I just got this ... Fri, 11 June at 9:47 amFriday, 11 June...

I just got this ... Fri, 11 June at 9:47 am

Friday, 11 June 2021

ALU - ALTIUM LIMITED

Credit Suisse rates ALU as Outperform (1) - A high offer from Autodesk to acquire Altium has driven up the company's target price, with Credit Suisse saying the offer suggests Altium's ability to attract future partnerships and strategic arrangements.

Autodesk's offer of $38.50 implies a valuation of 21x revenue for FY21 and 56x underlying earnings. The broker notes this sits at the very high end of corporate valuation metrics and wouldn't rule out a higher offer.

The Outperform rating is retained and the target price increases to $42.00 from $35.00.

Target price is $42.00 Current Price is $34.71 Difference: $7.29 If ALU meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges). Current consensus price target is $35.30, suggesting upside of 1.7%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 40.36 cents and EPS of 42.38 cents . At the last closing share price the estimated dividend yield is 1.16%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 81.90. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.7, implying annual growth of N/A. Current consensus DPS estimate is 42.4, implying a prospective dividend yield of 1.2%. Current consensus EPS estimate suggests the PER is 79.4.

Forecast for FY22:

Credit Suisse forecasts a full year FY22 dividend of 40.36 cents and EPS of 50.85 cents . At the last closing share price the estimated dividend yield is 1.16%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 68.25. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.5, implying annual growth of 20.1%. Current consensus DPS estimate is 45.6, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 66.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.Market Sentiment: 0.8All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources