Ann: Change in substantial holding - Pendal Group, page-2

Excerpts From Today's Broker Call

Wednesday, 20 November 2019

A2M - THE A2 MILK COMPANY LIMITED

Macquarie rates A2M as Outperform (1) - a2 Milk provided solid revenue guidance and margin upgrades at its AGM, thanks to price increases, product launches and benefits from the Synlait Milk ((SM1)) contract renegotiation. Improved disclosure addressed a number of market concerns, Macquarie notes.

The broker has made only minor forecast adjustments but has lifted its target to $16.20 from $15.70. Outperform retained.

Target price is $16.20 Current Price is $13.37 Difference: $2.83 If A2M meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges). Current consensus price target is $13.01, suggesting downside of -2.7%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 0.00 cents and EPS of 44.22 cents .At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.24. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.0, implying annual growth of N/A.Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.Current consensus EPS estimate suggests the PER is 31.1.Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of 54.64 cents .At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.47. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.8, implying annual growth of 22.8%.Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 0.4%.Current consensus EPS estimate suggests the PER is 25.3.This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.Market Sentiment: -0.1All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources