It's a pleasure Burnett. Better news for you, I've got one from...

It's a pleasure Burnett. Better news for you, I've got one from Citi and one from UBS. Hope it helps.

Citi rates BBG as Upgrade to Buy, High Risk from Neutral (1) -

Target 33c (was 25c). The broker has sighed a breath of relief, noting insolvency has been avoided, at a cost. The Dakine brand will be sold and existing shareholders will be diluted from 100% to as low as 60% of the new register, says Citi. On the other hand, a dire risk is removed and the company will survive.

The company has secured $458m in new debt facilities, although interest rates run as high as 12%. The broker now predicts a small loss in EPS for FY14 and a positive, if minor result in FY15. Citi also warns a turnaround will take patience. Billabong’s brands remain intact and with less debt pressure, Citi thinks profit margins could recover. Upgrade to Buy from Neutral, with a high risk tag of course.

Target price is $0.33 Current Price is $0.25 Difference: $0.08

If BBG meets the Citi target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in June. Citi forecasts a full year FY13 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

Market Sentiment: -0.1

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UBS rates BBG as Neutral (3) -

The broker notes the company has been able to put together a re-financing deal, although it is via a highly dilutive agreement with Altamont Capital. Interest costs are steep, DaKine will be sold off for $70m and existing shareholders will have holding diluted to between 59.51% and 63.75% of original holdings

There is no change to FY13 guidance, although the broker reckons on preliminary numbers the deal will be around 54% dilutive to FY15 diluted EPS. The Neutral call and 25c price target are maintained, the broker waiting to hear what is said at the upcoming EGM.

Target price is $0.25 Current Price is $0.25 Difference: $0
If BBG meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June. UBS forecasts a full year FY13 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

Market Sentiment: -0.1

:)