Macquarie upgrades FXJ to Outperform from Underperform
Thursday, December 5, 2013 - 10:27
December 5, 2013
The broker believes the worst may now be over for Fairfax's declining metro mastheads, with cost outs and the digital transition set to provide support. The sale of Stayz has boosted the balance sheet, Domain is likely to be a value driver as it establishes itself in the number 2 real estate digital classifieds position, and while the outlook remains subdued, the broker feels consensus forecasts are too pessimistic.
The broker has upgraded forecast earnings, lifted its target to 74c from 50c, and upgraded directly to Outperform from Underperform.
Target price is $0.74 Current Price is $0.60 Difference: $0.14 If FXJ meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June. Macquarie forecasts a full year FY14 dividend of 2.80 cents and EPS of 5.70 cents. At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.53.
FN Arena
FXJ Price at posting:
63.5¢ Sentiment: None Disclosure: Not Held
