Eyes peeled Mr Jinx, I would be topping up but im substantially overweight as it is..
The divvy will make me feel better :P
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Eyes peeled Mr Jinx, I would be topping up but im substantially overweight as it is..
The divvy will make me feel better :P
If you are with ASB securities have a look at the Morningstar report.
This is the relevant bit.
Our remodelled Air New Zealand fiscal 2016 NPAT forecast is NZD 632 million, peak cycle earnings of NZD 715 million in 2017, before declining to NZD 628 million in 2018. Our forecasts assume Brent oil prices bottom in 2016 and recover to USD 70/bbl by 2020. We forecast a fully franked dividend in fiscal 2016 of NZD 27 cents, NZD 32 cents in 2017 and NZD 28 cents in 2018.
Morningstar my least trusted research house but FWIW that translates to EPS on 1122m shares of 2016 56.3 cps, 2017 63.7cps and 2018 56 cps. Average earnings for next 3 years 58.7 cps. On a $2.73 Sp that's a PE of 4.65 which is surely the lowest ever for AIR ?
Average dividend yield of 29 cps per year for the next three years and all with be fully imputed, (yes Morningstar we call it imputed here in N.Z. not franked), because they have heaps of imputation credits available so 29 / 0.72 = 40.28 cps gross / $2.73 gives a gross dividend yield on average for the next three years of 14.8%.
Not sure how they came up with a valuation of $2.80 on those PE and yield numbers...
Anyone aware of any other analyst valuation revisions at this point in time ?
A good time for a buy back.