Iron ore price, page-29441

Jus got this ...Mon, 22 Mar at 9:57 am

Excerpts From Today's Broker Call

Monday, 22 March 2021

FMG - FORTESCUE METALS GROUP LTD

Macquarie rates FMG as Outperform (1) - Macquarie expects the proceeds from the new US1.5bn senior unsecured note issue will be used to repay a -US$750m facility due in 2022. The balance is expected to help fund capex for Iron Bridge while also maintaining a 80% dividend pay-out ratio.

The Outperform rating and $25.50 target are unchanged.

Target price is $25.50 Current Price is $20.01 Difference: $5.49 If FMG meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges). Current consensus price target is $23.24, suggesting upside of 16.1%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 288.22 cents and EPS of 357.85 cents . At the last closing share price the estimated dividend yield is 14.40%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.59. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 366.6, implying annual growth of N/A. Current consensus DPS estimate is 316.8, implying a prospective dividend yield of 15.8%. Current consensus EPS estimate suggests the PER is 5.5.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 191.68 cents and EPS of 239.88 cents . At the last closing share price the estimated dividend yield is 9.58%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.34. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 255.9, implying annual growth of -30.2%. Current consensus DPS estimate is 212.9, implying a prospective dividend yield of 10.6%. Current consensus EPS estimate suggests the PER is 7.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values. Market Sentiment: 0.4All consensus data are updated until yesterday. FN Arena's consensus calculations require a minimum of three sources