The biggest question for me is do they expect to grow on the numbers for this year in FY22? I haven't read anything with regard to expected growth in FY22. In the latest quarterly DD said they have a back log that they expect to fulfil Dec 21. This means FY21 benefitted from a higher backlog of orders which would make it a hard year to beat. Any estimates out there? If Q4 is the same as Q3, PBT will be $108m for the full year and NPAT around $75.6m. The market often overshoots on the upside (just like it overdoes it on the downside), so I think a PE of 40 is possible which would bring the market cap to ~$3bn which equates to around $17.4 SP. I expect the stock to trade between a PE of 30 and 40 ($13 - $17.4) assuming flat to low single digit growth next year.
Does DD usually provide any guidance for the coming financial year?
DDR Price at posting:
$14.60 Sentiment: Hold Disclosure: Held
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