Australian Broker Call
November 01, 2017
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COMPANIES DISCUSSED IN THIS ISSUE
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Last Updated: 12:43 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.
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
| BPT - | BEACH ENERGY | Downgrade to Neutral from Buy | Citi |
| FXJ - | FAIRFAX MEDIA | Downgrade to Hold from Buy | Deutsche Bank |
| WOW - | WOOLWORTHS | Upgrade to Neutral from Underperform | Credit Suisse |
Citi rates BEN as Neutral (3) -
The broker has downgraded earnings forecasts for Bendelaide by -7% in FY18-20 following a trading update at the bank's AGM which noted lower than expected lending growth in a competitive environment.
The broker believes mortgage repricing will provide a boost in the first half but this will be tempered by lower volumes and fee pressures. Neutral and $12.00 target retained.
Target price is $12.00 Current Price is $11.38 Difference: $0.62
If BEN meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $11.29, suggesting upside of 1.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 72.00 cents and EPS of 88.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.9, implying annual growth of 0.5%. Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 12.5. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 72.00 cents and EPS of 87.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.6, implying annual growth of -0.3%. Current consensus DPS estimate is 69.7, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.6. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates BEN as Hold (3) -
The bank's trading update, relative to expectations, proved disappointing for Deutsche Bank, given that management is now guiding for a relatively flat first half.
The broker suggests that management has opted to maintain margin in a trade-off against volume growth. Hold rating and $11.25 target retained.
Target price is $11.25 Current Price is $11.38 Difference: minus $0.13 (current price is over target).
If BEN meets the Deutsche Bank target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $11.29, suggesting upside of 1.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 68.00 cents and EPS of 93.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.9, implying annual growth of 0.5%. Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 12.5. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 68.00 cents and EPS of 94.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.6, implying annual growth of -0.3%. Current consensus DPS estimate is 69.7, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.6. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates BEN as Neutral (3) -
Macquarie continues to believe the outlook for earnings and dividend growth beyond recent re-pricing measures is challenging.
The broker has a flat earnings outlook for FY18-20 and believes it will take the bank more than five years to "grow" into its current elevated dividend.
Macquarie maintains a Neutral rating and $11.75 target.
Target price is $11.75 Current Price is $11.38 Difference: $0.37
If BEN meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $11.29, suggesting upside of 1.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 68.00 cents and EPS of 90.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.9, implying annual growth of 0.5%. Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 12.5. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 68.00 cents and EPS of 91.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.6, implying annual growth of -0.3%. Current consensus DPS estimate is 69.7, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.6. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates BEN as Underweight (5) -
Morgan Stanley observes the AGM guidance update presents up to -1% downside risk to estimates for earnings. Margin trends are shaping up worse than the broker expected.
However, cost guidance is better than expected and largely neutralises the negative impact of lower margins.
Underweight. Target is $10.40. Industry view is In-Line.
Target price is $10.40 Current Price is $11.38 Difference: minus $0.98 (current price is over target).
If BEN meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $11.29, suggesting upside of 1.3% (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 87.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.9, implying annual growth of 0.5%. Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 12.5. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 70.00 cents and EPS of 87.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.6, implying annual growth of -0.3%. Current consensus DPS estimate is 69.7, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.6. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates BEN as Lighten (4) -
The bank updated FY18 guidance and, while generally consistent with expectations, Ord Minnett found a couple of surprises.
Net interest margin has once again come at the expense of credit growth, with loans expected to be flat half on half. Expense growth is also flatter than previously expected.
Incorporating changes, the broker lowers FY18-20 earnings estimates by -1%. Lighten rating retained. Target is $11.20.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $11.20 Current Price is $11.38 Difference: minus $0.18 (current price is over target).
If BEN meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $11.29, suggesting upside of 1.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 EPS of 85.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.9, implying annual growth of 0.5%. Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 12.5. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 EPS of 85.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.6, implying annual growth of -0.3%. Current consensus DPS estimate is 69.7, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.6. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates BEN as Sell (5) -
The bank expects balance sheet growth to be relatively flat in the first half, having to reduce investor and interest-only lending to comply with macro prudential limits.
The commentary at the AGM was weaker than expected, UBS observes, given the bank re-priced interest-only loans in July.
UBS downgrades forecasts for earnings per share by -6% for FY18, primarily a function of softer net interest income. Target is reduced to $10.50 from $11.00.
Target price is $10.50 Current Price is $11.38 Difference: minus $0.88 (current price is over target).
If BEN meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $11.29, suggesting upside of 1.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 68.00 cents and EPS of 84.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.9, implying annual growth of 0.5%. Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 12.5. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 68.00 cents and EPS of 81.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.6, implying annual growth of -0.3%. Current consensus DPS estimate is 69.7, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.6. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates BPT as Downgrade to Neutral from Buy (3) -
Beach Energy's Sep Q numbers beat Citi on more oil in the mix and higher realised oil prices. Cooper wells have been tied in earlier than expected. The broker has upgraded FY18 forecast earnings by 15.6%.
The market was nevertheless concerned over Origin Energy's ((ORG)) realised gas price for its Lattice business Beach is set to acquire, but the broker sees year one prices as less relevant than later years once Beach normalises for Otway interests.
While the stock price has rallied with the oil price, Citi estimates a long term oil price in excess of US$66/bbl is being assumed. Downgrade to Neutral on valuation. Target rises to 97c from 92c.
Target price is $0.97 Current Price is $0.98 Difference: minus $0.005 (current price is over target).
If BPT meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.87, suggesting downside of -16.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 1.50 cents and EPS of 7.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.8, implying annual growth of -62.4%. Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 13.5. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 2.10 cents and EPS of 8.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.8, implying annual growth of 12.8%. Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 11.9. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates BPT as No Rating (-1) -
September quarter production, ex-Lattice, rose 2%. The company benefited from increased production over its operated oil assets in PEL 91.
Macquarie is currently restricted on rating and target.
Current Price is $0.98. Target price not assessed.
Current consensus price target is $0.87, suggesting downside of -16.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 2.10 cents and EPS of 7.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.8, implying annual growth of -62.4%. Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 13.5. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 2.20 cents and EPS of 4.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.8, implying annual growth of 12.8%. Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 11.9. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates BPT as Lighten (4) -
First quarter production was generally positive, although existing and acquired assets are expected to decline materially over time.
Therefore, despite what appear to be attractive forward multiples, Ord Minnett maintains a Lighten rating with an $0.87 target.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $0.87 Current Price is $0.98 Difference: minus $0.105 (current price is over target).
If BPT meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.87, suggesting downside of -16.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 5.00 cents and EPS of 12.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.8, implying annual growth of -62.4%. Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 13.5. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 4.00 cents and EPS of 12.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.8, implying annual growth of 12.8%. Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 11.9. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates BPT as Neutral (3) -
September quarter production and gas pricing were better than UBS expected. Production from Lattice Energy assets was 13% ahead of the broker's estimates, with production beats at Otway and Kupe.
UBS observes the share price has risen sharply since June, driven by increases in oil prices, high oil output at Western Flank and a substantial increase in oil reserves.
The broker retains a Neutral rating and raises the target to $0.93 from $0.78.
Target price is $0.93 Current Price is $0.98 Difference: minus $0.045 (current price is over target).
If BPT meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.87, suggesting downside of -16.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 0.00 cents and EPS of 5.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.8, implying annual growth of -62.4%. Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 13.5. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 0.00 cents and EPS of 9.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.8, implying annual growth of 12.8%. Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 11.9. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates FXJ as Downgrade to Hold from Buy (3) -
Deutsche Bank now incorporates Domain into forecasts as a separate entity. The uplift in corporate costs and the outflows relating to the agent equity model reduce the broker's valuation.
Whilst recognising the growth potential inherent in Domain, Deutsche Bank believes it is now fully factored into the share price.
The broker downgrades to Hold from Buy and reduces the target to $1.10 from $1.15.
Target price is $1.10 Current Price is $1.10 Difference: $0
If FXJ meets the Deutsche Bank target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $1.15, suggesting upside of 5.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 4.00 cents and EPS of 6.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.1, implying annual growth of -1.6%. Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 17.9. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 4.00 cents and EPS of 6.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.2, implying annual growth of 1.6%. Current consensus DPS estimate is 4.1, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 17.6. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates GPT as Hold (3) -
Management has reaffirmed FY17 guidance for operating earnings growth per share of 3%. Deutsche Bank notes cap rates continue to firm across the company's office and retail funds.
As a result of recent revaluations and the settlement of Highpoint, the broker updates valuation and raises the target to $4.90 from $4.88. Hold retained.
Target price is $4.90 Current Price is $5.09 Difference: minus $0.19 (current price is over target).
If GPT meets the Deutsche Bank target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $5.25, suggesting upside of 2.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 25.00 cents and EPS of 31.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.3, implying annual growth of -47.7%. Current consensus DPS estimate is 24.8, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 16.9. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 27.00 cents and EPS of 32.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.4, implying annual growth of 3.6%. Current consensus DPS estimate is 25.9, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 16.3. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates HVN as Underweight (5) -
ASIC has indicated it will not make further enquiries into the company potentially consolidating franchised stores into its accounts.
Morgan Stanley had thought the probability of ASIC enforcing consolidation was low so the news does not affect its investment thesis.
The broker retains an Underweight rating. Target is $3.50. Industry view is Cautious.
Target price is $3.50 Current Price is $3.78 Difference: minus $0.28 (current price is over target).
If HVN meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.14, suggesting upside of 2.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 27.00 cents and EPS of 35.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.1, implying annual growth of -13.0%. Current consensus DPS estimate is 26.9, implying a prospective dividend yield of 6.6%. Current consensus EPS estimate suggests the PER is 11.6. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 26.00 cents and EPS of 35.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.1, implying annual growth of N/A. Current consensus DPS estimate is 25.8, implying a prospective dividend yield of 6.4%. Current consensus EPS estimate suggests the PER is 11.6. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates ING as Outperform (1) -
Macquarie observes Australian poultry volumes are running closer to historical averages and this should be a more manageable load, with less inefficiencies and be positive for margins.
The broker notes the company continues to progress a strategic review of its commercial stockfeed and existing strong position as a trans-Tasman producer amid a fragmented market.
Outperform rating and $4 target.
Target price is $4.00 Current Price is $3.55 Difference: $0.45
If ING meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $3.79, suggesting upside of 5.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 19.90 cents and EPS of 29.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 29.2, implying annual growth of 72.5%. Current consensus DPS estimate is 20.1, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 12.4. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 21.00 cents and EPS of 30.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.3, implying annual growth of 7.2%. Current consensus DPS estimate is 21.6, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 11.5. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates ING as Equal-weight (3) -
The company has reiterated FY18 growth guidance, with poultry volume growth to be closer to the historical average going forward. Meanwhile, the performance in New Zealand has continued to improve.
Feed prices have risen and, while the company has pass-through mechanisms in place for 60% of volume, given the soft consumer environment, Morgan Stanley suspects some of the remainder will not allow the costs to be passed on.
Equal-weight. Target $3.40. Industry view: Cautious.
Target price is $3.40 Current Price is $3.55 Difference: minus $0.15 (current price is over target).
If ING meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.79, suggesting upside of 5.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 20.40 cents and EPS of 29.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 29.2, implying annual growth of 72.5%. Current consensus DPS estimate is 20.1, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 12.4. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 21.60 cents and EPS of 30.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.3, implying annual growth of 7.2%. Current consensus DPS estimate is 21.6, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 11.5. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates ISU as Outperform (1) -
On the back of recent weakness in the share price, Credit Suisse believes investors should be more comfortable with the trading update provided at the AGM.
Underlying operating earnings guidance implies growth of 13-26%. The broker is disappointed in the expected drag from marketing costs at Nest but considers these non-recurring.
Outperform retained. Target is reduced to $2.00 from $2.10.
Target price is $2.00 Current Price is $1.60 Difference: $0.405
If ISU meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 6.00 cents and EPS of 7.73 cents. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 8.78 cents and EPS of 9.76 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates MIN as Hold (3) -
September quarter results were slightly softer than expected. FY18 guidance has been maintained.
Deutsche Bank trims FY18 operating earnings estimates by -3%. Hold rating and $15 target retained.
Target price is $15.00 Current Price is $17.40 Difference: minus $2.4 (current price is over target).
If MIN meets the Deutsche Bank target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $18.63, suggesting upside of 5.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 69.00 cents and EPS of 139.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 121.0, implying annual growth of 12.4%. Current consensus DPS estimate is 60.7, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 14.6. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 76.00 cents and EPS of 153.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 180.0, implying annual growth of 48.8%. Current consensus DPS estimate is 91.2, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 9.8. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates MIN as Outperform (1) -
First quarter production was mixed versus Macquarie's forecasts. Softer shipments at Iron Valley were offset by lithium shipments.
The broker reduces forecasts for earnings per share by -7% in FY18 as the catch-up shipments at Iron Valley are expected to realise lower iron ore prices.
Outperform rating retained. Target is $22.
Target price is $22.00 Current Price is $17.40 Difference: $4.6
If MIN meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $18.63, suggesting upside of 5.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 72.40 cents and EPS of 131.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 121.0, implying annual growth of 12.4%. Current consensus DPS estimate is 60.7, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 14.6. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 81.10 cents and EPS of 151.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 180.0, implying annual growth of 48.8%. Current consensus DPS estimate is 91.2, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 9.8. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates MIN as Overweight (1) -
Iron ore production was 10% ahead of Morgan Stanley's estimates in the September quarter while shipments were around -13% softer.
FY18 guidance has been reiterated, with Iron Valley expected to be weighted to the second half.
Overweight.Target is $18.90. Industry view is Attractive.
Target price is $18.90 Current Price is $17.40 Difference: $1.5
If MIN meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $18.63, suggesting upside of 5.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 59.20 cents and EPS of 130.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 121.0, implying annual growth of 12.4%. Current consensus DPS estimate is 60.7, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 14.6. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 116.60 cents and EPS of 235.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 180.0, implying annual growth of 48.8%. Current consensus DPS estimate is 91.2, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 9.8. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates ORG as Neutral (3) -
Origin has signed a gas supply deal with APLNG which, when combined with GLNG supply, closes the gap on the assumed supply shortfall and thus avoids the government triggering its quarantine mechanism, the broker suggests.
The broker is positive on Origin given APLNG cost-outs, earnings upgrades to account for the timing of the Lattice sale, low net debt and a possible dividend restart in FY19. But the stock is too pricey, hence Neutral retained. Target rises to $8.07 from $7.54.
Target price is $8.07 Current Price is $7.94 Difference: $0.13
If ORG meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $8.07, suggesting downside of -0.7% (ex-dividends)
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 54.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 49.2, implying annual growth of N/A. Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 0.5%. Current consensus EPS estimate suggests the PER is 16.5. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 30.90 cents and EPS of 61.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 63.1, implying annual growth of 28.3%. Current consensus DPS estimate is 24.3, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 12.9. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates ORG as Hold (3) -
September quarter production at APLNG increased 3%. With the sale of Lattice effective July 1, 2017, APLNG will be the main focus of the quarterly reporting going forward.
Deutsche Bank revises FY18 and FY19 earnings per share estimates down by -8% and -9% respectively, largely because of a revision to FX assumptions.
Hold rating retained. Target is reduced to $6.55 from $6.90.
Target price is $6.55 Current Price is $7.94 Difference: minus $1.39 (current price is over target).
If ORG meets the Deutsche Bank target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $8.07, suggesting downside of -0.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 0.00 cents and EPS of 38.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 49.2, implying annual growth of N/A. Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 0.5%. Current consensus EPS estimate suggests the PER is 16.5. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 0.00 cents and EPS of 50.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 63.1, implying annual growth of 28.3%. Current consensus DPS estimate is 24.3, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 12.9. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates ORG as Accumulate (2) -
Ord Minnett is positive regarding Origin Energy, primarily because of the expected de-gearing of the balance sheet, with contributions expected to come from all parts the business.
APLNG performed strongly in the September quarter and realised LNG prices increased 5%. Ord Minnett maintains an Accumulate rating and $9.15 target.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $9.15 Current Price is $7.94 Difference: $1.21
If ORG meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $8.07, suggesting downside of -0.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 0.00 cents and EPS of 51.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 49.2, implying annual growth of N/A. Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 0.5%. Current consensus EPS estimate suggests the PER is 16.5. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 20.00 cents and EPS of 76.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 63.1, implying annual growth of 28.3%. Current consensus DPS estimate is 24.3, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 12.9. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates ORG as Buy (1) -
September quarter APLNG production and pricing was in line with UBS estimates. The broker observes the Lattice Energy assets are no longer relevant to the company but it will book profits until the transaction is completed.
UBS raises FY18 forecasts for earnings per share by 44% to reflect nine months of a Lattice contribution prior to the sale.
UBS maintains a Buy rating and raises the target to $9.00 from $8.50. The broker observes a recent rally in oil prices, if sustained, will increase the level of cash distributions from APLNG to the company.
Target price is $9.00 Current Price is $7.94 Difference: $1.06
If ORG meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $8.07, suggesting downside of -0.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 0.00 cents and EPS of 58.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 49.2, implying annual growth of N/A. Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 0.5%. Current consensus EPS estimate suggests the PER is 16.5. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 31.00 cents and EPS of 63.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 63.1, implying annual growth of 28.3%. Current consensus DPS estimate is 24.3, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 12.9. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates RWC as Sell (5) -
Deutsche Bank believes current multiples imply growth is needed and remains cautious around acquisitions across different products and geographies, given these can be difficult to manage.
Still, the broker continues to believe the company has strong potential in the US based on its existing products.
Sell rating retained. Target is $3.17.
Target price is $3.17 Current Price is $3.73 Difference: minus $0.56 (current price is over target).
If RWC meets the Deutsche Bank target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.77, suggesting upside of 0.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 7.00 cents and EPS of 13.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 14.2, implying annual growth of 13.6%. Current consensus DPS estimate is 7.1, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 26.5. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 8.00 cents and EPS of 16.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.7, implying annual growth of 17.6%. Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 2.2%. Current consensus EPS estimate suggests the PER is 22.5. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates RWC as Outperform (1) -
Macquarie is incrementally more comfortable about trends in the company's relationship with Home Depot after the investor briefing. The main issue is the further displacement by competing push-to-connect product.
The broker also notes significant ambitions in the new residential market, with the aim of achieving 25% penetration of the single-family homes in the US over a 5-7-year period.
Macquarie retains an Outperform rating and $4.25 target.
Target price is $4.25 Current Price is $3.73 Difference: $0.52
If RWC meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $3.77, suggesting upside of 0.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 7.00 cents and EPS of 14.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 14.2, implying annual growth of 13.6%. Current consensus DPS estimate is 7.1, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 26.5. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 9.00 cents and EPS of 17.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.7, implying annual growth of 17.6%. Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 2.2%. Current consensus EPS estimate suggests the PER is 22.5. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates RWC as Hold (3) -
Morgans has obtained greater insight into the company's growth plans for each of the operating segments.
The broker is now more positive about the ability to generate growth, despite the ongoing risks around SharkBite ranges at The Home Depot and rising copper prices.
Hold rating and target raised to $3.67 from $3.60.
Target price is $3.67 Current Price is $3.73 Difference: minus $0.06 (current price is over target).
If RWC meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.77, suggesting upside of 0.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 7.20 cents and EPS of 14.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 14.2, implying annual growth of 13.6%. Current consensus DPS estimate is 7.1, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 26.5. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 8.20 cents and EPS of 16.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.7, implying annual growth of 17.6%. Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 2.2%. Current consensus EPS estimate suggests the PER is 22.5. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates RWC as Accumulate (2) -
Ord Minnett observes the US construction market has become a greater focus for the company since the launch of EvoPex earlier this year and the completion of Holdrite in June.
The size of the market opportunity is substantial and, the broker notes, management aspires to capture a significant share over time.
With regard to the relationship with Home Depot, the broker takes comfort in commentary that the company is continuing to add stock-keeping units in store and optimising shelf space with retailers outside of the Pacific Northwest.
Accumulate rating and $4.00 target retained.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $4.00 Current Price is $3.73 Difference: $0.27
If RWC meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $3.77, suggesting upside of 0.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 7.00 cents and EPS of 15.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 14.2, implying annual growth of 13.6%. Current consensus DPS estimate is 7.1, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 26.5. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 8.00 cents and EPS of 17.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.7, implying annual growth of 17.6%. Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 2.2%. Current consensus EPS estimate suggests the PER is 22.5. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates SYR as Outperform (1) -
The September quarter update reveals commissioning is well advanced and graphite concentrate was produced. No material problems have been identified.
Credit Suisse observes graphite prices are up 30%, reflecting growth in demand and cuts to Chinese production. Outperform retained. Target reduced to $6.60 from $6.80.
Target price is $6.60 Current Price is $3.37 Difference: $3.23
If SYR meets the Credit Suisse target it will return approximately 96% (excluding dividends, fees and charges).
Current consensus price target is $4.48, suggesting upside of 31.6% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 7.57 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 N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 0.00 cents and EPS of 8.01 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.0, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 48.6. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates SYR as Buy (1) -
The company has maintained production guidance at its September quarter update.
UBS is encouraged that the first intermediate product has been delivered as promised but suggests it is too early to know how it compares to design specification and product split. Capital expenditure has been lifted by a further US$5m to US$210m.
UBS retains a Buy rating and $4.10 target.
Target price is $4.10 Current Price is $3.37 Difference: $0.73
If SYR meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $4.48, suggesting upside of 31.6% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 6.00 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 N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 0.00 cents and EPS of 7.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.0, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 48.6. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates WFD as Accumulate (2) -
Ord Minnett observes Century City and UTC, shopping centres in Los Angeles and San Diego respectively, are both approaching completion and look impressive. The broker expects these to be the dominant shopping centres in their catchment for the next decade.
The broker believes Westfield has identified the changing retail trends early, and is well advanced to stay relevant to consumers.
Re-mixing investment is affecting short-term income, because of higher occupancy and more downtime, but should result in lower exposure to future bankruptcies and better long-term growth, in the broker's opinion.
The broker maintains an Accumulate rating and reduces the target to $10.30 from $11.10.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $10.30 Current Price is $7.77 Difference: $2.53
If WFD meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $8.85, suggesting upside of 13.8% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 34.33 cents and EPS of 40.93 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 42.0, implying annual growth of N/A. Current consensus DPS estimate is 32.7, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 18.5. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 34.07 cents and EPS of 44.55 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 44.7, implying annual growth of 6.4%. Current consensus DPS estimate is 33.8, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 17.4. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates WOW as Neutral (3) -
Woolworths' total sales growth for the Sep Q of 3.7%pa was mostly driven by the supermarkets, which grew sales by 4.9%. Grocery volume growth is encouraging, the broker suggests, offset by price deflation.
The broker sees deflation easing over the next six months but while Big W showed improvement, it's too early to call a turnaround. Neutral retained, target rises to $27.20 from $26.80.
Target price is $27.20 Current Price is $25.88 Difference: $1.32
If WOW meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $26.18, suggesting downside of -0.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 91.10 cents and EPS of 130.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 125.0, implying annual growth of 4.7%. Current consensus DPS estimate is 87.8, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 21.0. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 102.00 cents and EPS of 146.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 138.6, implying annual growth of 10.9%. Current consensus DPS estimate is 97.2, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 18.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates WOW as Upgrade to Neutral from Underperform (3) -
The September quarter update suggests to Credit Suisse that food deflation remains a risk to the outlook.
The main issue for the broker is whether the competitive environment is stabilising enough to allow for meaningful margin expansion over the medium term.
Following a period of underperformance in the share price, the broker upgrades to Neutral from Underperform. Target is raised to $25.31 from $25.17.
Target price is $25.31 Current Price is $25.88 Difference: minus $0.57 (current price is over target).
If WOW meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $26.18, suggesting downside of -0.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 80.71 cents and EPS of 118.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 125.0, implying annual growth of 4.7%. Current consensus DPS estimate is 87.8, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 21.0. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 89.44 cents and EPS of 130.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 138.6, implying annual growth of 10.9%. Current consensus DPS estimate is 97.2, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 18.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates WOW as Buy (1) -
First quarter sales pleased Deutsche Bank, with Australian food maintaining strong sales momentum. The main surprise was Big W, which returned to growth.
The broker is not celebrating this just yet, given the improvement has likely cost considerable margin, and the business is likely to continue to lose money in the foreseeable future.
The broker retains a Buy rating on the turning around of the supermarket division, with a $29 target.
Target price is $29.00 Current Price is $25.88 Difference: $3.12
If WOW meets the Deutsche Bank target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $26.18, suggesting downside of -0.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 93.00 cents and EPS of 123.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 125.0, implying annual growth of 4.7%. Current consensus DPS estimate is 87.8, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 21.0. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 105.00 cents and EPS of 139.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 138.6, implying annual growth of 10.9%. Current consensus DPS estimate is 97.2, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 18.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates WOW as Underperform (5) -
Macquarie found the first quarter sales update reasonable, with momentum continuing in Australasian supermarkets, Big W and hotels amid stable growth in liquor.
Nevertheless, the broker is cautious about the definition of comparable sales in Australian food as the details on the funding of the sales performance have not been revealed and holiday trading is still to come.
Underperform rating. Target is lowered to $25.39 from $25.80.
Target price is $25.39 Current Price is $25.88 Difference: minus $0.49 (current price is over target).
If WOW meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $26.18, suggesting downside of -0.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 75.90 cents and EPS of 118.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 125.0, implying annual growth of 4.7%. Current consensus DPS estimate is 87.8, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 21.0. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 82.40 cents and EPS of 129.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 138.6, implying annual growth of 10.9%. Current consensus DPS estimate is 97.2, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 18.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates WOW as Underweight (5) -
Morgan Stanley observes September quarter growth was easy to come by, given the comparable period, and will become more difficult going forward.
The broker believes, while execution is strong and the company is better placed to tackle competitive threats, the shares are reflecting a long-term outlook that is too optimistic.
Underweight, Cautious industry view and $22 price target.
Target price is $22.00 Current Price is $25.88 Difference: minus $3.88 (current price is over target).
If WOW meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $26.18, suggesting downside of -0.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 87.00 cents and EPS of 120.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 125.0, implying annual growth of 4.7%. Current consensus DPS estimate is 87.8, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 21.0. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 95.00 cents and EPS of 132.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 138.6, implying annual growth of 10.9%. Current consensus DPS estimate is 97.2, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 18.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates WOW as Reduce (5) -
First quarter sales were ahead of estimates. Morgans still considers the stock expensive, given the longer term risk to margins on the back of intense competition.
Big W was a key surprise, with sales growing 2.5% and the first time it has generated such growth in five years.
The turnaround at Woolworths over the past 18 months has impressed the broker. A Reduce rating is retained, the turnaround considered factored into the share price. Target is raised to $22.66 for $22.52.
Target price is $22.66 Current Price is $25.88 Difference: minus $3.22 (current price is over target).
If WOW meets the Morgans target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $26.18, suggesting downside of -0.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 93.00 cents and EPS of 119.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 125.0, implying annual growth of 4.7%. Current consensus DPS estimate is 87.8, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 21.0. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 99.00 cents and EPS of 131.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 138.6, implying annual growth of 10.9%. Current consensus DPS estimate is 97.2, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 18.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates WOW as Accumulate (2) -
First quarter sales growth in Australian food of 4.9%, like-for-like, was in line with Ord Minnett. Big W surprised with sales growth of 2.9%.
The broker believes the turnaround in food is well underway and remains confident cultural change will mean the improvement is sustained. Accumulate rating and $29 target retained.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $29.00 Current Price is $25.88 Difference: $3.12
If WOW meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $26.18, suggesting downside of -0.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 84.00 cents and EPS of 137.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 125.0, implying annual growth of 4.7%. Current consensus DPS estimate is 87.8, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 21.0. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 89.00 cents and EPS of 144.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 138.6, implying annual growth of 10.9%. Current consensus DPS estimate is 97.2, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 18.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates WOW as Buy (1) -
First quarter sales rose 3.7%, slightly below UBS expectations. The broker observes supply-side fresh produce deflation has started to show signs of stabilising.
