It was a good opportunity to load up again at $5 a few weeks ago. The target of $5.40 is a little low, I'm expecting TOLL to be back to $6 by Xmas. The divi is nice too.
TOL - TOLL HOLDINGS LIMITED
UBS rates TOL as Neutral (3) - Toll's express freight competitor TNT has revealed its first quarterly revenue growth locally since 2012, albeit TNT notes conditions remain challenging. Yield pressures in the industry have led to earnings declines for Toll over the past two years and if there is some reprieve ahead, there is a risk of forecast upside, the broker suggests.
Toll's 9% free cash flow is very attractive but lumpy earnings are hard to predict and the broker lacks the confidence to rate better than Neutral. Target unchanged at $5.40.
Target price is $5.40 Current Price is $5.34 Difference: $0.06 If TOL meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in June. UBS forecasts a full year FY14 dividend of 28.00 cents and EPS of 41.00 cents . At the last closing share price the estimated dividend yield is 5.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.02.
Market Sentiment: 0.0
How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 39.9, implying annual growth of 238.3%.Current consensus DPS estimate is 28.1, implying a prospective dividend yield of 5.3%.Current consensus price target is $ 5.42, suggesting upside of 1.5%(ex-dividends).Current consensus EPS estimate suggests the PER is 13.4.
TOL Price at posting:
$5.34 Sentiment: Buy Disclosure: Held
