Australian Broker Call
March 28, 2017
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COMPANIES DISCUSSED IN THIS ISSUE
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Last Updated: 10:34 AM
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
| MTS - | METCASH | Downgrade to Lighten from Hold | Ord Minnett |
Ord Minnett rates ALQ as Hold (3) -
Ord Minnett, after a series of meetings with mining services in Western Australia, concludes that exploration activity has troughed and volumes are increasing significantly for some minerals.
Pricing remains competitive and, therefore, the broker suspects the impact on margins on incremental volumes may be less than expected for companies such as ALS.
As strong expectations are already priced in, the broker maintains a Hold rating and $6.22 target.
Target price is $6.22 Current Price is $6.16 Difference: $0.06
If ALQ meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $5.92, suggesting downside of -3.8% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 12.00 cents and EPS of 20.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.7, implying annual growth of N/A. Current consensus DPS estimate is 13.3, implying a prospective dividend yield of 2.2%. Current consensus EPS estimate suggests the PER is 27.1. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 13.00 cents and EPS of 25.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 27.7, implying annual growth of 22.0%. Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 22.2. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates ANZ as Neutral (3) -
Incorporating recent mortgage re-pricing initiatives, Citi analysts find the ultimate benefits are likely to remain benign, as opposed to being a genuine game-changer for Australian banks.
EPS estimates have been lifted by 1-2%. Target $31.50 (unchanged). Neutral.
Target price is $31.50 Current Price is $31.45 Difference: $0.05
If ANZ meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $30.48, suggesting downside of -3.3% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 165.00 cents and EPS of 235.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 235.8, implying annual growth of 16.4%. Current consensus DPS estimate is 162.9, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 13.4. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 170.00 cents and EPS of 245.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 238.6, implying annual growth of 1.2%. Current consensus DPS estimate is 165.3, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 13.2. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates APA as Underperform (5) -
Credit Suisse believes a resolution of the gas supply crisis is of critical importance to the company. A resolution presents a critical point for the future of gas demand in Australia and by extension for the largest gas transporter.
The broker believes the company is entering a period of lower growth and lower returns, as high gas prices and an insufficient supply response limit opportunities and results in regulatory scrutiny which prevents windfall returns. Underperform rating and $8.10 target retained.
Target price is $8.10 Current Price is $8.97 Difference: minus $0.87 (current price is over target).
If APA meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $9.14, suggesting upside of 2.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 43.50 cents and EPS of 18.57 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.3, implying annual growth of 38.5%. Current consensus DPS estimate is 43.8, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 40.0. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 45.68 cents and EPS of 19.87 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.2, implying annual growth of 13.0%. Current consensus DPS estimate is 46.2, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 35.4. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates BEN as Sell (5) -
Following the recent round of mortgage re-pricing, Bendigo & Adelaide has also raised its rates, with a 25 basis points increase to the variable investor loans.
The bank's also tightened the investor loan-to-valuation ratio to 80% from 90%. Deutsche Bank notes these moves reflect the need to dampen demand from investors, given the strong growth in this part of the book.
Deutsche Bank still considers the stock expensive and retains a Sell rating. Target is $11.00.
Target price is $11.00 Current Price is $11.42 Difference: minus $0.42 (current price is over target).
If BEN meets the Deutsche Bank target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $10.96, suggesting downside of -4.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 68.00 cents and EPS of 88.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 88.1, implying annual growth of -7.8%. Current consensus DPS estimate is 68.0, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 13.0. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 68.00 cents and EPS of 82.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 86.6, implying annual growth of -1.7%. Current consensus DPS estimate is 68.3, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 13.2. |
Market Sentiment: -1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates BOQ as Hold (3) -
Ahead of the bank's first half result on March 30 Deutsche Bank reduces cash earnings estimates by -1-2% across FY17-18.
This largely reflects weakness in lending momentum and an assumed decline in margins, consistent with recent peer results.
The broker notes upside risk to forecasts should the bank follow the majors in re-pricing mortgages. Hold rating retained. Target rises to $11.50 from $11.40.
Target price is $11.50 Current Price is $11.42 Difference: $0.08
If BOQ meets the Deutsche Bank target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $11.53, suggesting upside of 0.5% (ex-dividends)
The company's fiscal year ends in August.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 76.00 cents and EPS of 89.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 92.0, implying annual growth of -3.8%. Current consensus DPS estimate is 76.3, implying a prospective dividend yield of 6.7%. Current consensus EPS estimate suggests the PER is 12.5. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 76.00 cents and EPS of 91.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 93.3, implying annual growth of 1.4%. Current consensus DPS estimate is 76.4, implying a prospective dividend yield of 6.7%. Current consensus EPS estimate suggests the PER is 12.3. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates CBA as Sell (5) -
Incorporating recent mortgage re-pricing initiatives, Citi analysts find the ultimate benefits are likely to remain benign, as opposed to being a genuine game-changer for Australian banks.
EPS estimates have been lifted by 1-2%. Target price remains $75. Rating remains Sell.
Target price is $75.00 Current Price is $83.40 Difference: minus $8.4 (current price is over target).
If CBA meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $80.78, suggesting downside of -3.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 421.00 cents and EPS of 542.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 556.2, implying annual growth of 0.2%. Current consensus DPS estimate is 423.4, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 15.0. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 421.00 cents and EPS of 554.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 572.2, implying annual growth of 2.9%. Current consensus DPS estimate is 429.6, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates CSL as Neutral (3) -
UBS observes the FY18 flu season pre-order book is strong and this is an indication of purchaser commitment and supplier allocation, although it is also dependent on final production reaching distributors by August. Prices have also increased materially.
Assuming CSL maintains first half volumes, a 30% average price gain could exceed the broker's forecasts for US flu sales in the first half of FY18 by more than 10%.
UBS retains a Neutral rating and $132.15 target.
Target price is $132.15 Current Price is $122.80 Difference: $9.35
If CSL meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $128.14, suggesting upside of 4.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
UBS forecasts a full year FY17 dividend of 176.67 cents and EPS of 419.77 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 396.0, implying annual growth of N/A. Current consensus DPS estimate is 179.5, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 31.0. |
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 192.61 cents and EPS of 467.59 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 467.4, implying annual growth of 18.0%. Current consensus DPS estimate is 208.6, implying a prospective dividend yield of 1.7%. Current consensus EPS estimate suggests the PER is 26.3. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates EVN as Buy (1) -
Having visited Ernest Henry, Deutsche Bank is confident the company has bought into a well-run asset with top tier infrastructure.
There are opportunities to lift production and gold recoveries and the broker believes valuing the stake simply on the 11-year reserve underestimates the potential for mine life extension.
Buy recommendation retained. Target rises to $2.50 from $2.40.
Target price is $2.50 Current Price is $2.16 Difference: $0.34
If EVN meets the Deutsche Bank target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $2.55, suggesting upside of 17.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 3.00 cents and EPS of 16.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.2, implying annual growth of N/A. Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 11.9. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 3.00 cents and EPS of 21.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.6, implying annual growth of 24.2%. Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 9.6. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates EVN as Overweight (1) -
Morgan Stanley found the visit to Ernest Henry constructive as it highlighted the potential in the asset. The broker adds some value to its base case and leaves other elements to upside scenarios.
The stock remains the broker's preferred gold exposure. Overweight rating retained. Target is raised to $2.70 from $2.60. Sector view: Attractive.
Target price is $2.70 Current Price is $2.16 Difference: $0.54
If EVN meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $2.55, suggesting upside of 17.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 4.00 cents and EPS of 17.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.2, implying annual growth of N/A. Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 11.9. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 4.00 cents and EPS of 19.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.6, implying annual growth of 24.2%. Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 9.6. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates FAR as Outperform (1) -
The company has intersected a 97m gross oil column across multiple reservoirs in the VR-1 well, offshore Senegal. This is also the highest net pay of any wells drilled to date.
Credit Suisse notes the open status of the dispute pursuant to the joint venture agreement remains, rightly or wrongly, a distraction for the market. The broker is hopeful the issue can be resolved swiftly, and ideally ahead of any FEED decision, so the market can focus on the project.
Credit Suisse rolls forwards its model for the 2016 numbers. Outperform rating retained with a 14c target.
Target price is $0.14 Current Price is $0.08 Difference: $0.062
If FAR meets the Credit Suisse target it will return approximately 79% (excluding dividends, fees and charges).
Current consensus price target is $0.16, suggesting upside of 105.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 0.49 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -0.4, 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 N/A. |
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 0.48 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -0.4, 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 N/A. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates LVH as Add (1) -
The company has raised 12.5m in new equity to accelerate the rate at which it can sign up new clients. The company reports it has been struggling to meet demand for its talent community systems.
Should the company be successful in implementing its strategy the rewards for shareholders could be substantial, Morgans believes.
The broker revises forecasts higher for the long term but eases estimates in the short term, as these are early days and the company is yet to become self-sustaining from a cash flow perspective.
Add recommendation retained. Target is lifted to $0.64 from $0.55.
Target price is $0.64 Current Price is $0.48 Difference: $0.16
If LVH meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY17:
Morgans forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 2.40 cents. |
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of 0.20 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates MTS as Downgrade to Lighten from Hold (4) -
Ord Minnett reviews its investment thesis and downgrades to Lighten from Hold. The broker does not believe the stock price adequately reflects the risks associated with the food & grocery division.
The broker acknowledges the benefits from cost savings and the upside from the hardware division as well as a strongly performing liquor business.
Earnings per share forecasts are modestly raised and the target lifted to $2.10 from $2.00. Nevertheless, the broker believes the risk-reward equation is not attractive post the recent share price performance.
Target price is $2.10 Current Price is $2.37 Difference: minus $0.27 (current price is over target).
If MTS meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.26, suggesting downside of -4.5% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY17:
Ord Minnett forecasts a full year FY17 dividend of 0.00 cents and EPS of 18.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.4, implying annual growth of -16.7%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 12.2. |
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 15.00 cents and EPS of 23.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 21.5, implying annual growth of 10.8%. Current consensus DPS estimate is 13.9, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 11.0. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates NAB as Neutral (3) -
Incorporating recent mortgage re-pricing initiatives, Citi analysts find the ultimate benefits are likely to remain benign, as opposed to being a genuine game-changer for Australian banks.
EPS estimates have been lifted by 2% in FY17-19. Price target remains $30.50. Neutral.
Target price is $30.50 Current Price is $32.21 Difference: minus $1.71 (current price is over target).
If NAB 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 $31.16, suggesting downside of -3.3% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 198.00 cents and EPS of 236.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 238.2, implying annual growth of -2.8%. Current consensus DPS estimate is 193.7, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 13.5. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 178.00 cents and EPS of 237.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 240.5, implying annual growth of 1.0%. Current consensus DPS estimate is 186.9, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 13.4. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates S32 as Buy (1) -
Citi analysts were not surprised by the announcement of a US$500m share buyback. They point out this represents circa 4.5% of outstanding capital and shall boost EPS forecasts by some 5%. Buy.
Target price is $3.20 Current Price is $2.67 Difference: $0.53
If S32 meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $3.12, suggesting upside of 17.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 13.28 cents and EPS of 32.15 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 32.2, implying annual growth of N/A. Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 8.3. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 13.28 cents and EPS of 26.83 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.5, implying annual growth of -20.8%. Current consensus DPS estimate is 12.4, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 10.5. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates S32 as Outperform (1) -
The company will deliver an additional US$500m to shareholders via an on-market buy-back, expected to be completed over a 12 month period.
This move makes Macquarie confident that net cash has likely increased to over US$1bn, even after the interim dividend payment. The broker believes the stock is cheap on earnings multiples and it continues to trade at a discount to larger peers.
Outperform retained. Target is $3.70.
Target price is $3.70 Current Price is $2.67 Difference: $1.03
If S32 meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges).
Current consensus price target is $3.12, suggesting upside of 17.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 15.68 cents and EPS of 33.48 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 32.2, implying annual growth of N/A. Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 8.3. |
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 16.07 cents and EPS of 32.01 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.5, implying annual growth of -20.8%. Current consensus DPS estimate is 12.4, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 10.5. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates S32 as Overweight (1) -
The company intends to buy back US$500m in shares. Although unexpected, Morgan Stanley believes this is an appropriate use of cash at this time.
The move lends credence, in the broker's opinion, to the stated goal of prioritising returns rather than simple volume growth. Overweight retained. Target is $3.35. Industry view: Attractive.
Target price is $3.35 Current Price is $2.67 Difference: $0.68
If S32 meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $3.12, suggesting upside of 17.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Morgan Stanley forecasts a full year FY17 dividend of 17.27 cents and EPS of 37.19 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 32.2, implying annual growth of N/A. Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 8.3. |
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 19.93 cents and EPS of 33.21 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.5, implying annual growth of -20.8%. Current consensus DPS estimate is 12.4, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 10.5. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates SBM as Buy (1) -
The company has approved the Gwalia extension project for $100m, which is in line with Deutsche Bank's expectations. The project will extend mining to 2000m below surface, supporting seven years of operations below the current level.
The broker notes the business has returned to a net cash position and is generating sector-leading free cash flow. Buy recommendation maintained. Target is $3.10.
Target price is $3.10 Current Price is $2.55 Difference: $0.55
If SBM meets the Deutsche Bank target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $2.90, suggesting upside of 13.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 0.00 cents and EPS of 31.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 29.5, implying annual growth of -13.8%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 8.6. |
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 0.00 cents and EPS of 31.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 34.3, implying annual growth of 16.3%. Current consensus DPS estimate is 6.5, implying a prospective dividend yield of 2.5%. Current consensus EPS estimate suggests the PER is 7.4. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates WBC as Sell (5) -
Incorporating recent mortgage re-pricing initiatives, Citi analysts find the ultimate benefits are likely to remain benign, as opposed to being a genuine game-changer for Australian banks.
EPS estimates have been lifted by 2% in FY17-19. Price target remains $30.50. Sell rating retained.
Target price is $30.50 Current Price is $34.00 Difference: minus $3.5 (current price is over target).
If WBC meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $33.49, suggesting downside of -1.5% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY17:
Citi forecasts a full year FY17 dividend of 188.00 cents and EPS of 235.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 238.8, implying annual growth of 1.4%. Current consensus DPS estimate is 188.8, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 14.2. |
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 160.00 cents and EPS of 237.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 246.4, implying annual growth of 3.2%. Current consensus DPS estimate is 184.0, implying a prospective dividend yield of 5.4%. 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
Summaries
| ALQ - | ALS LIMITED | Hold - Ord Minnett | Overnight Price $6.16 |
| ANZ - | ANZ BANKING GROUP | Neutral - Citi | Overnight Price $31.45 |
| APA - | APA | Underperform - Credit Suisse | Overnight Price $8.97 |
| BEN - | BENDIGO AND ADELAIDE BANK | Sell - Deutsche Bank | Overnight Price $11.42 |
| BOQ - | BANK OF QUEENSLAND | Hold - Deutsche Bank | Overnight Price $11.42 |
| CBA - | COMMBANK | Sell - Citi | Overnight Price $83.40 |
| CSL - | CSL | Neutral - UBS | Overnight Price $122.80 |
| EVN - | EVOLUTION MINING | Buy - Deutsche Bank | Overnight Price $2.16 |
| Overweight - Morgan Stanley | Overnight Price $2.16 | ||
| FAR - | FAR Ltd | Outperform - Credit Suisse | Overnight Price $0.08 |
| LVH - | LIVEHIRE | Add - Morgans | Overnight Price $0.48 |
| MTS - | METCASH | Downgrade to Lighten from Hold - Ord Minnett | Overnight Price $2.37 |
| NAB - | NATIONAL AUSTRALIA BANK | Neutral - Citi | Overnight Price $32.21 |
| S32 - | SOUTH32 | Buy - Citi | Overnight Price $2.67 |
| Outperform - Macquarie | Overnight Price $2.67 | ||
| Overweight - Morgan Stanley | Overnight Price $2.67 | ||
| SBM - | ST BARBARA | Buy - Deutsche Bank | Overnight Price $2.55 |
| WBC - | WESTPAC BANKING | Sell - Citi | Overnight Price $34.00 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 8 |
| 3. Hold | 5 |
| 4. Reduce | 1 |
| 5. Sell | 4 |
Tuesday 28 March 2017
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