The main surprise was Big W, with sales up 2.5% after four consecutive years of like-for-like declines.
UBS is more confident now about the opportunities that are available via the top line in grocery, food margins and a turnaround in Big W.
Buy retained. Target is $28.90.
Target price is $28.90 Current Price is $25.88 Difference: $3.02
If WOW meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $26.18, suggesting downside of -0.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 98.00 cents and EPS of 135.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 125.0, implying annual growth of 4.7%. Current consensus DPS estimate is 87.8, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 21.0. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 116.00 cents and EPS of 157.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 138.6, implying annual growth of 10.9%. Current consensus DPS estimate is 97.2, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 18.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Summaries
| BEN | BENDIGO AND ADELAIDE BANK | Neutral - Citi | Overnight Price $11.38 |
| Hold - Deutsche Bank | Overnight Price $11.38 | ||
| Neutral - Macquarie | Overnight Price $11.38 | ||
| Underweight - Morgan Stanley | Overnight Price $11.38 | ||
| Lighten - Ord Minnett | Overnight Price $11.38 | ||
| Sell - UBS | Overnight Price $11.38 | ||
| BPT | BEACH ENERGY | Downgrade to Neutral from Buy - Citi | Overnight Price $0.98 |
| No Rating - Macquarie | Overnight Price $0.98 | ||
| Lighten - Ord Minnett | Overnight Price $0.98 | ||
| Neutral - UBS | Overnight Price $0.98 | ||
| FXJ | FAIRFAX MEDIA | Downgrade to Hold from Buy - Deutsche Bank | Overnight Price $1.10 |
| GPT | GPT | Hold - Deutsche Bank | Overnight Price $5.09 |
| HVN | HARVEY NORMAN HOLDINGS | Underweight - Morgan Stanley | Overnight Price $3.78 |
| ING | INGHAMS GROUP | Outperform - Macquarie | Overnight Price $3.55 |
| Equal-weight - Morgan Stanley | Overnight Price $3.55 | ||
| ISU | ISELECT | Outperform - Credit Suisse | Overnight Price $1.60 |
| MIN | MINERAL RESOURCES | Hold - Deutsche Bank | Overnight Price $17.40 |
| Outperform - Macquarie | Overnight Price $17.40 | ||
| Overweight - Morgan Stanley | Overnight Price $17.40 | ||
| ORG | ORIGIN ENERGY | Neutral - Citi | Overnight Price $7.94 |
| Hold - Deutsche Bank | Overnight Price $7.94 | ||
| Accumulate - Ord Minnett | Overnight Price $7.94 | ||
| Buy - UBS | Overnight Price $7.94 | ||
| RWC | RELIANCE WORLDWIDE | Sell - Deutsche Bank | Overnight Price $3.73 |
| Outperform - Macquarie | Overnight Price $3.73 | ||
| Hold - Morgans | Overnight Price $3.73 | ||
| Accumulate - Ord Minnett | Overnight Price $3.73 | ||
| SYR | SYRAH RESOURCES | Outperform - Credit Suisse | Overnight Price $3.37 |
| Buy - UBS | Overnight Price $3.37 | ||
| WFD | WESTFIELD CORP | Accumulate - Ord Minnett | Overnight Price $7.77 |
| WOW | WOOLWORTHS | Neutral - Citi | Overnight Price $25.88 |
| Upgrade to Neutral from Underperform - Credit Suisse | Overnight Price $25.88 | ||
| Buy - Deutsche Bank | Overnight Price $25.88 | ||
| Underperform - Macquarie | Overnight Price $25.88 | ||
| Underweight - Morgan Stanley | Overnight Price $25.88 | ||
| Reduce - Morgans | Overnight Price $25.88 | ||
| Accumulate - Ord Minnett | Overnight Price $25.88 | ||
| Buy - UBS | Overnight Price $25.88 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 10 |
| 2. Accumulate | 4 |
| 3. Hold | 14 |
| 4. Reduce | 2 |
| 5. Sell | 7 |
Wednesday 01 November 2017
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base their work on information believed to be reliable and accurate, though
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should contact their personal adviser before making any investment decision.
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