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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news