FNArena Broker Call COL - COLES GROUP LIMITED Morgans rates COL...

FNArena Broker Call

COL - COLES GROUP LIMITED

Morgans rates COL as Add (1) - At an investor day, Coles Group outlined increased investment in areas such as data, eCommerce, technology, automation, range, stores and sustainability. Management also noted the normalisation in consumer behaviour seen in early 4Q21 has continued (ex-Victoria).
The broker expects the group to continue to benefit from a normalisation in consumer behaviour, and while increased investment will be negative for near-term earnings, the longer-term benefits should be positive.
The Add rating is maintained and the target is decreased to $17.80 from $18.50.
Target price is $17.80 Current Price is $16.29 Difference: $1.51 If COL meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges). Current consensus price target is $17.82, suggesting upside of 9.4%(ex-dividends)The company's fiscal year ends in June.
Forecast for FY21:
Morgans forecasts a full year FY21 dividend of 60.00 cents and EPS of 74.00 cents . At the last closing share price the estimated dividend yield is 3.68%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.01. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 74.5, implying annual growth of 1.6%. Current consensus DPS estimate is 59.9, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 21.9.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 58.00 cents and EPS of 72.00 cents . At the last closing share price the estimated dividend yield is 3.56%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.63. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 75.2, implying annual growth of 0.9%. Current consensus DPS estimate is 61.6, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 21.7.