Australian Broker Call
November 21, 2017
Access Broker Call Report Archives here
COMPANIES DISCUSSED IN THIS ISSUE
Click on symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
Last Updated: 10:40 AM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.
For more info about the different terms used by stockbrokers, as well as the different methodologies behind similar sounding ratings, download our guide HERE
Today's Upgrades and Downgrades
| AWE - | AWE | Upgrade to Outperform from Neutral | Credit Suisse |
| MQA - | MACQUARIE ATLAS ROADS | Upgrade to Outperform from Neutral | Credit Suisse |
| Upgrade to Add from Hold | Morgans |
Morgan Stanley rates ALL as Initiation of coverage with Equal-weight (3) -
Morgan Stanley forecasts 20% growth in net profit in FY18 as the company rides the wave of its market leading products and innovation. The broker envisages little risk in the near-term although struggles with the premium multiple expanding further.
Morgan Stanley initiates coverage with an Equal-weight rating and $25 target. Industry view is Cautious.
Target price is $25.00 Current Price is $23.38 Difference: $1.62
If ALL meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $24.85, suggesting upside of 6.3% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 34.00 cents and EPS of 84.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 77.6, implying annual growth of 40.8%. Current consensus DPS estimate is 34.0, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 30.1. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 61.00 cents and EPS of 101.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 102.4, implying annual growth of 32.0%. Current consensus DPS estimate is 49.4, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 22.8. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates ALQ as Buy (1) -
First half results were in line with Citi's expectations. FY18 net profit guidance of $135-145m is below the broker's estimates, with cash conversion surprisingly low because of significantly higher working capital.
Incorporating the buyback, the target increases to $9.20 from $8.50. Citi remains attracted to the company's diversity and retains a Buy rating.
Target price is $9.20 Current Price is $7.30 Difference: $1.9
If ALQ meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $7.20, suggesting downside of -1.4% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 17.50 cents and EPS of 28.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.4, implying annual growth of 75.3%. Current consensus DPS estimate is 16.7, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 25.7. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 22.00 cents and EPS of 36.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.1, implying annual growth of 23.6%. Current consensus DPS estimate is 20.6, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 20.8. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates ALQ as Hold (3) -
The positive in ALS' first half result, the broker notes, was a better than expected performance from the Life Sciences and Industrial divisions. The negatives were a goodwill impairment charge, weaker than expected biochemistry result, FY18 guidance below consensus and poor cash flow conversion.
At least the company will conduct a buyback. On a low forecast total shareholder return, the broker retains Hold. Target falls to $7.44 from $7.73.
Target price is $7.44 Current Price is $7.30 Difference: $0.14
If ALQ meets the Deutsche Bank target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $7.20, suggesting downside of -1.4% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 17.00 cents and EPS of 29.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.4, implying annual growth of 75.3%. Current consensus DPS estimate is 16.7, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 25.7. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 23.00 cents and EPS of 38.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.1, implying annual growth of 23.6%. Current consensus DPS estimate is 20.6, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 20.8. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates ALQ as Outperform (1) -
First half net profit was at the low end of $70-75m guidance and Macquarie considers the results messy. The broker does not believe the stock is for the fainthearted.
Any sell-off has tended to create opportunities in the last few years and a 4% buyback should be supportive, the broker suggests. Further improvement needs to be demonstrated in life sciences.
Outperform maintained. Target rises to $8.25 from $7.80.
Target price is $8.25 Current Price is $7.30 Difference: $0.95
If ALQ meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $7.20, suggesting downside of -1.4% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 16.30 cents and EPS of 27.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.4, implying annual growth of 75.3%. Current consensus DPS estimate is 16.7, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 25.7. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 17.20 cents and EPS of 34.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.1, implying annual growth of 23.6%. Current consensus DPS estimate is 20.6, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 20.8. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates ALQ as Hold (3) -
First half net profit was below Ord Minnett's forecasts and just inside the guidance range.
Earnings grew less than the broker had projected at this point in the cycle, with weaker profit growth from the commodities unit and margin declines in life sciences.
At this stage, Ord Minnett retains a Hold recommendation. Target is $6.88.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $6.88 Current Price is $7.30 Difference: minus $0.42 (current price is over target).
If ALQ meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $7.20, suggesting downside of -1.4% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 16.00 cents and EPS of 28.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.4, implying annual growth of 75.3%. Current consensus DPS estimate is 16.7, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 25.7. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 20.00 cents and EPS of 37.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.1, implying annual growth of 23.6%. Current consensus DPS estimate is 20.6, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 20.8. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates AOH as Outperform (1) -
Canadian Copper Mountain Mining will acquire Altona Mining for $0.17 per share, a 41.7% premium to the current share price. Directors have unanimously recommended in favour of the scheme.
The offer is scrip with either shares or CDI, with Altona Mining shareholders owning 28.5% of the proposed combined entity. Copper Mountain intends to develop the company's Cloncurry project.
Credit Suisse's Outperform rating and 26c target are maintained. The broker does not have a view on the value of Copper Mountain.
Target price is $0.26 Current Price is $0.14 Difference: $0.12
If AOH meets the Credit Suisse target it will return approximately 86% (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 0.00 cents and EPS of minus 81.00 cents. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 32.00 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates AWE as Upgrade to Outperform from Neutral (1) -
Credit Suisse observes valuation support is heavily dependent on the Perth Basin success, but there is potential upside in other areas of the portfolio as well.
Following on from the equity raising, the broker believes the risk/reward is interesting at current levels.
With a change of analyst, the broker upgrades to Outperform from Neutral. Target is raised to $0.65 from $0.50.
Target price is $0.65 Current Price is $0.52 Difference: $0.13
If AWE meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $0.54, suggesting upside of 2.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 63.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -11.9, 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 FY19:
Credit Suisse forecasts a full year FY19 dividend of 0.00 cents and EPS of 306.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 60.8, 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 0.9. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates BBN as Neutral (3) -
The company is the stand-out retailer in the baby goods sector, in Citi's opinion. Yet first half trading has been adversely affected by clearance activity from competitors which are closing down as well as supplier issues.
Sector consolidation is expected to be positive over the medium to longer term but the broker envisages risks that the sales and margins may be affected by additional competitor behaviour.
Target price falls to $1.40 from $1.60. Neutral rating retained.
Target price is $1.40 Current Price is $1.39 Difference: $0.01
If BBN meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $1.64, suggesting upside of 18.2% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 7.10 cents and EPS of 9.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.8, implying annual growth of 1.0%. Current consensus DPS estimate is 7.0, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 14.2. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 7.30 cents and EPS of 9.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.3, implying annual growth of 15.3%. Current consensus DPS estimate is 8.4, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 12.3. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates BBN as Neutral (3) -
Macquarie observes near-term market conditions are challenging and the sector is undergoing rapid change. The company is also a beneficiary of industry consolidation.
Guidance has been downgraded at the AGM, with operating earnings expected to be flat. Aggressive discounting is pressuring margins and problems with a car-seat manufacturer have also weighed on the stock.
Neutral maintained. Target reduced to $1.50 from $1.65.
Target price is $1.50 Current Price is $1.39 Difference: $0.11
If BBN meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $1.64, suggesting upside of 18.2% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 7.00 cents and EPS of 10.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.8, implying annual growth of 1.0%. Current consensus DPS estimate is 7.0, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 14.2. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 8.90 cents and EPS of 11.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.3, implying annual growth of 15.3%. Current consensus DPS estimate is 8.4, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 12.3. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates BBN as Overweight (1) -
Disruption from failing competitors has caused the company to expect FY18 operating earnings to be in line and -9-15% lower than prior guidance.
Morgan Stanley expects this disruption to be short term and a recovery to occur in the second half, as competitors close and comparables get easier.
Overweight rating. Target is reduced to $2.00 from $2.35. Sector view is In-Line.
Target price is $2.00 Current Price is $1.39 Difference: $0.61
If BBN meets the Morgan Stanley target it will return approximately 44% (excluding dividends, fees and charges).
Current consensus price target is $1.64, suggesting upside of 18.2% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 7.00 cents and EPS of 9.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.8, implying annual growth of 1.0%. Current consensus DPS estimate is 7.0, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 14.2. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 8.80 cents and EPS of 12.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.3, implying annual growth of 15.3%. Current consensus DPS estimate is 8.4, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 12.3. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates BBN as Add (1) -
The company has downgraded FY18 guidance in the wake of recent aggressive promotional activity in the sector. FY18 will now represent a flat earnings year.
The most positive take away from the trading update for Morgans was the articulation of the upside from stores that operate within the catchment of a competitor that has shut up shop. This is the main reason the broker is positive on the stock.
The broker suspects, in the short term, the company will be a victim of its own success and acknowledges that outperformance may take time. Add rating retained. Target is reduced to $1.67 from $1.85.
Target price is $1.67 Current Price is $1.39 Difference: $0.28
If BBN meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $1.64, suggesting upside of 18.2% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 6.80 cents and EPS of 10.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.8, implying annual growth of 1.0%. Current consensus DPS estimate is 7.0, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 14.2. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 8.50 cents and EPS of 12.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.3, implying annual growth of 15.3%. Current consensus DPS estimate is 8.4, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 12.3. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates CAR as Neutral (3) -
The company will acquire the remainder of SK Encar for around $244m and funded via a new debt facility.
Citi believes increasing the exposure to the company's best performing business is a positive but it remains relatively small in the context of a company that still earns 87% of its earnings from Australia.
Citi reduces estimates for earnings per share by -1-2% in FY19/20 to reflect higher interest costs.
The broker retains a Neutral rating and $14.05 target.
Target price is $14.05 Current Price is $13.94 Difference: $0.11
If CAR meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $13.83, suggesting downside of -0.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 44.50 cents and EPS of 54.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.2, implying annual growth of 21.6%. Current consensus DPS estimate is 44.1, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 25.3. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 49.20 cents and EPS of 60.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 61.7, implying annual growth of 11.8%. Current consensus DPS estimate is 49.0, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 22.6. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates CAR as Neutral (3) -
Credit Suisse believes the company is acquiring the remainder of SK Encar at an attractive price.
The broker expects growth to be driven by higher dealer penetration and higher yield and suspects the increased international exposure means the company now has more ability to move the dial from both an earnings and valuation perspective.
Neutral rating retained. Target rises to $13.00 from $12.80.
Target price is $13.00 Current Price is $13.94 Difference: minus $0.94 (current price is over target).
If CAR meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $13.83, suggesting downside of -0.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 44.10 cents and EPS of 55.17 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.2, implying annual growth of 21.6%. Current consensus DPS estimate is 44.1, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 25.3. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 48.00 cents and EPS of 62.84 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 61.7, implying annual growth of 11.8%. Current consensus DPS estimate is 49.0, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 22.6. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates CAR as Hold (3) -
Carsales has acquired the 50% it did not own of Encar.com in Korea. The broker sees reasonable value at a multiple below that of Carsales currently. Debt funding is not an issue for the broker given the company's strong cash flows.
The acquisition means Carsales is free to pursue strategic initiatives that were not previously on the table. The broker sees earnings accretion from FY19. Hold retained, target rises to $13.50 from $13.20.
Target price is $13.50 Current Price is $13.94 Difference: minus $0.44 (current price is over target).
If CAR meets the Deutsche Bank target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $13.83, suggesting downside of -0.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 43.00 cents and EPS of 54.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.2, implying annual growth of 21.6%. Current consensus DPS estimate is 44.1, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 25.3. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 50.00 cents and EPS of 62.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 61.7, implying annual growth of 11.8%. Current consensus DPS estimate is 49.0, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 22.6. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates CAR as Outperform (1) -
The company has announced the acquisition of the remaining 50.1% stake in SK Encar.com for around $244m. Completion is subject to regulatory approval.
The transaction further evolves the company's international strategy, and separately, Macquarie envisages broad-based drivers for earnings in FY18 and scope for ongoing growth.
Outperform rating maintained. Target rises to $14.20 from $14.00.
Target price is $14.20 Current Price is $13.94 Difference: $0.26
If CAR meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $13.83, suggesting downside of -0.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 45.20 cents and EPS of 54.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.2, implying annual growth of 21.6%. Current consensus DPS estimate is 44.1, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 25.3. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 50.60 cents and EPS of 61.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 61.7, implying annual growth of 11.8%. Current consensus DPS estimate is 49.0, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 22.6. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates CAR as Overweight (1) -
Morgan Stanley considers the take over of the 50.1% remainder of SK Encar.com for around $244m is a logical and sensible use of capital, albeit not a game changer.
Overweight. Industry view is: Attractive. Price target is $14.00.
Target price is $14.00 Current Price is $13.94 Difference: $0.06
If CAR meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $13.83, suggesting downside of -0.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 43.10 cents and EPS of 54.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.2, implying annual growth of 21.6%. Current consensus DPS estimate is 44.1, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 25.3. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 46.90 cents and EPS of 59.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 61.7, implying annual growth of 11.8%. Current consensus DPS estimate is 49.0, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 22.6. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates CAR as Add (1) -
The company has taken 100% ownership of its Korean affiliate, SK Encar, by taking out its former local partner. SK Encar is the market leader and has high profit margins, Morgans observes.
The broker upgrades forecasts and valuation to reflect the purchase. While reported net profit and earnings have been lowered because of the high acquisition-related amortisation charges, the broker notes underlying profit and earnings per share will be stronger.
Add rating retained. Target is raised to $14.99 from $13.97.
Target price is $14.99 Current Price is $13.94 Difference: $1.05
If CAR meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $13.83, suggesting downside of -0.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 42.00 cents and EPS of 59.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.2, implying annual growth of 21.6%. Current consensus DPS estimate is 44.1, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 25.3. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 44.00 cents and EPS of 64.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 61.7, implying annual growth of 11.8%. Current consensus DPS estimate is 49.0, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 22.6. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates CAR as Buy (1) -
The company will acquire the remaining 50.1% of SK Encar.com, South Korea's leading automotive classifieds business. Ord Minnett believes the acquisition makes sense and takes the opportunity to update its modelling.
SK Encar grew adjusted net profit by 30% in FY17 and the company envisages an opportunity to enhance this growth.
Buy rating retained. Target rises to $14.39 from $13.79.
Target price is $14.39 Current Price is $13.94 Difference: $0.45
If CAR meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $13.83, suggesting downside of -0.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 45.90 cents and EPS of 54.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.2, implying annual growth of 21.6%. Current consensus DPS estimate is 44.1, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 25.3. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 52.60 cents and EPS of 63.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 61.7, implying annual growth of 11.8%. Current consensus DPS estimate is 49.0, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 22.6. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates CAR as Neutral (3) -
The company will acquire the remainder of SK Encar.com for KRW205bn from its South Korean partner.
UBS estimates the acquisition to be 2-3% accretive in FY19/20 and that the business has the potential to be a more material driver in the long-term.
Neutral rating retained. Target is $12.50.
Target price is $12.50 Current Price is $13.94 Difference: minus $1.44 (current price is over target).
If CAR meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $13.83, suggesting downside of -0.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 45.00 cents and EPS of 55.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.2, implying annual growth of 21.6%. Current consensus DPS estimate is 44.1, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 25.3. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 51.00 cents and EPS of 61.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 61.7, implying annual growth of 11.8%. Current consensus DPS estimate is 49.0, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 22.6. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates CCL as Outperform (1) -
Macquarie notes the company has raised the wholesale prices it charges retailers by $0.15 per package to allow for the new Container Deposit Scheme commencing in NSW on December 1.
The broker's analysis reveals retailers are yet to put through these higher prices to customers. Feedback suggests Coles ((WES)), which has been under pressure to step up investment in price, will likely be the first to pass on the cost to the consumer, with Woolworths ((WOW)) to follow.
Outperform. Price target is $8.80.
Target price is $8.80 Current Price is $7.96 Difference: $0.84
If CCL meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $8.74, suggesting upside of 9.8% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 44.10 cents and EPS of 53.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 54.7, implying annual growth of 69.9%. Current consensus DPS estimate is 45.9, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.6. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 43.80 cents and EPS of 53.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 55.3, implying annual growth of 1.1%. Current consensus DPS estimate is 45.9, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.4. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates DHG as Initiation of coverage with Sell (5) -
As the number two player in online real estate classifieds in the country, Domain is well positioned for growth, the broker suggests, with a push outside its traditional Syd/Melb market a driver. But since listing the stock is trading at a PE premium to incumbent REA Group ((REA)) despite carrying the burden of a legacy print business.
The stock is thus overpriced in the broker's view. Initiation of coverage with a Sell rating and $3.35 target.
Target price is $3.35 Current Price is $3.56 Difference: minus $0.21 (current price is over target).
If DHG meets the Deutsche Bank target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.38, suggesting downside of -5.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 5.00 cents and EPS of 9.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.1, implying annual growth of N/A. Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 1.2%. Current consensus EPS estimate suggests the PER is 39.1. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 6.00 cents and EPS of 11.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.5, implying annual growth of 26.4%. Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 31.0. |
Market Sentiment: -1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates FXJ as Hold (3) -
With the Domain ((DHG)) spin-off now effective, the broker drops its target on Fairfax to 75c from $1.10 to account for the departure. The 60% stake Fairfax still holds in Domain is nevertheless the media company's primary source of value.
The market is applying a deep discount to Fairfax's remaining assets, suggesting 2.8x forward earnings when the broker values them at 4.5x. This might imply a Buy rating but for the fact the broker sees downside risk for the Domain share price, thus Hold retained.
Target price is $0.75 Current Price is $0.69 Difference: $0.06
If FXJ meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $0.73, suggesting upside of 5.8% (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 5.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.6, implying annual growth of -9.7%. Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 12.3. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 4.00 cents and EPS of 5.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.7, implying annual growth of 1.8%. Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 12.1. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates GUD as Buy (1) -
The company intends to buy AA Gaskets for around $22m following its divestment of Oates. This is consistent with the strategy of rationalising operations and recycling capital into the core automotive business.
Citi reiterates its Buy rating and lowers FY18-20 forecasts for earnings per share by -1-3%. Target is reduced to $13.06 from $13.33.
Target price is $13.06 Current Price is $11.93 Difference: $1.13
If GUD meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $11.88, suggesting downside of -0.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 56.00 cents and EPS of 69.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 76.0, implying annual growth of 26.5%. Current consensus DPS estimate is 51.6, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 15.7. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 63.00 cents and EPS of 77.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 73.5, implying annual growth of -3.3%. Current consensus DPS estimate is 58.7, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 16.2. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates GUD as Hold (3) -
The company has acquired AA Group for $22m. This is the leading automotive gasket company in Australasia.
Ord Minnett did not find the acquisition a surprise as the company, having recently sold Oates, had indicated it will pursue acquisitions in the automotive segment and continue the re-positioning of the business undertaken over the past three years.
Hold rating retained. Target rises to $11.80 from $11.50.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $11.80 Current Price is $11.93 Difference: minus $0.13 (current price is over target).
If GUD meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $11.88, suggesting downside of -0.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 52.00 cents and EPS of 109.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 76.0, implying annual growth of 26.5%. Current consensus DPS estimate is 51.6, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 15.7. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 58.00 cents and EPS of 74.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 73.5, implying annual growth of -3.3%. Current consensus DPS estimate is 58.7, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 16.2. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates ILU as Sell (5) -
Iluka's investor day featured an announcement of a marked step-up in capex to fund project expansion as legacy projects begin to deplete. The capex forecast is in line with the broker's expectation and production and cost guidance is better than expected.
The broker expects the zircon and titanium oxide markets to remain tight for the next 18 months which is supportive of prices, but prices have now reached levels sufficient to incentivise new production. New supply shall be coming.
Sell retained. Target rises to $7.00 from $6.70.
Target price is $7.00 Current Price is $9.05 Difference: minus $2.05 (current price is over target).
If ILU meets the Deutsche Bank target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $9.51, suggesting upside of 5.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 15.00 cents and EPS of 24.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.1, implying annual growth of N/A. Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 47.4. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 21.00 cents and EPS of 41.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 50.2, implying annual growth of 162.8%. Current consensus DPS estimate is 13.9, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 18.0. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates LLC as Neutral (3) -
At the AGM the company reiterated that it will be impacted by the underperformance of the Australian construction segment, relating to a small number of engineering projects. Earnings in the first half of FY18 are expected to be below the prior first half.
Macquarie is concerned about the ability to benefit from the infrastructure pipeline and the recouping of losses on problematic projects.
Macquarie retains a Neutral rating. Target is reduced to $17.64 from $18.09.
Target price is $17.64 Current Price is $16.23 Difference: $1.41
If LLC meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $17.73, suggesting upside of 9.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 63.00 cents and EPS of 126.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 141.4, implying annual growth of 8.7%. Current consensus DPS estimate is 67.5, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 11.5. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 72.60 cents and EPS of 145.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 149.8, implying annual growth of 5.9%. Current consensus DPS estimate is 76.5, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 10.8. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates MQA as Upgrade to Outperform from Neutral (1) -
A transition to internalise management has now been agreed. Credit Suisse expects a vote at the AGM in May, or earlier. This will reduce costs and improve transparency. The broker upgrades to Outperform from Neutral and raises the target to $6.50 from $5.50.
Previously waived fees will become payable to Macquarie Group ((MQG)) for managing the APRR investment on behalf of Macquarie Atlas. There is also a risk of performance fees but Credit Suisse estimates these are not likely to be significant.
Target price is $6.50 Current Price is $6.09 Difference: $0.41
If MQA meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $6.13, suggesting upside of 0.7% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 20.00 cents and EPS of 74.66 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 74.3, implying annual growth of 279.5%. Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 8.2. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 23.50 cents and EPS of 14.65 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 37.6, implying annual growth of -49.4%. Current consensus DPS estimate is 23.5, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 16.2. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates MQA as Equal-weight (3) -
The company intends to internalise its management agreement with Macquarie Group ((MQG)). Morgan Stanley has anticipated this development for some time and believes it is a net positive because of the simplification of the company structure, better alignment and governance.
It will be subject to the economics of the agreement eventually negotiated. Macquarie Group currently owns around 15% of the stock and the broker anticipates it may look to exit this investment at some stage, concurrent with internalisation.
Equal-weight retained. Target is $5.86. Industry view: Cautious.
Target price is $5.86 Current Price is $6.09 Difference: minus $0.23 (current price is over target).
If MQA 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 $6.13, suggesting upside of 0.7% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 20.00 cents and EPS of 87.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 74.3, implying annual growth of 279.5%. Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 8.2. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 24.00 cents and EPS of 34.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 37.6, implying annual growth of -49.4%. Current consensus DPS estimate is 23.5, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 16.2. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates MQA as Upgrade to Add from Hold (1) -
The company intends to internalise its management and will provide an update no later than the next AGM. Morgans finds the impact difficult to ascertain until it knows how much will be paid away in fees.
Internalisation will remove a layer of complexity, nonetheless, and should improve cash flow. Subsequently, the broker observes, collapsing the APRR structure would make the stock even more appealing as a takeover target.
Morgans upgrades to Add from Hold. Target is reduced to $6.24 from $6.27.
Target price is $6.24 Current Price is $6.09 Difference: $0.15
If MQA meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $6.13, suggesting upside of 0.7% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 20.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 74.3, implying annual growth of 279.5%. Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 8.2. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 23.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 37.6, implying annual growth of -49.4%. Current consensus DPS estimate is 23.5, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 16.2. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates MQG as Equal-weight (3) -
Morgan Stanley estimates base management fees will fall by around -$30m per annum if Macquarie Atlas ((MQA)) internalises its management. This should be more than offset by growth in other MIRA funds.
Macquarie Atlas has also been a source of performance fees, with around another $50m potentially due in FY19..
Equal-weight rating and In-Line industry view retained. Target is $100.
Target price is $100.00 Current Price is $98.40 Difference: $1.6
If MQG meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $96.39, suggesting downside of -2.0% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 501.00 cents and EPS of 706.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 695.5, implying annual growth of 5.8%. Current consensus DPS estimate is 491.0, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 14.1. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 505.00 cents and EPS of 708.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 715.4, implying annual growth of 2.9%. Current consensus DPS estimate is 506.5, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 13.8. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates PRY as Equal-weight (3) -
Confidence in a turnaround of the medical centres business continues to hinge on recruitment metrics and Morgan Stanley finds these difficult to forecast.
Revisiting the model suggests the trends will detract around -100 basis points from top-line growth for the foreseeable future. Yet, the broker also suggests GP churn/retention, cash flow and balance sheet should continue to improve and commentary at the AGM will be an opportunity to provide more insight.
The broker retains an Equal-weight rating, In-Line sector view and reduces the target to $3.78 from $3.86.
Target price is $3.78 Current Price is $3.58 Difference: $0.2
If PRY meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $3.57, suggesting downside of -0.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 11.80 cents and EPS of 20.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.6, implying annual growth of N/A. Current consensus DPS estimate is 12.6, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 19.2. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 13.40 cents and EPS of 22.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 20.5, implying annual growth of 10.2%. Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 17.5. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates RKN as Neutral (3) -
The company will sell its accountant practice management business in Australasia to MYOB ((MYO)). Macquarie believes this is a good outcome for shareholders as the assets were sold at a premium to book value of $38m.
The company intends to use proceeds, net of exit costs and tax, to pay the majority of its debt and then a special dividend to shareholders.
Macquarie estimates shareholders may receive a one dollar special dividend next year. The transaction is subject to regulatory approval from the competition regulators in both Australia and New Zealand.
Neutral retained. Target is raised to $1.55 from $1.51.
Target price is $1.55 Current Price is $1.50 Difference: $0.05
If RKN meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $1.46, suggesting downside of -2.9% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 2.50 cents and EPS of 8.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.2, implying annual growth of -6.1%. Current consensus DPS estimate is 2.5, implying a prospective dividend yield of 1.7%. Current consensus EPS estimate suggests the PER is 16.3. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 111.00 cents and EPS of 7.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.9, implying annual growth of -3.3%. Current consensus DPS estimate is 39.4, implying a prospective dividend yield of 26.3%. Current consensus EPS estimate suggests the PER is 16.9. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates SYD as Neutral (3) -
Macquarie finds growth continues to surprise on the upside with 2018 international capacity expansion gaining momentum. October traffic statistics revealed total passenger growth of 3.8%, with international up 5.8% and domestic up 2.8%.
The broker considers the stock fully valued. Neutral retained. Target rises to $7.18 from $7.11.
Target price is $7.18 Current Price is $7.30 Difference: minus $0.12 (current price is over target).
If SYD 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 $7.23, suggesting downside of -1.0% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 34.50 cents and EPS of 16.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.1, implying annual growth of 12.3%. Current consensus DPS estimate is 34.7, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 45.3. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 38.00 cents and EPS of 18.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.4, implying annual growth of 14.3%. Current consensus DPS estimate is 37.8, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 39.7. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates SYD as Hold (3) -
October traffic growth was above trend, Morgans observes, and forecasts for 2017 are lifted to align with growth rates. Morgans believes investors should be targeting a return, perhaps optimistically, of at least 10%.
However, at the current share price the broker expects this criteria is unlikely to be achieved. While remaining positive on the outlook for the operations and financial performance, Morgans seeks a lower entry point and maintains a Hold rating. Target is raised to $7.11 from $7.00.
Target price is $7.11 Current Price is $7.30 Difference: minus $0.19 (current price is over target).
If SYD meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $7.23, suggesting downside of -1.0% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 34.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.1, implying annual growth of 12.3%. Current consensus DPS estimate is 34.7, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 45.3. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 37.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.4, implying annual growth of 14.3%. Current consensus DPS estimate is 37.8, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 39.7. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Summaries
| ALL | ARISTOCRAT LEISURE | Initiation of coverage with Equal-weight - Morgan Stanley | Overnight Price $23.38 |
| ALQ | ALS LIMITED | Buy - Citi | Overnight Price $7.30 |
| Hold - Deutsche Bank | Overnight Price $7.30 | ||
| Outperform - Macquarie | Overnight Price $7.30 | ||
| Hold - Ord Minnett | Overnight Price $7.30 | ||
| AOH | ALTONA MINING | Outperform - Credit Suisse | Overnight Price $0.14 |
| AWE | AWE | Upgrade to Outperform from Neutral - Credit Suisse | Overnight Price $0.52 |
| BBN | BABY BUNTING | Neutral - Citi | Overnight Price $1.39 |
| Neutral - Macquarie | Overnight Price $1.39 | ||
| Overweight - Morgan Stanley | Overnight Price $1.39 | ||
| Add - Morgans | Overnight Price $1.39 | ||
| CAR | CARSALES.COM | Neutral - Citi | Overnight Price $13.94 |
| Neutral - Credit Suisse | Overnight Price $13.94 | ||
| Hold - Deutsche Bank | Overnight Price $13.94 | ||
| Outperform - Macquarie | Overnight Price $13.94 | ||
| Overweight - Morgan Stanley | Overnight Price $13.94 | ||
| Add - Morgans | Overnight Price $13.94 | ||
| Buy - Ord Minnett | Overnight Price $13.94 | ||
| Neutral - UBS | Overnight Price $13.94 | ||
| CCL | COCA-COLA AMATIL | Outperform - Macquarie | Overnight Price $7.96 |
| DHG | DOMAIN HOLDINGS | Initiation of coverage with Sell - Deutsche Bank | Overnight Price $3.56 |
| FXJ | FAIRFAX MEDIA | Hold - Deutsche Bank | Overnight Price $0.69 |
| GUD | G.U.D. HOLDINGS | Buy - Citi | Overnight Price $11.93 |
| Hold - Ord Minnett | Overnight Price $11.93 | ||
| ILU | ILUKA RESOURCES | Sell - Deutsche Bank | Overnight Price $9.05 |
| LLC | LEND LEASE CORP | Neutral - Macquarie | Overnight Price $16.23 |
| MQA | MACQUARIE ATLAS ROADS | Upgrade to Outperform from Neutral - Credit Suisse | Overnight Price $6.09 |
| Equal-weight - Morgan Stanley | Overnight Price $6.09 | ||
| Upgrade to Add from Hold - Morgans | Overnight Price $6.09 | ||
| MQG | MACQUARIE GROUP | Equal-weight - Morgan Stanley | Overnight Price $98.40 |
| PRY | PRIMARY HEALTH CARE | Equal-weight - Morgan Stanley | Overnight Price $3.58 |
| RKN | RECKON | Neutral - Macquarie | Overnight Price $1.50 |
| SYD | SYDNEY AIRPORT | Neutral - Macquarie | Overnight Price $7.30 |
| Hold - Morgans | Overnight Price $7.30 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 14 |
| 3. Hold | 18 |
| 5. Sell | 2 |
Tuesday 21 November 2017
Access Broker Call Report Archives here
Disclaimer:
The content of this information does in no way reflect the opinions of
FNArena, or of its journalists. In fact we don't have any opinion about
the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe
and comment on. By doing so we believe we provide intelligent investors
with a valuable tool that helps them in making up their own minds, reading
market trends and getting a feel for what is happening beneath the surface.
This document is provided for informational purposes only. It does not
constitute an offer to sell or a solicitation to buy any security or other
financial instrument. FNArena employs very experienced journalists who
base their work on information believed to be reliable and accurate, though
no guarantee is given that the daily report is accurate or complete. Investors
should contact their personal adviser before making any investment decision.
Latest News
| 1 |
The Market In Numbers – 23 Nov 20249:09 AM - Australia |
| 2 |
ASX Winners And Losers Of Today – 22-11-24Nov 22 2024 - Daily Market Reports |
| 3 |
FNArena Corporate Results Monitor – 22-11-2024Nov 22 2024 - Australia |
| 4 |
Next Week At A Glance – 25-29 Nov 2024Nov 22 2024 - Weekly Reports |
| 5 |
Weekly Top Ten News Stories – 22 November 2024Nov 22 2024 - Weekly Reports |