Australian Broker Call

September 04, 2017

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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: 11:30 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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AAD  ARDENT LEISURE GROUP

Travel, Leisure & Tourism

Overnight Price: $1.95

UPDATED

Macquarie rates AAD as Neutral (3) -

FY17 net profit was well below Macquarie's estimates. Earnings had been pre-announced and the broker had assumed a tax benefit  versus the underlying reported tax expense. This drove the disparity with the broker's net profit forecasts.

Hurricane  Harvey in Huston has resulted in the closure of five Main Event sites. Three of the centres will re-open in seven days and the fourth will be delayed for one-two months as it has sustained some damage. The company is unsure when the fifth will be re-opened. The financial impact is difficult to estimate at this point in time, suggests the broker.

Neutral retained. Target is reduced to $2.10 from $2.19.

Target price is $2.10 Current Price is $1.95 Difference: $0.15
If AAD meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 4.00 cents and EPS of 2.70 cents.
At the last closing share price the estimated dividend yield is 2.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 72.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.5, implying annual growth of N/A.

Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 2.0%.

Current consensus EPS estimate suggests the PER is 55.7.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 8.00 cents and EPS of 6.40 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.7, implying annual growth of 91.4%.

Current consensus DPS estimate is 7.0, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 29.1.

Market Sentiment: -0.1

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


UPDATED

Morgans rates AAD as Hold (3) -

Ardent Leisure had pre-released so no surprises in its official result. The company also recently disclosed the detail of its strategic review of Main Event, which involves slowing the planned store rollout.

FY18 should be a year of strong earnings growth, the broker suggests, but off a very low base. It will require execution of the Main Event strategy and a recovery in theme park visitation. The broker sees a stretched valuation but also potential corporate appeal, hence Hold and $1.70 target retained.

Target price is $1.70 Current Price is $1.95 Difference: minus $0.25 (current price is over target).
If AAD meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.88, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 5.00 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 2.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.5, implying annual growth of N/A.

Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 2.0%.

Current consensus EPS estimate suggests the PER is 55.7.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 4.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 2.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.7, implying annual growth of 91.4%.

Current consensus DPS estimate is 7.0, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 29.1.

Market Sentiment: -0.1

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

CAT  CATAPULT GROUP INTERNATIONAL LTD

Medical Equipment & Devices

Overnight Price: $1.61

UPDATED

Morgans rates CAT as Add (1) -

Catapult's result was in line following a period of disruption featuring two acquisitions and a major reinvestment program. The broker believes the company is now back on track and FY18 will feature a focus on operational performance.

Catapult is a world leader in athletic devices and the market opportunity before the company is large, the broker suggests. Add retained. Target rises to $2.97 from $2.79.

Target price is $2.97 Current Price is $1.61 Difference: $1.36
If CAT meets the Morgans target it will return approximately 84% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.83.

Market Sentiment: 1.0

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

CBA  COMMONWEALTH BANK OF AUSTRALIA

Banks

Overnight Price: $75.48

UPDATED

Morgan Stanley rates CBA as Underweight (5) -

While the premium to peers has contracted to its lowest level since 2010, Morgan Stanley believes the stock remains overvalued and execution risks have increased.

The broker argues that the outlook for retail banking has become more challenged and the problems at peers ANZ Bank ((ANZ)) and National Australia Bank ((NAB)) have now been largely addressed.

Underweight. Target is $72. Industry view is In-Line.

Target price is $72.00 Current Price is $75.48 Difference: minus $3.48 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $79.48, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 434.00 cents and EPS of 565.00 cents.
At the last closing share price the estimated dividend yield is 5.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 576.1, implying annual growth of -0.3%.

Current consensus DPS estimate is 433.5, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 13.0.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 439.00 cents and EPS of 571.00 cents.
At the last closing share price the estimated dividend yield is 5.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 580.5, implying annual growth of 0.8%.

Current consensus DPS estimate is 444.7, implying a prospective dividend yield of 5.9%.

Current consensus EPS estimate suggests the PER is 12.9.

Market Sentiment: -0.4

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

EHL  EMECO HOLDINGS LTD

Mining Sector Contracting

Overnight Price: $0.17

Morgans rates EHL as Add (1) -

Emeco posted a complicated result due to the merger with its two largest competitors, and recapitalsation, but the fourth quarter signalled the merged entity's potential, the broker suggests. No formal guidance was offered other than a strong outlook.

The broker retains an Add rating on said potential. Target rises to 20c from 17c.

Target price is $0.20 Current Price is $0.17 Difference: $0.03
If EHL meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.00.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.33.

Market Sentiment: 1.0

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

FNP  FREEDOM FOODS GROUP LIMITED

Food, Beverages & Tobacco

Overnight Price: $4.70

UPDATED

Morgans rates FNP as Hold (3) -

Freedom Food's result came in short, with FY17 a year of significant investment for the company that will provide benefits in coming years. The broker has downgraded earnings forecasts but still expects strong growth in FY18-19.

The broker retains Hold, noting support from the healthy eating trend, new products, new facilities and significant opportunity in the US and China. Target falls to $4.55 from $4.65.

Target price is $4.55 Current Price is $4.70 Difference: minus $0.15 (current price is over target).
If FNP meets the Morgans 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 FY18:

Morgans forecasts a full year FY18 dividend of 5.30 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 1.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.75.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 6.30 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 1.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.17.

Market Sentiment: 0.0

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

MEB  MEDIBIO LIMITED

Medical Equipment & Devices

Overnight Price: $0.35

Morgans rates MEB as Add (1) -

Medibio's result fell short of the broker but the company has sufficient cash to fund existing programs, aided by R&D tax relief. There are a number of key catalysts in the year ahead including the release of results of a number of exploratory and pivotal studies.

The broker does not rule out further capital required to accelerate clinical programs but retains Add and a $1.20 target.

Target price is $1.20 Current Price is $0.35 Difference: $0.85
If MEB meets the Morgans target it will return approximately 243% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 4.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.14.

Forecast for FY19:

Morgans forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.07.

Market Sentiment: 1.0

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

MIN  MINERAL RESOURCES LIMITED

Iron Ore

Overnight Price: $15.00

Morgan Stanley rates MIN as Overweight (1) -

Morgan Stanley expects growth in earnings to continue and nearly double by FY20. The broker has reviewed the company's lithium operations and reaffirms its Overweight rating.

Expansions are outside the broker's base case. The company is looking at a metallurgical coal acquisition and building a logistical solution in Queensland. While the iron ore business remains marginal,  Morgan Stanley observes options exist to improve this segment.

Target is raised to $18.00 from $13.35. Industry view is Attractive.

Target price is $18.00 Current Price is $15.00 Difference: $3
If MIN meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $16.37, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 59.20 cents and EPS of 118.00 cents.
At the last closing share price the estimated dividend yield is 3.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 121.1, implying annual growth of 12.5%.

Current consensus DPS estimate is 59.9, implying a prospective dividend yield of 3.9%.

Current consensus EPS estimate suggests the PER is 12.7.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 116.60 cents and EPS of 233.00 cents.
At the last closing share price the estimated dividend yield is 7.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 511.9, implying annual growth of 322.7%.

Current consensus DPS estimate is 91.0, implying a prospective dividend yield of 5.9%.

Current consensus EPS estimate suggests the PER is 3.0.

Market Sentiment: 0.7

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

MLX  METALS X LIMITED

Tin

Overnight Price: $0.85

Macquarie rates MLX as Outperform (1) -

FY17 profit was weaker than Macquarie expected. The pending upgrade to reserves at Nifty is expected to underpin a 7-8 year mine life, while near-mine and extension drilling may materially upgrade assumptions for the project.

Another positive catalyst is the securing of funds for the Rentails project. Outperform and $1.10 target retained.

Target price is $1.10 Current Price is $0.85 Difference: $0.25
If MLX meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 1.00 cents and EPS of 3.10 cents.
At the last closing share price the estimated dividend yield is 1.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.42.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 4.00 cents and EPS of 11.50 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.39.

Market Sentiment: 1.0

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

NXT  NEXTDC LIMITED

Cloud services

Overnight Price: $4.55

UPDATED

UBS rates NXT as Buy (1) -

FY17 results were in line with UBS. The broker observes the new buildings are on track.

Not only will fit-out costs be -10-15% cheaper but the new centres will be Australia's first tier IV,  5-star energy efficient certified centres, creating a serious competitive advantage.

The operating environment also remains strong with the biggest tender pipeline the company has seen. Buy rating maintained. Target reduced to $5.15 from $5.20.

Target price is $5.15 Current Price is $4.55 Difference: $0.6
If NXT meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.23, suggesting upside of 16.3% (ex-dividends)

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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 227.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.9, implying annual growth of -53.3%.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 115.4.

Forecast for FY19:

UBS forecasts a full year FY19 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.6, implying annual growth of 120.5%.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 52.3.

Market Sentiment: 1.0

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

ORE  OROCOBRE LIMITED

Rare Earth & Minerals

Overnight Price: $3.92

UPDATED

Macquarie rates ORE as Neutral (3) -

FY17 results were weaker than Macquarie expected. Guidance for FY18 is in line with expectations and the broker expects this should reduce some of the concerns about cash flow.

The broker considers production targets of 14,000 tonnes for FY18 are ambitious, particularly with the custom data to date regarding sales.

Neutral retained. Target rises to $3.78.

Target price is $3.78 Current Price is $3.92 Difference: minus $0.14 (current price is over target).
If ORE meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.17, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 0.00 cents and EPS of 7.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.0, implying annual growth of 490.9%.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 29.7.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 0.00 cents and EPS of 7.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.6, implying annual growth of 4.6%.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 28.4.

Market Sentiment: 0.3

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

PLS  PILBARA MINERALS LIMITED

Rare Earth & Minerals

Overnight Price: $0.39

UPDATED

Macquarie rates PLS as Outperform (1) -

FY17 results were in line. Macquarie observes Pilgangoora remains on track. First ore shipments are expected in the last quarter of FY18. Successful ramp up and early operating success remain the key risks. Outperform. Target is $0.50.

Target price is $0.50 Current Price is $0.39 Difference: $0.115
If PLS meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 385.00.

Forecast for FY19:

Macquarie forecasts a full year FY19 dividend of 0.00 cents and EPS of 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.02.

Market Sentiment: 1.0

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

RAP  RESAPP HEALTH LIMITED

Medical Equipment & Devices

Overnight Price: $0.07

Morgans rates RAP as Add (1) -

ResApp Health's result beat the broker but it doesn't mean much given the main focus is on when the Smartcough-C trial will start. By carefully controlling costs the company has enough cash to re-run the trial.

The future is uncertain until results are in so for now the broker has deferred its forecasts for 12 months and retains Hold and a 7c target.

Target price is $0.07 Current Price is $0.07 Difference: $0.003
If RAP meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.53.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.58.

Market Sentiment: 1.0

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

SEH  SINO GAS & ENERGY HOLDINGS LIMITED

NatGas

Overnight Price: $0.08

UPDATED

Macquarie rates SEH as Outperform (1) -

First half net loss was slightly less than Macquarie had expected. The subsidiary loss was slightly larger, driven by higher depreciation and offset by lower costs.

Macquarie expects the second half to be stronger, underpinned by new  agreements with Shanxi GuoHua and helping to reduce risks associated with offtakes.

Outperform rating and $0.20 target retained.

Target price is $0.20 Current Price is $0.08 Difference: $0.12
If SEH meets the Macquarie target it will return approximately 150% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Macquarie forecasts a full year FY17 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY18:

Macquarie forecasts a full year FY18 dividend of 0.00 cents and EPS of 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

Market Sentiment: 1.0

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

STO  SANTOS LIMITED

NatGas

Overnight Price: $3.76

UBS rates STO as Neutral (3) -

UBS considers the 2017 capital expenditure target of $700-750m is unsustainable, given drilling activity ramps up in GLNG and the Cooper basin from 2018 to support long-term contractual commitments.

Capital expenditure is set to rise but production costs remain low, the broker suggests. The company is expected to generate positive free cash flow after 2020. UBS increases forecasts for earnings per share for 2018 for higher non-core asset production.

Neutral maintained. Target is raised to $3.95 from $3.50.

Target price is $3.95 Current Price is $3.76 Difference: $0.19
If STO meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.99, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

UBS forecasts a full year FY17 dividend of 0.00 cents and EPS of 21.08 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.6, implying annual growth of N/A.

Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 0.5%.

Current consensus EPS estimate suggests the PER is 29.6.

Forecast for FY18:

UBS forecasts a full year FY18 dividend of 0.00 cents and EPS of 27.67 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.4, implying annual growth of 54.0%.

Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 1.2%.

Current consensus EPS estimate suggests the PER is 19.2.

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

TOX  TOX FREE SOLUTIONS LIMITED

Industrial Sector Contractors & Engineers

Overnight Price: $2.42

Morgan Stanley rates TOX as Equal-weight (3) -

FY17 operating earnings were in line with Morgan Stanley. The broker considers FY18 guidance realistic. The broker envisages two key upside risks for FY18 including a return to double-digit revenue growth for Daniel's and an upgrade to the synergies target.

Equal-weight rating retained. Target is raised to $2.35 from $2.25. Industry view: In-line.

Target price is $2.35 Current Price is $2.42 Difference: minus $0.07 (current price is over target).
If TOX meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.29, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Morgan Stanley forecasts a full year FY18 dividend of 10.00 cents and EPS of 12.20 cents.
At the last closing share price the estimated dividend yield is 4.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.6, implying annual growth of 91.5%.

Current consensus DPS estimate is 8.6, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 17.8.

Forecast for FY19:

Morgan Stanley forecasts a full year FY19 dividend of 10.50 cents and EPS of 13.10 cents.
At the last closing share price the estimated dividend yield is 4.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.0, implying annual growth of 2.9%.

Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 17.3.

Market Sentiment: 0.3

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

TPE  TPI ENTERPRISES LIMITED

Pharmaceuticals & Biotech/Lifesciences

Overnight Price: $2.38

Morgans rates TPE as Add (1) -

TPI's underlying loss was in line with expectation and an improvement on the prior period. Narcotic raw material sales year to date have already surpassed the 2016 total, the broker notes, and TPI has sufficient material to meet targets.

The outlook for raw materials remains strong but the company's recent acquisition means the addition of a higher margin opiates business and upside potential, the broker believes. Add retained. Target falls to $3.06 from $3.54 post capital raising.

Target price is $3.06 Current Price is $2.38 Difference: $0.68
If TPE meets the Morgans target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Morgans forecasts a full year FY17 dividend of 0.00 cents and EPS of minus 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.44.

Forecast for FY18:

Morgans forecasts a full year FY18 dividend of 0.00 cents and EPS of minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.00.

Market Sentiment: 1.0

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

Summaries
AAD - ARDENT LEISURE Neutral - Macquarie Overnight Price $1.95
Hold - Morgans Overnight Price $1.95
CAT - CATAPULT GROUP Add - Morgans Overnight Price $1.61
CBA - COMMBANK Underweight - Morgan Stanley Overnight Price $75.48
EHL - EMECO Add - Morgans Overnight Price $0.17
FNP - FREEDOM FOODS Hold - Morgans Overnight Price $4.70
MEB - MEDIBIO Add - Morgans Overnight Price $0.35
MIN - MINERAL RESOURCES Overweight - Morgan Stanley Overnight Price $15.00
MLX - METALS X Outperform - Macquarie Overnight Price $0.85
NXT - NEXTDC Buy - UBS Overnight Price $4.55
ORE - OROCOBRE Neutral - Macquarie Overnight Price $3.92
PLS - PILBARA MINERALS Outperform - Macquarie Overnight Price $0.39
RAP - RESAPP HEALTH Add - Morgans Overnight Price $0.07
SEH - SINO GAS & ENERGY Outperform - Macquarie Overnight Price $0.08
STO - SANTOS Neutral - UBS Overnight Price $3.76
TOX - TOX FREE SOLUTIONS Equal-weight - Morgan Stanley Overnight Price $2.42
TPE - TPI ENTERPRISES Add - Morgans Overnight Price $2.38
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

10

3. Hold

6

5. Sell

1

Monday 04 September 2017

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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.