customer growth is slowing faster than expected, causing the broker to downgrade FY22 customer and revenue forecasts -19% and -36% respectively.
EPS forecasts fall -14%, -23% and -27% across FY22, FY23 and FY24.
Neutral rating retained, the broker admiring the share price (noting potential growth of 24%) but reluctant to bail in until the customer growth picture becomes clearer. Target price falls -9% to NZ$1.70.
Current Price is $1.55. Target price not assessed.
Current consensus price target is $1.90, suggesting upside of 24.2% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of 4.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.2, 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 29.4. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.69 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.2, implying annual growth of 19.2%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 24.7. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.27
Morgans rates RED as Add (1) -
Morgans leaves its $0.33 target price and Add rating unchanged following Red 5's update on construction at the King of the Hills gold project (on-track). The overall project is 65% complete as at September 30.
The broker also adjusts its financial model for the sale of the Siana Gold project in the Philippines and 1Q production results at the Darlot gold mine, which were in-line with expectations.
Target price is $0.33 Current Price is $0.27 Difference: $0.06
If RED meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY21:
Morgans forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.10 cents. |
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 0.00 cents and EPS of 4.00 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $14.39
Citi rates SGM as Buy (1) -
The trading update has signalled strong earnings momentum has persisted into FY22 amid strong margins in ferrous and non-ferrous products. The main offset is freight price volatility and inflation pressures on general business costs, Citi notes.
The broker expects stimulus expenditure will increase the demand for steel-intensive infrastructure and drive additional retail consumption. Decarbonisation is also positive for copper/aluminium/steel recycling. Buy rating retained. Target rises to $18.50 from $18.00.
Target price is $18.50 Current Price is $14.39 Difference: $4.11
If SGM meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $18.32, suggesting upside of 23.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 55.00 cents and EPS of 211.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 207.9, implying annual growth of 82.2%. Current consensus DPS estimate is 57.6, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 7.1. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 35.00 cents and EPS of 129.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 138.1, implying annual growth of -33.6%. Current consensus DPS estimate is 43.6, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 10.7. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates SGM as Outperform (1) -
The company has indicated at its AGM that momentum has continued into FY22. First half earnings (EBIT) guidance is $310-350m which is ahead of consensus expectations.
Credit Suisse increases its estimates by 9% given high margins and noting a rebound in scrap prices.
The broker points out the value of secure scrap supply is evident in multiple US transactions which provides positive implications for Sims. Outperform maintained. Target is raised to $21.50 from $19.30.
Target price is $21.50 Current Price is $14.39 Difference: $7.11
If SGM meets the Credit Suisse target it will return approximately 49% (excluding dividends, fees and charges).
Current consensus price target is $18.32, suggesting upside of 23.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 78.24 cents and EPS of 198.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 207.9, implying annual growth of 82.2%. Current consensus DPS estimate is 57.6, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 7.1. |
Forecast for FY23:
Credit Suisse forecasts a full year FY23 dividend of 72.21 cents and EPS of 134.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 138.1, implying annual growth of -33.6%. Current consensus DPS estimate is 43.6, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 10.7. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates SGM as Neutral (3) -
Sims' September-quarter update pleased Macquarie, the company posting strong margins (albeit still down on the FY19 average) and expecting full-year growth and beyond to be supported by continued stimulus spending on steel-intensive structure.
Sims reports strength in all segments and geographies, and management says risks to first-half guidance include freight prices and the timing of shipments but expects these could abate thereafter, particularly given supply-demand dynamics in the US steel sector.
Macquarie upgrades earnings estimates 13.2% for FY22 but shaves -1.4% and -1.3% off FY23 and FY24 forecasts.
Target price rises to $15.60 from $15.05. Neutral rating retained, the broker citing near-term risk in the ferrous complex and energy markets, and "shifting trade regimes".
Target price is $15.60 Current Price is $14.39 Difference: $1.21
If SGM meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $18.32, suggesting upside of 23.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 42.00 cents and EPS of 207.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 207.9, implying annual growth of 82.2%. Current consensus DPS estimate is 57.6, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 7.1. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 29.00 cents and EPS of 144.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 138.1, implying annual growth of -33.6%. Current consensus DPS estimate is 43.6, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 10.7. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates SGM as Equal-weight (3) -
Following a 1H trading update, Morgan Stanley assesses a strong start to the year for Sims with supportive markets driving good volumes and margins. Guidance for group earnings (EBIT) exceeded the broker's estimate by 7% and consensus forecasts by 5%.
The analyst points out trading margins were strong across all regions and considers the company well positioned to benefit from favourable trends.
However, after revaluating the SA Recycling valuation and rolling forward the financial model, the broker's target price falls to $16.50 from $19.50. The Equal-weight rating is retained. The industry view is In-Line.
Target price is $16.50 Current Price is $14.39 Difference: $2.11
If SGM meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $18.32, suggesting upside of 23.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 38.00 cents and EPS of 181.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 207.9, implying annual growth of 82.2%. Current consensus DPS estimate is 57.6, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 7.1. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 38.00 cents and EPS of 99.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 138.1, implying annual growth of -33.6%. Current consensus DPS estimate is 43.6, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 10.7. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates SGM as Buy (1) -
UBS observes Sims is currently benefiting from strong ferrous and non-ferrous pricing. Sales volumes and margins are also robust in North America. The company has issued maiden first half earnings (EBITS) guidance of $310-350m.
The broker believes the company's proactive approach as a high-grade processor will be increasingly important as restrictions on lower-quality scrap imports and scrap exports are raised.
Buy rating and $17.80 target maintained.
Target price is $17.80 Current Price is $14.39 Difference: $3.41
If SGM meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $18.32, suggesting upside of 23.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
UBS forecasts a full year FY22 EPS of 231.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 207.9, implying annual growth of 82.2%. Current consensus DPS estimate is 57.6, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 7.1. |
Forecast for FY23:
UBS forecasts a full year FY23 EPS of 171.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 138.1, implying annual growth of -33.6%. Current consensus DPS estimate is 43.6, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 10.7. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $6.56
Citi rates SHV as Buy (1) -
Citi considers the current weakness in almond prices temporary, as supply chain problems are coinciding with softer seasonal demand.
Average almond prices have fallen -15% over the past month, affected by disrupted sea freight that has caused lost sales and shortages with storage.
Lower prices could persist during the remainder of 2021 while export demand should revive in the first quarter of 2022 and provide a positive catalyst. Winter rainfall is still required to materially improve the water supply in California.
Buy rating and $9.85 target maintained.
Target price is $9.85 Current Price is $6.56 Difference: $3.29
If SHV meets the Citi target it will return approximately 50% (excluding dividends, fees and charges).
The company's fiscal year ends in September.
Forecast for FY21:
Citi forecasts a full year FY21 dividend of 0.00 cents and EPS of 7.50 cents. |
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 10.00 cents and EPS of 41.10 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
SRV SERVCORP LIMITED
Commercial Services & Supplies
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Overnight Price: $4.50
UBS rates SRV as Downgrade to Neutral from Buy (3) -
Servcorp has reaffirmed FY22 guidance, noting operating conditions are improving. Occupancy rates in September were slightly below June which UBS believes reflects recent mobility restrictions in Australia.
The broker considers the stock a recovery trade as it is highly leveraged to improving market dynamics. The post-pandemic environment is also likely to be structured more favourably as competitors face significant challenges.
As the stock has rallied around 34% since the FY21 results, the broker downgrades to Neutral from Buy. Target is raised 11% to $4.60.
Target price is $4.60 Current Price is $4.50 Difference: $0.1
If SRV meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
UBS forecasts a full year FY22 dividend of 17.00 cents and EPS of 27.00 cents. |
Forecast for FY23:
UBS forecasts a full year FY23 dividend of 21.00 cents and EPS of 33.00 cents. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
SSG SHAVER SHOP GROUP LIMITED
Household & Personal Products
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Overnight Price: $1.06
Ord Minnett rates SSG as Upgrade to Accumulate from Hold (2) -
A surge in trading following the re-opening of retail stores in NSW and Victoria is expected to result in increased earnings and Ord Minnett upgrades to Accumulate from Hold.
Shaver Shop provided a trading update which indicated sales in the year to date eased -0.9%, which the broker considers is quite modest given the widespread closures. Online sales increased 58.6% over the same period and currently represent 50.2% of total sales.
Target is raised to $1.25 from $1.20.
Target price is $1.25 Current Price is $1.06 Difference: $0.19
If SSG meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 8.00 cents and EPS of 12.20 cents. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 9.00 cents and EPS of 12.80 cents. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $11.11
Citi rates SUN as Buy (1) -
Suncorp Group has indicated momentum in the home loan portfolio is showing signs of improvement although growth remains below system. Citi remains sceptical the bank can achieve its target of 50% in FY23 cost-to-income ratio.
The broker considers Suncorp a medium-term story although the current share price is at a reasonable entry point. The broker retains a Buy rating and $12.80 target.
Target price is $12.80 Current Price is $11.11 Difference: $1.69
If SUN meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $13.13, suggesting upside of 17.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 56.00 cents and EPS of 63.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 68.5, implying annual growth of -15.3%. Current consensus DPS estimate is 56.3, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 16.4. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 76.00 cents and EPS of 87.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 83.5, implying annual growth of 21.9%. Current consensus DPS estimate is 67.5, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 13.4. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates SUN as Hold (3) -
Morgans marginally lifts its EPS forecasts and raises its target for Suncorp Group to $12.16 from $11.91 following the group's quarterly banking update. While the bad debt performance is considered exceptional, the company is achieving "below system" home loan growth.
With only limited upside to the target price, Morgans retains its Hold rating.
Target price is $12.16 Current Price is $11.11 Difference: $1.05
If SUN meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $13.13, suggesting upside of 17.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 46.40 cents and EPS of 62.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 68.5, implying annual growth of -15.3%. Current consensus DPS estimate is 56.3, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 16.4. |
Forecast for FY23:
Morgans forecasts a full year FY23 dividend of 63.60 cents and EPS of 86.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 83.5, implying annual growth of 21.9%. Current consensus DPS estimate is 67.5, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 13.4. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates SUN as Hold (3) -
Lending rose 0.6% in the September quarter with home lending up 1%. Business lending contracted -0.5% amid a reduction in the commercial loan book that was partially offset by growth in agriculture.
Ord Minnett notes the CET1 ratio of 9.63% slightly eased from the June ratio of 10.06% which reflects the payment of the bank dividend.
The broker retains a Hold rating and lowers the target to $13.30 from $14.21.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $13.30 Current Price is $11.11 Difference: $2.19
If SUN meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $13.13, suggesting upside of 17.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 51.00 cents and EPS of 69.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 68.5, implying annual growth of -15.3%. Current consensus DPS estimate is 56.3, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 16.4. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 54.00 cents and EPS of 74.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 83.5, implying annual growth of 21.9%. Current consensus DPS estimate is 67.5, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 13.4. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $8.42
Morgan Stanley rates SYD as Overweight (1) -
In the wake of Sydney Airport's board recommending the $8.75 Sydney Aviation Alliance proposal, Morgan Stanley's attention turns to approvals and timing.
The analyst notes, with the looming Federal election, there is a caretaker period of around 30 days before the election date. During this time the Foreign Investment Review Board does not make decisions.
Morgan Stanley retains its Overweight rating and $8.50 target price. Industry View: Cautious.
Target price is $8.50 Current Price is $8.42 Difference: $0.08
If SYD meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $8.70, suggesting upside of 3.6% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY21:
Morgan Stanley forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 14.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -10.6, 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 FY22:
Morgan Stanley forecasts a full year FY22 dividend of 24.00 cents and EPS of 2.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 3.9, implying annual growth of N/A. Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 215.4. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $4.30
Credit Suisse rates UMG as Neutral (3) -
Credit Suisse is concerned about the impact of rising gas costs on profitability in the second half and the first half of FY22, reducing estimates as a result. FY21 results will be reported on November 17.
Otherwise, the broker believes the business maintains a competitive advantage because of its craft distribution network and Scotch whisky position in the UK.
With the exception of Australia, volumes have been recovering, the broker adds. Yet consumption in smaller broader pubs appears to have been lagging the industry as a whole. Neutral rating retained. Target edges up to $4.59 from $4.58.
Target price is $4.59 Current Price is $4.30 Difference: $0.29
If UMG meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $4.75, suggesting upside of 13.3% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY21:
Credit Suisse forecasts a full year FY21 dividend of 7.12 cents and EPS of 12.95 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.3, implying annual growth of -27.0%. Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 34.1. |
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 13.20 cents and EPS of 21.99 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.2, implying annual growth of 88.6%. Current consensus DPS estimate is 13.9, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 18.1. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.85
Ord Minnett rates UWL as Upgrade to Accumulate from Hold (2) -
Ord Minnett expects Uniti Group will be a beneficiary of the current environment for greenfield property development. While private dwelling approvals have returned to some level of normality recently, new approvals are still elevated compared with longer-term averages.
The broker expects strong growth in the future construction work as developers plan for larger populations in greenfield areas. The broker expects wholesale revenue will be 50% of group revenues in FY22 and upgrades to Accumulate from Hold.
The broker also envisages the buyback program will be an efficient allocation of capital in the context of options for growth in adjacent markets as well as M&A. Target is $4.21.
Target price is $4.21 Current Price is $3.85 Difference: $0.36
If UWL meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 0.00 cents and EPS of 12.10 cents. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 0.00 cents and EPS of 14.00 cents. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $1.74
Credit Suisse rates VCX as Neutral (3) -
After the first quarter update, when the company elected to withhold FY22 guidance, Credit Suisse believes the earnings recovery is a story for FY23, assuming no further rent relief.
Rent relief granted in the first quarter was not disclosed while retail sales were down -25.7% relative to September quarter 2019. Overall foot traffic in the quarter was 55% of pre-pandemic levels.
The broker asserts there is some upside potential if the company can lower the cost of debt, which is among the highest in its A-REIT coverage. Neutral maintained. Target is raised to $1.79 from $1.71.
Target price is $1.79 Current Price is $1.74 Difference: $0.05
If VCX meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $1.70, suggesting downside of -1.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 8.00 cents and EPS of 11.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 10.6, implying annual growth of N/A. Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 16.2. |
Forecast for FY23:
Credit Suisse forecasts a full year FY23 dividend of 10.00 cents and EPS of 13.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.7, implying annual growth of 19.8%. Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates VCX as Hold (3) -
The quarterly update appeared in line with commentary from peers as most operating metrics have started to recover as restrictions eased. Ord Minnett expects conditions should continue to normalise over the remainder of 2021.
The company has provided no guidance because of the uncertainty related to the pandemic.
Ord Minnett expects earnings and distributions will stabilise in FY23 and believes the rebound in transactions among retail assets is an opportunity for the company to pursue its asset improvement strategy. Hold rating maintained. Target rises to $1.90 from $1.80.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $1.90 Current Price is $1.74 Difference: $0.16
If VCX meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $1.70, suggesting downside of -1.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 6.90 cents and EPS of 9.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 10.6, implying annual growth of N/A. Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 16.2. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 10.30 cents and EPS of 13.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.7, implying annual growth of 19.8%. Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates VCX as Neutral (3) -
UBS considers the operating metrics in the September quarter were sound, given the business was substantially affected by lockdowns.
The broker is not surprised Vicinity Centres elected to withhold guidance as rent relief is currently in effect in NSW and Victoria until January 2022.
UBS revises earnings up 3% to reflect the acquisition of Harbour Town and the divestment of Runaway Bay.
The broker retains a Neutral rating and raises the target to $1.72 from $1.65.
Target price is $1.72 Current Price is $1.74 Difference: minus $0.02 (current price is over target).
If VCX 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 $1.70, suggesting downside of -1.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
UBS forecasts a full year FY22 dividend of 8.00 cents and EPS of 11.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 10.6, implying annual growth of N/A. Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 16.2. |
Forecast for FY23:
UBS forecasts a full year FY23 dividend of 10.00 cents and EPS of 14.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.7, implying annual growth of 19.8%. Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $147.28
Ord Minnett rates XRO as Lighten (4) -
Upon initial analysis of Xero's interim report released today, Ord Minnett finds the overall performance broadly in-line, though international subscriber growth was slower-than-expected, possibly linked to the decision by company management to spend less on marketing during lockdowns.
On the positive side, average revenue per user (ARPU) for the international business has by now lifted significantly, aided by the recent Planday acquisition, but ARPU in A&NZ only showed limited improvement.
Ord Minnett notes company management has stuck with its earlier guidance for FY22. Target $103. Rating Lighten.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $103.00 Current Price is $147.28 Difference: minus $44.28 (current price is over target).
If XRO meets the Ord Minnett target it will return approximately minus 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $124.45, suggesting downside of -10.1% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 0.00 cents and EPS of 12.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 21.1, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 655.8. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 0.00 cents and EPS of 43.16 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 63.4, implying annual growth of 200.5%. Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 0.0%. Current consensus EPS estimate suggests the PER is 218.2. |
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Today's Price Target Changes
Company | Last Price | Broker | New Target | Prev Target | Change | |
29M | 29metals | $2.67 | Morgan Stanley | 2.90 | 3.10 | -6.45% |
AQZ | Alliance Aviation Services | $4.14 | Morgans | 5.15 | 5.10 | 0.98% |
ASB | Austal | $1.87 | Credit Suisse | 2.50 | 2.25 | 11.11% |
CPU | Computershare | $19.48 | Citi | 15.80 | 15.00 | 5.33% |
DBI | Dalrymple Bay Infrastructure | $2.13 | Morgans | 2.36 | 2.49 | -5.22% |
FPH | Fisher & Paykel Healthcare | $30.79 | Credit Suisse | 33.00 | 32.50 | 1.54% |
MNF | MNF Group | $7.26 | Ord Minnett | 7.90 | 7.33 | 7.78% |
SGM | Sims | $14.80 | Citi | 18.50 | 18.00 | 2.78% |
Credit Suisse | 21.50 | 19.30 | 11.40% | |||
Macquarie | 15.60 | 15.05 | 3.65% | |||
Morgan Stanley | 16.50 | 19.50 | -15.38% | |||
SRV | Servcorp | $4.50 | UBS | 4.60 | 4.15 | 10.84% |
SSG | Shaver Shop | $1.08 | Ord Minnett | 1.25 | 1.20 | 4.17% |
SUN | Suncorp Group | $11.22 | Morgans | 12.16 | 11.91 | 2.10% |
Ord Minnett | 13.30 | 14.21 | -6.40% | |||
SYD | Sydney Airport | $8.40 | Morgan Stanley | 8.50 | 8.28 | 2.66% |
UMG | United Malt | $4.19 | Credit Suisse | 4.59 | 4.58 | 0.22% |
VCX | Vicinity Centres | $1.72 | Credit Suisse | 1.79 | 1.71 | 4.68% |
Ord Minnett | 1.90 | 1.80 | 5.56% | |||
UBS | 1.72 | 1.65 | 4.24% |
Summaries
29M | 29metals | Overweight - Morgan Stanley | Overnight Price $2.70 |
ALG | Ardent Leisure | Buy - Citi | Overnight Price $1.66 |
AQZ | Alliance Aviation Services | Add - Morgans | Overnight Price $3.97 |
ASB | Austal | Upgrade to Outperform from Neutral - Credit Suisse | Overnight Price $1.78 |
AUB | AUB Group | Outperform - Credit Suisse | Overnight Price $23.81 |
Outperform - Macquarie | Overnight Price $23.81 | ||
COL | Coles Group | Outperform - Macquarie | Overnight Price $17.63 |
CPU | Computershare | Sell - Citi | Overnight Price $19.20 |
Outperform - Macquarie | Overnight Price $19.20 | ||
DBI | Dalrymple Bay Infrastructure | Add - Morgans | Overnight Price $2.12 |
FPH | Fisher & Paykel Healthcare | Neutral - Credit Suisse | Overnight Price $30.88 |
MNF | MNF Group | Buy - Ord Minnett | Overnight Price $7.20 |
NCM | Newcrest Mining | Outperform - Credit Suisse | Overnight Price $25.12 |
PPH | Pushpay | Neutral - Macquarie | Overnight Price $1.55 |
RED | Red 5 | Add - Morgans | Overnight Price $0.27 |
SGM | Sims | Buy - Citi | Overnight Price $14.39 |
Outperform - Credit Suisse | Overnight Price $14.39 | ||
Neutral - Macquarie | Overnight Price $14.39 | ||
Equal-weight - Morgan Stanley | Overnight Price $14.39 | ||
Buy - UBS | Overnight Price $14.39 | ||
SHV | Select Harvests | Buy - Citi | Overnight Price $6.56 |
SRV | Servcorp | Downgrade to Neutral from Buy - UBS | Overnight Price $4.50 |
SSG | Shaver Shop | Upgrade to Accumulate from Hold - Ord Minnett | Overnight Price $1.06 |
SUN | Suncorp Group | Buy - Citi | Overnight Price $11.11 |
Hold - Morgans | Overnight Price $11.11 | ||
Hold - Ord Minnett | Overnight Price $11.11 | ||
SYD | Sydney Airport | Overweight - Morgan Stanley | Overnight Price $8.42 |
UMG | United Malt | Neutral - Credit Suisse | Overnight Price $4.30 |
UWL | Uniti Group | Upgrade to Accumulate from Hold - Ord Minnett | Overnight Price $3.85 |
VCX | Vicinity Centres | Neutral - Credit Suisse | Overnight Price $1.74 |
Hold - Ord Minnett | Overnight Price $1.74 | ||
Neutral - UBS | Overnight Price $1.74 | ||
XRO | Xero | Lighten - Ord Minnett | Overnight Price $147.28 |
RATING SUMMARY
Rating | No. Of Recommendations |
1. Buy | 18 |
2. Accumulate | 2 |
3. Hold | 11 |
4. Reduce | 1 |
5. Sell | 1 |
Thursday 11 November 2021
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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.
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