FnArena Outperform

PRG - PROGRAMMED MAINTENANCE SERVICES LIMITED
Macquarie rates PRG as Outperform (1) - Programmed Maintenance reported a 25% increase in profit, slightly ahead of the broker. Previous FY17 guidance has been reiterated. The early signs are of a positive merger with Skilled Group, the broker suggests.

A weak oil market should ensure ongoing difficulty for the marine division, but a more diversified earnings base means two-thirds of revenues are not resource sector exposed, the broker notes. Reiteration of FY17 guidance is thus significant in suggesting downside risk is limited. Outperform retained, target rises to $2.03 from $1.63.


Target price is $2.03 Current Price is $1.62 Difference: $0.415 If PRG meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges). Current consensus price target is $2.08, suggesting upside of 28.9%(ex-dividends)The company's fiscal year ends in March.
Forecast for FY17:
Macquarie forecasts a full year FY17 dividend of 11.50 cents and EPS of 23.80 cents . At the last closing share price the estimated dividend yield is 7.12%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.79. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 22.0, implying annual growth of N/A.Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 6.7%.Current consensus EPS estimate suggests the PER is 7.3.Forecast for FY18:
Macquarie forecasts a full year FY18 dividend of 12.00 cents and EPS of 25.30 cents . At the last closing share price the estimated dividend yield is 7.43%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.38. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 23.7, implying annual growth of 7.7%.Current consensus DPS estimate is 11.5, implying a prospective dividend yield of 7.1%.Current consensus EPS estimate suggests the PER is 6.8.
Market Sentiment: 0.4 All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources