Australian Broker Call
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July 24, 2018
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COMPANIES DISCUSSED IN THIS ISSUE
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
Last Updated: 11:19 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
SXL - | SOUTHERN CROSS MEDIA | Downgrade to Neutral from Buy | UBS |
Overnight Price: $31.68
Macquarie rates ALL as Outperform (1) -
Aristocrat's social casino businesses delivered 33% year on year growth in the June Q through a market share of 12.2%. The broker has lifted its annual revenue growth assumption through to FY20 to 18% from 16%.
The stock continues to look attractive on earnings growth and a 21x FY19 multiple, the broker believes. Outperform retained, target rises to $34 from $33.
Target price is $34.00 Current Price is $31.68 Difference: $2.32
If ALL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $34.61, suggesting upside of 9.2% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 50.50 cents and EPS of 123.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 116.9, implying annual growth of 50.5%. Current consensus DPS estimate is 47.5, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 27.1. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 62.00 cents and EPS of 153.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 140.9, implying annual growth of 20.5%. Current consensus DPS estimate is 66.3, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 22.5. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates AMP as Neutral (3) -
Citi analysts are entertaining the idea that investors might be too harsh on AMP. Maybe everything is not as bad/dark as we are presently pricing in?
But then, the analysts have to also acknowledge there are so many unknowns and uncertainties, one can only speculate about these things at this stage.
Neutral rating retained. Price target lowered to $3.90 from $4.15.
Target price is $3.90 Current Price is $3.58 Difference: $0.32
If AMP meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $4.20, suggesting upside of 17.2% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 30.00 cents and EPS of 32.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 32.2, implying annual growth of 9.9%. Current consensus DPS estimate is 28.1, implying a prospective dividend yield of 7.8%. Current consensus EPS estimate suggests the PER is 11.1. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 31.00 cents and EPS of 35.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 33.0, implying annual growth of 2.5%. Current consensus DPS estimate is 28.0, implying a prospective dividend yield of 7.8%. Current consensus EPS estimate suggests the PER is 10.8. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ANN ANSELL LIMITED
Commercial Services & Supplies
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Overnight Price: $28.51
UBS rates ANN as Neutral (3) -
Ahead of the FY18 results on August 20, UBS now considers it very likely that the stock will surprise to the upside. Updated forecasts show significant upside to both guidance and consensus estimates.
UBS now factors in 6% organic growth in the second half. Analysis shows that purchasing manager data, US industrial employee growth and Grainger US sales growth remains supportive for the company's industrial prospects.
Neutral rating maintained. Target is raised to $27.45 from $25.00.
Target price is $27.45 Current Price is $28.51 Difference: minus $1.06 (current price is over target).
If ANN meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $27.22, suggesting downside of -4.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 59.49 cents and EPS of 139.68 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 145.9, implying annual growth of N/A. Current consensus DPS estimate is 60.0, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 19.5. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 67.25 cents and EPS of 147.44 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 162.6, implying annual growth of 11.4%. Current consensus DPS estimate is 64.8, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 17.5. |
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
CIM CIMIC GROUP LIMITED
Industrial Sector Contractors & Engineers
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Overnight Price: $47.66
Macquarie rates CIM as Outperform (1) -
Cimic's first half profit came in 3% ahead of the broker and was ahead on most metrics. The broker forecasts 9%pa compound earnings growth over the next three years compared to 5% for the broader market, as well as M&A optionality.
The share price jumped on the result but should be supported by earnings growth, the broker suggests. Target rises to $51.84 from $50.65, Outperform retained.
Target price is $51.84 Current Price is $47.66 Difference: $4.18
If CIM meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $45.54, suggesting downside of -4.4% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 148.00 cents and EPS of 242.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 241.0, implying annual growth of 11.3%. Current consensus DPS estimate is 149.7, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 19.8. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 159.00 cents and EPS of 265.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 257.8, implying annual growth of 7.0%. Current consensus DPS estimate is 157.3, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 18.5. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
LYC LYNAS CORPORATION LIMITED
Rare Earth Minerals
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Overnight Price: $2.32
UBS rates LYC as Reinstate Coverage with Buy (1) -
UBS re-initiates coverage with a Buy rating and $3.30 target. The company's assets are strategic, with the best global rare earth deposit in the broker's opinion. This is exploited through the only active non-China processing facility. Ramp up has been difficult but this appears to be largely behind the company and production has been steadily improving.
While the change in government in Malaysia has meant that some long-time critics of the plant are now in power, and this poses regulatory risks that are difficult to quantify, UBS believes the company will be able to point to a track record of compliance with all environmental standards and a large employer/contributor to the region.
Target price is $3.30 Current Price is $2.32 Difference: $0.98
If LYC meets the UBS target it will return approximately 42% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 0.00 cents and EPS of 12.00 cents. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 0.00 cents and EPS of 18.00 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.83
Deutsche Bank rates MP1 as Initiation of coverage with Buy (1) -
Deutsche Bank has initiated coverage of Megaport with a Buy rating. Global spending on data networks, infrastructure and software is expected to accelerate. The broker believes the company has leverage to strong structural growth in data consumption. Target $5.
Target price is $5.00 Current Price is $3.83 Difference: $1.17
If MP1 meets the Deutsche Bank target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $4.91, suggesting upside of 28.1% (ex-dividends)
Forecast for FY18:
Current consensus EPS estimate is -25.0, 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 FY19:
Current consensus EPS estimate is -21.5, 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
MYX MAYNE PHARMA GROUP LIMITED
Pharmaceuticals & Biotech/Lifesciences
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Overnight Price: $0.90
UBS rates MYX as Buy (1) -
The company has completed the acquisition of generic Efudex for US$20m with an additional contingent component of up to US$10m.
The cream is used to treat actinic and solar keratosis and basal cell carcinoma where conventional treatment is impractical. Annual sales for the market are around US$66m with volume growth of around 10% annually over the past five years.
UBS increases estimates for earnings per share by 5% over the forecast period. Buy retained. Target rises to $1.02 from $0.95.
Target price is $1.02 Current Price is $0.90 Difference: $0.12
If MYX meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 0.00 cents and EPS of 3.00 cents. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 0.00 cents and EPS of 5.00 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $7.32
Citi rates NUF as Buy (1) -
Nufarm has reduced FY18 guidance significantly. The drought in Australia is far worse than Citi expected and there is yet no decision on the derogation application in France.
Citi believes the drop in the share price of -21% more than captures the reduced potential in the near term. Buy rating is reiterated. Target is reduced to $9 from $10.
Target price is $9.00 Current Price is $7.32 Difference: $1.68
If NUF meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $9.01, suggesting upside of 23.1% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 8.00 cents and EPS of 25.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.5, implying annual growth of -34.7%. Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 24.0. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 13.00 cents and EPS of 49.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 52.5, implying annual growth of 72.1%. Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 13.9. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates NUF as Outperform (1) -
The impact of the Australian drought is unlikely to be limited to the second half of FY18, Credit Suisse suggests. Headwinds also include elevated inventory and the shift to lower margin products. The delayed approval for the derogation application for the use of neonicotinoid-based seed treatment in Europe has also had an impact on earnings estimates for FY18.
Credit Suisse revises forecasts down for FY18, while FY19 estimates include a partial recovery from the impact of poor winter cropping conditions. A full recovery of Australasian contributions to earnings is factored in by FY20.
The medium term opportunities including Omega-3, footprint expansion in North America and acquisitions in Europe support an Outperform rating, the broker believes. Target is reduced to $9.12 from $9.45.
Target price is $9.12 Current Price is $7.32 Difference: $1.8
If NUF meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $9.01, suggesting upside of 23.1% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 9.00 cents and EPS of 30.05 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.5, implying annual growth of -34.7%. Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 24.0. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 15.00 cents and EPS of 48.45 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 52.5, implying annual growth of 72.1%. Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 13.9. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates NUF as Sell (5) -
The degree of downgrade to earnings estimates for FY18, given extended dry conditions in Australia, was larger than Deutsche Bank anticipated. The company is now reviewing the Australasian business for impairment implications.
The broker believes positives such as the European acquisitions, Omega-3 and recent transactions will largely be discounted as attention reverts to sustainable earnings, multiples and leverage.
Deutsche Bank maintains a Sell rating. Target is $6.75.
Target price is $6.75 Current Price is $7.32 Difference: minus $0.57 (current price is over target).
