mce-anchorBAL BELLAMY'S AUSTRALIA LIMITED Dairy More Research...

mce-anchorBAL BELLAMY'S AUSTRALIA LIMITED

Dairy
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Overnight Price: $8.36

Morgan Stanley rates BAL as Initiation of coverage with Overweight (1) -
Morgan Stanley initiates coverage with an Overweight rating and $11 target. Industry view is Cautious. The broker believes Bellamy's is on the cusp of a turnaround, having developed a premium brand with what is, in effect, an inferior product, given it lacks Omega 3 & 6.

The new formula is expected to prove an inflection point in sales and earnings. The broker believes the current discounted valuation is not taking into account a recovery in the business and subsequent strong earnings growth.

Target price is $11.00 Current Price is $8.36 Difference: $2.64
If BAL meets the Morgan Stanley target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $10.13, suggesting upside of 21.2% (ex-dividends)
The company's fiscal year ends in June.

Forecast for FY19:

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Morgan Stanley forecasts a full year FY19 dividend of 0.00 cents and EPS of 37.00 cents.At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.59. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 38.4, implying annual growth of -2.0%. Current consensus DPS estimate is 2.7, implying a prospective dividend yield of 0.3%. Current consensus EPS estimate suggests the PER is 21.8.

Forecast for FY20:

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Morgan Stanley forecasts a full year FY20 dividend of 0.00 cents and EPS of 49.00 cents.At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.06. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 47.2, implying annual growth of 22.9%. Current consensus DPS estimate is 2.5, implying a prospective dividend yield of 0.3%. Current consensus EPS estimate suggests the PER is 17.7.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources