UBS and Morgan Stanley have cut their price targets on IOOF by 25% (from 9.35$ to 7.00$) and 10% (from 12.00$ to 10.80$) respectively.
UBS’s rationale for the downgrade, in particular, is as follows:
2232 GMT - IOOF is firmly in the grip of structural and regulatory pincers, argues UBS as it cuts its target on the shares 25% to A$7. The investment bank believes that even trading at 10.6 times the consensus earnings forecast and underperforming the market by about 30% in 2018, there still isn't sufficient value to compensate investors for risks. That's despite an 8% expected dividend yield, since EPS is expected to fall 8% through FY20 and uncertainty over what recommendations for the industry will come from an ongoing judicial inquiry into misconduct, possible customer remediation costs and declining upside from the wealth-management assets being bought from ANZ, UBS says. ([email protected]; @RobbMStewart)
(END) Dow Jones Newswires
November 15, 2018 17:32 ET (22:32 GMT)
For context, note that in August IOOF guided underlying EPS growth of ~5% in FY19 and ~15% in FY20; that corresponds to cumulative EPS growth of ~21% by FY20 (before markets and inflows).
Therefore, by saying that “EPS is expected to fall 8% through FY20”, UBS are implying a hit from regulatory changes in the order of -30%. And, of course, no mention is made of the fact that IOOF also guided EPS growth of >20% in FY21 following the full integration of ANZWM.
My personal take: Sell UBS.
IMHO & DYOR
- Forums
- ASX - By Stock
- Ann: ANZ Wealth Management updated financial information
UBS and Morgan Stanley have cut their price targets on IOOF by...
-
-
- There are more pages in this discussion • 22 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add IFL (ASX) to my watchlist
(20min delay)
|
|||||
Last
$2.80 |
Change
0.010(0.36%) |
Mkt cap ! $1.878B |
Open | High | Low | Value | Volume |
$2.79 | $2.83 | $2.78 | $3.453M | 1.233M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 10198 | $2.80 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$2.81 | 4531 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 7668 | 2.790 |
1 | 2176 | 2.770 |
2 | 18876 | 2.760 |
1 | 2215 | 2.750 |
3 | 22915 | 2.740 |
Price($) | Vol. | No. |
---|---|---|
2.810 | 4426 | 1 |
2.820 | 4000 | 1 |
2.830 | 19093 | 4 |
2.840 | 34326 | 4 |
2.850 | 34548 | 10 |
Last trade - 16.10pm 11/10/2024 (20 minute delay) ? |
Featured News
IFL (ASX) Chart |