Australian Broker Call
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March 21, 2022
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COMPANIES DISCUSSED IN THIS ISSUE
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1).
Last Updated: 05:00 PM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.
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
MYD - | MyDeal.com.au | Downgrade to Hold from Add | Morgans |
RED - | Red 5 | Upgrade to Add from Hold | Morgans |
Overnight Price: $3.35
Credit Suisse rates ABP as Neutral (3) -
For the third (material) time in three years investors in Abacus Property have to accept shorter-term earnings dilution in exchange for longer-term growth potential, notes Credit Suisse, commenting upon the latest equity raising.
The group announced a $200m capital raise from institutions to fund development and acquisitions, and a further $15m may be raised via a shareholder purchase plan. The broker maintains its Neutral rating and $3.51 target price.
Target price is $3.51 Current Price is $3.35 Difference: $0.16
If ABP meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $3.65, suggesting upside of 9.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 18.00 cents and EPS of 17.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.1, implying annual growth of -63.7%. Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 18.4. |
Forecast for FY23:
Credit Suisse forecasts a full year FY23 dividend of 18.00 cents and EPS of 17.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.0, implying annual growth of 5.0%. Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 5.4%. 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
Ord Minnett rates ABP as Lighten (4) -
Ord Minnett views Abacus Property's $200m institutional equity raise and $15m share purchase plan as funding previously announced acquisitions.
The broker estimates the raising is around -4.5% dilutive to funds from operations (FFO) and lowers its target price to $3.40 from $3.50. the Lighten rating is unchanged.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $3.40 Current Price is $3.35 Difference: $0.05
If ABP meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $3.65, suggesting upside of 9.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 18.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.1, implying annual growth of -63.7%. Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 18.4. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 18.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.0, implying annual growth of 5.0%. Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 5.4%. 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
ANZ AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
Banks
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Overnight Price: $27.58
Citi rates ANZ as Neutral (3) -
Recent outperformance by Australian banks compared to global peers since the Uraine/Russia crisis began may be hard to sustain, according to Citi. The difficulty of finding growth in the domestic economy is considered a handbrake.
The broker feels the recent outperformance may be partly due to Australia’s commodities-dependent economy, strong capital adequacy and the potential uplift from rising interest rates.
ANZ Bank remains the third preference among the big four banks, with Westpac ((WBC)) the most preferred. The Neutral rating and $29.25 target are retained.
Target price is $29.25 Current Price is $27.58 Difference: $1.67
If ANZ meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $30.05, suggesting upside of 9.0% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 154.00 cents and EPS of 210.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 205.5, implying annual growth of -5.3%. Current consensus DPS estimate is 144.5, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 13.4. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 164.00 cents and EPS of 237.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 228.5, implying annual growth of 11.2%. Current consensus DPS estimate is 156.3, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 12.1. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $46.25
Morgan Stanley rates BHP as No Rating (-1) -
Morgan Stanley revisits BHP Group's Climate Transition Action Plan which was approved by shareholders last November.
The analyst feels the company's ESG credentials will improve following various planned actions including the Petroleum demerger, the potential exit from Thermal Coal and the pending BHP Mitsui Coal (BMC) exit.
As a reminder, the group is looking to attain net zero emissions in its operations by 2050.
Morgan Stanley is unable to provide a rating or target price on BHP Group. Industry view: In-Line.
Current Price is $46.25. Target price not assessed.
Current consensus price target is $48.74, suggesting upside of 4.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 351.30 cents and EPS of 451.29 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 549.4, implying annual growth of N/A. Current consensus DPS estimate is 403.6, implying a prospective dividend yield of 8.7%. Current consensus EPS estimate suggests the PER is 8.5. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 222.94 cents and EPS of 310.77 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 402.0, implying annual growth of -26.8%. Current consensus DPS estimate is 283.3, implying a prospective dividend yield of 6.1%. Current consensus EPS estimate suggests the PER is 11.6. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $19.65
Ord Minnett rates BSL as Buy (1) -
Despite strong cost inflation arising from the Ukraine/Russia conflict, Ord Minnett points out spot spreads are still generating a strong 18% free cash flow yield for BlueScope Steel from FY23 onwards. In addition, spot earnings are still around the consensus estimate.
