Australian Broker Call
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January 12, 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: 04:11 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
DXS - | DEXUS PROPERTY | Upgrade to Buy from Neutral | Citi |
SGP - | STOCKLAND | Downgrade to Neutral from Buy | Citi |
STO - | SANTOS | Downgrade to Sell from Neutral | Citi |
SXY - | SENEX ENERGY | Downgrade to Sell from Neutral | Citi |
VCX - | VICINITY CENTRES | Downgrade to Neutral from Buy | Citi |
Overnight Price: $11.61
Morgan Stanley rates BEN as Underweight (5) -
Morgan Stanley anticipates a solid result from the regional lender on February 12, including margin expansion and dividend growth. But valuation and the prospect of EPS growth plateauing are calling for caution, argue the analysts.
Underweight rating retained, alongside an In-Line sector view and a price target of $10.40. On the analysts current forecasts, the annual dividend will likely remain 70c for as far as the human eye can see.
Target price is $10.40 Current Price is $11.61 Difference: minus $1.21 (current price is over target).
If BEN 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 $11.29, suggesting downside of -2.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 70.00 cents and EPS of 88.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 89.1, implying annual growth of 0.7%. Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 13.0. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 70.00 cents and EPS of 85.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.3, implying annual growth of -0.9%. Current consensus DPS estimate is 69.7, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 13.1. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $1.36
Citi rates BPT as Sell (5) -
Citi analysts remain of the view that, overall, valuations remain too lofty for Aussie oil and gas stocks. A detailed analysis from the past has once again shown management teams in the sector are not good at creating shareholder value.
Citi argues exploration spending is mostly destroying value at most companies. This in particular has been the case for the largest in the sector locally, Woodside Petroleum.
Target price for Beach has fallen to 99c from $1.09. Sell rating retained (recommendation was downgraded to Sell only recently).
Target price is $0.99 Current Price is $1.36 Difference: minus $0.37 (current price is over target).
If BPT meets the Citi target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.94, suggesting downside of -30.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 EPS of 6.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.9, implying annual growth of -61.9%. Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 17.2. |
Forecast for FY19:
Citi forecasts a full year FY19 EPS of 7.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.1, implying annual growth of 15.2%. Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 14.9. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $5.91
Citi rates CHC as Buy (1) -
The property research team at Citi is moving ever further away from market consensus views. Key points to consider, point out the analysts, are the in-house positive view on office and fund managers versus a cautious consensus, and negative retail and residential exposure versus a positive consensus.
Price target for Charter Hall Group has moved to $6.81 from $6.23. Buy rating retained.
Target price is $6.81 Current Price is $5.91 Difference: $0.9
If CHC meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $6.29, suggesting upside of 6.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 EPS of 37.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 37.4, implying annual growth of -38.9%. Current consensus DPS estimate is 32.1, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 15.8. |
Forecast for FY19:
Citi forecasts a full year FY19 EPS of 40.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 39.5, implying annual growth of 5.6%. Current consensus DPS estimate is 33.5, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 15.0. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.97
Citi rates CQR as Neutral (3) -
The property research team at Citi is moving ever further away from market consensus views. Key points to consider, point out the analysts, are the in-house positive view on office and fund managers versus a cautious consensus, and negative retail and residential exposure versus a positive consensus.
Price target for Charter Hall Retail has shifted to $4 from $4.03 prior. Neutral rating retained.
Target price is $4.00 Current Price is $3.97 Difference: $0.03
If CQR meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $4.08, suggesting upside of 2.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 EPS of 30.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.2, implying annual growth of -51.2%. Current consensus DPS estimate is 28.1, implying a prospective dividend yield of 7.1%. Current consensus EPS estimate suggests the PER is 13.1. |
Forecast for FY19:
Citi forecasts a full year FY19 EPS of 30.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.7, implying annual growth of 1.7%. Current consensus DPS estimate is 28.7, implying a prospective dividend yield of 7.2%. Current consensus EPS estimate suggests the PER is 12.9. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates CQR as Underperform (5) -
Moody’s Investors Service has changed the outlook for Charter Hall Retail's Baa1 issuer rating to negative from stable. Macquarie points out the move does not yet imply a downgrade, but the trust is now on watch.
Having said so, the analysts expect the trust to be a net seller of assets in order to achieve a more comfortable level of gearing. The Gordon Centre has been put up for sale and the analysts estimate it could fetch $165m.
No changes have been made to $4.01 price target or the Underperform rating. Estimates have been left untouched as well (with the knowledge any success with the Gordon Centre is not yet in the numbers).
Target price is $4.01 Current Price is $3.97 Difference: $0.04
If CQR meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $4.08, suggesting upside of 2.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 28.20 cents and EPS of 29.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.2, implying annual growth of -51.2%. Current consensus DPS estimate is 28.1, implying a prospective dividend yield of 7.1%. Current consensus EPS estimate suggests the PER is 13.1. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 28.50 cents and EPS of 29.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.7, implying annual growth of 1.7%. Current consensus DPS estimate is 28.7, implying a prospective dividend yield of 7.2%. Current consensus EPS estimate suggests the PER is 12.9. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $9.76
Citi rates DXS as Upgrade to Buy from Neutral (1) -
The property research team at Citi is moving ever further away from market consensus views. Key points to consider, point out the analysts, are the in-house positive view on office and fund managers versus a cautious consensus, and negative retail and residential exposure versus a positive consensus.
Hence why the rating for Dexus Property has been upgraded to Buy from Neutral. Price target lifts to $11 from $9.78.
Target price is $11.00 Current Price is $9.76 Difference: $1.24
If DXS meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $9.83, suggesting upside of 0.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 EPS of 65.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 58.4, implying annual growth of -55.3%. Current consensus DPS estimate is 47.3, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 16.7. |
Forecast for FY19:
Citi forecasts a full year FY19 EPS of 66.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 58.4, implying annual growth of N/A. Current consensus DPS estimate is 48.4, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 16.7. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $4.45
Citi rates IOF as Buy (1) -
The property research team at Citi is moving ever further away from market consensus views. Key points to consider, point out the analysts, are the in-house positive view on office and fund managers versus a cautious consensus, and negative retail and residential exposure versus a positive consensus.
Buy rating retained, while the price target falls to $5.16 from $5.30.
Target price is $5.16 Current Price is $4.45 Difference: $0.71
If IOF meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $4.78, suggesting upside of 7.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 20.30 cents and EPS of 31.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 29.2, implying annual growth of -62.0%. Current consensus DPS estimate is 20.4, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 15.2. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 20.80 cents and EPS of 32.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.4, implying annual growth of -2.7%. Current consensus DPS estimate is 20.5, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 15.7. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.69
Citi rates IPL as Neutral (3) -
The company has announced the loss of a further WA iron ore contract with Roy Hill, effective February. Citi analysts do believe these are signals of an over-supplied ammonia nitrate market since the start up of Orica's ((ORI)) Burrup AN plant, but they also don't seem too fazed by it.
There's a $300m buyback underway, say the analysts. They retain a Neutral rating. Price target unchanged at $4.20.
Target price is $4.20 Current Price is $3.69 Difference: $0.51
If IPL meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $3.97, suggesting upside of 7.5% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 10.70 cents and EPS of 21.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 21.4, implying annual growth of 13.2%. Current consensus DPS estimate is 11.1, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 17.2. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 11.20 cents and EPS of 22.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.4, implying annual growth of 9.3%. Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 15.8. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $28.19
Macquarie rates JBH as Outperform (1) -
JB Hi-Fi remains the broker's top pick within discretionary retail on the premise that Amazon represents a mid-term threat, but also that JB Hi-Fi management has self-help available on the back of a strong market positioning.
Outperform rating and $28.80 price target remain intact post the strong discretionary retail sales update for November.
Target price is $28.80 Current Price is $28.19 Difference: $0.61
If JBH meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $25.71, suggesting downside of -8.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 134.00 cents and EPS of 204.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 207.0, implying annual growth of 34.2%. Current consensus DPS estimate is 133.5, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 13.6. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 135.00 cents and EPS of 206.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 213.8, implying annual growth of 3.3%. Current consensus DPS estimate is 138.3, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 13.2. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
MQG MACQUARIE GROUP LIMITED
Wealth Management & Investments
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Overnight Price: $101.08
Credit Suisse rates MQG as Outperform (1) -
Credit Suisse seems to suggest that Macquarie's operational update, scheduled for February 6, can once again surprise to the upside and thus provide a positive catalyst for the share price.
Exposure to the Trump administration's proposed tax cuts will likely translate into a 7% benefit to net profits in outer years, on the analysts calculations. No changes made to $105 price target and Outperform rating.
Target price is $105.00 Current Price is $101.08 Difference: $3.92
If MQG meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $96.39, 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 495.00 cents and EPS of 718.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 695.5, implying annual growth of 5.8%. Current consensus DPS estimate is 491.0, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 14.5. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 500.00 cents and EPS of 695.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 715.4, implying annual growth of 2.9%. Current consensus DPS estimate is 506.5, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 14.1. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $9.44
Citi rates ORG as Neutral (3) -
Citi analysts remain of the view that, overall, valuations remain too lofty for Aussie oil and gas stocks. A detailed analysis from the past has once again shown management teams in the sector are not good at creating shareholder value.
Citi argues exploration spending is mostly destroying value at most companies. This in particular has been the case for the largest in the sector locally, Woodside Petroleum.
Today's sector update has triggered no changes for Origin Energy.
Target price is $8.97 Current Price is $9.44 Difference: minus $0.47 (current price is over target).
If ORG meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $9.09, suggesting downside of -3.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 0.00 cents and EPS of 53.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 53.4, implying annual growth of N/A. Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 0.5%. Current consensus EPS estimate suggests the PER is 17.7. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 33.10 cents and EPS of 66.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 68.3, implying annual growth of 27.9%. Current consensus DPS estimate is 24.2, implying a prospective dividend yield of 2.6%. Current consensus EPS estimate suggests the PER is 13.8. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $7.86
Citi rates OSH as Sell (5) -
Citi analysts remain of the view that, overall, valuations remain too lofty for Aussie oil and gas stocks. A detailed analysis from the past has once again shown management teams in the sector are not good at creating shareholder value.
Citi argues exploration spending is mostly destroying value at most companies. This in particular has been the case for the largest in the sector locally, Woodside Petroleum.
Price target for Oil Search has shifted to $5.95 from $6.28. Sell rating retained.
Target price is $5.95 Current Price is $7.86 Difference: minus $1.91 (current price is over target).
If OSH 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 $8.03, suggesting upside of 2.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 11.71 cents and EPS of 24.72 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.5, implying annual growth of N/A. Current consensus DPS estimate is 10.4, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 33.4. |
Forecast for FY18:
Citi forecasts a full year FY18 EPS of 29.93 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.3, implying annual growth of 20.4%. Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 27.8. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $81.67
Citi rates RIO as Buy (1) -
Rio Tinto has found a buyer for its aluminium smelter in Dunkerque and Citi analysts see yet more funds flowing into management's coffers destined for capital management.
They note the present US$1.925bn share buyback will be completed in 2018. Target price remains $82. Rating is Buy.
Target price is $82.00 Current Price is $81.67 Difference: $0.33
If RIO meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $79.10, suggesting downside of -3.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 417.70 cents and EPS of 661.94 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 609.3, implying annual growth of N/A. Current consensus DPS estimate is 360.1, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 13.4. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 364.35 cents and EPS of 618.09 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 569.6, implying annual growth of -6.5%. Current consensus DPS estimate is 327.0, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 14.3. |
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
Macquarie rates RIO as Outperform (1) -
Rio Tinto is selling a French aluminium smelter to Liberty House for US$500m and Macquarie analysts grab the opportunity to highlight there seems to be considerable upside potential to earnings forecasts if current spot prices persist for longer.
That said, it is quite ironic that Macquarie's current forecasts imply a steadfast negative EPS trajectory for the years ahead. Price target $85. Outperform.
Target price is $85.00 Current Price is $81.67 Difference: $3.33
If RIO meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $79.10, suggesting downside of -3.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 396.88 cents and EPS of 650.75 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 609.3, implying annual growth of N/A. Current consensus DPS estimate is 360.1, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 13.4. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 299.28 cents and EPS of 505.92 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 569.6, implying annual growth of -6.5%. Current consensus DPS estimate is 327.0, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 14.3. |
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
Citi rates SCG as Neutral (3) -
The property research team at Citi is moving ever further away from market consensus views. Key points to consider, point out the analysts, are the in-house positive view on office and fund managers versus a cautious consensus, and negative retail and residential exposure versus a positive consensus.
New price target for Scentre Group is $4.24 (was $4.17). Neutral rating retained.
Target price is $4.24 Current Price is $4.07 Difference: $0.17
If SCG meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $4.47, suggesting upside of 9.9% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 21.70 cents and EPS of 24.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.9, implying annual growth of 11.2%. Current consensus DPS estimate is 21.9, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 15.7. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 22.20 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 -3.1%. Current consensus DPS estimate is 22.3, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 16.2. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $4.30
Citi rates SGP as Downgrade to Neutral from Buy (3) -
The property research team at Citi is moving ever further away from market consensus views. Key points to consider, point out the analysts, are the in-house positive view on office and fund managers versus a cautious consensus, and negative retail and residential exposure versus a positive consensus.
Stockland's rating has been downgraded to Neutral from Buy. Price target drops to $4.70 from $5.05.
Target price is $4.70 Current Price is $4.30 Difference: $0.4
If SGP meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $4.74, suggesting upside of 10.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 26.50 cents and EPS of 36.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 33.9, implying annual growth of -31.9%. Current consensus DPS estimate is 26.8, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 12.7. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 27.50 cents and EPS of 38.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 35.3, implying annual growth of 4.1%. Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 12.2. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates STO as Downgrade to Sell from Neutral (5) -
Citi analysts remain of the view that, overall, valuations remain too lofty for Aussie oil and gas stocks. A detailed analysis from the past has once again shown management teams in the sector are not good at creating shareholder value.
Citi argues exploration spending is mostly destroying value at most companies. This in particular has been the case for the largest in the sector locally, Woodside Petroleum.
Price target for Santos has declined to $5.08. Rating has been downgraded to Sell from Neutral.
Target price is $5.08 Current Price is $5.45 Difference: minus $0.37 (current price is over target).
If STO meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $5.21, suggesting downside of -4.5% (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 18.22 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 15.0, implying annual growth of N/A. Current consensus DPS estimate is 0.4, implying a prospective dividend yield of 0.1%. Current consensus EPS estimate suggests the PER is 36.3. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 0.00 cents and EPS of 20.82 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.2, implying annual growth of 68.0%. Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 0.4%. Current consensus EPS estimate suggests the PER is 21.6. |
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
Overnight Price: $0.38
Citi rates SXY as Downgrade to Sell from Neutral (5) -
Citi analysts remain of the view that, overall, valuations remain too lofty for Aussie oil and gas stocks. A detailed analysis from the past has once again shown management teams in the sector are not good at creating shareholder value.
Citi argues exploration spending is mostly destroying value at most companies. This in particular has been the case for the largest in the sector locally, Woodside Petroleum.
Today's sector update has triggered a downgrade for Senex Energy; to Sell/High Risk from Neutral/High Risk. Price target falls to 34c.
Target price is $0.34 Current Price is $0.38 Difference: minus $0.04 (current price is over target).
If SXY meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.37, suggesting downside of -2.6% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 0.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 4.8, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 7.9. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 1.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 13.0, implying annual growth of 170.8%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 2.9. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.63
Citi rates VCX as Downgrade to Neutral from Buy (3) -
The property research team at Citi is moving ever further away from market consensus views. Key points to consider, point out the analysts, are the in-house positive view on office and fund managers versus a cautious consensus, and negative retail and residential exposure versus a positive consensus.
Vicinity Centres has now been downgraded to Neutral from Buy. Price target drops to $2.88 from $3.09.
Target price is $2.88 Current Price is $2.63 Difference: $0.25
If VCX meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $2.89, suggesting upside of 9.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 EPS of 18.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 17.9, implying annual growth of -4.3%. Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 14.7. |
Forecast for FY19:
Citi forecasts a full year FY19 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 5.6%. Current consensus DPS estimate is 16.9, implying a prospective dividend yield of 6.4%. 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
WFD WESTFIELD CORPORATION
Infra & Property Developers
More Research Tools In Stock Analysis - click HERE
Overnight Price: $9.23
Citi rates WFD as Neutral (3) -
The property research team at Citi is moving ever further away from market consensus views. Key points to consider, point out the analysts, are the in-house positive view on office and fund managers versus a cautious consensus, and negative retail and residential exposure versus a positive consensus.
New price target for Westfield of $9.37 compares with $8.32 prior. Neutral rating (though it was No Rating in December).
Current Price is $9.23. Target price not assessed.
Current consensus price target is $9.64, suggesting upside of 4.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 33.18 cents and EPS of 44.24 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 41.3, implying annual growth of N/A. Current consensus DPS estimate is 32.4, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 22.3. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 33.83 cents and EPS of 45.54 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 43.8, implying annual growth of 6.1%. Current consensus DPS estimate is 33.4, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 21.1. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $34.50
Citi rates WPL as Sell (5) -
Citi analysts remain of the view that, overall, valuations remain too lofty for Aussie oil and gas stocks. A detailed analysis from the past has once again shown management teams in the sector are not good at creating shareholder value.
Citi argues exploration spending is mostly destroying value at most companies. This in particular has been the case for the largest in the sector locally, Woodside Petroleum.
Sell rating retained. Price target drops to $26.25.
Target price is $26.25 Current Price is $34.50 Difference: minus $8.25 (current price is over target).
If WPL 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 $31.21, suggesting downside of -9.5% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 122.32 cents and EPS of 152.25 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 149.5, implying annual growth of N/A. Current consensus DPS estimate is 118.2, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 23.1. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 124.92 cents and EPS of 158.75 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 163.8, implying annual growth of 9.6%. Current consensus DPS estimate is 129.1, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 21.1. |
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
Summaries
BEN | BENDIGO AND ADELAIDE BANK | Underweight - Morgan Stanley | Overnight Price $11.61 |
BPT | BEACH ENERGY | Sell - Citi | Overnight Price $1.36 |
CHC | CHARTER HALL | Buy - Citi | Overnight Price $5.91 |
CQR | CHARTER HALL RETAIL | Neutral - Citi | Overnight Price $3.97 |
Underperform - Macquarie | Overnight Price $3.97 | ||
DXS | DEXUS PROPERTY | Upgrade to Buy from Neutral - Citi | Overnight Price $9.76 |
IOF | INVESTA OFFICE | Buy - Citi | Overnight Price $4.45 |
IPL | INCITEC PIVOT | Neutral - Citi | Overnight Price $3.69 |
JBH | JB HI-FI | Outperform - Macquarie | Overnight Price $28.19 |
MQG | MACQUARIE GROUP | Outperform - Credit Suisse | Overnight Price $101.08 |
ORG | ORIGIN ENERGY | Neutral - Citi | Overnight Price $9.44 |
OSH | OIL SEARCH | Sell - Citi | Overnight Price $7.86 |
RIO | RIO TINTO | Buy - Citi | Overnight Price $81.67 |
Outperform - Macquarie | Overnight Price $81.67 | ||
SCG | SCENTRE GROUP | Neutral - Citi | Overnight Price $4.07 |
SGP | STOCKLAND | Downgrade to Neutral from Buy - Citi | Overnight Price $4.30 |
STO | SANTOS | Downgrade to Sell from Neutral - Citi | Overnight Price $5.45 |
SXY | SENEX ENERGY | Downgrade to Sell from Neutral - Citi | Overnight Price $0.38 |
VCX | VICINITY CENTRES | Downgrade to Neutral from Buy - Citi | Overnight Price $2.63 |
WFD | WESTFIELD CORP | Neutral - Citi | Overnight Price $9.23 |
WPL | WOODSIDE PETROLEUM | Sell - Citi | Overnight Price $34.50 |
RATING SUMMARY
Rating | No. Of Recommendations |
1. Buy | 7 |
3. Hold | 7 |
5. Sell | 7 |
Monday 15 January 2018
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