why the decline, page-10

Macquarie rates CND as Outperform - The broker is forecasting a 1H profit of $6m, down from the $6.4m from last year given earnings weakness in the Lloyd Morgan business.
Given the macro environment remains positive and the likelihood the Lloyd Morgan operations can be turned around the broker retains its Outperform rating.


Target price is $2.45 Current Price is $1.98 Difference:$0.48 - (brackets indicate current price is over target). If CND meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June. Macquarie forecasts a full year FY08 dividend of 17.00 cents and EPS of 24.30 cents. At the last closing share price the estimated dividend yield is 8.61%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.13.