Atlas shipped 2.4mt in the September quarter, up 8% on the prior quarter. UBS has adjusted earnings forecast up by 6% for FY14.
The broker believes the decision to invest in Atlas is dependent on the company securing an allocation to third party infrastructure in order for Horizon 2 to go ahead. As Roy Hill looks likely to proceed, Atlas' chances may be improving.
The Neutral rating and $1.00 target are retained.
Target price is $1.00 Current Price is $1.03 Difference: minus $0.035 (current price is over target). If AGO meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June. UBS forecasts a full year FY14 dividend of 2.00 cents and EPS of 13.00 cents. At the last closing share price the estimated dividend yield is 1.93%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.96.
Market Sentiment: 0.3
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Macquarie rates FMG as Restricted (3) -
Operational issues meant Fortescue's shipments for the quarter fell 8% short of the broker's forecast. Costs are nevertheless 10% below forecast. The broker has trimmed earnings numbers but is currently restricted on providing a recommendation.
Current Price is $5.24. Target price not assessed.
The company's fiscal year ends in June. Macquarie forecasts a full year FY14 dividend of 31.99 cents and EPS of 111.13 cents. At the last closing share price the estimated dividend yield is 6.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.72.
Market Sentiment: 0.6
UBS rates FMG as Neutral (3) -
Fortescue shipped 25.9mt during the September quarter, including 1.2mt of third party ore. FY14 shipping guidance of 127-133mt is maintained.
UBS has made no changes to estimates for FY14, despite the quarter being slightly below forecasts. The price target is steady at $5.60 and the Neutral rating is retained.
Target price is $5.60 Current Price is $5.24 Difference: $0.36 If FMG meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June. UBS forecasts a full year FY14 dividend of 8.31 cents and EPS of 103.86 cents. At the last closing share price the estimated dividend yield is 1.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.05.
