Try 6.9% yield. Market consensus is behind...Macquarie rates PLS...

Try 6.9% yield. Market consensus is behind...

Macquarierates PLS asOutperform(1) -

The most recent spodumene auction has generated a record price of US$8,575/dmt, highlights Macquarie. In addition, Pilbara Minerals' Capital Management Framework demonstrates a disciplined approach to capital, in the broker's view.

The Outperform rating and $7.70 target are unchanged, while the company is now expected to announce a maiden dividend of 34c for FY23.

While the auction outcome is better-than-expected, only minor changes have been made to forecasts, also incorporating the announced dividend policy.

Target price is$7.70Current Price is$4.92Difference:$2.78
IfPLSmeets the Macquarie target it will return approximately57%(excluding dividends, fees and charges).

Current consensus price target is$4.61, suggesting downside of-7.2%(ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Macquarie forecasts a full yearFY23 dividend of34.00 cents and EPS of89.10 cents. At the last closing share price the estimated dividend yield is 6.91%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is5.52. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is70.1, implying annual growth of269.3%. Current consensus DPS estimate is 23.2, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is7.1.