BA-Merrill Lynch rates CIL as Buy, High Risk 25/08/2009 05:29PM
CIL - Centrebet International Ltd
There were no surprises in the FY09 result, says Merrills, who notes that net profit came in at the upper end of management's $10-11m guidance.
The broker thinks a strong platform is in place for in FY10 and is pencilling in a 20% increase in net profit. The Buy call is maintained.
Target price is $1.75 Current Price is $1.06 Difference:$0.69 - (brackets indicate current price is over target). If CIL meets the BA-Merrill Lynch target it will return approximately 65% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in January.
BA-Merrill Lynch forecasts a full year FY10 dividend of 10.50 cents and EPS of 14.70 cents. At the last closing share price the estimated dividend yield is 9.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.21.
Market Sentiment: 1.0