on the outer

The big challenge for CSV will be restoring credibility.

RBS issued a fairly harsh sell rating this morning:

"RBS Australia rates CSV as Downgrade to Sell from Hold (5) - The broker had been prepared to give CSG the benefit of the doubt on its acquisition strategy, but no longer after this result. While the numbers looked in line, the quality was poor, the broker suggests, featuring acquisition related one-offs and a low tax rate.

The broker has moved to Sell and applied a more stringent discount to valuation, suggesting CSV is sub-investment grade until some confidence can be restored. Target falls to $1.11 from $1.56.


The company's fiscal year ends in June. RBS Australia forecasts a full year FY11 dividend of 4.70 cents and EPS of 14.40 cents. At the last closing share price the estimated dividend yield is 3.75%.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.72.