Deutsche Bank rates PRG as Buy (1) - First half results go some...

Deutsche Bank rates PRG as Buy (1) - First half results go some way to easing Deutsche Bank's concerns following the downgrade in September, highlighting a stabilising of the key workforce business. The broker is comforted by the strong outlook for free cash flow.

The broker believes there is strong value on offer at current multiples and maintains a Buy rating. The company has reiterated FY17 EBITDA guidance of $100m and has noted a reasonable pipeline of opportunities exist. Target is $2.10.
Target price is $2.10 Current Price is $1.74 Difference: $0.36 If PRG meets the Deutsche Bank target it will return approximately 21% (excluding dividends, fees and charges). Current consensus price target is $1.98, suggesting upside of 13.5%(ex-dividends)The company's fiscal year ends in March.
Forecast for FY17:
Deutsche Bank forecasts a full year FY17 dividend of 9.00 cents and EPS of 18.00 cents .At the last closing share price the estimated dividend yield is 5.17%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.67. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 15.3, implying annual growth of N/A.Current consensus DPS estimate is 8.6, implying a prospective dividend yield of 4.9%.Current consensus EPS estimate suggests the PER is 11.4.Forecast for FY18:
Deutsche Bank forecasts a full year FY18 dividend of 12.00 cents and EPS of 21.00 cents .At the last closing share price the estimated dividend yield is 6.90%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.29. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.3, implying annual growth of 19.6%.Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 5.7%.Current consensus EPS estimate suggests the PER is 9.5.
Market Sentiment: 0.9All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources