OFX - OZFOREX GROUP LIMITED
Deutsche Bank rates OFX as Buy (1) - First half results were weak, with EBITDA 13% below Deutsche Bank's forecasts. The company has also guided to EBITDA contracting in FY17.
Despite the poor earnings momentum, Deutsche Bank retains a Buy rating based on very weak sentiment, valuation support, easier comparables in the second half and the cyclical headwinds in the first half from the depreciation of the GBP.
Forecasts for FY17 and FY18 EBITDA are reduced by 11% and 14% respectively. Target is reduced to $1.70 from $2.20.
Target price is $1.70 Current Price is $1.35 Difference: $0.355 If OFX meets the Deutsche Bank target it will return approximately 26% (excluding dividends, fees and charges). The company's fiscal year ends in March.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 6.00 cents and EPS of 9.00 cents .At the last closing share price the estimated dividend yield is 4.46%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.94. Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 7.00 cents and EPS of 10.00 cents .At the last closing share price the estimated dividend yield is 5.20%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.45.
Market Sentiment: 0.5All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three source
OFX Price at posting:
$1.35 Sentiment: Buy Disclosure: Held
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