Australian Broker Call
Produced and copyrighted by at www.fnarena.com
April 27, 2021
Access Broker Call Report Archives here
COMPANIES DISCUSSED IN THIS ISSUE
Click on symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1).
Last Updated: 05:00 PM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.
For more info about the different terms used by stockbrokers, as well as the different methodologies behind similar sounding ratings, download our guide HERE
Today's Upgrades and Downgrades
OSH - | Oil Search | Upgrade to Buy from Neutral | UBS |
Overnight Price: $72.00
Citi rates BKL as Sell (5) -
Citi believes Nestle's interest in The Bountiful Company could suggest broader interest by companies in general toward the vitamins and mineral supplements (VMS) category. However, the broker feels the share price is expensive and somewhat factoring in M&A.
The analyst also concludes the VMS category has more diverse routes to market (includes pharmacies, drugstores, e-commerce) compared to fast moving consumer goods (FMCG) companies like Nestle. That is, the Nestle acquisition may be problematic.
Citi retains a Sell rating and $55.50 target price.
Target price is $55.50 Current Price is $72.00 Difference: minus $16.5 (current price is over target).
If BKL meets the Citi target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $73.83, suggesting upside of 3.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Citi forecasts a full year FY21 dividend of 54.00 cents and EPS of 179.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 169.2, implying annual growth of 63.4%. Current consensus DPS estimate is 80.1, implying a prospective dividend yield of 1.1%. Current consensus EPS estimate suggests the PER is 42.3. |
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 73.00 cents and EPS of 243.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 239.2, implying annual growth of 41.4%. Current consensus DPS estimate is 134.1, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 29.9. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates BKL as Neutral (3) -
As a result of the company's investor presentation, Credit Suisse notes Australian discounting has returned which has affected margin and profitability. Strong growth continues in Asia and China.
Gross margin expansion is anticipated moving to the high 50% levels from 52%. Credit Suisse downgrades estimates for earnings per share by -2-4% and retains a Neutral rating.
Despite a strong recovery in earnings and a solid balance sheet the broker notes the stock is trading at a 40% PE premium to FY22 estimates. Target is reduced to $77 from $80.
Target price is $77.00 Current Price is $72.00 Difference: $5
If BKL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $73.83, suggesting upside of 3.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Credit Suisse forecasts a full year FY21 dividend of 70.00 cents and EPS of 129.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 169.2, implying annual growth of 63.4%. Current consensus DPS estimate is 80.1, implying a prospective dividend yield of 1.1%. Current consensus EPS estimate suggests the PER is 42.3. |
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 165.00 cents and EPS of 218.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 239.2, implying annual growth of 41.4%. Current consensus DPS estimate is 134.1, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 29.9. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $6.80
Macquarie rates CHN as Outperform (1) -
The latest drilling updates from Julimar have extended and widened the known zones of mineralisation. Macquarie upgrades its development scenario to allow for a larger scale open pit development after incorporating the latest results.
This drives material upgrades to earnings forecasts for the medium to longer term, as the mine life projection has now grown to 12 years from 8 previously. Outperform maintained. Target rises to $9.20 from $5.50.
Target price is $9.20 Current Price is $6.80 Difference: $2.4
If CHN meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY21:
Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 11.30 cents. |
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 18.30 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
COL COLES GROUP LIMITED
Food, Beverages & Tobacco
More Research Tools In Stock Analysis - click HERE
Overnight Price: $15.64
Ord Minnett rates COL as Hold (3) -
Coles Group will report its March quarter results on 28 April and Ord Minnett expects Woolworths ((WOW)) to outperform Coles in food division like-for-like (LFL) sales.
The broker expects Coles to grow 4.3% in liquor division sales with the category supported by premiumisation and limited international travel.
Hold recommendation with a $16.50 target price.
Target price is $16.50 Current Price is $15.64 Difference: $0.86
If COL meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $18.43, suggesting upside of 18.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 59.00 cents and EPS of 73.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 75.0, implying annual growth of 2.3%. Current consensus DPS estimate is 60.8, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 20.8. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 58.00 cents and EPS of 71.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 78.0, implying annual growth of 4.0%. Current consensus DPS estimate is 64.5, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 20.0. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $5.42
Morgan Stanley rates DOW as Overweight (1) -
Downer EDI will be selling its Otraco tyre management business for circa $80m. Morgan Stanley assumes margins will be higher than for the rest of the mining business given the specialised nature of the tyre management business.
The final piece of Downer’s mining divestment strategy is its open-cut business in Eastern Australia which generates almost $600m of revenue.
The broker contends a divestment here would yield about $180-240m, bringing the total laundries and mining divestment to nearly $800m.
Target is $6.20. Overweight. Industry view: In-line.
Target price is $6.20 Current Price is $5.42 Difference: $0.78
If DOW meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $5.99, suggesting upside of 12.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Morgan Stanley forecasts a full year FY21 dividend of 22.00 cents and EPS of 34.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 32.6, implying annual growth of N/A. Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 16.3. |
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 30.00 cents and EPS of 39.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.6, implying annual growth of 12.3%. Current consensus DPS estimate is 23.2, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 14.5. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates DXS as Overweight (1) -
Looking at the Sydney CBD office supply pipeline and major tenant relocations in 2021-22, Morgan Stanley believes the outlook is not bad for Dexus. The broker notes some mooted projects look unlikely until 2026-27 and that Dexus has no large Sydney tenants vacating space.
Based on its channel checks and market data analysis, the broker is of the view the Sydney office market will stop deteriorating in the next 12 months. Also, while the pace of recovery remains uncertain Morgan Stanley believes we are close to an inflexion point.
Overweight rating with a target of $11.70. Industry View: In-line.
Target price is $11.70 Current Price is $10.05 Difference: $1.65
If DXS meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $9.92, suggesting upside of 0.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Morgan Stanley forecasts a full year FY21 dividend of 50.30 cents and EPS of 66.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 62.6, implying annual growth of -30.3%. Current consensus DPS estimate is 50.3, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 15.8. |
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 48.00 cents and EPS of 64.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 61.8, implying annual growth of -1.3%. Current consensus DPS estimate is 48.6, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 16.0. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $4.82
Ord Minnett rates HMC as Hold (3) -
Home Consortium has entered into conditional agreements to sell seven balance-sheet assets to HomeCo Daily Needs REIT ((HDN)) for a total consideration of $266m. Ord Minnett notes the company is continuing its transition from asset owner to property fund manager.
Post the asset sales, the broker expects Home Consortium to be net cash and well placed to fund growth in assets under management (AUM) to $5bn-plus without needing any new equity.
Hold recommendation with the target price rising to $4.40 from $3.70.
Target price is $4.40 Current Price is $4.82 Difference: minus $0.42 (current price is over target).
If HMC meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.16, suggesting downside of -18.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 12.00 cents and EPS of 13.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 13.0, implying annual growth of N/A. Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 39.1. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 13.00 cents and EPS of 17.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.6, implying annual growth of 27.7%. Current consensus DPS estimate is 13.4, implying a prospective dividend yield of 2.6%. Current consensus EPS estimate suggests the PER is 30.6. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates IGO as Resume Coverage with Outperform (1) -
Macquarie believes the business has been transformed by the sale of its 30% interest in Tropicana and the acquisition of an interest in the lithium joint venture.
The sale of the stake in Tropicana will result in the company emerging from both transactions with a modest net cash position, points out the analyst.
The broker predicts the 24.99% stake in the Greenbushes spodumene mine and 49% of the Kwinana lithium hydroxide plant will be the key growth engines for the company. Greenbushes is the largest and lowest-cost spodumene mine globally with a life of over 20 years.
Macquarie resumes coverage with an Outperform rating and $8 target.
Target price is $8.00 Current Price is $7.18 Difference: $0.82
If IGO meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $6.54, suggesting downside of -10.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Macquarie forecasts a full year FY21 dividend of 1.00 cents and EPS of 23.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 21.9, implying annual growth of -15.7%. Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 0.6%. Current consensus EPS estimate suggests the PER is 33.2. |
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 11.00 cents and EPS of 20.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 24.2, implying annual growth of 10.5%. Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 1.4%. Current consensus EPS estimate suggests the PER is 30.0. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $5.94
Citi rates NHF as Neutral (3) -
The new company guidance for FY21 underlying operating profit (UOP) of $200m-$225m is well above Citi's prior forecast of $183m. This was due to the “catch-up” in treatment deferrals being less than expected, which is a one-off sugar hit, notes the broker.
Further, the analyst highlights the risk that some of the benefit will have to be given back in future pricing or via other methods. Reflecting this, the Neutral rating is retained with the target edging up to $6.40 from $6.30.
Target price is $6.40 Current Price is $5.94 Difference: $0.46
If NHF meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $6.27, suggesting upside of 5.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Citi forecasts a full year FY21 dividend of 24.00 cents and EPS of 38.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.2, implying annual growth of 83.3%. Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 16.5. |
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 21.50 cents and EPS of 33.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.8, implying annual growth of -14.9%. Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 19.4. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates NHF as Neutral (3) -
Credit Suisse notes policyholder growth is running ahead of expectations while the company has guided to underlying operating profit of $200-225m, the mid point of which represents a 20% upgrade to consensus forecasts.
The broker increases underlying operating profit estimates for FY21 by 31%. Target is raised to $6.15 from $5.50. The stock is considered fair value and a Neutral rating is reiterated.
Target price is $6.15 Current Price is $5.94 Difference: $0.21
If NHF meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $6.27, suggesting upside of 5.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Credit Suisse forecasts a full year FY21 dividend of 24.00 cents and EPS of 37.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.2, implying annual growth of 83.3%. Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 16.5. |
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 22.00 cents and EPS of 35.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.8, implying annual growth of -14.9%. Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 19.4. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates NHF as Neutral (3) -
Underlying operating profit has been upgraded for FY21 to $200-225m. Policyholder growth was 3.7% for the nine months to March. A catch-up in claims has been slower than Macquarie assumed while policyholder growth has outpaced expectations.
The broker considers the primary risk to its view is a variation in the pace of claims catch-up post the pandemic. Neutral maintained. Target is raised to $5.90 from $5.45.
Target price is $5.90 Current Price is $5.94 Difference: minus $0.04 (current price is over target).
If NHF meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $6.27, suggesting upside of 5.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Macquarie forecasts a full year FY21 dividend of 23.50 cents and EPS of 37.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.2, implying annual growth of 83.3%. Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 16.5. |
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 18.00 cents and EPS of 28.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.8, implying annual growth of -14.9%. Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 19.4. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates NHF as Equal-weight (3) -
Group operating profit for nib Holdings FY21 is expected to be in the range of $200-225m, 17-32% ahead of Morgan Stanley's estimated $170m. The broker notes nib's claims experience, especially risk equalisation, continues to be lower than expected.
The company states strong Australian resident insurance business (ARHI) performance coupled with stable performance in New Zealand is more than offsetting the weakness in international inbound health insurance (IIHI) and travel insurance business.
Equal-weight rating. Target is raised to $6.05 from $5.75. Industry view: In-line.
Target price is $6.05 Current Price is $5.94 Difference: $0.11
If NHF meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $6.27, suggesting upside of 5.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Morgan Stanley forecasts a full year FY21 dividend of 18.50 cents and EPS of 25.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.2, implying annual growth of 83.3%. Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 16.5. |
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 20.70 cents and EPS of 30.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.8, implying annual growth of -14.9%. Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 19.4. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates NHF as Hold (3) -
Morgans assesses a very strong third quarter group result as favourable claims trends in the key Australian residents health insurance (ARHI) business (linked to covid) continue.
This is highlighted by the third quarter “catch up” on covid deferred treatments being slower than the group assumed as at December 2020, explains the broker.
Morgans upgrades EPS forecasts for FY21 and FY22 by around 19% and 5%. This incorporates a market update by the group and reduced ARHI claims expectations across the forecast period.
Management has guided to a FY21 group underlying operating profit (UOP) of $200m-$225m, which is circa 7% above previous consensus expectations at the mid-point, calculates the analyst. Add rating and target rises to $6.45 from $5.58 on earnings changes.
Target price is $6.45 Current Price is $5.94 Difference: $0.51
If NHF meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $6.27, suggesting upside of 5.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Morgans forecasts a full year FY21 dividend of 22.50 cents and EPS of 36.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.2, implying annual growth of 83.3%. Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 16.5. |
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 19.00 cents and EPS of 30.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.8, implying annual growth of -14.9%. Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 19.4. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates NHF as Accumulate (2) -
nib Holdings has upgraded its guidance driven by favourable claims trends for the Australian residents health insurance (ARHI) business and on expectations of a very strong result for FY21.
While Ord Minnett is unclear how much of this will continue in FY22 but expects weakness in travel to be fully offset by strength in ARHI.
Accumulate recommendation with the target price rising to $6.56 from $6.44.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $6.56 Current Price is $5.94 Difference: $0.62
If NHF meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $6.27, suggesting upside of 5.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 24.00 cents and EPS of 38.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.2, implying annual growth of 83.3%. Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 16.5. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 17.00 cents and EPS of 29.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.8, implying annual growth of -14.9%. Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 19.4. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates NHF as Neutral (3) -
Maiden FY21 guidance is for underlying operating profit of $200-225m, greater than the $189m UBS estimated. That said, the broker did not allow for one-off benefits from the release of covid-19 provisions.
While most health insurers have provided a commitment to return pandemic-related savings to customers, it appears to the broker that nib Holdings will distribute this back to shareholders.
UBS increases the target to $6.35 from $6.15 on the back of outer-year earnings upgrades. While recent share price weakness has opened up some valuation appeal, the broker suggests the short-term outlook is unclear. Neutral maintained.
Target price is $6.35 Current Price is $5.94 Difference: $0.41
If NHF meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $6.27, suggesting upside of 5.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
UBS forecasts a full year FY21 dividend of 25.00 cents and EPS of 40.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 36.2, implying annual growth of 83.3%. Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 16.5. |
Forecast for FY22:
UBS forecasts a full year FY22 dividend of 18.00 cents and EPS of 29.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.8, implying annual growth of -14.9%. Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 19.4. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.75
UBS rates OSH as Upgrade to Buy from Neutral (1) -
First quarter production was in line with UBS estimates. Revenue was marginally lower than expected because of reduced volumes from PNG LNG. Realised LNG prices outperformed peers in the quarter, the broker notes.
2021 guidance has been revised, with capital expenditure reduced by -28% as expenditure on the biomass project and seismic analysis in PNG are deferred. Yet operating cost guidance has been revised up 35% because of higher hedging costs.
UBS upgrades to Buy from Neutral, assessing the outlook for oil demand is improving and Oil Search has the highest leverage to a forecast oil price recovery. Target is reduced to $4.50 from $4.60.
Target price is $4.50 Current Price is $3.75 Difference: $0.75
If OSH meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $4.39, suggesting upside of 18.0% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY21:
UBS forecasts a full year FY21 dividend of 8.23 cents and EPS of 20.59 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.7, implying annual growth of N/A. Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 19.9. |
Forecast for FY22:
UBS forecasts a full year FY22 dividend of 8.23 cents and EPS of 26.07 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.9, implying annual growth of 27.8%. Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 15.6. |
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
Overnight Price: $27.10
Macquarie rates RMD as Neutral (3) -
Macquarie considers ResMed exposed to improving activity with a recovery in new sleep apnoea patient growth. The reimbursement environment is stable, reducing gross margin risk.
The broker's main concerns relate to the potential outcomes associated with the US healthcare and research quality report, which raises questions about the efficacy of CPAP therapy. Target is raised to $28.00 from $27.80. Neutral retained.
Target price is $28.00 Current Price is $27.10 Difference: $0.9
If RMD meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $28.20, suggesting upside of 3.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Macquarie forecasts a full year FY21 dividend of 21.82 cents and EPS of 74.79 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 68.5, implying annual growth of N/A. Current consensus DPS estimate is 20.5, implying a prospective dividend yield of 0.7%. Current consensus EPS estimate suggests the PER is 39.9. |
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 23.47 cents and EPS of 80.55 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 74.3, implying annual growth of 8.5%. Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 0.8%. Current consensus EPS estimate suggests the PER is 36.8. |
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
RWC RELIANCE WORLDWIDE CORPORATION LIMITED
Building Products & Services
More Research Tools In Stock Analysis - click HERE
Overnight Price: $4.88
Ord Minnett rates RWC as Buy (1) -
Reliance Worldwide Corp's third-quarter sales rose by 14% to $359.4m. By region, constant currency sales increased 39% in the Americas, 11% in APAC and 13% in EMEA.
In its initial response, Ord Minnett notes Reliance Worldwide Corp's sales activity to date in April is considerably higher than last year.
Further, with a conservatively geared balance sheet, the broker thinks Reliance Worldwide is well-positioned to add to its growth profile through acquisitions and capital management initiatives.
Buy rating with a target of $5.60.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $5.60 Current Price is $4.88 Difference: $0.72
If RWC meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $4.86, suggesting downside of -1.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 12.00 cents and EPS of 23.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.5, implying annual growth of 105.6%. Current consensus DPS estimate is 11.8, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 20.9. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 11.00 cents and EPS of 21.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.9, implying annual growth of -2.6%. Current consensus DPS estimate is 11.6, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 21.5. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $25.08
Credit Suisse rates WBC as Outperform (1) -
Westpac has indicated the first half cash earnings will be reduced by -$282m as a result of notable items, an additional $70m of notable items since the first quarter update.
The items relate to additional remediation provisions, write-down of capitalised software and goodwill. Credit Suisse considers the announcement mostly about compositional changes and retains an Outperform rating and $25.50 target.
Target price is $25.50 Current Price is $25.08 Difference: $0.42
If WBC meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $26.72, suggesting upside of 6.9% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY21:
Credit Suisse forecasts a full year FY21 dividend of 121.00 cents and EPS of 173.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 176.9, implying annual growth of 177.6%. Current consensus DPS estimate is 124.3, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 14.1. |
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 130.00 cents and EPS of 186.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 177.8, implying annual growth of 0.5%. Current consensus DPS estimate is 130.6, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 14.1. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates WBC as Overweight (1) -
Westpac Bank's first-half cash earnings will be down by -$282m post-tax primarily due to notable items like customer remediation and write-downs of intangibles. All else equal, Morgan Stanley notes the impact on its first-half forecast would be circa -1%.
The bank also announced a change to its software capitalisation policy, which will see a higher proportion of investment expensed and, in the broker's view, could add about 2-3% to near-term expense growth.
The target is $28 with an Overweight rating. Industry view: In-line.
Target price is $28.00 Current Price is $25.08 Difference: $2.92
If WBC meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $26.72, suggesting upside of 6.9% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY21:
Morgan Stanley forecasts a full year FY21 dividend of 115.00 cents and EPS of 164.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 176.9, implying annual growth of 177.6%. Current consensus DPS estimate is 124.3, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 14.1. |
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 125.00 cents and EPS of 177.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 177.8, implying annual growth of 0.5%. Current consensus DPS estimate is 130.6, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 14.1. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates WBC as Hold (3) -
Westpac Bank will report its first-half result on May 3 and Ord Minnett forecasts a net profit of $3.487bn, more than double the second-half FY20 result. The result is expected to be driven by lower one-off items and provision write-backs. An interim dividend of 60c is forecast.
Hold recommendation with a $25.30 target price.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $25.30 Current Price is $25.08 Difference: $0.22
If WBC meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $26.72, suggesting upside of 6.9% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 120.00 cents and EPS of 166.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 176.9, implying annual growth of 177.6%. Current consensus DPS estimate is 124.3, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 14.1. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 125.00 cents and EPS of 163.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 177.8, implying annual growth of 0.5%. Current consensus DPS estimate is 130.6, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 14.1. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $41.88
Ord Minnett rates WOW as Accumulate (2) -
Woolworths will report March quarter results on 29 April and Ord Minnett expects Woolworths to outperform Coles ((COL)) in food division like-for-like (LFL) sales.
The broker expects local and online shopping to be the key drivers of Woolworths’ superior performance. Woolworths is also expected to extend its market share lead in liquor division sales with the category supported by premiumisation and limited international travel.
Accumulate rating and $45 target.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $45.00 Current Price is $41.88 Difference: $3.12
If WOW meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $43.16, suggesting upside of 3.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 118.00 cents and EPS of 157.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 154.1, implying annual growth of 66.4%. Current consensus DPS estimate is 111.2, implying a prospective dividend yield of 2.7%. Current consensus EPS estimate suggests the PER is 27.1. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 129.00 cents and EPS of 172.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 163.2, implying annual growth of 5.9%. Current consensus DPS estimate is 119.8, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 25.6. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.32
Ord Minnett rates WSP as Buy (1) -
Whispir's third-quarter update highlights an annual recurring revenue (ARR) of $50.3m, on track to meet its FY21 guidance, notes Ord Minnett. Highlighting some key positives from the result, the broker points out 43 new customer additions taking the total customers to 750.
Further, with a net cash position of $51.7m, Ord Minnett considers Whispir well capitalised to chase a large USA market opportunity and is also seeing early signs of success here with 11 new customers in the region during the quarter.
Buy rating with a target of $4.25.
Target price is $4.25 Current Price is $3.32 Difference: $0.93
If WSP meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 8.00 cents. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.90 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 | Last Price | Broker | New Target | Prev Target | Change | |
BKL | Blackmores | $71.49 | Citi | 55.50 | 59.20 | -6.25% |
Credit Suisse | 77.00 | 80.00 | -3.75% | |||
CHN | CHALICE MINING | $7.02 | Macquarie | 9.20 | 5.50 | 67.27% |
HMC | Home Consortium Ltd | $5.08 | Ord Minnett | 4.40 | 3.70 | 18.92% |
IGO | IGO | $7.27 | Macquarie | 8.00 | N/A | - |
NHF | nib Holdings | $5.96 | Citi | 6.40 | 6.30 | 1.59% |
Credit Suisse | 6.15 | 5.50 | 11.82% | |||
Macquarie | 5.90 | 5.45 | 8.26% | |||
Morgan Stanley | 6.05 | 5.75 | 5.22% | |||
Morgans | 6.45 | 5.58 | 15.59% | |||
Ord Minnett | 6.56 | 6.44 | 1.86% | |||
UBS | 6.35 | 6.15 | 3.25% | |||
OSH | Oil Search | $3.72 | UBS | 4.50 | 4.60 | -2.17% |
RMD | Resmed | $27.34 | Macquarie | 28.00 | 27.80 | 0.72% |
Summaries
BKL | Blackmores | Sell - Citi | Overnight Price $72.00 |
Neutral - Credit Suisse | Overnight Price $72.00 | ||
CHN | CHALICE MINING | Outperform - Macquarie | Overnight Price $6.80 |
COL | Coles Group | Hold - Ord Minnett | Overnight Price $15.64 |
DOW | Downer Edi | Overweight - Morgan Stanley | Overnight Price $5.42 |
DXS | Dexus | Overweight - Morgan Stanley | Overnight Price $10.05 |
HMC | Home Consortium Ltd | Hold - Ord Minnett | Overnight Price $4.82 |
IGO | IGO | Resume Coverage with Outperform - Macquarie | Overnight Price $7.18 |
NHF | nib Holdings | Neutral - Citi | Overnight Price $5.94 |
Neutral - Credit Suisse | Overnight Price $5.94 | ||
Neutral - Macquarie | Overnight Price $5.94 | ||
Equal-weight - Morgan Stanley | Overnight Price $5.94 | ||
Hold - Morgans | Overnight Price $5.94 | ||
Accumulate - Ord Minnett | Overnight Price $5.94 | ||
Neutral - UBS | Overnight Price $5.94 | ||
OSH | Oil Search | Upgrade to Buy from Neutral - UBS | Overnight Price $3.75 |
RMD | Resmed | Neutral - Macquarie | Overnight Price $27.10 |
RWC | Reliance Worldwide | Buy - Ord Minnett | Overnight Price $4.88 |
WBC | Westpac Banking | Outperform - Credit Suisse | Overnight Price $25.08 |
Overweight - Morgan Stanley | Overnight Price $25.08 | ||
Hold - Ord Minnett | Overnight Price $25.08 | ||
WOW | Woolworths | Accumulate - Ord Minnett | Overnight Price $41.88 |
WSP | Whispir | Buy - Ord Minnett | Overnight Price $3.32 |
RATING SUMMARY
Rating | No. Of Recommendations |
1. Buy | 9 |
2. Accumulate | 2 |
3. Hold | 11 |
5. Sell | 1 |
Tuesday 27 April 2021
Access Broker Call Report Archives here
Disclaimer:
The content of this information does in no way reflect the opinions of
FNArena, or of its journalists. In fact we don't have any opinion about
the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe
and comment on. By doing so we believe we provide intelligent investors
with a valuable tool that helps them in making up their own minds, reading
market trends and getting a feel for what is happening beneath the surface.
This document is provided for informational purposes only. It does not
constitute an offer to sell or a solicitation to buy any security or other
financial instrument. FNArena employs very experienced journalists who
base their work on information believed to be reliable and accurate, though
no guarantee is given that the daily report is accurate or complete. Investors
should contact their personal adviser before making any investment decision.
Latest News
1 |
ASX Winners And Losers Of Today – 08-10-246:35 PM - Daily Market Reports |
2 |
Australian Broker Call *Extra* Edition – Oct 08, 20243:50 PM - Daily Market Reports |
3 |
BHP Shares Eyeing Return To $5011:30 AM - Technicals |
4 |
Audinate’s Recurring Revenue Opportunity11:00 AM - Small Caps |
5 |
Weekly Update On LICs & LITs – 07-Oct-202410:30 AM - Weekly Reports |