Citi rates GXY as Buy (1) -
June quarter production at Mt Cattlin was lower than Citi estimated. The broker expects second half operations will improve on the back of higher volumes and better pricing.
Galaxy is looking for a joint venture partner for Sal de Vida, which Citi expects will de-risk the project further. Buy rating and $2.70 target retained.
Target price is $2.70 Current Price is $1.85 Difference: $0.855
If GXY meets the Citi target it will return approximately 46% (excluding dividends, fees and charges).
Current consensus price target is $2.25, suggesting upside of 26.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY17:
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0
Citi forecasts a full year FY17 dividend of 0.00 cents and EPS of 10.20 cents.At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.09. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.0, implying annual growth of -78.3%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 19.8.
Forecast for FY18:
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Citi forecasts a full year FY18 dividend of 0.00 cents and EPS of 28.90 cents.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 27.0, implying annual growth of 200.0%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 6.6.
GXY Price at posting:
$1.79 Sentiment: Buy Disclosure: Held
