Australian Broker Call
August 14, 2017
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COMPANIES DISCUSSED IN THIS ISSUE
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Last Updated: 12:03 PM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.
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Today's Upgrades and Downgrades
| REA - | REA GROUP | Upgrade to Outperform from Neutral | Credit Suisse |
| Upgrade to Add from Hold | Morgans | ||
| Upgrade to Neutral from Sell | UBS | ||
| SIG - | SIGMA HEALTHCARE | Downgrade to Neutral from Outperform | Credit Suisse |
Citi rates AAD as Sell (5) -
Main Event returned to positive like-for-like sales and the FY17 core operational result beat expectations, including the company's own revised guidance from June, point out analysts at Citi.
There are plenty of negatives though, including no guidance for the year ahead and lower margins for Main Event. Citi prefers to remain cautious, also arguing any sustained turnaround for the company is likely to be capital intensive, high risk and lengthy.
Sell rating retained. Price target $1.25, unchanged.
Target price is $1.25 Current Price is $2.04 Difference: minus $0.79 (current price is over target).
If AAD meets the Citi target it will return approximately minus 39% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $1.77, suggesting downside of -13.7% (ex-dividends)
Forecast for FY17:
Current consensus EPS estimate is -1.6, implying annual growth of N/A. Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY18:
Current consensus EPS estimate is 3.6, implying annual growth of N/A. Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 56.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates AAD as Outperform (1) -
Credit Suisse believes the challenge is to turn around two of the company's three assets. Main Event is assisted by ongoing strong macro conditions.
Consensus expectations are now set around the roll out and near-term margins, and the broker believes bad news is factored in and there is the potential for an improvement in performance with the new management approach.
Outperform retained. Target is raised to $2.15 from $2.05.
Target price is $2.15 Current Price is $2.04 Difference: $0.11
If AAD meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $1.77, suggesting downside of -13.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 3.04 cents and EPS of 2.58 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -1.6, implying annual growth of N/A. Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 3.96 cents and EPS of 5.66 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 3.6, implying annual growth of N/A. Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 56.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates AAD as Hold (3) -
Ardent posted core earnings above guidance, with Main Event showing better sales momentum towards the end of FY17. The broker notes it is the established centres that are performing well while new centres are notably struggling.
This is a concern for the broker, While management has outlined strategies the broker deems sensible the near term outlook for Main Event remains volatile. It will take a long time to turn Dreamworld around, hence Hold retained. Target rises to $2.05 from $1.85.
Target price is $2.05 Current Price is $2.04 Difference: $0.01
If AAD meets the Deutsche Bank target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $1.77, suggesting downside of -13.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 3.00 cents and EPS of 2.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -1.6, implying annual growth of N/A. Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is N/A. |
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 3.6, implying annual growth of N/A. Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 56.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates AAD as Neutral (3) -
The company has provided an update on operating earnings and strategy. Theme parks will continue to focus on events to drive visits and the company is being advised on the use of excess land at Dreamworld, looking to make it an integrated entertainment city.
Macquarie remains happy to be on the sidelines. Neutral retained. Target is reduced to $1.98 from $2.19.
Target price is $1.98 Current Price is $2.04 Difference: minus $0.06 (current price is over target).
If AAD meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $1.77, suggesting downside of -13.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 3.00 cents and EPS of minus 1.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -1.6, implying annual growth of N/A. Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 4.00 cents and EPS of 2.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 3.6, implying annual growth of N/A. Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 56.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates AAD as Hold (3) -
Preliminary operating performance metrics and strategy update suggest to Ord Minnett the pace of the Main Event roll-out is being slowed to allow for a focus on operating improvements.
This, while sensible, is challenged by competition and sub-optimal new locations, in the broker's opinion. Hold rating retained. Target is $1.65.
Target price is $1.65 Current Price is $2.04 Difference: minus $0.39 (current price is over target).
If AAD meets the Ord Minnett target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $1.77, suggesting downside of -13.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 3.00 cents and EPS of minus 13.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -1.6, implying annual growth of N/A. Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 3.00 cents and EPS of 1.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 3.6, implying annual growth of N/A. Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 56.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates AAD as Sell (5) -
The preliminary FY17 result was poor but well flagged, UBS observes. The main difference to 12 months ago was no mention of a 200 centres target.
The broker did not believe such a target was realistic without improvements in operations and a smaller format.
The broker maintains a Sell rating and $1.60 target.
Target price is $1.60 Current Price is $2.04 Difference: minus $0.44 (current price is over target).
If AAD meets the UBS target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $1.77, suggesting downside of -13.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 3.00 cents and EPS of minus 3.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -1.6, implying annual growth of N/A. Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 3.50 cents and EPS of 2.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 3.6, implying annual growth of N/A. Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 56.9. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates AMP as Downgrade to Hold from Buy (3) -
It's been a year since the broker updated on AMP and now we have an "initiation" of coverage with a Hold rating and $5.40 target. Earnings have stabilised, the broker suggests, following the collapse of profitability of the Life insurance business.
AMP's first half result was driven by better than expected result for AMP Capital and Wealth Protection. Despite having entered new reinsurance contracts, AMP will pause its $500m buyback at $200m due to higher capital utilisation. Such an increase in utilisation raises question marks, the broker suggests.
Target price is $5.40 Current Price is $5.09 Difference: $0.31
If AMP meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $5.56, suggesting upside of 9.6% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 31.50 cents and EPS of 39.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.2, implying annual growth of N/A. Current consensus DPS estimate is 29.2, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.8. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 29.00 cents and EPS of 37.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.6, implying annual growth of 4.1%. Current consensus DPS estimate is 29.5, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.2. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates AMP as Add (1) -
First half net profit was in line with Morgans. The broker notes a softer performance in wealth management was offset by better-than-expected results in Capital Investors and the bank.
A new re-insurance arrangement for the life book is expected to release $500m in capital and means that 65% of the retail life insurance book is now re-insured.
Add retained. Target is reduced to $5.76 from $5.88.
Target price is $5.76 Current Price is $5.09 Difference: $0.67
If AMP meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $5.56, suggesting upside of 9.6% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 28.40 cents and EPS of 35.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.2, implying annual growth of N/A. Current consensus DPS estimate is 29.2, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.8. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 28.80 cents and EPS of 36.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.6, implying annual growth of 4.1%. Current consensus DPS estimate is 29.5, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 14.2. |
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) -
Citi analysts retain the view that Baby Bunting is the standout retailer in the niche baby goods sector, but Amazon can potentially force management into adding more costs in the medium term. This would limit the actual leverage, the analysts explain.
They now see more downside than upside risks regarding management's sales guidance for the year ahead. Store roll-out plans remain intact, but the potential start of a multi-year phase wherein the company needs to spend big to fight off Amazon seemingly scares Citi a bit.
Earnings estimates have been lowered. Target price falls to $1.70 from $2.10. Neutral rating retained.
Target price is $1.70 Current Price is $1.60 Difference: $0.1
If BBN meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $1.89, suggesting upside of 13.7% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 7.80 cents and EPS of 11.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.8, implying annual growth of 21.6%. Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 14.1. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 7.80 cents and EPS of 10.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.5, implying annual growth of 5.9%. Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 13.3. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates BBN as Neutral (3) -
FY17 operating earnings were in line with Macquarie. The broker finds the result solid but current trading commentary clouds the near term. Challenging retail conditions are expected to weigh on sentiment.
Longer term, the broker is positive as the company has a proven model in an under-penetrated industry. Neutral maintained. Target reduced to $1.70 from $2.60.
Target price is $1.70 Current Price is $1.60 Difference: $0.1
If BBN meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $1.89, suggesting upside of 13.7% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 8.10 cents and EPS of 11.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.8, implying annual growth of 21.6%. Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 14.1. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 10.20 cents and EPS of 13.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.5, implying annual growth of 5.9%. Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 13.3. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates BBN as Overweight (1) -
Morgan Stanley does not believe the weak start to FY18 is a trend although the growth outlook is lower as management invests to strengthen its competitive position.
The broker is comfortable with the sales outlook and suspects the share price is ignoring the significant roll-out and embedded growth from 46% of stores in the early stages of ramping up.
Overweight rating unchanged. Target is reduced to $2.35 from $3.30. Sector view is In-Line.
Target price is $2.35 Current Price is $1.60 Difference: $0.75
If BBN meets the Morgan Stanley target it will return approximately 47% (excluding dividends, fees and charges).
Current consensus price target is $1.89, suggesting upside of 13.7% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 8.10 cents and EPS of 11.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.8, implying annual growth of 21.6%. Current consensus DPS estimate is 8.3, 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 9.60 cents and EPS of 13.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.5, implying annual growth of 5.9%. Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 13.3. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates BBN as Hold (3) -
FY17 results were in line with Morgans. The results were overshadowed by a weak trading update although the broker suspects the cycling of an "over-stimulated" prior corresponding period is partly to blame.
Incorporating guidance and a higher cost base the broker reduces FY18 and FY19 forecasts for earnings per share by -10% and -11% respectively.
Hold rating retained. Target is reduced to $1.80 from $2.31.
Target price is $1.80 Current Price is $1.60 Difference: $0.2
If BBN meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $1.89, suggesting upside of 13.7% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 9.00 cents and EPS of 13.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.8, implying annual growth of 21.6%. Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 14.1. |
Forecast for FY19:
Current consensus EPS estimate is 12.5, implying annual growth of 5.9%. Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 13.3. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates BLD as Outperform (1) -
Ahead of the results on August 30 Macquarie adjusts FY17 earnings per share estimates higher, to account for recent USG Boral results and adjusted estimates for Headwaters. Outperform rating and $7.65 target unchanged.
Target price is $7.65 Current Price is $6.76 Difference: $0.89
If BLD meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $7.07, suggesting upside of 4.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 23.00 cents and EPS of 33.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.3, implying annual growth of -8.5%. Current consensus DPS estimate is 24.2, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 21.6. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 23.00 cents and EPS of 36.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.4, implying annual growth of 13.1%. Current consensus DPS estimate is 24.4, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 19.1. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates BXB as Neutral (3) -
Citi analysts are not exactly sad the company has decided to sell its loss-making pallet recycling business in North America. Citi finds the decision is vindication of the analysts own low expectations for these operations.
The analysts do worry though whether Brambles is not creating more effective competition by selling these assets. They remain cautious as headwinds are still building for the North American businesses and material downgrades are believed to be forthcoming to consensus forecasts.
Neutral rating retained, as well as $10.15 price target, while awaiting the actual results release.
Target price is $10.15 Current Price is $9.57 Difference: $0.58
If BXB meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $10.46, suggesting upside of 7.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 29.32 cents and EPS of 48.34 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 49.3, implying annual growth of N/A. Current consensus DPS estimate is 31.3, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 19.7. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 29.84 cents and EPS of 51.96 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 54.9, implying annual growth of 11.4%. Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 17.7. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates BXB as Underperform (5) -
The company plans to exit the underperforming whitewood pallet business. Credit Suisse suspects this could be the start of new management turning the focus back to the core pooled pallet business.
If management can resolve issues in the North American pooled pallet business then the broker suspects growth may be lower but returns could be far higher.
Underperform maintained. Target is raised to $9.20 from $8.90.
Target price is $9.20 Current Price is $9.57 Difference: minus $0.37 (current price is over target).
If BXB meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $10.46, suggesting upside of 7.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 38.30 cents and EPS of 50.69 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 49.3, implying annual growth of N/A. Current consensus DPS estimate is 31.3, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 19.7. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 38.30 cents and EPS of 55.96 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 54.9, implying annual growth of 11.4%. Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 17.7. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates BXB as Buy (1) -
The company intends to sell its recycled pallets business in North America. Ord Minnett acknowledges the upside from getting rid of what is likely to be a loss-making operation but questions whether the company has underestimated the strategic and, ultimately financial, value in retaining the business for the long-term.
The company intends to take an impairment of US$243.8m which, on the broker's numbers, suggests the book value up for sale has been written down to an immaterial amount. Hence, investors are warned not to expect much in the way of proceeds. Buy rating and $12.65 target.
Target price is $12.65 Current Price is $9.57 Difference: $3.08
If BXB meets the Ord Minnett target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $10.46, suggesting upside of 7.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 27.73 cents and EPS of 36.98 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 49.3, implying annual growth of N/A. Current consensus DPS estimate is 31.3, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 19.7. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 26.56 cents and EPS of 53.13 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 54.9, implying annual growth of 11.4%. Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 17.7. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates BXB as Buy (1) -
Brambles will divest its North American recycled white wood pallet business. On UBS' calculations, the business was breaking even at the EBIT line in FY16 and likely to be loss-making in FY17.
The broker believes a fast response to an underperforming business signals that management is keen to clean up the portfolio and highlights the challenges in some parts of the IFCO business, where the returns appear to be dragged down by the US RPC segment.
Buy rating retained. Price target $11.30.
Target price is $11.30 Current Price is $9.57 Difference: $1.73
If BXB meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $10.46, suggesting upside of 7.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 38.30 cents and EPS of 66.03 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 49.3, implying annual growth of N/A. Current consensus DPS estimate is 31.3, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 19.7. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 38.45 cents and EPS of 68.94 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 54.9, implying annual growth of 11.4%. Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 17.7. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates GEM as Buy (1) -
UBS has analysed the market and found pricing increases have been instituted earlier than expected. The broker was concerned competitors may wait until the new funding environment in July 2018.
Availability has increased and supply is considered the key variable in FY17 guidance. The broker believes the valuation is appealing and retains a Buy rating. Target is raised to $4.35 from $4.00.
Target price is $4.35 Current Price is $3.70 Difference: $0.65
If GEM meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $4.10, suggesting upside of 8.6% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 20.00 cents and EPS of 25.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.1, implying annual growth of 1.7%. Current consensus DPS estimate is 21.3, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 15.0. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 22.00 cents and EPS of 28.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.7, implying annual growth of 14.3%. Current consensus DPS estimate is 22.2, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 13.2. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates NAB as Neutral (3) -
Citi analysts comment NAB only managed to report Q3 earnings in line with expectations, despite being supported by lower-than-anticipated bad and doubtful debts expenses.
All in all, the analysts are of the opinion that NAB released a creditable result that is poised to provide the market with confidence that mortgage re-pricing will deliver net interest margin (NIM) expansion as well as improved revenue growth.
Neutral rating and $31 price target retained. Estimates have been left untouched.
Target price is $31.00 Current Price is $30.17 Difference: $0.83
If NAB meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $31.40, suggesting upside of 2.9% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 198.00 cents and EPS of 240.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 240.4, implying annual growth of -1.9%. Current consensus DPS estimate is 195.6, implying a prospective dividend yield of 6.4%. Current consensus EPS estimate suggests the PER is 12.7. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 198.00 cents and EPS of 241.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 244.4, implying annual growth of 1.7%. Current consensus DPS estimate is 193.6, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.5. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates NAB as Outperform (1) -
Credit Suisses upgrades FY17 estimates by 1% following the third quarter update and considers the outcome largely positive with 2% net revenue growth driven by net interest income.
Outperform rating and $34.50 target retained.
Target price is $34.50 Current Price is $30.17 Difference: $4.33
If NAB meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $31.40, suggesting upside of 2.9% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 198.00 cents and EPS of 249.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 240.4, implying annual growth of -1.9%. Current consensus DPS estimate is 195.6, implying a prospective dividend yield of 6.4%. Current consensus EPS estimate suggests the PER is 12.7. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 198.00 cents and EPS of 254.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 244.4, implying annual growth of 1.7%. Current consensus DPS estimate is 193.6, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.5. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates NAB as Buy (1) -
NAB's quarterly update was positive, suggesting FY17 earnings are tracking ahead of expectations. While low bad debts contributed, underlying trends are otherwise sound, the broker notes. Revenue growth was encouraging and margins higher.
The broker retains Buy, noting the second half should be supported by mortgage repricing. Target trimmed to $32.50 from $33.20. Capital ratio on target.
Target price is $32.50 Current Price is $30.17 Difference: $2.33
If NAB meets the Deutsche Bank target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $31.40, suggesting upside of 2.9% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 198.00 cents and EPS of 222.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 240.4, implying annual growth of -1.9%. Current consensus DPS estimate is 195.6, implying a prospective dividend yield of 6.4%. Current consensus EPS estimate suggests the PER is 12.7. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 198.00 cents and EPS of 253.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 244.4, implying annual growth of 1.7%. Current consensus DPS estimate is 193.6, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.5. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates NAB as Outperform (1) -
The third quarter update was broadly in line with Macquarie's expectations, revealing improving margins and benign credit charges.
The broker believes the valuation discount to peers is not justified based on the recent performance. Outperform retained. Target is $33.
Target price is $33.00 Current Price is $30.17 Difference: $2.83
If NAB meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $31.40, suggesting upside of 2.9% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 181.00 cents and EPS of 242.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 240.4, implying annual growth of -1.9%. Current consensus DPS estimate is 195.6, implying a prospective dividend yield of 6.4%. Current consensus EPS estimate suggests the PER is 12.7. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 167.00 cents and EPS of 242.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 244.4, implying annual growth of 1.7%. Current consensus DPS estimate is 193.6, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.5. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates NAB as Underweight (5) -
Morgan Stanley expects the share price to be supported by the good margin outcome in the third quarter and re-pricing benefits to come in the fourth quarter, as well as sound credit quality.
Underweight rating retained. Industry view is In-Line. Target is $27.70.
Target price is $27.70 Current Price is $30.17 Difference: minus $2.47 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $31.40, suggesting upside of 2.9% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 198.00 cents and EPS of 239.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 240.4, implying annual growth of -1.9%. Current consensus DPS estimate is 195.6, implying a prospective dividend yield of 6.4%. Current consensus EPS estimate suggests the PER is 12.7. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 198.00 cents and EPS of 235.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 244.4, implying annual growth of 1.7%. Current consensus DPS estimate is 193.6, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.5. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates NAB as Add (1) -
Cash earnings in the third quarter were in line with Morgans. The broker is forecasting four basis points of net interest margin expansion in the second half.
Add rating retained. Price target unchanged at $35.
Target price is $35.00 Current Price is $30.17 Difference: $4.83
If NAB meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $31.40, suggesting upside of 2.9% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 198.00 cents and EPS of 251.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 240.4, implying annual growth of -1.9%. Current consensus DPS estimate is 195.6, implying a prospective dividend yield of 6.4%. Current consensus EPS estimate suggests the PER is 12.7. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 198.00 cents and EPS of 256.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 244.4, implying annual growth of 1.7%. Current consensus DPS estimate is 193.6, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.5. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates NAB as Hold (3) -
Third quarter earnings were slightly ahead of Ord Minnett's expectations. The broker notes consensus expectations appear to presume the bank levy will be passed on through re-pricing.
The broker also remains cautious about being overly optimistic on margins. Hold rating and $30 target.
Target price is $30.00 Current Price is $30.17 Difference: minus $0.17 (current price is over target).
If NAB 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 $31.40, suggesting upside of 2.9% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 EPS of 239.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 240.4, implying annual growth of -1.9%. Current consensus DPS estimate is 195.6, implying a prospective dividend yield of 6.4%. Current consensus EPS estimate suggests the PER is 12.7. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 EPS of 238.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 244.4, implying annual growth of 1.7%. Current consensus DPS estimate is 193.6, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.5. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates NAB as Sell (5) -
The bank's third quarter trading update revealed cash net profit of $1.7bn. The bank is tracking in line with expectations to date. UBS suspects mortgage re-pricing is likely to fully offset the impact of the bank levy.
Nevertheless, elevated costs continue to drag and, while efficiency gains are likely to be delivered in future years, the broker considers the benefits likely to be countered by a normalisation in bad debts.
Sell rating retained. Price target had already been cut to $27.50 on Friday (see that day's Broker Call Report).
Target price is $27.50 Current Price is $30.17 Difference: minus $2.67 (current price is over target).
If NAB meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $31.40, suggesting upside of 2.9% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 198.00 cents and EPS of 240.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 240.4, implying annual growth of -1.9%. Current consensus DPS estimate is 195.6, implying a prospective dividend yield of 6.4%. Current consensus EPS estimate suggests the PER is 12.7. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 198.00 cents and EPS of 235.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 244.4, implying annual growth of 1.7%. Current consensus DPS estimate is 193.6, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.5. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates NWS as Buy (1) -
News' quarterly was slightly above the broker but in line with consensus. Lower print and ad revenues were offset by better earnings for Move. Foxtel continues to miss expectations.
While the company continues to focus on digital revenues, further cost cutting is required to prop up traditional media earnings, the broker suggests. Buy and $23.50 target retained.
Target price is $23.50 Current Price is $17.40 Difference: $6.1
If NWS meets the Deutsche Bank target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $20.74, suggesting upside of 17.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 31.70 cents and EPS of 67.35 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 66.8, implying annual growth of N/A. Current consensus DPS estimate is 30.5, implying a prospective dividend yield of 1.7%. Current consensus EPS estimate suggests the PER is 26.3. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 27.00 cents and EPS of 55.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 63.3, implying annual growth of -5.2%. Current consensus DPS estimate is 26.7, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 27.8. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates NWS as Outperform (1) -
Fourth quarter results were mixed in Macquarie's view. FY18 is expected to deliver a lot of the same trends as FY17.
FOXTEL is under pressure as it seeks to reform the business while the outlook for REA Group ((REA)) remains one for strong growth.
Outperform retained. Target is reduced to $20.20 from $20.40.
Target price is $20.20 Current Price is $17.40 Difference: $2.8
If NWS meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $20.74, suggesting upside of 17.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 26.41 cents and EPS of 60.49 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 66.8, implying annual growth of N/A. Current consensus DPS estimate is 30.5, implying a prospective dividend yield of 1.7%. Current consensus EPS estimate suggests the PER is 26.3. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 26.41 cents and EPS of 71.58 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 63.3, implying annual growth of -5.2%. Current consensus DPS estimate is 26.7, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 27.8. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates RCR as Outperform (1) -
The company has been awarded two solar farm EPC contracts worth around $315m. Macquarie believes the company is well placed to win more across a large number of projects proposed for the next three years.
This continues to build on the recurring revenue base. Outperform retained. Target is raised to $3.85 from $3.29.
Target price is $3.85 Current Price is $3.73 Difference: $0.12
If RCR meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 6.00 cents and EPS of 21.60 cents. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 10.00 cents and EPS of 32.40 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates REA as Buy (1) -
Earnings growth is set to accelerate. This is the conclusion put forward by Citi analysts post the FY17 release. Citi already had an above-the-rest-of-the-market price target of $80 and a Buy rating. Both remain unchanged.
On the negative side, the analysts have lowered EPS forecasts by -2-4% in FY18-20. They explain this move reflects the poor performance of iProperty Asia and continued reinvestment into India's Prop Tiger.
The analysts remain of the view both negatives will only detract slightly from the strong earnings growth in the core Australian residential business. For FY18, Citi is projecting group revenue growth of 25%, supporting operational (EBITDA) growth of 24%.
Target price is $80.00 Current Price is $64.35 Difference: $15.65
If REA meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $69.43, suggesting upside of 4.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 102.80 cents and EPS of 228.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 218.8, implying annual growth of N/A. Current consensus DPS estimate is 107.8, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 30.3. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 131.00 cents and EPS of 291.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 260.3, implying annual growth of 19.0%. Current consensus DPS estimate is 132.4, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 25.4. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates REA as Upgrade to Outperform from Neutral (1) -
FY17 results were in line with Credit Suisse. A better Australian result was offset by lower Asian EBITDA. The broker believes the growth profile is strong going into FY19.
Credit Suisse does not consider the stock expensive, given the recent re-rating of peers. Rating is upgraded to Outperform from Neutral and the target to $72 from $65.
Target price is $72.00 Current Price is $64.35 Difference: $7.65
If REA meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $69.43, suggesting upside of 4.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 120.00 cents and EPS of 227.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 218.8, implying annual growth of N/A. Current consensus DPS estimate is 107.8, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 30.3. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 137.00 cents and EPS of 273.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 260.3, implying annual growth of 19.0%. Current consensus DPS estimate is 132.4, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 25.4. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates REA as Hold (3) -
REA's result missed consensus but was broadly in line with the broker. An above expectation performance from the domestic business was offset by weaker results from PropTiger and iProperty. Cost guidance is impacted by the most recent acquisition.
The broker has adjusted forecasts for weaker non-domestic businesses but believes these will reverse over time. Hold retained, target falls to $64.20 from $65.50.
Target price is $64.20 Current Price is $64.35 Difference: minus $0.15 (current price is over target).
If REA meets the Deutsche Bank target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $69.43, suggesting upside of 4.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 111.00 cents and EPS of 210.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 218.8, implying annual growth of N/A. Current consensus DPS estimate is 107.8, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 30.3. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 128.00 cents and EPS of 250.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 260.3, implying annual growth of 19.0%. Current consensus DPS estimate is 132.4, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 25.4. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates REA as Neutral (3) -
FY17 results were strong and, critically, Macquarie observes it was achieved against a backdrop of softening residential listing volumes. Asia remains a headwind.
The broker was surprised by guidance for margins to contract in FY18 as Asia is considered accretive to margins given the low earnings base and there is robust growth in the core Australian business.
Neutral retained. Target is $66.
Target price is $66.00 Current Price is $64.35 Difference: $1.65
If REA meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $69.43, suggesting upside of 4.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 108.00 cents and EPS of 216.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 218.8, implying annual growth of N/A. Current consensus DPS estimate is 107.8, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 30.3. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 171.50 cents and EPS of 245.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 260.3, implying annual growth of 19.0%. Current consensus DPS estimate is 132.4, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 25.4. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates REA as Overweight (1) -
FY17 results were below Morgan Stanley's estimates. The market is expected to take a more conservative view on FY18 growth and, while this may weigh on the shares in the near term, the broker finds nothing to alter the fundamental positive view.
Overweight and $72 target retained. Industry view is Attractive.
Target price is $72.00 Current Price is $64.35 Difference: $7.65
If REA meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $69.43, suggesting upside of 4.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 EPS of 233.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 218.8, implying annual growth of N/A. Current consensus DPS estimate is 107.8, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 30.3. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 EPS of 276.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 260.3, implying annual growth of 19.0%. Current consensus DPS estimate is 132.4, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 25.4. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates REA as Upgrade to Add from Hold (1) -
FY17 was weaker than Morgans expected but 12% underlying growth is still considered acceptable. FY18 is expected to provide rising volumes in depth advertising, a price rise and increasing numbers of Premier All subscribers.
The broker upgrades to Add from Hold. Target is raised to $68.75 from $60.73. Several more years of double-digit earnings growth and high free cash generation are expected.
Target price is $68.75 Current Price is $64.35 Difference: $4.4
If REA meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $69.43, suggesting upside of 4.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 106.00 cents and EPS of 211.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 218.8, implying annual growth of N/A. Current consensus DPS estimate is 107.8, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 30.3. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 122.00 cents and EPS of 243.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 260.3, implying annual growth of 19.0%. Current consensus DPS estimate is 132.4, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 25.4. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates REA as Hold (3) -
FY17 results disappointed Ord Minnett. The shortfall emanated from a decline in commercial & developer revenue which is forecast to persist in FY18.
While a slowing property market may reverse the declining listing trend the broker would like to witness a few consecutive months of improvement before being confident an inflection point is at hand.
Hold retained. Target is reduced to $68.50 from $70.
Target price is $68.50 Current Price is $64.35 Difference: $4.15
If REA meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $69.43, suggesting upside of 4.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 100.00 cents and EPS of 210.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 218.8, implying annual growth of N/A. Current consensus DPS estimate is 107.8, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 30.3. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 110.00 cents and EPS of 250.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 260.3, implying annual growth of 19.0%. Current consensus DPS estimate is 132.4, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 25.4. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates REA as Upgrade to Neutral from Sell (3) -
Despite the negative price reaction UBS believes the company should be credited with delivering double-digit growth against depressed residential listings.
However, the market appeared to be pricing in a beat to estimates and the FY17 result missed consensus, albeit in line with UBS. The broker upgrades to Neutral from Sell after the re-set of the share price. Target is raised to $64 from $60.
Target price is $64.00 Current Price is $64.35 Difference: minus $0.35 (current price is over target).
If REA meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $69.43, suggesting upside of 4.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 107.00 cents and EPS of 214.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 218.8, implying annual growth of N/A. Current consensus DPS estimate is 107.8, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 30.3. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 127.00 cents and EPS of 254.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 260.3, implying annual growth of 19.0%. Current consensus DPS estimate is 132.4, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 25.4. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates SIG as Sell (5) -
The company has issued a profit warning for FY18, while staying mum on ongoing contract negotiations with Chemist Warehouse, note analysts at Citi
Legal proceedings are off since both parties have agreed to binding mediation and arbitration in case no solution is found.
Citi analysts point out their forecasts already assume the loss of the CW contract and thus a loss of 33% of revenues in 2HY20. Sell. Target $0.65.
Target price is $0.65 Current Price is $0.86 Difference: minus $0.205 (current price is over target).
If SIG meets the Citi target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.74, suggesting downside of -11.3% (ex-dividends)
The company's fiscal year ends in January.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 5.50 cents and EPS of 5.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.7, implying annual growth of 5.6%. Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 14.7. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 5.50 cents and EPS of 5.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.5, implying annual growth of -3.5%. Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 6.1%. Current consensus EPS estimate suggests the PER is 15.2. |
Market Sentiment: -0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates SIG as Downgrade to Neutral from Outperform (3) -
The trading update suggests lowered expectations for FY18 and Credit Suisse notes similar trading updates from competitors, highlighting softness in retail-facing sales.
Credit Suisse lowers earnings forecasts by -3-6% and downgrades to Neutral from Outperform. Target is reduced to 85c from 90c.
Target price is $0.85 Current Price is $0.86 Difference: minus $0.005 (current price is over target).
If SIG meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.74, suggesting downside of -11.3% (ex-dividends)
The company's fiscal year ends in January.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 5.25 cents and EPS of 5.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.7, implying annual growth of 5.6%. Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 14.7. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 5.25 cents and EPS of 5.59 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.5, implying annual growth of -3.5%. Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 6.1%. Current consensus EPS estimate suggests the PER is 15.2. |
Market Sentiment: -0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates SIG as Underweight (5) -
The downgrade to FY18 guidance - the company expects EBIT of $90m - suggests to Morgan Stanley that customer risk and, now, challenging trading conditions create material uncertainty.
The company is undertaking a material ramp up in capital expenditure but the broker suspects this is a bad time to be investing for growth.
Underweight rating. Target is reduced to 77c from 84c. Industry view is In-Line.
Target price is $0.77 Current Price is $0.86 Difference: minus $0.085 (current price is over target).
If SIG meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.74, suggesting downside of -11.3% (ex-dividends)
The company's fiscal year ends in January.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 4.80 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 5.6%. Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 14.7. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 4.80 cents and EPS of 5.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.5, implying annual growth of -3.5%. Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 6.1%. Current consensus EPS estimate suggests the PER is 15.2. |
Market Sentiment: -0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates SIG as Sell (5) -
The company's trading update stated underlying EBIT will be around $44m in the first half (in line) and around $90m for FY18, below expectations.
This downgrade versus UBS expectations has been attributed to challenging industry conditions which are expected to be offset by initiatives in FY19.
UBS reduces forecasts for earnings per share by -8.2% for FY18 and -13.2% for FY19. Sell retained. Target is reduced to 70c from 76c.
Target price is $0.70 Current Price is $0.86 Difference: minus $0.155 (current price is over target).
If SIG meets the UBS target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.74, suggesting downside of -11.3% (ex-dividends)
The company's fiscal year ends in January.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 5.00 cents and EPS of 6.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.7, implying annual growth of 5.6%. Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 14.7. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 5.00 cents and EPS of 6.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.5, implying annual growth of -3.5%. Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 6.1%. Current consensus EPS estimate suggests the PER is 15.2. |
Market Sentiment: -0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates VTG as Hold (3) -
The company has agreed terms with Telstra for its master licence and store footprint. Morgans finds the update on remuneration a positive although there is some uncertainty regarding the earnings trajectory.
The broker considers the stock cheap but with the high level of uncertainty suggests it is likely to remain volatile. Hold rating retained. Target is raised to $1.76 from $1.30.
Target price is $1.76 Current Price is $1.60 Difference: $0.16
If VTG meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 16.00 cents and EPS of 24.00 cents. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 12.00 cents and EPS of 18.00 cents. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates WFD as Neutral (3) -
Judging from US-listed mall REIT peers reporting, Citi analysts are drawing the conclusion trading conditions remain tough, but operating metrics are holding up reasonably well.
Their view remains dominated by the observation the shares continue trading on elevated multiples, while risk to consensus expectations is seen as to the downside. Neutral. Target $8.70.
Target price is $8.70 Current Price is $7.54 Difference: $1.16
If WFD meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $9.38, suggesting upside of 24.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 33.68 cents and EPS of 44.77 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.1, implying annual growth of -46.6%. Current consensus DPS estimate is 31.0, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 21.5. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 34.01 cents and EPS of 46.32 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 37.8, implying annual growth of 7.7%. Current consensus DPS estimate is 31.4, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 20.0. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Summaries
| AAD - | ARDENT LEISURE | Sell - Citi | Overnight Price $2.04 |
| Outperform - Credit Suisse | Overnight Price $2.04 | ||
| Hold - Deutsche Bank | Overnight Price $2.04 | ||
| Neutral - Macquarie | Overnight Price $2.04 | ||
| Hold - Ord Minnett | Overnight Price $2.04 | ||
| Sell - UBS | Overnight Price $2.04 | ||
| AMP - | AMP | Downgrade to Hold from Buy - Deutsche Bank | Overnight Price $5.09 |
| Add - Morgans | Overnight Price $5.09 | ||
| BBN - | BABY BUNTING | Neutral - Citi | Overnight Price $1.60 |
| Neutral - Macquarie | Overnight Price $1.60 | ||
| Overweight - Morgan Stanley | Overnight Price $1.60 | ||
| Hold - Morgans | Overnight Price $1.60 | ||
| BLD - | BORAL | Outperform - Macquarie | Overnight Price $6.76 |
| BXB - | BRAMBLES | Neutral - Citi | Overnight Price $9.57 |
| Underperform - Credit Suisse | Overnight Price $9.57 | ||
| Buy - Ord Minnett | Overnight Price $9.57 | ||
| Buy - UBS | Overnight Price $9.57 | ||
| GEM - | G8 EDUCATION | Buy - UBS | Overnight Price $3.70 |
| NAB - | NATIONAL AUSTRALIA BANK | Neutral - Citi | Overnight Price $30.17 |
| Outperform - Credit Suisse | Overnight Price $30.17 | ||
| Buy - Deutsche Bank | Overnight Price $30.17 | ||
| Outperform - Macquarie | Overnight Price $30.17 | ||
| Underweight - Morgan Stanley | Overnight Price $30.17 | ||
| Add - Morgans | Overnight Price $30.17 | ||
| Hold - Ord Minnett | Overnight Price $30.17 | ||
| Sell - UBS | Overnight Price $30.17 | ||
| NWS - | NEWS CORP | Buy - Deutsche Bank | Overnight Price $17.40 |
| Outperform - Macquarie | Overnight Price $17.40 | ||
| RCR - | RCR TOMLINSON | Outperform - Macquarie | Overnight Price $3.73 |
| REA - | REA GROUP | Buy - Citi | Overnight Price $64.35 |
| Upgrade to Outperform from Neutral - Credit Suisse | Overnight Price $64.35 | ||
| Hold - Deutsche Bank | Overnight Price $64.35 | ||
| Neutral - Macquarie | Overnight Price $64.35 | ||
| Overweight - Morgan Stanley | Overnight Price $64.35 | ||
| Upgrade to Add from Hold - Morgans | Overnight Price $64.35 | ||
| Hold - Ord Minnett | Overnight Price $64.35 | ||
| Upgrade to Neutral from Sell - UBS | Overnight Price $64.35 | ||
| SIG - | SIGMA HEALTHCARE | Sell - Citi | Overnight Price $0.86 |
| Downgrade to Neutral from Outperform - Credit Suisse | Overnight Price $0.86 | ||
| Underweight - Morgan Stanley | Overnight Price $0.86 | ||
| Sell - UBS | Overnight Price $0.86 | ||
| VTG - | VITA GROUP | Hold - Morgans | Overnight Price $1.60 |
| WFD - | WESTFIELD CORP | Neutral - Citi | Overnight Price $7.54 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 18 |
| 3. Hold | 17 |
| 5. Sell | 8 |
Monday 14 August 2017
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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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market trends and getting a feel for what is happening beneath the surface.
This document is provided for informational purposes only. It does not
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base their work on information believed to be reliable and accurate, though
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should contact their personal adviser before making any investment decision.
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