macquarie two dollar price target is a problem, page-4

lol...

Citi rates AFG as Buy, Speculative Risk - Just a day after cutting its target price sharply but maintaining its Buy rating on the stock, the broker has once again reiterated its rating on the view that the stock is currently trading below NTA backing.

The rating review comes after another fall in the share price as margin calls saw almost half of the company’s shares held by Allco Principals Trust being sold.

The broker has, however, warned that the stock remains a speculative risk due to poor information disclosure and market communication. Target price is intact at $5.88.


Target price is $5.88 Current Price is $2.99 Difference:$2.89 - (brackets indicate current price is over target). If AFG meets the Citi target it will return approximately 97% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June. Citi forecasts a full year FY08 dividend of 33.00 cents and EPS of 66.40 cents. At the last closing share price the estimated dividend yield is 11.04%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.50.

Market Sentiment: 0.4

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AddedMacquarie rates AFG as Downgrade to Neutral from Outperform - Target $2.00 (was $9.30). The broker has looked again at its model for the stock and this time doesn't like what it sees quite as much, downgrading its rating to Neutral.
In its view the brand has now been damaged and there is financing risk attached to the company, so it has little confidence in its forecasts.


Target price is $2.00 Current Price is $2.99 Difference:($0.99) - (brackets indicate current price is over target). If AFG meets the Macquarie target it will return approximately - 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June. Macquarie forecasts a full year FY08 dividend of 44.00 cents and EPS of 73.10 cents. At the last closing share price the estimated dividend yield is 14.72%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.09.

Market Sentiment: 0.4