Australian Broker Call

Citi rates ALL as Buy (1) -

Citi analysts continue to see upside risk to their forecasts. They note Lightening Links has underpinned FY17 earnings and expect the Dragon Link to underpin that momentum into FY18.

Citi analysts believe Aristocrat has enough in the product pipeline to drive growth until 2022. On this basis, the broker's bull case valuation is $30 and the analysts believe this target looks achievable "given the strength we are seeing in market share growth".

No double guessing as to why this stock remains Citi's pick of the sector, otherwise known as a High Conviction Buy. Given prospects, the broker argues this stock is not expensively priced.

Target price is $25.45 Current Price is $22.11 Difference: $3.34
If ALL meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $24.43, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates ASG as Buy (1) -

Household cash flow is currently weak and UBS suspects that, should house prices stop rising or even fall, there is potential for these wealth affects to hit prestige/luxury new car sales.

Partially offsetting this is the ramp up in the company's back-end revenues in the form of servicing income that should materialise over the medium term, given strength in high-end car sales over the past three years. Buy rating and $3 target retained.

Target price is $3.00 Current Price is $2.02 Difference: $0.98
If ASG meets the UBS target it will return approximately 49% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates ASX as Sell (5) -

Q4 data have triggered a small upgrade to forecasts as higher ASX futures collateral balances should imply higher interest income, point out the analysts.

Increased estimates have pushed up Citi's valuation to $46.10, from $44.60, and the broker continues to apply a 10% premium, hence the new target is set at $50 (was $49).

As this remains below the share price, the rating remains Sell.

Target price is $50.00 Current Price is $53.29 Difference: minus $3.29 (current price is over target).
If ASX meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.05, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates ASX as Underperform (5) -

Credit Suisse is now forecasting just 1% revenue growth year-on-year in the second half because of weak activity in most businesses. Capital raising was down -20% in the second half and ASX24 derivatives were flat.

While the decision to proceed with the cash equities post-trade system replacement is nigh, the broker is hesitant to assume it will be positive for earnings.

Underperform rating. Target is $49.

Target price is $49.00 Current Price is $53.29 Difference: minus $4.29 (current price is over target).
If ASX meets the Credit Suisse target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.05, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Deutsche Bank rates ASX as Hold (3) -

Over the past financial year ASX has experienced growth in cash market volumes of 13% and derivative and futures volumes of 5%. Deutsche Bank suspects that, despite the strong trading environment, a very weak market for capital raisings is likely to weigh on revenue in FY17.

Target is raised to $51.50 from $51.00 and a Hold rating is retained. The broker anticipates a more normal year in FY18, forecasting the market to facilitate $74bn in new capital raisings.

Target price is $51.50 Current Price is $53.29 Difference: minus $1.79 (current price is over target).
If ASX meets the Deutsche Bank target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.05, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates ASX as Neutral (3) -

UBS observes the company has ended FY17 on a stronger note, with cash equity average daily turnover up 13% and record monthly futures volumes.

UBS considers the stock fully priced, notwithstanding its infrastructure-like qualities and debt-free balance sheet. Neutral rating retained. Target rises to $51.60 from $49.10.

Target price is $51.60 Current Price is $53.29 Difference: minus $1.69 (current price is over target).
If ASX meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.05, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Deutsche Bank rates BHP as Upgrade to Buy from Hold (1) -

BHP has underperformed global mining peers over the past three years and Deutsche Bank finds automation, productivity and high returning growth are the most compelling features of the company's opportunities.

The broker believes a sharper focus on returns could create significant value for shareholders. Rating is upgraded to Buy from Hold and the target to $27.50 from $24.40.

Target price is $27.50 Current Price is $24.15 Difference: $3.35
If BHP meets the Deutsche Bank target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $27.52, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Credit Suisse rates BTT as Neutral (3) -

Following the June marking to market Credit Suisse lowers earnings estimates by -1.3% and -5.2% for FY17 and FY18 respectively. Reductions are driven by weaker-than-expected markets which were only modestly offset by stronger net flows.

Neutral retained. Target is reduced to $11.20 from $11.40.

Target price is $11.20 Current Price is $11.20 Difference: $0
If BTT meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $11.77, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Deutsche Bank rates CCL as Hold (3) -

Following a tender process, Domino's Pizza ((DMP)) will transition its beverage volume for Australian stores to Pepsi/Schweppes from Coca-Cola Amatil. This will occur from September.

Deutsche Bank believes this is clearly a negative development. While large accounts tend to deliver low margins, the broker notes this was a ready-to-drink account and not a post-mix account and should have had a relatively high margin.

While some of the costs associated with servicing the account may be removed the broker believes the -3% hit to volumes is meaningful when considering associated operating de-leverage.

Target is $9.50. Hold retained.

Target price is $9.50 Current Price is $9.22 Difference: $0.28
If CCL meets the Deutsche Bank target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $9.62, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates CGC as Lighten (4) -

The company will acquire Lankester Avocado in Queensland. Ord Minnett believes the acquisition is a good strategic fit as it would increase the year-round avocado growing exposure.

The broker upgrades forecasts for earnings per share by 12% in FY18 but reduces FY19 by -3%. Despite the acquisition, the broker maintains a Lighten rating and prefers the salmon-producing stocks in the agricultural sector because of a superior risk/reward profile.

Target is raised to $4.04 from $3.79.

Target price is $4.04 Current Price is $4.94 Difference: minus $0.9 (current price is over target).
If CGC meets the Ord Minnett target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates CGC as Buy (1) -

The company has announced the acquisition of Lankester Avocado and its packing operations. The farms have a similar growing season to Avocado Ridge which was acquired in December.

UBS estimates the deal will add 1-2% to FY18 operating earnings (EBITDA). The broker remains positive on the stock based on organic growth and expansion projects across berries and mushrooms.  Buy rating and $4.80 target retained.

Target price is $4.80 Current Price is $4.94 Difference: minus $0.14 (current price is over target).
If CGC meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates CL1 as Buy (1) -

The June quarter was soft in terms of the addition of new accounts, although UBS observes any delay in loading new accounts in the fourth quarter is likely be be picked up in the subsequent quarter.

The broker observes the company continues to benefit from growth in self managed super funds in Australia and the structural shift to cloud-based solutions. Buy rating and $3.40 target retained.

Target price is $3.40 Current Price is $3.08 Difference: $0.32
If CL1 meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.54, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates FLT as Downgrade to Sell from Neutral (5) -

Ultimately, it took five downgrades in three years, note the analysts at Citi, but Flight Centre has -finally!- managed to publish an upwardly revised guidance for FY17; towards the top end of the previous range.

In addition, management has announced an efficiency program which should drive the PBT / TTV ratio from 1.6% to 1.9% over five years. Citi analysts note the supply-demand outlook for airfare pricing has clearly improved.

Citi has implemented double-digit earnings upgrades in FY18 and FY19, Target price moves to $40.00 from $30.90 as a result. Alas, following yesterday's jump in the share price, the analysts are also of the view the share price has factored in a rather optimistic organic growth profile and/or major cost out program. Downgrade to Sell from Neutral.

Target price is $40.00 Current Price is $44.10 Difference: minus $4.1 (current price is over target).
If FLT meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates FLT as Downgrade to Underperform from Outperform (5) -

The recent gains in the share price have overshot valuation, Credit Suisse believes. The broker downgrades to Underperform from Outperform.

The broker increases FY17 earnings estimates in line with recent guidance and, despite the rating change, notes several avenues for improvements to valuation are emerging. Target is raised to $37.41 from $34.90.

Target price is $37.41 Current Price is $44.10 Difference: minus $6.69 (current price is over target).
If FLT meets the Credit Suisse target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Deutsche Bank rates FLT as Hold (3) -

Deutsche Bank was pleased with the new guidance which suggests underlying FY17 pre-tax profit of $325-330m, at top end of the prior guidance range. This implies second half pre-tax profit growth of 2.5-4.9%.

The broker increases FY17 pre-tax profit estimates by 5.3%. Deutsche Bank notes there has been some moderation in airfare deflation but strong volume growth has continued which, given a weak market, indicates market share gains.

Hold retained. Target is raised to $40 from $31.

Target price is $40.00 Current Price is $44.10 Difference: minus $4.1 (current price is over target).
If FLT meets the Deutsche Bank target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates FLT as Underperform (5) -

The company has revised underlying FY17 pre-tax profit guidance to $325-330m, highlighting the US and UK businesses are expected to deliver record results.

Nonetheless, Macquarie maintains a view that continued softness in airfares in FY18 and medium-term margin decline, coupled with valuation pressure, suggests the risks are skewed to the downside.

The broker believes the stock is expensive on both an absolute and relative basis. Underperform maintained. Target rises to $28.70.

Target price is $28.70 Current Price is $44.10 Difference: minus $15.4 (current price is over target).
If FLT meets the Macquarie target it will return approximately minus 35% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates FLT as Underweight (5) -

The company's improved guidance for FY17 is marginally better than Morgan Stanley expected. The broker cites faster moderation in international deflation and recent improvements in the Australian consumer cycle as the drivers.

Morgan Stanley does not believe the announcement explains the 50% rise in the share price since March and considers this move is overdone. The broker still expects earnings to decline in FY18.

Underweight retained. Target is raised to $30 from $25. Industry view is Cautious.

Target price is $30.00 Current Price is $44.10 Difference: minus $14.1 (current price is over target).
If FLT meets the Morgan Stanley target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates FLT as Hold (3) -

Flight Centre now expects FY17 underlying net profit to be at the top end of its prior guidance range. The upgrade reflects growth in the second half and a better performance across a number of the businesses.

The return of earnings growth in the second half illustrates the issues for the company have been more cyclical in nature, Morgans asserts, and not the structural threat some feared. The broker is encouraged by the decision to pursue internal improvements through the business transformation program.

Nevertheless, the recent share price appreciation has largely factored in the benefits and a Hold rating is retained. Target is raised to $40.00 from $31.40.

Target price is $40.00 Current Price is $44.10 Difference: minus $4.1 (current price is over target).
If FLT meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates FLT as Neutral (3) -

Following stronger second half trading results the company now expects second half pre-tax profit to be up 2.5-4.9%. UBS upgrades its earnings per share estimates for FY17-20 by around 6%.

While believing the company is in a strong position to grow earnings in FY18, the broker is cautious on the Australian consumer outlook and suspects this could limit further upside, given Australia makes up over 70% of Flight Centre earnings.

Neutral rating retained. Target rises to $41.00 from $37.60.

Target price is $41.00 Current Price is $44.10 Difference: minus $3.1 (current price is over target).
If FLT meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.02, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates GEM as Buy (1) -

The company has announced the early redemption of its $70m 7.65% corporate notes. Ord Minnett considers the decision financially astute and a sign of confidence in the earnings/cash flow outlook.

The broker continues to envisage a number of positive catalysts including the potential club bank facility, improving confidence in occupancy and value accretion from the development book.

Buy rating retained. Target is $4.30.

Target price is $4.30 Current Price is $3.87 Difference: $0.43
If GEM meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.01, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates GMG as Neutral (3) -

Citi analysts point out E-Commerce is a direct tailwind for Goodman Group. The analysts think current multiples don’t fully reflect the upside risk to consensus earnings.

Citi suggests earnings revisions for the company should remain positive near term with moderating growth in development EBIT offset by GMG turning to potentially a net buyer (accretive), growth in funds management via performance fees and a reduction in borrowing costs.

No changes made at this stage, but the analysts are of the view this one is worth watching in the REITS space.

Target price is $7.74 Current Price is $7.90 Difference: minus $0.16 (current price is over target).
If GMG meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.06, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates IFL as Neutral (3) -

Following the June marking to market Credit Suisse increases earnings estimates by 0.1% and 0.3% for FY17 and FY18 respectively.

Credit Suisse envisages the company's business offers a more stable, but lower growth, play on Australia's superannuation industry versus a fund manager, as it is not exposed to changes in asset allocation trends or fund performance..

Neutral retained. Target is upgraded to $9.75 from  $8.70.

Target price is $9.75 Current Price is $9.72 Difference: $0.03
If IFL meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $8.95, suggesting downside of -7.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates JHG as Overweight (1) -

Morgan Stanley envisages upside risk to flow forecasts given the turnaround in former Henderson retail flows. Former Janus US mutual fund retail flows also experienced a positive month in May with around US$270m driven by US equities.

The stock is the broker's top pick among Australian asset managers, given the higher earnings quality, undemanding trading multiples, and flows benefiting from cross selling geographically diverse products.

Overweight retained. Industry view is In-Line.

Current Price is $42.79. Target price not assessed.

Current consensus price target is $45.30, suggesting upside of 6.0% (ex-dividends)

Forecast for FY17:

Forecast for FY18:

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

Credit Suisse rates MFG as Downgrade to Neutral from Outperform (3) -

Weaker Australian equity markets have negatively affected earnings in June. Following around 20% outperformance in 2017 Credit Suisse is downgrading to Neutral from Outperform.

The broker envisages the current trading multiples are justified, considering the double-digit earnings growth outlook, but there is limited upside from this point. Target is reduced to $27.00 from $27.50.

Target price is $27.00 Current Price is $28.02 Difference: minus $1.02 (current price is over target).
If MFG meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.13, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates ORG as Upgrade to Buy from Neutral (1) -

Citi has upgraded to Buy from Neutral while lifting the target price by 14% to $8.59 as increased cash flows should assist with rebuilding the balance sheet.

The analysts explain their modeling now includes the increased asset divestments announced May 19th, plus a mark to mark on electricity/gas prices and tariffs.

Both have been partially offset by higher costs. The risk, suggest the analysts, is that without an oil price recovery, any share price recovery may be longer dated.

Target price is $8.59 Current Price is $7.06 Difference: $1.53
If ORG meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $7.80, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates SBM as Outperform (1) -

June quarter production was above expectations. Credit Suisse is pleased with the result, given the strong contribution from both assets.

The broker observes, with Simberi nearing the end of its life, the company will be under increasing pressure to define a growth plan, and an addition to the portfolio is needed to avoid becoming a single asset business.

Outperform and $2.60 target retained.

Target price is $2.60 Current Price is $2.75 Difference: minus $0.15 (current price is over target).
If SBM meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.93, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates SBM as Outperform (1) -

The company has revealed preliminary production of 94,200 ounces for the June quarter, around 5% above Macquarie's expectations. The company has exceeded annual guidance at both the Gwalia and Simberi operations.

Macquarie is also impressed by the cash generation in the quarter, which implies a free cash flow yield of 18% on an annualised basis. Outperform rating and $3.10 target maintained.

Target price is $3.10 Current Price is $2.75 Difference: $0.35
If SBM meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.93, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates VCX as Underweight (5) -

There is potential for around 2.2% in upside from a 5% buy-back but Morgan Stanley considers a real buy-back is unlikely.

The company has the most dated retail portfolios under coverage and, consequently, the broker envisages capital going to fund ongoing expenditure requirements and development, in order to reduce obsolescence risks.

Nevertheless, the broker acknowledges that even just the announcement of a buy-back may be a risk to its Underweight rating. Target is $2.65. Industry view: Cautious.

Target price is $2.65 Current Price is $2.54 Difference: $0.11
If VCX meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.95, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Deutsche Bank rates VOC as Hold (3) -

The board has granted KKR the opportunity to conduct due diligence on a non-exclusive basis after the preliminary, indicative and non-binding proposal of $3.50 a share was announced on June 7.

Deutsche Bank believes the decision to grant due diligence suggests the proposal must be reasonably close to the board's internal valuation of the company and therefore believes there is now greater likelihood of an offer being recommended.

Hold rating and $3.50 target retained.

Target price is $3.50 Current Price is $3.38 Difference: $0.12
If VOC meets the Deutsche Bank target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.29, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources