MYR - MYER HOLDINGS LIMITED Credit Suisse rates MYR as...

MYR - MYER HOLDINGS LIMITED

Credit Suisse rates MYR as Outperform (1) - Credit Suisse remains interested in Myer, given the turnaround opportunity and moderate valuation hurdle. Having reviewed some of the stores the broker notes improvements in assortment and price points.

The broker suspects the fourth quarter will be a negative catalyst because of the unseasonably warm start to winter. Beyond this, the broker expects 12 months of solid sales improvement. Outperform rating and $1.40 target retained.
Target price is $1.40 Current Price is $1.10 Difference: $0.305 If MYR meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges). Current consensus price target is $1.31, suggesting upside of 19.9%(ex-dividends)The company's fiscal year ends in July.
Forecast for FY16:
Credit Suisse forecasts a full year FY16 dividend of 3.00 cents and EPS of 8.83 cents .At the last closing share price the estimated dividend yield is 2.74%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.40. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 10.3, implying annual growth of 102.0%.Current consensus DPS estimate is 6.1, implying a prospective dividend yield of 5.6%.Current consensus EPS estimate suggests the PER is 10.6.Forecast for FY17:
Credit Suisse forecasts a full year FY17 dividend of 3.40 cents and EPS of 9.73 cents .At the last closing share price the estimated dividend yield is 3.11%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.25. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 9.1, implying annual growth of -11.7%.Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 5.3%.Current consensus EPS estimate suggests the PER is 12.0.