Sorry about all the ? in my previous post.A bit of broker...

Sorry about all the ? in my previous post.

A bit of broker coverage.


Thursday, 17 June 2010

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[ SWL ]SWL - SEYMOUR FPO

RBS Australia rates SWL as Initiation of coverage - Buy (1) - RBS has picked up coverage on Seymour Whyte, a mid-tier infrastructure and development company that operates in QLD and NSW. The broker notes the company has successfully delivered more than $1bn of complex projects with blue chip clients since 1987.
The broker expects that continued spend by the Federal and State governments ($17bn due in FY11 alone) and an Australian engineering construction and non-residential building market worth $108bn leave the company well placed to pick up work.

With the stock trading at 6x FY10 earnings and offering a 7.4% yield on a “strong” outlook, phrases like: “good value” and “attractively priced” accompany the maiden Buy call.

Target price is $1.50 Current Price is $1.08 Difference: $0.42 If SWL meets the RBS Australia target it will return approximately 39% (excluding dividends, fees and charges).

The companys fiscal year ends in June. RBS Australia forecasts a full year FY10 dividend of 8.00 cents and EPS of 15.40 cents . At the last closing share price the estimated dividend yield is 7.41%.

At the last closing share price the stocks estimated Price to Earnings Ratio (PER) is 7.01.

Market Sentiment: 1.0