If NUF meets the Deutsche Bank target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $9.01, suggesting upside of 23.1% (ex-dividends)
Forecast for FY18:
Current consensus EPS estimate is 30.5, implying annual growth of -34.7%. Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 24.0. |
Forecast for FY19:
Current consensus EPS estimate is 52.5, implying annual growth of 72.1%. Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 13.9. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates NUF as Outperform (1) -
With the local season now one of the driest on record, Nufarm has cut FY18 earnings guidance to $255-270m from a prior $317m, or -13% at midpoint, the broker notes.
With the share price already down -22% since early June the broker retains Outperform, lowering its target to $9.55 from $10.40.
Target price is $9.55 Current Price is $7.32 Difference: $2.23
If NUF meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $9.01, suggesting upside of 23.1% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 10.00 cents and EPS of 33.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.5, implying annual growth of -34.7%. Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 24.0. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 17.10 cents and EPS of 56.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 52.5, implying annual growth of 72.1%. Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 13.9. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates NUF as Overweight (1) -
Nufarm has downgraded FY18 EBIT guidance to $255-270m as a function of the drought in Australasia and the absence of a derogation from French authorities for its neonicotinoid seed product.
Morgan Stanley lowers FY18 estimates for EBIT by -16% to the mid point of revised guidance. The broker also downwardly revises FY19 estimates by -11% because of ongoing inventory/demand issues in Australia and weakness in the Brazilian real which is affecting the translation of Latin American earnings.
The broker maintains an Overweight rating and Cautious industry view. Target is reduced to $10.65 from $11.75.
Target price is $10.65 Current Price is $7.32 Difference: $3.33
If NUF meets the Morgan Stanley target it will return approximately 45% (excluding dividends, fees and charges).
Current consensus price target is $9.01, suggesting upside of 23.1% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 11.00 cents and EPS of 30.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.5, implying annual growth of -34.7%. Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 24.0. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 11.00 cents and EPS of 51.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 52.5, implying annual growth of 72.1%. Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 13.9. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates NUF as Add (1) -
Morgans was expecting an earnings downgrade because of the drought but the quantum is worse than feared. A delay in approvals for an EU derogation application has also affected earnings. The company has downgraded FY18 EBIT guidance to $255-270m, which is down -15.6% to -10.7% versus FY17.
Morgans downgrades FY18 EBIT estimates by -15.5%. The broker notes the company has experienced challenging seasonal conditions in most regions amid a plant shutdown and product ban.
While believing the stock has been oversold, given some lingering issues into FY19, Morgans suspects any re-rating will take time. Add maintained. Target is reduced to $9 from $10.
Target price is $9.00 Current Price is $7.32 Difference: $1.68
If NUF meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $9.01, suggesting upside of 23.1% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 12.00 cents and EPS of 34.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.5, implying annual growth of -34.7%. Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 24.0. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 14.00 cents and EPS of 56.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 52.5, implying annual growth of 72.1%. Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 13.9. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates NUF as Buy (1) -
The company has downgraded FY18 estimates because of the drought in Australia. Ord Minnett believes the update reflects seasonal, not structural, challenges as the company has recently enjoyed strong sales momentum in most geographies.
The broker acknowledges the potential risk to first half FY19 earnings because of excess inventory but believes the Omega-3 opportunity remains the key long-term driver. Buy rating maintained. Target is reduced to $9 from $10.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $9.00 Current Price is $7.32 Difference: $1.68
If NUF meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $9.01, suggesting upside of 23.1% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 9.00 cents and EPS of 30.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.5, implying annual growth of -34.7%. Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 24.0. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 14.00 cents and EPS of 53.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 52.5, implying annual growth of 72.1%. Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 13.9. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
PPT PERPETUAL LIMITED
Wealth Management & Investments
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Overnight Price: $43.14
Ord Minnett rates PPT as Hold (3) -
June quarter funds under management produced net outflows of -$300m, marking the fifth consecutive quarter of net outflows and bringing FY18 net outflows to -$2.5bn.
Ord Minnett believes the business has a number of challenges for the near term, including market volatility, outflows and the replacement of the CEO. Hold rating maintained. Target is raised to $45.50 from $45.00.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $45.50 Current Price is $43.14 Difference: $2.36
If PPT meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $44.12, suggesting upside of 2.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 265.00 cents and EPS of 298.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 299.4, implying annual growth of -0.2%. Current consensus DPS estimate is 269.8, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 14.4. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 265.00 cents and EPS of 303.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 300.5, implying annual growth of 0.4%. Current consensus DPS estimate is 273.4, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 14.4. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.23
Macquarie rates SEH as Neutral (3) -
Sino's June Q featured a falling cash level as capex jumped with the drilling of new wells, the broker notes. The company remains on track to deliver on production guidance.
The second half sees focus turn to the possible expansion of Sanjiaobei, which could double capacity in the near term. A report is due late July/early August which would provide an indication of future upside, the broker suggests, and related risk/reward.
Neutral and 25c target retained.
Target price is $0.25 Current Price is $0.23 Difference: $0.02
If SEH meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in December.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 0.00 cents and EPS of 0.30 cents. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 0.10 cents. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.19
Deutsche Bank rates SLC as Initiation of coverage with Buy (1) -
Deutsche Bank has initiated coverage of Superloop with a Buy rating. Global spending on data networks, infrastructure and software is expected to accelerate. The broker believes the company has leverage to strong structural growth in data consumption. Target $2.80.
Target price is $2.80 Current Price is $2.19 Difference: $0.61
If SLC meets the Deutsche Bank target it will return approximately 28% (excluding dividends, fees and charges).
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.56
Morgan Stanley rates SPK as Overweight (1) -
The outlook for Australasian telcos remains challenging and Morgan Stanley observes downward pressure on revenue, margins and investment returns because of competition. The broker suspects consensus FY18-21 estimates will prove optimistic.
The broker notes investors are tuned to the company's maiden FY19 dividend guidance and forecasts the existing NZ$0.25 to be maintained. Any surprise on the downside (or upside) is likely to be immediately re-priced in the shares, in the broker's opinion.
Overweight rating. Industry view is In-Line. Price target is raised to NZ$4.00 from NZ$3.90.
Current Price is $3.56. Target price not assessed.
Current consensus price target is N/A
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 23.00 cents and EPS of 19.32 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.6, implying annual growth of N/A. Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 18.2. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 EPS of 22.08 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 21.5, implying annual growth of 9.7%. Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 16.6. |
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $1.25
UBS rates SXL as Downgrade to Neutral from Buy (3) -
UBS lifts FY19 operating earnings forecasts by 2% because of the lagged effect of the company's stronger-than-expected ratings momentum from the second half. No changes are made to FY18 forecasts.
The share price is up 17% since the February result and the broker downgrades to Neutral from Buy. From a cost perspective UBS envisages FY19 to be a relatively benign year across all businesses and, therefore, margin expansion is possible. The broker raises the target to $1.25 from $1.20.
Target price is $1.25 Current Price is $1.25 Difference: $0
If SXL meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $1.12, suggesting downside of -10.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 6.00 cents and EPS of 10.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.9, implying annual growth of -29.9%. Current consensus DPS estimate is 7.0, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 12.6. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 7.00 cents and EPS of 11.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 10.3, implying annual growth of 4.0%. Current consensus DPS estimate is 7.7, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 12.1. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $11.84
Ord Minnett rates TCL as Buy (1) -
Sydney Transport Partners, a consortium led by Transurban, has submitted a conditional bid for a 51% interest in WestConnex. The bid is subject to approval from the ACCC which has delayed its decision until September 6. The government was originally expected to award the tender in August.
Ord Minnett believes STP is the natural owner of a stake in WestConnex but there is a risk that the consortium led by IFM Investors makes a more generous offer. Buy rating. Target is reduced to $14.10 from $14.50.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $14.10 Current Price is $11.84 Difference: $2.26
If TCL meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $12.77, suggesting upside of 7.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 56.00 cents and EPS of 27.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 27.0, implying annual growth of 130.8%. Current consensus DPS estimate is 56.0, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 43.9. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 62.00 cents and EPS of 21.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.4, implying annual growth of 12.6%. Current consensus DPS estimate is 60.5, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 38.9. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TLS TELSTRA CORPORATION LIMITED
Telecommunication
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Overnight Price: $2.76
Morgan Stanley rates TLS as Underweight (5) -
The outlook for Australasian telcos remains challenging and Morgan Stanley observes downward pressure on revenue, margins and investment returns because of competition. The broker suspects consensus FY18-21 estimates will prove optimistic.
The broker notes conspicuous by its absence at the recent investor briefing was a commitment by Telstra to the FY19 dividend. The broker forecasts 18c versus 22c in FY18.
Target is reduced to $2.60 from $3.00. Underweight. Industry view: In-Line.
Target price is $2.60 Current Price is $2.76 Difference: minus $0.16 (current price is over target).
If TLS meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.15, suggesting upside of 14.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 22.00 cents and EPS of 29.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 27.0, implying annual growth of -16.9%. Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 8.0%. Current consensus EPS estimate suggests the PER is 10.2. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 22.00 cents and EPS of 31.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.6, implying annual growth of -16.3%. Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 6.8%. Current consensus EPS estimate suggests the PER is 12.2. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $5.65
Morgan Stanley rates TPM as Overweight (1) -
The outlook for Australasian telcos remains challenging and Morgan Stanley observes downward pressure on revenue, margins and investment returns because of competition. The broker suspects consensus FY18-21 estimates will prove optimistic.
The broker suspects, as a disruptor in mobile, the focus will be on TPG's timing and budget. TPG is the broker's favourite Australasian telco for its capital growth potential.
Overweight rating and In-Line industry view. Target is reduced to $6.70 from $7.00.
Target price is $6.70 Current Price is $5.65 Difference: $1.05
If TPM meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $5.64, suggesting downside of -0.1% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 4.30 cents and EPS of 43.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 43.9, implying annual growth of -8.4%. Current consensus DPS estimate is 4.1, implying a prospective dividend yield of 0.7%. Current consensus EPS estimate suggests the PER is 12.9. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 EPS of 32.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.4, implying annual growth of -30.8%. Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 0.8%. Current consensus EPS estimate suggests the PER is 18.6. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.64
Macquarie rates VCX as No Rating (-1) -
Vicinity has announced an extension of its 5% buyback program and revalued its portfolio, leading to a 1.4% increase in NTA.
Macquarie is restricted on rating and target.
Current Price is $2.64. Target price not assessed.
Current consensus price target is $2.81, suggesting upside of 6.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 16.30 cents and EPS of 17.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.6, implying annual growth of 4.8%. Current consensus DPS estimate is 16.2, implying a prospective dividend yield of 6.1%. Current consensus EPS estimate suggests the PER is 13.5. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 15.60 cents and EPS of 16.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.3, implying annual growth of -6.6%. Current consensus DPS estimate is 16.5, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 14.4. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.33
Morgan Stanley rates VOC as Equal-weight (3) -
The outlook for Australasian telcos remains challenging and Morgan Stanley observes downward pressure on revenue, margins and investment returns because of competition. The broker suspects consensus FY18-21 estimates will prove optimistic.
Attention is on cash conversion and debt levels versus bank covenants for Vocus, Morgan Stanley notes and, after the instability, the market should be positive if the first time guidance for FY19 operating earnings is up 0-5%.
Target is reduced to $2.60 from $2.75. Equal-weight rating and In-Line industry view retained.
Target price is $2.60 Current Price is $2.33 Difference: $0.27
If VOC meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $2.75, suggesting upside of 18.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 EPS of 21.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.5, 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 11.9. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 EPS of 23.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.9, implying annual growth of -3.1%. Current consensus DPS estimate is 1.9, implying a prospective dividend yield of 0.8%. 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
Overnight Price: $2.15
Morgans rates VVR as Add (1) -
Viva has acquired six petrol stations worth $62.1m. The acquisitions were off market and funded by debt from existing facilities. Morgans estimates gearing is now around 31%.
The broker notes the company's major tenant, Viva Energy ((VEA)) listed in July. This is not expected to impact VVR directly but Morgans expects it to provide increased transparency regarding its major tenant.
The company will report its first half result on August 23. Morgans maintains an Add rating and raises the target to $2.45 from $2.43.
Target price is $2.45 Current Price is $2.15 Difference: $0.3
If VVR meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $2.46, suggesting upside of 14.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 14.00 cents and EPS of 14.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 14.0, implying annual growth of -41.2%. Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 15.4. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 14.60 cents and EPS of 14.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 14.2, implying annual growth of 1.4%. Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 6.7%. Current consensus EPS estimate suggests the PER is 15.1. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $49.37
Citi rates WES as Sell (5) -
Wesfarmers has briefed investors on its Coles demerger plan. November is the target, with a separated Coles carrying $2bn in gross debt, a BBB+ credit rating and 80%-90% payout ratio.
Citi analysts are quick to suggest Coles might have to take on additional debt to secure dividends for shareholders given the necessity of more capex spending.
Coles will have some room to spend on store refurbishments etc, Citi analysts acknowledge. They do raise longer term questions about the sustainability of high capex combined with a high dividend payout strategy. Sell rating retained, as well as the $43.50 price target.
Target price is $43.50 Current Price is $49.37 Difference: minus $5.87 (current price is over target).
If WES meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $44.88, suggesting downside of -9.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Citi forecasts a full year FY18 dividend of 225.00 cents and EPS of 244.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 229.3, implying annual growth of -10.0%. Current consensus DPS estimate is 218.4, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 21.5. |
Forecast for FY19:
Citi forecasts a full year FY19 dividend of 229.00 cents and EPS of 255.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 259.2, implying annual growth of 13.0%. Current consensus DPS estimate is 226.0, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 19.0. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Deutsche Bank rates WES as Hold (3) -
Wesfarmers has provided further detail on the Coles de-merger. The debt and pay-out guidance point to a rational industry, Deutsche Bank suggests. The broker does not believe Coles will be over geared and the dividend guidance suggests all free cash will be paid out.
The broker maintains a Hold rating, given the share price reflects the value of the portfolio currently. Target is $46.
Target price is $46.00 Current Price is $49.37 Difference: minus $3.37 (current price is over target).
If WES meets the Deutsche Bank target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $44.88, suggesting downside of -9.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 223.00 cents and EPS of 247.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 229.3, implying annual growth of -10.0%. Current consensus DPS estimate is 218.4, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 21.5. |
Forecast for FY19:
Deutsche Bank forecasts a full year FY19 dividend of 225.00 cents and EPS of 252.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 259.2, implying annual growth of 13.0%. Current consensus DPS estimate is 226.0, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 19.0. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates WES as Underweight (5) -
The de-merger of Coles appears to now come with a more appropriate debt burden than Morgan Stanley initially feared. The guidance of net debt of $2bn appears more reasonable versus the $3bn previously expected.
The broker expects Wesfarmers, ex Coles, will have a healthy balance sheet although it will have more debt than originally thought after the one-off de-merger costs of $140-170m.
Underweight rating retained. Industry view is Cautious. Target is $42.
Target price is $42.00 Current Price is $49.37 Difference: minus $7.37 (current price is over target).
If WES meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $44.88, suggesting downside of -9.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 207.00 cents and EPS of 247.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 229.3, implying annual growth of -10.0%. Current consensus DPS estimate is 218.4, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 21.5. |
Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 215.00 cents and EPS of 253.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 259.2, implying annual growth of 13.0%. Current consensus DPS estimate is 226.0, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 19.0. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates WES as Hold (3) -
Wesfarmers has provided further details on the de-merger of Coles, although Morgans finds nothing to change its overall view on the stock. Shareholders will receive one Coles share for every Wesfarmers share with the de-merger subject to final approvals.
The shareholder vote is due at the AGM in November. Wesfarmers plans to retain a 15% minority stake in Coles and a 50% stake in Flybuys. Coles is expected to have a dividend payout ratio of 80-90%. Morgans maintains a Hold rating and $47.34 target.
Target price is $47.34 Current Price is $49.37 Difference: minus $2.03 (current price is over target).
If WES meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $44.88, suggesting downside of -9.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Morgans forecasts a full year FY18 dividend of 223.00 cents and EPS of 242.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 229.3, implying annual growth of -10.0%. Current consensus DPS estimate is 218.4, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 21.5. |
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 230.00 cents and EPS of 262.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 259.2, implying annual growth of 13.0%. Current consensus DPS estimate is 226.0, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 19.0. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates WES as Lighten (4) -
The company has provided an update on the proposed Coles de-merger. Guidance is for $2bn in debt and Ord Minnett considers this prudent as capital expenditure is inclusive and the business offers only modest earnings growth.
Ord Minnett finds the risk/reward equation no longer compelling at Wesfarmers because of a lack of valuation support and challenged sales growth in Coles, which is likely to remain subdued. The broker retains a Lighten rating and $45.00 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 $49.37 Difference: minus $4.37 (current price is over target).
If WES 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 $44.88, suggesting downside of -9.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 225.00 cents and EPS of 99.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 229.3, implying annual growth of -10.0%. Current consensus DPS estimate is 218.4, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 21.5. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 230.00 cents and EPS of 262.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 259.2, implying annual growth of 13.0%. Current consensus DPS estimate is 226.0, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 19.0. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates WES as Neutral (3) -
Wesfarmers has provided further detail on the de-merger of Coles. Wesfarmers will retain 15% of Coles and 50% of Flybuys. Coles will hold net debt of around $2 bn. The payout ratio will be 80-90%.
Assuming ongoing cash conversion of around 108% UBS estimates net cash generation for Coles of around $85m per annum to FY22. The broker suggests recent trading appears to have improved based on its suppliers survey.
Meanwhile, the outlook for Wesfarmers, ex Coles, is becoming challenged, in the broker's view, given a weaker housing backdrop and consumer headwinds as well as new supply in the Western Australian ammonium nitrate market.
Neutral and $43 target retained.
Target price is $43.00 Current Price is $49.37 Difference: minus $6.37 (current price is over target).
If WES meets the UBS target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $44.88, suggesting downside of -9.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 221.00 cents and EPS of 253.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 229.3, implying annual growth of -10.0%. Current consensus DPS estimate is 218.4, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 21.5. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 221.00 cents and EPS of 257.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 259.2, implying annual growth of 13.0%. Current consensus DPS estimate is 226.0, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 19.0. |
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.34
Credit Suisse rates WSA as Outperform (1) -
June quarter production of coking coal was in line and cash flow was stronger. The company has achieved 21,000t in FY18, as per recent guidance. Nickel mined in the quarter was 6,381t for an FY18 total of 24,442t.
Cost guidance for FY18 of $2.40-2.65/lb nickel is maintained. Credit Suisse notes June quarter costs were higher because of pressures across energy, labour and consumables and the quarter is likely to be the average for FY19. FY19 guidance on costs will be published at the August results.
Outperform rating and $3.40 target maintained.
Target price is $3.40 Current Price is $3.34 Difference: $0.06
If WSA meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $3.45, suggesting upside of 3.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Credit Suisse forecasts a full year FY18 dividend of 0.00 cents and EPS of 5.64 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.5, implying annual growth of -8.3%. Current consensus DPS estimate is 1.2, implying a prospective dividend yield of 0.4%. Current consensus EPS estimate suggests the PER is 51.4. |
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 0.00 cents and EPS of 25.53 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.8, implying annual growth of 250.8%. Current consensus DPS estimate is 2.8, implying a prospective dividend yield of 0.8%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates WSA as Outperform (1) -
Western Areas' June Q production fell short of expectation but was within the guidance range. More influential was news the company is assessing a larger scale development at Odysseus, significantly larger than the broker's base case.
A rise in nickel prices would underpin strong earnings growth for Western Areas while Odysseus expansion could potentially double production in the medium term, the broker notes. Target falls to $4.10 from $4.40, Outperform retained.
Target price is $4.10 Current Price is $3.34 Difference: $0.76
If WSA meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $3.45, suggesting upside of 3.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 2.00 cents and EPS of 6.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.5, implying annual growth of -8.3%. Current consensus DPS estimate is 1.2, implying a prospective dividend yield of 0.4%. Current consensus EPS estimate suggests the PER is 51.4. |
Forecast for FY19:
Macquarie forecasts a full year FY19 dividend of 2.00 cents and EPS of 37.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.8, implying annual growth of 250.8%. Current consensus DPS estimate is 2.8, implying a prospective dividend yield of 0.8%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates WSA as Hold (3) -
June quarter production of 5400t of nickel in concentrate was ahead of Ord Minnett's estimates. Operating costs were in line. The company now has $152m in cash, unofficially gated for the development of the Odysseus project, which is scheduled to have a DFS completed by September.
Ord Minnett maintains a Hold rating and $3.80 target.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $3.80 Current Price is $3.34 Difference: $0.46
If WSA meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $3.45, suggesting upside of 3.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
Ord Minnett forecasts a full year FY18 dividend of 2.00 cents and EPS of 6.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.5, implying annual growth of -8.3%. Current consensus DPS estimate is 1.2, implying a prospective dividend yield of 0.4%. Current consensus EPS estimate suggests the PER is 51.4. |
Forecast for FY19:
Ord Minnett forecasts a full year FY19 dividend of 2.00 cents and EPS of 11.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.8, implying annual growth of 250.8%. Current consensus DPS estimate is 2.8, implying a prospective dividend yield of 0.8%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates WSA as Neutral (3) -
The June quarter production was consistent with expectations although costs were slightly higher, albeit within guidance. The next catalyst is the definitive feasibility study for the Odysseus project in September, which UBS suggests may be value accretive to forecasts.
Production could begin in 2022, at the time of accelerating demand for nickel for electric vehicles, and should lead to further appreciation in the nickel price. UBS retains a Neutral rating and considers the share price is running ahead of core valuation. Target is $3.50.
Target price is $3.50 Current Price is $3.34 Difference: $0.16
If WSA meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $3.45, suggesting upside of 3.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
UBS forecasts a full year FY18 dividend of 1.00 cents and EPS of 4.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.5, implying annual growth of -8.3%. Current consensus DPS estimate is 1.2, implying a prospective dividend yield of 0.4%. Current consensus EPS estimate suggests the PER is 51.4. |
Forecast for FY19:
UBS forecasts a full year FY19 dividend of 9.00 cents and EPS of 25.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.8, implying annual growth of 250.8%. Current consensus DPS estimate is 2.8, implying a prospective dividend yield of 0.8%. Current consensus EPS estimate suggests the PER is 14.6. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Summaries
ALL | ARISTOCRAT LEISURE | Outperform - Macquarie | Overnight Price $31.68 |
AMP | AMP | Neutral - Citi | Overnight Price $3.58 |
ANN | ANSELL | Neutral - UBS | Overnight Price $28.51 |
CIM | CIMIC GROUP | Outperform - Macquarie | Overnight Price $47.66 |
LYC | LYNAS CORP | Reinstate Coverage with Buy - UBS | Overnight Price $2.32 |
MP1 | MEGAPORT | Initiation of coverage with Buy - Deutsche Bank | Overnight Price $3.83 |
MYX | MAYNE PHARMA GROUP | Buy - UBS | Overnight Price $0.90 |
NUF | NUFARM | Buy - Citi | Overnight Price $7.32 |
Outperform - Credit Suisse | Overnight Price $7.32 | ||
Sell - Deutsche Bank | Overnight Price $7.32 | ||
Outperform - Macquarie | Overnight Price $7.32 | ||
Overweight - Morgan Stanley | Overnight Price $7.32 | ||
Add - Morgans | Overnight Price $7.32 | ||
Buy - Ord Minnett | Overnight Price $7.32 | ||
PPT | PERPETUAL | Hold - Ord Minnett | Overnight Price $43.14 |
SEH | SINO GAS & ENERGY | Neutral - Macquarie | Overnight Price $0.23 |
SLC | SUPERLOOP | Initiation of coverage with Buy - Deutsche Bank | Overnight Price $2.19 |
SPK | SPARK NEW ZEALAND | Overweight - Morgan Stanley | Overnight Price $3.56 |
SXL | SOUTHERN CROSS MEDIA | Downgrade to Neutral from Buy - UBS | Overnight Price $1.25 |
TCL | TRANSURBAN GROUP | Buy - Ord Minnett | Overnight Price $11.84 |
TLS | TELSTRA CORP | Underweight - Morgan Stanley | Overnight Price $2.76 |
TPM | TPG TELECOM | Overweight - Morgan Stanley | Overnight Price $5.65 |
VCX | VICINITY CENTRES | No Rating - Macquarie | Overnight Price $2.64 |
VOC | VOCUS GROUP | Equal-weight - Morgan Stanley | Overnight Price $2.33 |
VVR | VIVA ENERGY REIT | Add - Morgans | Overnight Price $2.15 |
WES | WESFARMERS | Sell - Citi | Overnight Price $49.37 |
Hold - Deutsche Bank | Overnight Price $49.37 | ||
Underweight - Morgan Stanley | Overnight Price $49.37 | ||
Hold - Morgans | Overnight Price $49.37 | ||
Lighten - Ord Minnett | Overnight Price $49.37 | ||
Neutral - UBS | Overnight Price $49.37 | ||
WSA | WESTERN AREAS | Outperform - Credit Suisse | Overnight Price $3.34 |
Outperform - Macquarie | Overnight Price $3.34 | ||
Hold - Ord Minnett | Overnight Price $3.34 | ||
Neutral - UBS | Overnight Price $3.34 |
RATING SUMMARY
Rating | No. Of Recommendations |
1. Buy | 18 |
3. Hold | 11 |
4. Reduce | 1 |
5. Sell | 4 |
Tuesday 24 July 2018
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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.
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