Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Morningstar Equities - WPL, FSF-NZ, FSF

Morningstar Equities - WPL, FSF-NZ, FSF

Woodside Petroleum Limited WPL| 7:00AM | Woodside Dividend Manna from Heaven

Morningstar Recommendation: Accumulate

We downgrade our Woodside fair value estimate by one-third to AUD 43 per share. Key among a number of tweaks driving the downgrade is higher assumed sustaining capital expenditure, which more than offsets marginally lower growth capital expenditure. The dynamic reflects an expectation that production will be sustained more from existing projects than from greenfield developments. Forecast returns on invested capital for late in the decade fall from high double digits to mid-double digits. Returns for mid-decade are still expected to plumb high single digits anticipating a return to heavy growth capital expenditures, chiefly Pluto LNG Train 2, Browse LNG and Sunrise LNG. Returns are currently a respectable 12% excluding capital expenditure attributed to projects yet to produce.


Fonterra Shareholders' Fund FSF-NZ| 7:00AM | Trimming Estimates for Fonterra on Near-Term Headwind

Morningstar Recommendation: Reduce

Correction: Our previously published report displayed an incorrect New Zealand dollar fair value estimate. The correct fair value estimate for Fonterra is NZD 6.50.
Fonterra recently announced an opening forecast Farmgate Milk Price (FMP) of NZD 7.00 per kg of milk solids (MS) for the 2013/2014 season which began on 1 June 2013, an increase of NZD 1.20 compared with the 2012/2013 season. The firm also indicated its operating earnings will be hit by NZD 25 million (or NZD 1.5 cents per share) in 2013 as it was required to supply large volumes of milk (as per the raw milk regulation) to competitors at subsidised prices from March to May because of the drought. In light of this impact, and the ongoing investments in China to support the company's growth plans, we are trimming our 2013 and 2014 forecasts by 4% and 6% respectively.


Mighty River Power - Upgrade due to price change
Qube Holdings - Upgrade due to price change
Telecom NZ - Upgrade due to price change
Nuplex Industries - Upgrade due to price change
Trade Me Group - Upgrade due to price change
Woolworths - Upgrade due to price change
WorleyParsons - Downgrade due to price change
Technology One - Upgrade due to price change
Toll Holdings - Downgrade due to price change
Western Areas - Upgrade due to price change
Super Retail Group - Downgrade due to price change
Transfield Services - Upgrade due to price change
Treasury Group - Downgrade due to price change
GL Energy - Upgrade due to price change
Mesoblast - Upgrade due to price change
ResMed - Downgrade due to price change
Wotif.com Holdings - Upgrade due to price change
Infratil - Upgrade due to price change
FKP - Upgrade due to price change
Stockland - Downgrade due to price change
Ausdrill - Upgrade due to price change
Beach Energy - Upgrade due to price change
Coca-Cola Amatil - Downgrade due to price change
Fisher & Paykel Hlth - Downgrade due to price change
Fleetwood Corp. - Upgrade due to price change
Flight Centre - Downgrade due to price change
Goodman Fielder - Upgrade due to price change
Independence Group - Upgrade due to price change
IRESS - Upgrade due to price change
Fairfax Media - Downgrade due to price change
Macmahon Holdings - Upgrade due to price change
Metcash - Upgrade due to price change
Origin Energy - Downgrade due to price change
Perilya - Upgrade due to price change
Premier Investments - Downgrade due to price change
Sigma Pharma. - Upgrade due to price change
Sonic Healthcare - Downgrade due to price change

ends


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news