today's broker calls

CBA Equities
"QBE is one stock in our portfolio that is exposed to Japan, but luckily has a very low exposure there and only through its reinsurance business. This morning they announced an estimated loss of A$125m. QBE estimates that the total net cost from natural perils, including the earthquake, is approximately $US550m versus its $US1.65b FY11 provisions. QBE might actually stand to benefit as it has already locked in reinsurance for its insurance business and will benefit from higher pricing in its own reinsurance business as that industry charges higher premiums to offset the large losses the industry experienced over the past 12 months."

QBE - QBE INSURANCE GROUP LIMITED
RBS Australia rates QBE as Hold (3) - The company has revealed a US$125m exposure to the Japanese earthquake and tsunami. The broker notes the company is protected for large claims but the bad start to 2011 and ongoing claim events could limit margin upside in its view.
At present the broker has not adjusted earnings estimates. Hold rating and $19.87 price target are unchanged.

Target price is $19.87 Current Price is $16.99 Difference: $2.88 If QBE meets the RBS Australia target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in December. RBS Australia forecasts a full year FY11 dividend of 139.21 cents and EPS of 172.16 cents . At the last closing share price the estimated dividend yield is 8.19%.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.87.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values. Market Sentiment: 0.1

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 140.0, implying annual growth of 13.6%.Current consensus DPS estimate is 128.7, implying a prospective dividend yield of 7.6%.Current consensus price target is $19.66, suggesting upside of 15.7%(ex-dividends).Current consensus EPS estimate suggests the PER is 12.1.