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Monday, 9 September 2024
CGF - CHALLENGER LIMITED
Macquarie rates CGF as Upgrade to Outperform from Neutral (1) - Macquarie observes the sale of Apollo's stake in Challenger to 9.9% from 20.1% and suggests there is no reason why the remaining holding would not be divested.
The fall in the share price, -11%, offers an entry point with the company's fundamentals intact. There is no change to the working partnership between the two companies the analyst highlights.
Rating upgraded to Outperform from Neutral. Target price retained at $7.
The company is expected to report 1Q25 update on Oct 16.
Target price is $7.00 Current Price is $6.24 Difference: $0.76 If CGF meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges). Current consensus price target is $7.88, suggesting upside of 26.2%(ex-dividends)The company's fiscal year ends in June.
Forecast for FY25:
Macquarie forecasts a full year FY25 dividend of 28.00 cents and EPS of 59.50 cents . At the last closing share price the estimated dividend yield is 4.49%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.49. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 58.5, implying annual growth of 208.2%. Current consensus DPS estimate is 27.7, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 10.7.
Forecast for FY26:
Macquarie forecasts a full year FY26 dividend of 30.00 cents and EPS of 66.70 cents . At the last closing share price the estimated dividend yield is 4.81%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.36. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 63.4, implying annual growth of 8.4%. Current consensus DPS estimate is 29.3, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 9.8.
Market Sentiment: 0.8All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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