Australian Broker Call
July 18, 2017
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COMPANIES DISCUSSED IN THIS ISSUE
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Last Updated: 03:44 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
| GPT - | GPT | Upgrade to Buy from Neutral | UBS |
| IDT - | INSTITUTE OF DRUG TECH | Downgrade to Reduce from Add | Morgans |
| JBH - | JB HI-FI | Downgrade to Neutral from Buy | UBS |
| SCG - | SCENTRE GROUP | Upgrade to Buy from Neutral | UBS |
| STO - | SANTOS | Upgrade to Buy from Hold | Ord Minnett |
| VCX - | VICINITY CENTRES | Upgrade to Buy from Neutral | UBS |
| WHC - | WHITEHAVEN COAL | Upgrade to Buy from Accumulate | Ord Minnett |
| WPL - | WOODSIDE PETROLEUM | Downgrade to Hold from Accumulate | Ord Minnett |
Credit Suisse rates ALQ as Outperform (1) -
Credit Suisse updates its model prior to the AGM on July 20. Guidance for first half net profit is expected.
The broker reduces first half net profit estimates but this represents a change to modelling rather than a change to the positive view on the company or industry conditions.
Outperform rating and $7.80 target retained.
Target price is $7.80 Current Price is $7.31 Difference: $0.49
If ALQ meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $6.87, suggesting downside of -4.6% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 17.38 cents and EPS of 28.72 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.1, implying annual growth of 73.5%. Current consensus DPS estimate is 16.6, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 25.6. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 20.41 cents and EPS of 34.03 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.3, implying annual growth of 25.6%. Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 20.4. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates ALQ as Hold (3) -
The company will sell its oil & gas business for US$85m to Madison Industries.
Deutsche Bank estimates a pre-tax gain of $4m and expects management to allocate the gain below the net profit line so it will not form part of the underlying earnings or guidance statement.
Deutsche Bank retains a Buy rating and raises the target to $7.76 from $7.41.
Target price is $7.76 Current Price is $7.31 Difference: $0.45
If ALQ meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $6.87, suggesting downside of -4.6% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 17.00 cents and EPS of 28.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.1, implying annual growth of 73.5%. Current consensus DPS estimate is 16.6, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 25.6. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 24.00 cents and EPS of 40.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.3, implying annual growth of 25.6%. Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 20.4. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates ALQ as Hold (3) -
The company will dispose of its oil & gas business to Madison Industries for $109m. Ord Minnett had previously estimated a sale price of $93m and makes minor adjustments to its model.
The broker continues to envisage significant earnings growth potential because of a recovery in the minerals unit. Even after accounting for this, nonetheless, Ord Minnett does not find the valuation compelling enough to justify a more positive rating and retains a Hold recommendation.
Target is lifted to $6.88 from $6.85.
Target price is $6.88 Current Price is $7.31 Difference: minus $0.43 (current price is over target).
If ALQ meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $6.87, suggesting downside of -4.6% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 16.00 cents and EPS of 28.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.1, implying annual growth of 73.5%. Current consensus DPS estimate is 16.6, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 25.6. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 20.00 cents and EPS of 37.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.3, implying annual growth of 25.6%. Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 20.4. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates AMA as Buy (1) -
The company has announced the acquisition of six additional panel repair centres with a total anticipated consideration of $6.2m. UBS welcomes the acquisitions, which support its Buy call.
The company has also negotiated with its insurer partners to open three additional greenfield rapid repair centres in NSW.
UBS considers evaluation appealing, given the long-term growth opportunity. Buy and $1.30 target retained.
Target price is $1.30 Current Price is $1.04 Difference: $0.26
If AMA meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 2.00 cents and EPS of 5.00 cents. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 2.00 cents and EPS of 5.00 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates CBA as Underweight (5) -
While in the near term earnings should prove resilient, Morgan Stanley suspects that there is downside risk to returns on equity, and the premium rating for the bank will be harder to justify as a mortgage bull market ends.
The APRA information paper on capital is considered the key source of risk for the bank in the near term. Underweight. Target is $68. Industry view is In-Line.
Target price is $68.00 Current Price is $83.81 Difference: minus $15.81 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $80.93, suggesting downside of -4.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 428.00 cents and EPS of 556.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 557.1, implying annual growth of 0.4%. Current consensus DPS estimate is 424.0, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 15.2. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 430.00 cents and EPS of 558.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 570.9, implying annual growth of 2.5%. Current consensus DPS estimate is 430.6, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 14.8. |
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates GPT as Upgrade to Buy from Neutral (1) -
After considering the Amazon threat in more detail UBS believes the risks are priced in and upgrades to Buy from Neutral on valuation grounds.
The broker believes the market has become too negative on the company's retail portfolio, while at the same time the premium Sydney/Melbourne office portfolio is considered the best way to get exposure to the strong transactions in the market. Target is $5.30.
Target price is $5.30 Current Price is $4.86 Difference: $0.44
If GPT meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $5.16, suggesting upside of 6.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 24.60 cents and EPS of 30.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 29.6, implying annual growth of -48.9%. Current consensus DPS estimate is 24.7, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 16.4. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 25.70 cents and EPS of 31.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.8, implying annual growth of 4.1%. Current consensus DPS estimate is 25.7, implying a prospective dividend yield of 5.3%. Current consensus EPS estimate suggests the PER is 15.7. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates GXY as Buy (1) -
June quarter production at Mt Cattlin was lower than Citi estimated. The broker expects second half operations will improve on the back of higher volumes and better pricing.
Galaxy is looking for a joint venture partner for Sal de Vida, which Citi expects will de-risk the project further. Buy rating and $2.70 target retained.
Target price is $2.70 Current Price is $1.84 Difference: $0.86
If GXY meets the Citi target it will return approximately 47% (excluding dividends, fees and charges).
Current consensus price target is $2.25, suggesting upside of 21.6% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 0.00 cents and EPS of 10.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.0, implying annual growth of -78.3%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 20.6. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 0.00 cents and EPS of 28.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 27.0, implying annual growth of 200.0%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 6.9. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates GXY as Outperform (1) -
Spodumene production was in line with forecasts in the June quarter, although costs were higher than Macquarie expected. Mt Cattlin contributed 11% of Australian spodumene exports in the quarter and has concluded the ramp up phase.
Macquarie expects completion of the 2016 shipments will have a positive impact on earnings, while current prices appear set to rise. Outperform rating retained. Target is $2.10.
Target price is $2.10 Current Price is $1.84 Difference: $0.26
If GXY meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $2.25, suggesting upside of 21.6% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 0.00 cents and EPS of 7.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.0, implying annual growth of -78.3%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 20.6. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 0.00 cents and EPS of 31.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 27.0, implying annual growth of 200.0%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 6.9. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates GXY as Neutral (3) -
Costs were higher in the June quarter but UBS observes an improving trend in production for the company. Galaxy achieved an average realised price of US$724/dmt, exhausting all 2016 legacy contracts.
Nevertheless, UBS awaits further signals on some key catalysts such as whether Mt Cattlin can ramp up to full production by 2019.
The broker is also awaiting progress on Sal de Vida in regards to whether the company can secure a joint venture partner or debt funding. Neutral retained. Target rises to $1.95 from $1.80.
Target price is $1.95 Current Price is $1.84 Difference: $0.11
If GXY meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $2.25, suggesting upside of 21.6% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 0.00 cents and EPS of 9.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.0, implying annual growth of -78.3%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 20.6. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 0.00 cents and EPS of 21.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 27.0, implying annual growth of 200.0%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 6.9. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates IAG as Underperform (5) -
Macquarie suspects there is pricing upside versus current expectations, particularly for the home, motor and business pack products.
Nevertheless, despite the favourable near-term outlook, the broker believes the current multiples are difficult to justify. Macquarie maintains an Underperform rating and reduces the target to $5.95 from $6.05.
Target price is $5.95 Current Price is $6.76 Difference: minus $0.81 (current price is over target).
If IAG meets the Macquarie target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $6.56, suggesting downside of -2.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 31.00 cents and EPS of 37.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 39.5, implying annual growth of 53.2%. Current consensus DPS estimate is 30.3, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 17.0. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 31.00 cents and EPS of 41.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 38.5, implying annual growth of -2.5%. Current consensus DPS estimate is 28.8, implying a prospective dividend yield of 4.3%. 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
IDT INSTITUTE OF DRUG TECHNOLOGY AUSTRALIA LIMITED
Pharmaceuticals & Biotech/Lifesciences
Overnight Price: $0.08
Morgans rates IDT as Downgrade to Reduce from Add (5) -
Dr Paul MacLeman joined IDT in 2013 to turn around the business and acquired a portfolio of 23 generic drugs planned for manufacture and US distribution. Little progress left investors frustrated and now MacLeman has resigned.
His resignation leaves the company's generic drug strategy under a cloud, the broker suggests. The broker has de-weighted the value of the portfolio and on the basis of uncertainty over leadership and strategy can not now recommend the stock to investors.
Downgrade to Reduce from Add. Target falls to 8.5c from 22c.
Target price is $0.09 Current Price is $0.08 Difference: $0.004
If IDT meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 1.60 cents. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 0.40 cents. |
Market Sentiment: -1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates JBH as Downgrade to Neutral from Buy (3) -
UBS has downgraded the stock to Neutral from Buy, lowering the target to $25.80 from $32.50.
Target price is $25.80 Current Price is $25.32 Difference: $0.48
If JBH meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $25.40, suggesting upside of 2.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 116.00 cents and EPS of 193.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 186.4, implying annual growth of 21.2%. Current consensus DPS estimate is 118.6, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 13.3. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 138.00 cents and EPS of 218.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 206.0, implying annual growth of 10.5%. Current consensus DPS estimate is 133.9, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 12.1. |
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates MHJ as Outperform (1) -
Ahead of the FY17 result scheduled for August 18, Macquarie believes the business is well-positioned to leverage emerging trends in the global jewellery sector.
The broker expects FY18 will be a year of consolidation as Emma & Roe undergoes branding category re-positioning and the US model is redesigned. Outperform and $1.64 target retained.
Target price is $1.64 Current Price is $1.19 Difference: $0.455
If MHJ meets the Macquarie target it will return approximately 38% (excluding dividends, fees and charges).
Current consensus price target is $1.48, suggesting upside of 22.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 5.00 cents and EPS of 8.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.0, implying annual growth of 56.6%. Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 15.1. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 5.50 cents and EPS of 9.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.2, implying annual growth of 15.0%. Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 13.1. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates NXT as Buy (1) -
UBS observes signs of discounting in one area of cloud pricing. Object storage pricing was down -22-26% across both AWS and Azure offerings between October and April.
This is the first example, the broker observes, of material discounting in the cloud. While no major concerns emanate from the data the broker will continue to monitor the development. Buy rating retained. Target is raised $5.20 from $4.80.
Target price is $5.20 Current Price is $4.27 Difference: $0.93
If NXT meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $4.83, suggesting upside of 15.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 0.00 cents and EPS of 6.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.3, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 66.4. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 0.00 cents and EPS of 6.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.0, implying annual growth of -20.6%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 83.7. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates SCG as Upgrade to Buy from Neutral (1) -
After considering the Amazon threat in more detail UBS believes the risks are priced in and upgrades to Buy from Neutral on valuation grounds.
The stock is implying a 5.9% cap rate versus the sector at 6.1% and the broker expects it to trade 50-60 basis points tighter through the cycle, given its premium asset quality. Target is $4.42.
Target price is $4.42 Current Price is $4.14 Difference: $0.28
If SCG meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $4.52, suggesting upside of 9.0% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 22.00 cents and EPS of 24.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.6, implying annual growth of 1.3%. Current consensus DPS estimate is 21.9, implying a prospective dividend yield of 5.3%. Current consensus EPS estimate suggests the PER is 17.6. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 22.00 cents and EPS of 26.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.2, implying annual growth of 6.8%. Current consensus DPS estimate is 22.4, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 16.5. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates SKB as Initiation of coverage with Buy (1) -
Ord Minnett observes the company is in the enviable position of dominating an industry that has experienced strong organic growth. Tandem skydiving in Australasia is underpinned by a favourable inbound holiday theme particularly with the Asian market.
The company is also in the process of diversifying its adventure tourism with recent acquisitions such as ballooning, white water rafting, canoeing, SCUBA and dive activities. Ord Minnett initiates coverage with a Buy rating and $0.78 target.
Target price is $0.78 Current Price is $0.64 Difference: $0.145
If SKB meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 1.00 cents and EPS of 2.40 cents. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 1.00 cents and EPS of 3.30 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates STO as Upgrade to Buy from Hold (1) -
Ord Minnett continues to recognise the risks associated with Santos, notably the leverage to weak oil prices and the potential impact from the government's gas security mechanism.
Nevertheless, the underperformance over the past year could provide a value opportunity and Ord Minnett lifts its recommendation to Speculative Buy from Hold. Target is lowered to $3.80 from $4.20.
Target price is $3.80 Current Price is $3.02 Difference: $0.78
If STO meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $3.82, suggesting upside of 17.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 5.30 cents and EPS of 15.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.4, implying annual growth of N/A. Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 0.5%. Current consensus EPS estimate suggests the PER is 19.9. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 5.30 cents and EPS of 15.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.0, implying annual growth of 40.2%. Current consensus DPS estimate is 7.1, implying a prospective dividend yield of 2.2%. Current consensus EPS estimate suggests the PER is 14.2. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates VCX as Upgrade to Buy from Neutral (1) -
After considering the Amazon threat in more detail UBS believes the risks are priced in and upgrades to Buy from Neutral on valuation grounds.
The broker calculates the stock is now trading at a -7% discount to net tangible assets and on a 7.3% free funds from operation yield.
UBS suspects that, at these levels, a buy-back, funded by a combination of selective lower-tier asset sales and finessing the development pipeline, would be well received. Target is $2.92.
Target price is $2.92 Current Price is $2.62 Difference: $0.3
If VCX meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $2.93, suggesting upside of 11.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 17.40 cents and EPS of 18.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.3, implying annual growth of -24.6%. Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 6.7%. Current consensus EPS estimate suggests the PER is 14.3. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 17.40 cents and EPS of 19.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.9, implying annual growth of 3.3%. Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 6.9%. Current consensus EPS estimate suggests the PER is 13.9. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates VHT as Add (1) -
Volpara posted a solid first quarter with 5 new SaaS customers added. Annual recurring revenue is on target to triple from FY17 levels, the broker notes.
The broker makes no change to forecasts and retains an Add rating and 81c target.
Target price is $0.81 Current Price is $0.56 Difference: $0.245
If VHT meets the Morgans target it will return approximately 43% (excluding dividends, fees and charges).
The company's fiscal year ends in March.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 5.38 cents. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 1.98 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates WHC as Upgrade to Buy from Accumulate (1) -
Ord Minnett believes the company is well-positioned to pursue numerous avenues for growth in production. The broker notes the capital structure of the business is now transformed, following the significant recovery in coal markets over the last 18 months.
Rating is upgraded to Buy from Accumulate and the target raised to $3.50 from $3.20.
Target price is $3.50 Current Price is $2.88 Difference: $0.62
If WHC meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $3.16, suggesting upside of 6.3% (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 37.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.2, implying annual growth of 1623.8%. Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 0.7%. Current consensus EPS estimate suggests the PER is 8.2. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 6.00 cents and EPS of 38.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.1, implying annual growth of -3.0%. Current consensus DPS estimate is 9.5, implying a prospective dividend yield of 3.2%. Current consensus EPS estimate suggests the PER is 8.5. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates WPL as Downgrade to Hold from Accumulate (3) -
Ord Minnett's previous positive view was based on the growth outlook but sustained low oil prices have had the effect of not only lowering the estimated value but also potentially delaying or deferring growth projects.
Rating is downgraded to Hold from Accumulate and the target to $30 from $36.
Target price is $30.00 Current Price is $29.73 Difference: $0.27
If WPL meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $30.47, suggesting upside of 2.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 139.11 cents and EPS of 176.21 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 151.5, implying annual growth of N/A. Current consensus DPS estimate is 121.3, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 19.7. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 155.52 cents and EPS of 195.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 179.0, implying annual growth of 18.2%. Current consensus DPS estimate is 152.4, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 16.7. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Summaries
| ALQ - | ALS LIMITED | Outperform - Credit Suisse | Overnight Price $7.31 |
| Hold - Deutsche Bank | Overnight Price $7.31 | ||
| Hold - Ord Minnett | Overnight Price $7.31 | ||
| AMA - | AMA GROUP | Buy - UBS | Overnight Price $1.04 |
| CBA - | COMMBANK | Underweight - Morgan Stanley | Overnight Price $83.81 |
| GPT - | GPT | Upgrade to Buy from Neutral - UBS | Overnight Price $4.86 |
| GXY - | GALAXY RESOURCES | Buy - Citi | Overnight Price $1.84 |
| Outperform - Macquarie | Overnight Price $1.84 | ||
| Neutral - UBS | Overnight Price $1.84 | ||
| IAG - | INSURANCE AUSTRALIA | Underperform - Macquarie | Overnight Price $6.76 |
| IDT - | INSTITUTE OF DRUG TECH | Downgrade to Reduce from Add - Morgans | Overnight Price $0.08 |
| JBH - | JB HI-FI | Downgrade to Neutral from Buy - UBS | Overnight Price $25.32 |
| MHJ - | MICHAEL HILL | Outperform - Macquarie | Overnight Price $1.19 |
| NXT - | NEXTDC | Buy - UBS | Overnight Price $4.27 |
| SCG - | SCENTRE GROUP | Upgrade to Buy from Neutral - UBS | Overnight Price $4.14 |
| SKB - | SKYDIVE THE BEACH | Initiation of coverage with Buy - Ord Minnett | Overnight Price $0.64 |
| STO - | SANTOS | Upgrade to Buy from Hold - Ord Minnett | Overnight Price $3.02 |
| VCX - | VICINITY CENTRES | Upgrade to Buy from Neutral - UBS | Overnight Price $2.62 |
| VHT - | VOLPARA HEALTH TECHNOLOGIES | Add - Morgans | Overnight Price $0.56 |
| WHC - | WHITEHAVEN COAL | Upgrade to Buy from Accumulate - Ord Minnett | Overnight Price $2.88 |
| WPL - | WOODSIDE PETROLEUM | Downgrade to Hold from Accumulate - Ord Minnett | Overnight Price $29.73 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 13 |
| 3. Hold | 5 |
| 5. Sell | 3 |
Thursday 20 July 2017
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