A strong demand environment, ongoing capital management and valuation support leads the broker to remain Buy-rated with an unchanged $25 target price.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $25.00 Current Price is $19.65 Difference: $5.35
If BSL meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $25.06, suggesting upside of 25.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 50.00 cents and EPS of 543.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 514.0, implying annual growth of 116.9%. Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.5%. Current consensus EPS estimate suggests the PER is 3.9. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 50.00 cents and EPS of 366.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 269.9, implying annual growth of -47.5%. Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.5%. Current consensus EPS estimate suggests the PER is 7.4. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $106.29
Citi rates CBA as Sell (5) -
Recent outperformance by Australian banks compared to global peers since the Uraine/Russia crisis began may be hard to sustain, according to Citi. The difficulty of finding growth in the domestic economy is considered a handbrake.
The broker feels the recent outperformance may be partly due to Australia’s commodities-dependent economy, strong capital adequacy and the potential uplift from rising interest rates.
CommBank remains the least preferred by Citi among the big four banks, with Westpac ((WBC)) the number one pick. The Sell rating and $90.75 target are retained.
Target price is $90.75 Current Price is $106.29 Difference: minus $15.54 (current price is over target).
If CBA meets the Citi target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $92.45, suggesting downside of -12.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 385.00 cents and EPS of 530.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 523.1, implying annual growth of -9.0%. Current consensus DPS estimate is 372.7, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 20.2. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 420.00 cents and EPS of 540.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 540.1, implying annual growth of 3.2%. Current consensus DPS estimate is 407.3, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 19.6. |
Market Sentiment: -0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CCX CITY CHIC COLLECTIVE LIMITED
Apparel & Footwear
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Overnight Price: $3.39
Citi rates CCX as Buy (1) -
A key takeaway for Citi from Torrid's (a key US competitor to City Chic Collective) 4Q results was management's expectation for sales momentum to improve and grow positively.
In addition, data suggest to the broker City Chic US and Avenue materially outperformed Torrid in February 2022. However, Torrid is upping its marketing spend, which is expected to increase competitive tension.
Citi retains its Neutral rating and $4 target price.
Target price is $4.00 Current Price is $3.39 Difference: $0.61
If CCX meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $5.18, suggesting upside of 52.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 0.00 cents and EPS of 12.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.5, implying annual growth of 30.3%. Current consensus DPS estimate is 2.5, implying a prospective dividend yield of 0.7%. Current consensus EPS estimate suggests the PER is 27.2. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 4.00 cents and EPS of 15.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.8, implying annual growth of 34.4%. Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 20.2. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates CCX as Buy (1) -
City Chic Collective's key US competitor Torrid released FY21 results slightly above consensus and raised prices to mitigate inflation, notes UBS.
The broker feels City Chic Collective is well placed to gain market share and has well diversified product sourcing. The latter is seen as relevant given Torrid's sales were impacted by supply chain and inventory issues.
The Buy rating and $5 target price are maintained.
Target price is $5.00 Current Price is $3.39 Difference: $1.61
If CCX meets the UBS target it will return approximately 47% (excluding dividends, fees and charges).
Current consensus price target is $5.18, suggesting upside of 52.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
UBS forecasts a full year FY22 EPS of 11.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.5, implying annual growth of 30.3%. Current consensus DPS estimate is 2.5, implying a prospective dividend yield of 0.7%. Current consensus EPS estimate suggests the PER is 27.2. |
Forecast for FY23:
UBS forecasts a full year FY23 EPS of 17.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.8, implying annual growth of 34.4%. Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 20.2. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $48.93
Ord Minnett rates JBH as Buy (1) -
Despite reinstated price discounts by Vodafone brand TPG Telecom ((TPG)), Ord Minnett still believes subscriber growth will be driven by network quality and the 5G rollout.
The broker notes the discounts in the secondary sales channel for JB Hi-Fi are lower than for the majority of the previous 12 months. The Buty rating and $57 target are retained.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $57.00 Current Price is $48.93 Difference: $8.07
If JBH meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $56.68, suggesting upside of 13.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 263.00 cents and EPS of 397.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 395.2, implying annual growth of -10.4%. Current consensus DPS estimate is 259.6, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 12.6. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 254.00 cents and EPS of 383.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 364.9, implying annual growth of -7.7%. Current consensus DPS estimate is 237.4, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 13.6. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.63
Morgans rates MYD as Downgrade to Hold from Add (3) -
Following a review of late February's 1H results for MyDeal.com.au, Morgans increases its earnings (EBITDA) loss forecasts. As a result the target price falls to $0.60 from $0.90 and the rating is lowered to Hold from Add.
The broker feels there may be a lack of catalysts from future sales updates, given management has set a gross sales target of $500m by FY25. This is the same year management expects earnings profitability, a year later than the analyst had predicted.
Target price is $0.60 Current Price is $0.63 Difference: minus $0.03 (current price is over target).
If MYD meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.50 cents. |
Forecast for FY23:
Morgans forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.00 cents. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $31.21
Citi rates NAB as Neutral (3) -
Recent outperformance by Australian banks compared to global peers since the Uraine/Russia crisis began may be hard to sustain, according to Citi. The difficulty of finding growth in the domestic economy is considered a handbrake.
The broker feels the recent outperformance may be partly due to Australia’s commodities-dependent economy, strong capital adequacy and the potential uplift from rising interest rates.
National Australia Bank remains the second most preferred by Citi among the big four banks, with Westpac ((WBC)) the number one pick. The Neutral rating and $30.50 target are retained.
Target price is $30.50 Current Price is $31.21 Difference: minus $0.71 (current price is over target).
If NAB meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $31.91, suggesting upside of 3.3% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 145.00 cents and EPS of 207.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 205.7, implying annual growth of 6.6%. Current consensus DPS estimate is 143.3, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 15.0. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 160.00 cents and EPS of 232.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 225.9, implying annual growth of 9.8%. Current consensus DPS estimate is 155.8, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 13.7. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
QUB QUBE HOLDINGS LIMITED
Transportation & Logistics
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Overnight Price: $3.01
UBS rates QUB as Neutral (3) -
Qube Holdings has now specified its $400m capital management program will be executed in the form of an off-market buyback. UBS, in an initial response, reminds investors it had previously suggested an off-market buyback seemed like the most obvious choice.
Previously management at Qube wasn't certain about the utilisation of franking credits, but UBS now points out today's announcement implies Qube will be able to use its balance of franking credits as a partial source of funding.
On UBS's calculations, eligible super funds could realise a 6% premium to the market price. In addition, this initiative does not mean Qube is now ex-growth, points out the broker.
The Neutral rating and $3.30 target are unchanged.
Target price is $3.30 Current Price is $3.01 Difference: $0.29
If QUB meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $3.32, suggesting upside of 8.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
UBS forecasts a full year FY22 dividend of 6.00 cents and EPS of 10.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.5, implying annual growth of 96.7%. Current consensus DPS estimate is 6.1, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 32.1. |
Forecast for FY23:
UBS forecasts a full year FY23 dividend of 7.00 cents and EPS of 12.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.1, implying annual growth of 16.8%. Current consensus DPS estimate is 6.9, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 27.5. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.37
Morgans rates RED as Upgrade to Add from Hold (1) -
Morgans believes the pathway to gold production in the next quarter at Red 5's King of the Hills project has been derisked and raises its rating to Add from Hold. The target also rises to $0.48 from $0.34.
Energisation and commissioning of the SAG mill remains the final major activity to be completed, explains the analyst. It's felt the share price will continue to re-rate in coming months as investors also adjust their risk discounts.
Target price is $0.48 Current Price is $0.37 Difference: $0.11
If RED meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.40 cents. |
Forecast for FY23:
Morgans forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.10 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $4.82
Macquarie rates S32 as Outperform (1) -
South32 is trading on free cash flow yields of 47% and 36% for FY23 and FY24, and Macquarie believes this metric is a good proxy for future total shareholder returns.
After incorporating a free cash flow payout ratio of 90%, the total shareholder return could be around $800m, or 45% higher than the broker is currently estimating.
Macquarie maintains its Outperform rating and $7 target price.
Target price is $7.00 Current Price is $4.82 Difference: $2.18
If S32 meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).
Current consensus price target is $5.38, suggesting upside of 10.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 39.05 cents and EPS of 83.64 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 70.5, implying annual growth of N/A. Current consensus DPS estimate is 29.0, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 6.9. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 41.35 cents and EPS of 82.83 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 60.5, implying annual growth of -14.2%. Current consensus DPS estimate is 27.2, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 8.1. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TLS TELSTRA CORPORATION LIMITED
Telecommunication
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Overnight Price: $3.95
Ord Minnett rates TLS as Buy (1) -
Despite reinstated price discounts by Vodafone brand TPG Telecom ((TPG)), Ord Minnett still believes subscriber growth will be driven by network quality and the 5G rollout.
