Morgan $4.50

DHG - DOMAIN HOLDINGS AUSTRALIA LIMITED

Morgan Stanley rates DHG as Overweight (1) - The resignation of CEO Anthony Catalano is an incremental negative for the shares and a surprise to Morgan Stanley, coming less than three months after the company's IPO. The departure creates uncertainty over strategy and growth aspirations, the broker acknowledges.

Separately, the company has confirmed first half revenue growth of 13% including digital revenue growth of 22% which is in line with the broker's expectations.

Overweight rating and a $4.50 target. Industry View is Attractive.
Target price is $4.50 Current Price is $2.75 Difference: $1.75 If DHG meets the Morgan Stanley target it will return approximately 64% (excluding dividends, fees and charges). Current consensus price target is $3.42, suggesting upside of 24.5%(ex-dividends)The company's fiscal year ends in June.
Forecast for FY18:
Morgan Stanley forecasts a full year FY18 dividend of 4.40 cents and EPS of 9.00 cents .At the last closing share price the estimated dividend yield is 1.60%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.56. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 8.8, implying annual growth of N/A.Current consensus DPS estimate is 3.7, implying a prospective dividend yield of 1.3%.Current consensus EPS estimate suggests the PER is 31.2.Forecast for FY19:
Morgan Stanley forecasts a full year FY19 dividend of 5.90 cents and EPS of 12.00 cents .At the last closing share price the estimated dividend yield is 2.15%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.92. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 11.3, implying annual growth of 28.4%.Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 1.7%.Current consensus EPS estimate suggests the PER is 24.3.
Market Sentiment: -0.1All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources