citi rates tse as neutral

Link: http://www.eurekareport.com.au/broker-alerts/2589

Citi rates TSE as Neutral

Thursday, December 12, 2013 - 10:58

December 12, 2013

Transfield's investor day focused on energy and the broker is confident of growth opportunities. The company is over-geared but this should be manageable, and the broker does not expect a capital raising. On 7x FY15 forecast earnings, a 30% discount to peers, TSE is looking attractive. But the turnaround will take time, and debt remains a concern, hence the broker is sticking to Neutral.

Target unchanged at $1.27.

Target price is $1.27 Current Price is $0.98 Difference:$0.29 - (brackets indicate current price is over target). If TSE meets the Citi target it will return approximately 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Citi forecasts a full year FY14 dividend of 0.00 cents and EPS of 13.20 cents .

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.42.

FN Arena

Market sentiment:
-0.2
Company:
TRANSFIELD SERVICES LIMITED