Any better bet then SGH?, page-18

Mmmm, what was I saying about looking forward to seeing a possible re-rate from UBS........ Here is a late morning update from today's  FNarena, looks like they are stubbornly sticking to their $3.10 PT. Totally out of sync with all other analyst forecasts. Agenda???

UBS rates SGH as Neutral (3) -
The audited FY15 accounts incorporate a number of changes across the income statement and balance sheet. Additionally, the company has announced its ASIC review is ongoing.



UBS believes, on conclusion of the ASIC review, that the firm will need to demonstrate strong cash conversion to justify its accrual accounting policies.



Target of $3.10 and Neutral retained.



Target price is $3.10 Current Price is $2.94 Difference: $0.16
If SGH meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June. UBS forecasts a full year FY16 dividend of 9.90 cents and EPS of 67.70 cents. At the last closing share price the estimated dividend yield is 3.37%.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.34.


Market Sentiment: 0.8

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.2, implying annual growth of 65.7%.
Current consensus DPS estimate is 10.2, implying a prospective dividend yield of 3.4%.
Current consensus price target is $ 5.73, suggesting upside of 91.0%(ex-dividends).
Current consensus EPS estimate suggests the PER is 5.2.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources