CIMB Securities rates EPW as OutperformWednesday, September 25,...

CIMB Securities rates EPW as Outperform

Wednesday, September 25, 2013 - 11:56

September 25, 2013

Consider this one of the oddities due to the loose relationship between RBS Morgans and CIMB in Australia. Previously, ERM Power was covered via the analyst at RBS. Now CIMB has "initiated" coverage on its own. Today's maiden in-house CIMB report could hardly be more positive.

CIMB sees superior customer service and IT systems that allow for customised products underpinning the company's success in the commercial and industrial (C&I) space. Now the invasion of the SME sector in Australia is on the agenda and CIMB sees no reason whatsoever to doubt ERM is going to put its advantages and experiences to good use.

It's the classic challenger story, advocate the analysts. They do see strong growth ahead. Outperform rating and $2.98 price target. That's 1c different from what we had earlier from the RBS input. Investors should note the broker sees "significant potential upside from current levels".

Target price is $2.98 Current Price is $2.60 Difference:$0.38 - (brackets indicate current price is over target). If EPW meets the CIMB Securities target it will return approximately 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

CIMB Securities forecasts a full year FY14 dividend of 12.00 cents and EPS of 11.00 cents . At the last closing share price the estimated dividend yield is 4.62%.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.64