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UBS rates EGP as Buy

Friday, July 5, 2013 - 10:44

July 5, 2013

UBS has lowered longer term forecasts for Echo to incorporate the competitive impact of the potential opening of Crown's ((CWN)) Barangaroo casino from FY21 following the announcement that the NSW government had selected Barangaroo as its preferred casino dvelopment.

Despite the uncertainty for Echo earnings from FY20/21 UBS believes the risk is largely priced in at current levels. The Buy rating is retained and he price target is reduced to $4.10 from $4.70.

Target price is $4.10 Current Price is $3.04 Difference:$1.06 - (brackets indicate current price is over target). If EGP meets the UBS target it will return approximately 35% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

UBS forecasts a full year FY13 dividend of 8.00 cents and EPS of 17.00 cents . At the last closing share price the estimated dividend yield is 2.63%.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.88.

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