citi broker comments

Citi rates MQG as Buy, High Risk - The broker notes a relatively busy February saw a reasonable reporting season for MQG satellites, as well as the completion of the Puget Energy acquisition and further building of balance sheet capital and liquidity.

However, the group did warn that FY09 net profit after tax will fall to $900m, including 2H09 write-downs of $900m. Still, with the pipeline growing, the balance sheet strengthening and new opportunities arising, Buy and target maintained.

Target price is $23.92 Current Price is $17.40 Difference:$6.52 - (brackets indicate current price is over target). If MQG meets the Citi target it will return approximately 37% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in March. Citi forecasts a full year FY09 dividend of 210.00 cents and EPS of 318.70 cents . At the last closing share price the estimated dividend yield is 12.07%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.46.

Market Sentiment: 0.6