The broker feels Telstra is best positioned for near-term gains in post-paid market share. The Buy rating and $4.50 target are retained.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $4.50 Current Price is $3.95 Difference: $0.55
If TLS meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $4.43, suggesting upside of 13.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 16.00 cents and EPS of 15.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 13.9, implying annual growth of -11.1%. Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 28.2. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 16.00 cents and EPS of 18.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.7, implying annual growth of 20.1%. Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 23.5. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $5.75
Ord Minnett rates TPG as Buy (1) -
Despite reinstated price discounts by Vodafone brand TPG Telecom, Ord Minnett still believes subscriber growth will be driven by network quality and the 5G rollout.
The broker retains its Buy rating and $7.25 target price.
Target price is $7.25 Current Price is $5.75 Difference: $1.5
If TPG meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $7.31, suggesting upside of 29.8% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 EPS of 11.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 17.2, implying annual growth of 190.5%. Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 32.7. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 EPS of 17.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.9, implying annual growth of 33.1%. Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 24.6. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $23.66
Citi rates WBC as Buy (1) -
Recent outperformance by Australian banks compared to global peers since the Uraine/Russia crisis began may be hard to sustain, according to Citi. The difficulty of finding growth in the domestic economy is considered a handbrake.
The broker feels the recent outperformance may be partly due to Australia’s commodities-dependent economy, strong capital adequacy and the potential uplift from rising interest rates.
Westpac remains the the most preferred among the big four banks. The Buy rating and $27 target are retained.
Target price is $27.00 Current Price is $23.66 Difference: $3.34
If WBC meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $25.16, suggesting upside of 6.8% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 140.00 cents and EPS of 145.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 154.8, implying annual growth of 3.6%. Current consensus DPS estimate is 125.2, implying a prospective dividend yield of 5.3%. Current consensus EPS estimate suggests the PER is 15.2. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 150.00 cents and EPS of 183.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 186.8, implying annual growth of 20.7%. Current consensus DPS estimate is 134.7, implying a prospective dividend yield of 5.7%. 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
Today's Price Target Changes
Company | Last Price | Broker | New Target | Prev Target | Change | |
ABP | Abacus Property | $3.33 | Ord Minnett | 3.40 | 3.50 | -2.86% |
MYD | MyDeal.com.au | $0.65 | Morgans | 0.60 | 0.90 | -33.33% |
RED | Red 5 | $0.36 | Morgans | 0.48 | 0.34 | 41.18% |
Summaries
ABP | Abacus Property | Neutral - Credit Suisse | Overnight Price $3.35 |
Lighten - Ord Minnett | Overnight Price $3.35 | ||
ANZ | ANZ Bank | Neutral - Citi | Overnight Price $27.58 |
BHP | BHP Group | No Rating - Morgan Stanley | Overnight Price $46.25 |
BSL | BlueScope Steel | Buy - Ord Minnett | Overnight Price $19.65 |
CBA | CommBank | Sell - Citi | Overnight Price $106.29 |
CCX | City Chic Collective | Buy - Citi | Overnight Price $3.39 |
Buy - UBS | Overnight Price $3.39 | ||
JBH | JB Hi-Fi | Buy - Ord Minnett | Overnight Price $48.93 |
MYD | MyDeal.com.au | Downgrade to Hold from Add - Morgans | Overnight Price $0.63 |
NAB | National Australia Bank | Neutral - Citi | Overnight Price $31.21 |
QUB | Qube Holdings | Neutral - UBS | Overnight Price $3.01 |
RED | Red 5 | Upgrade to Add from Hold - Morgans | Overnight Price $0.37 |
S32 | South32 | Outperform - Macquarie | Overnight Price $4.82 |
TLS | Telstra | Buy - Ord Minnett | Overnight Price $3.95 |
TPG | TPG Telecom | Buy - Ord Minnett | Overnight Price $5.75 |
WBC | Westpac | Buy - Citi | Overnight Price $23.66 |
RATING SUMMARY
Rating | No. Of Recommendations |
1. Buy | 9 |
3. Hold | 5 |
4. Reduce | 1 |
5. Sell | 1 |
Monday 21 March 2022
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The content of this information does in no way reflect the opinions of
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the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe
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with a valuable tool that helps them in making up their own minds, reading
market trends and getting a feel for what is happening beneath the surface.
This document is provided for informational purposes only. It does not
constitute an offer to sell or a solicitation to buy any security or other
financial instrument. FNArena employs very experienced journalists who
base their work on information believed to be reliable and accurate, though
no guarantee is given that the daily report is accurate or complete. Investors
should contact their personal adviser before making any investment decision.
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