Goldman Sachs names WOR as 1 of 2 high conviction ASX stocks, page-5

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Friday, 24 January 2025

WOR - WORLEY LIMITED

Macquarie rates WOR as Outperform (1) - Macquarie previews Worley's upcoming 1H25 earnings report on February 26. The broker expects growth in net profit of 16% with an earnings skew of 45:55 for 1H25 on 2H25.

The broker believes a Trump administration is a "net positive" for the company, with additional support for the oil and gas sector and the removal of the US LNG ban. Macquarie highlights the company is well-positioned to benefit from potential work tailwinds.

The stock continues to trade at a discount to global peers of -10% against a long-term premium valuation rating of 16%. No change to the Outperform rating, and the target price slips slightly to $17.83 from $19.92.

Target price is $17.83 Current Price is $14.64 Difference: $3.19 If WOR meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges). Current consensus price target is $18.25, suggesting upside of 24.6%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY25:

Macquarie forecasts a full year FY25 dividend of 50.00 cents and EPS of 91.70 cents . At the last closing share price the estimated dividend yield is 3.42%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.97. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.2, implying annual growth of 50.0%. Current consensus DPS estimate is 51.3, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 17.0.

Forecast for FY26:

Macquarie forecasts a full year FY26 dividend of 50.10 cents and EPS of 104.00 cents . At the last closing share price the estimated dividend yield is 3.42%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.08. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 104.8, implying annual growth of 21.6%. Current consensus DPS estimate is 53.7, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 14.0.

Market Sentiment: 1.0All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources