Australian Broker Call
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December 19, 2018
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COMPANIES DISCUSSED IN THIS ISSUE
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1).
Last Updated: 05:00 PM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.
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Today's Upgrades and Downgrades
PAR - | PARADIGM | Upgrade to Hold from Reduce | Morgans |
Overnight Price: $6.34
Macquarie rates ALX as Outperform (1) -
Yellow vest protests in France will impact Dec Q traffic growth, likely turning it negative year on year when the broker had previously forecast 1% growth. The wider implication is for a slower 2019. The broker also notes the Eiffage acquisition of 5% of Getlink delays the restructure of the MAF2/Eiffage relationship.
Otherwise the broker suggests fundamentals remain strong and dividend yield is growing. Outperform and $7.49 target retained.
Target price is $7.49 Current Price is $6.34 Difference: $1.15
If ALX meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $7.17, suggesting upside of 13.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 24.00 cents and EPS of 55.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.1, implying annual growth of -67.8%. Current consensus DPS estimate is 24.0, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 25.3. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 30.00 cents and EPS of 81.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 44.2, implying annual growth of 76.1%. Current consensus DPS estimate is 30.8, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 14.3. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.45
Morgans rates BUB as Hold (3) -
Bubs' Sep Q cah flow was materially higher than the broker expected. That said, as sales growth accelerates in the Dec Q, cash outflow is set to increase, hecne the broker has lowered forecasts.
The broker likes Bubs' point of differentiation story and management is doing a good job of positioning the company, but ths stock will remain High Risk until Chinese approval is achieved. Hold retained, target falls to 44c from 60c.
Target price is $0.44 Current Price is $0.45 Difference: minus $0.01 (current price is over target).
If BUB meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 1.60 cents. |
Forecast for FY20:
Morgans forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 1.00 cents. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CAR CARSALES.COM LIMITED
Automobiles & Components
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Overnight Price: $11.24
Citi rates CAR as Buy (1) -
The broker sees strong growth in core (used) classifieds and international businesses, but weakness in Stratton and display (new). Display is a cyclical issue, the broker believes, but Stratton is structural, due to regulatory changes. Carsales has announced an impairment on Stratton but it's immaterial.
Forecast earnings trimmed and target falls to $16.00 from $16.65. Buy retained.
Target price is $16.00 Current Price is $11.24 Difference: $4.76
If CAR meets the Citi target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $15.09, suggesting upside of 34.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 48.30 cents and EPS of 56.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 58.1, implying annual growth of 7.6%. Current consensus DPS estimate is 47.3, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 19.3. |
Forecast for FY20:
Citi forecasts a full year FY20 dividend of 53.70 cents and EPS of 63.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 63.6, implying annual growth of 9.5%. Current consensus DPS estimate is 50.9, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 17.7. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates CAR as Buy (1) -
Carsales has taken an impairment on Stratton given ongoing softness in car financing and additional regulatory attention. Restructuring benefits are yet to come through, the broker notes.
Target falls to $14.40 from $14.84 but Buy retained on a solid core business and international opportunity.
Target price is $14.40 Current Price is $11.24 Difference: $3.16
If CAR meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $15.09, suggesting upside of 34.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 46.50 cents and EPS of 56.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 58.1, implying annual growth of 7.6%. Current consensus DPS estimate is 47.3, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 19.3. |
Forecast for FY20:
Ord Minnett forecasts a full year FY20 dividend of 52.10 cents and EPS of 63.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 63.6, implying annual growth of 9.5%. Current consensus DPS estimate is 50.9, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 17.7. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates CAR as Buy (1) -
Stratton has underperformed Carsales' expectations, leading to a -$48m impairment. The impact on earnings is immaterial but the broker lowers by -4% to reflect weaker display growth and higher D&A charges.
Despite near term headwinds the broker still expects Carsales to deliver high single digit earnings growth through the cycle and a 20x FY19 price/earnings keeps the broker on Buy with an unchanged $13.50 target.
Target price is $13.50 Current Price is $11.24 Difference: $2.26
If CAR meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $15.09, suggesting upside of 34.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 47.00 cents and EPS of 58.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 58.1, implying annual growth of 7.6%. Current consensus DPS estimate is 47.3, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 19.3. |
Forecast for FY20:
UBS forecasts a full year FY20 dividend of 51.00 cents and EPS of 63.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 63.6, implying annual growth of 9.5%. Current consensus DPS estimate is 50.9, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 17.7. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $4.60
Ord Minnett rates CQR as Hold (3) -
Charter Hall Retail has acquired Campbellfield Plaza in Melbourne, funded from previous divestments. The acquisition is mildly accretive, the broker notes, and recent share price strength has led management to reinstate the DRP.
Hold retained, target rises to $4.30 from $4.20.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $4.30 Current Price is $4.60 Difference: minus $0.3 (current price is over target).
If CQR meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.09, suggesting downside of -11.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 31.00 cents and EPS of 31.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.8, implying annual growth of -15.0%. Current consensus DPS estimate is 29.2, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 14.9. |
Forecast for FY20:
Ord Minnett forecasts a full year FY20 dividend of 31.00 cents and EPS of 31.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.3, implying annual growth of 1.6%. Current consensus DPS estimate is 29.7, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 14.7. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $25.46
Credit Suisse rates CTX as Outperform (1) -
While Caltex' updated 2018 profit guidance is in line with the broker, the severity of the refiner margin decline was the main story. While acknowledging the company faces margin uncertainty and volatility, the broker believes that risk is in the share price.
Convenience is one of the few structural growth stories in retail, and Caltex offers increasing exposure, the broker notes, along with a long term contract with Woolworths ((WOW)) and international distribution is a growing market. Outperform retained, target falls to $32.79 from $33.07.
Target price is $32.79 Current Price is $25.46 Difference: $7.33
If CTX meets the Credit Suisse target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $31.15, suggesting upside of 22.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 103.00 cents and EPS of 205.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 210.4, implying annual growth of -11.6%. Current consensus DPS estimate is 108.2, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 12.1. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 130.00 cents and EPS of 217.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 220.7, implying annual growth of 4.9%. Current consensus DPS estimate is 128.4, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 11.5. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates CTX as Buy (1) -
Caltex' profit guidance update is in line with the broker although weaker Lytton refiner margins were offset by improved fuels & infrastructure. Earnings forecasts trimmed and target falls to $30.00 from $33.50.
The broker expects margins will improve and suggests while the transition from franchise to corporate operating model is a challenge but costs have been well flagged and it is an enabler of the convenience strategy. Buy retained.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $30.00 Current Price is $25.46 Difference: $4.54
If CTX meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $31.15, suggesting upside of 22.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 105.00 cents and EPS of 207.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 210.4, implying annual growth of -11.6%. Current consensus DPS estimate is 108.2, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 12.1. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 126.00 cents and EPS of 211.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 220.7, implying annual growth of 4.9%. Current consensus DPS estimate is 128.4, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 11.5. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates CTX as Buy (1) -
Updated 2018 profit guidance from Caltex suggests a -15% reduction year on year to -7% below the broker's forecast, driven by lower refining margins and weakness in convenience.
Refiner margins were weaker due to costs while convenience weakness was due to renegotiating terms with Woolworths ((WOW)) and costs associated with the new convenience strategy. The broker still sees convenience as a key drive of upside, believes the market is not appreciating this, and retains Buy on longer term value. Target falls to $33.15 from $35.90.
Target price is $33.15 Current Price is $25.46 Difference: $7.69
If CTX meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $31.15, suggesting upside of 22.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
UBS 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 210.4, implying annual growth of -11.6%. Current consensus DPS estimate is 108.2, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 12.1. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 133.00 cents and EPS of 221.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 220.7, implying annual growth of 4.9%. Current consensus DPS estimate is 128.4, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 11.5. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.32
Macquarie rates CVN as Outperform (1) -
The recent discovery of the Dorado oil field, the third largest in the North West Shelf, provides a path for Carnarvon to become the next major Australian oil producer. Given limited exploration in the investment downturn, E&P peers could potentially target Dorado as their own fields decline, the broker suggests.
The broker "initiates" coverage with an Outperform rating and 40c target, but was covering the stock back in 2016 with a then Outperform and 12c target.
Target price is $0.40 Current Price is $0.32 Difference: $0.08
If CVN meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.22
Macquarie rates DCN as Outperform (1) -
Updated reserves sees Mt Morgans total ounces rising 16% thanks to growth in Westralia and a maiden reserve at Cameron Well. Dacian plans to rapidly develop Cameron Well.
The broker thus assumes reduced production in FY20-22 but growth thereafter, and incorporates updated reserves. Outperform retained, target falls to $3.00 from $3.10.
Target price is $3.00 Current Price is $2.22 Difference: $0.78
If DCN meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 0.00 cents and EPS of 17.60 cents. |
Forecast for FY20:
Macquarie forecasts a full year FY20 dividend of 12.00 cents and EPS of 42.40 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
FBU FLETCHER BUILDING LIMITED
Building Products & Services
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Overnight Price: $4.62
Citi rates FBU as Neutral (3) -
Fletcher's sale of Formica Group completes a stated strategy of exiting non-core businesses, restores the balance sheet and raises the likelihood of capital management, the broker believes. The backdrop nevertheless remains challenging, given Australian and NZ housing markets past their peak.
Neutral and NZ$5.40 target retained.
Current Price is $4.62. Target price not assessed.
Current consensus price target is $5.66, suggesting upside of 22.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 23.05 cents and EPS of 38.99 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 42.6, implying annual growth of N/A. Current consensus DPS estimate is 22.8, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 10.8. |
Forecast for FY20:
Citi forecasts a full year FY20 dividend of 28.58 cents and EPS of 41.21 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 43.0, implying annual growth of 0.9%. Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 10.7. |
This company reports in NZD. 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
Macquarie rates FBU as No Rating (-1) -
Fletcher Building has announced the divestment of Formica Group for close to book value and reinstated its dividend.
The broker is advising thus is current on research restriction.
Current Price is $4.62. Target price not assessed.
Current consensus price target is $5.66, suggesting upside of 22.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 23.05 cents and EPS of 43.51 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 42.6, implying annual growth of N/A. Current consensus DPS estimate is 22.8, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 10.8. |
Forecast for FY20:
Macquarie forecasts a full year FY20 dividend of 23.97 cents and EPS of 39.92 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 43.0, implying annual growth of 0.9%. Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 10.7. |
This company reports in NZD. 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
UBS rates FBU as Neutral (3) -
Fletcher has agreed to sell Formica Group for a better price than the broker had valued. The dividend has been reinstated but there remains capacity for bolt-ons and/or capital management after FY20, the broker suggests, as debt declines.
Good price aside, the broker sees the divestment as simplifying the company by reducing uncertainty around earnings and capital allocation. Neutral and NZ$6.60 target retained.
Current Price is $4.62. Target price not assessed.
Current consensus price target is $5.66, suggesting upside of 22.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 27.55 cents and EPS of 49.32 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 42.6, implying annual growth of N/A. Current consensus DPS estimate is 22.8, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 10.8. |
Forecast for FY20:
UBS forecasts a full year FY20 dividend of 27.55 cents and EPS of 47.48 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 43.0, implying annual growth of 0.9%. Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 10.7. |
This company reports in NZD. 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
MYX MAYNE PHARMA GROUP LIMITED
Pharmaceuticals & Biotech/Lifesciences
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Overnight Price: $0.80
Macquarie rates MYX as Underperform (5) -
Mayne has announced it will assume control of the US rights for SUBA itraconazole following a licence revision. While this will provide the company with higher potential earnings it will also mean additional R&D expenses, regulatory risk and a delayed launch compared to previous assumptions, the broker notes, giving a competitor the jump.
Underperform retained, target falls to 93c from $1.03.
Target price is $0.93 Current Price is $0.80 Difference: $0.13
If MYX meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $1.13, suggesting upside of 40.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 0.00 cents and EPS of 3.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 3.9, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 20.5. |
Forecast for FY20:
Macquarie forecasts a full year FY20 dividend of 0.00 cents and EPS of 4.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.1, implying annual growth of 56.4%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 13.1. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $6.45
Ord Minnett rates ORG as Buy (1) -
The broker has made minor adjustments to its Origin valuation to account for higher deprecation expense, a higher contribution from gas retailing and LNG hedges.
Earnings forecasts trimmed, Buy and $8.85 target retained.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $8.85 Current Price is $6.45 Difference: $2.4
If ORG meets the Ord Minnett target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $8.85, suggesting upside of 37.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 20.00 cents and EPS of 63.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 64.2, implying annual growth of 303.8%. Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 10.0. |
Forecast for FY20:
Ord Minnett forecasts a full year FY20 dividend of 39.00 cents and EPS of 78.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 72.8, implying annual growth of 13.4%. Current consensus DPS estimate is 41.2, implying a prospective dividend yield of 6.4%. Current consensus EPS estimate suggests the PER is 8.9. |
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
PAR PARADIGM BIOPHARMACEUTICAL
Pharmaceuticals & Biotech/Lifesciences
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Overnight Price: $1.20
Morgans rates PAR as Upgrade to Hold from Reduce (3) -
Paradigm Biopharmaceutical is a clinical stage company focused on the treatment of orthopaedic and viral arthritis through its re-purposed drug, pentosane polysulphate sodium. Phase 2b trials of the drug have left Morgans with more questions than answers. Positive results were only seen in patients with mild to moderate pain.
A partner is required to move to Phase 3 and potential commercialisation but deeper analysis will be required, the broker suggests. The positive results see the broker increase its risk-weighted valuation to 78% from 38% which leads to a target increase to $1.67 from 89c.
Rating upgraded to Hold but the broker warns this is one for the riskier investor.
Target price is $1.67 Current Price is $1.20 Difference: $0.47
If PAR meets the Morgans target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates RDC as Initiation of coverage with Buy (1) -
Redcape Hotel Group owns 32 pubs across NSW/Qld with 31 as freehold. The group has consistently demonstrated an ability to deliver high returns on investment, the broker notes, and derives 63% of revenue from gaming. 23 pubs are located in high growth areas of Western Sydney which should benefit from unprecedented levels of infrastructure investment.
The broker initiates coverage with a Buy rating and $1.18 target.
Target price is $1.18 Current Price is $1.03 Difference: $0.15
If RDC meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 7.70 cents and EPS of 5.50 cents. |
Forecast for FY20:
Ord Minnett forecasts a full year FY20 dividend of 8.70 cents and EPS of 7.70 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Today's Price Target Changes
Company | Broker | New Target | Prev Target | Change | |
BUB | BUBS AUSTRALIA | Morgans | 0.44 | 0.60 | -26.67% |
CAR | CARSALES.COM | Citi | 16.00 | 16.65 | -3.90% |
Ord Minnett | 14.40 | N/A | - | ||
CQR | CHARTER HALL RETAIL | Ord Minnett | 4.30 | 4.20 | 2.38% |
CTX | CALTEX AUSTRALIA | Credit Suisse | 32.79 | 33.07 | -0.85% |
Ord Minnett | 30.00 | 33.50 | -10.45% | ||
UBS | 33.15 | 35.90 | -7.66% | ||
CVN | CARNARVON PETROLEUM | Macquarie | 0.40 | 0.12 | 233.33% |
DCN | DACIAN GOLD | Macquarie | 3.00 | 3.10 | -3.23% |
MYX | MAYNE PHARMA GROUP | Macquarie | 0.93 | 1.03 | -9.71% |
PAR | PARADIGM | Morgans | 1.67 | 0.89 | 87.64% |
Summaries
ALX | ATLAS ARTERIA | Outperform - Macquarie | Overnight Price $6.34 |
BUB | BUBS AUSTRALIA | Hold - Morgans | Overnight Price $0.45 |
CAR | CARSALES.COM | Buy - Citi | Overnight Price $11.24 |
Buy - Ord Minnett | Overnight Price $11.24 | ||
Buy - UBS | Overnight Price $11.24 | ||
CQR | CHARTER HALL RETAIL | Hold - Ord Minnett | Overnight Price $4.60 |
CTX | CALTEX AUSTRALIA | Outperform - Credit Suisse | Overnight Price $25.46 |
Buy - Ord Minnett | Overnight Price $25.46 | ||
Buy - UBS | Overnight Price $25.46 | ||
CVN | CARNARVON PETROLEUM | Outperform - Macquarie | Overnight Price $0.32 |
DCN | DACIAN GOLD | Outperform - Macquarie | Overnight Price $2.22 |
FBU | FLETCHER BUILDING | Neutral - Citi | Overnight Price $4.62 |
No Rating - Macquarie | Overnight Price $4.62 | ||
Neutral - UBS | Overnight Price $4.62 | ||
MYX | MAYNE PHARMA GROUP | Underperform - Macquarie | Overnight Price $0.80 |
ORG | ORIGIN ENERGY | Buy - Ord Minnett | Overnight Price $6.45 |
PAR | PARADIGM | Upgrade to Hold from Reduce - Morgans | Overnight Price $1.20 |
RDC | Initiation of coverage with Buy - Ord Minnett | Overnight Price $1.03 |
RATING SUMMARY
Rating | No. Of Recommendations |
1. Buy | 11 |
3. Hold | 5 |
5. Sell | 1 |
Wednesday 19 December 2018
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This document is provided for informational purposes only. It does not
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