Good to see a broker with a positive and outperform rating. A...

Good to see a broker with a positive and outperform rating. A $0.25 target no less. Which with a forecast FY24 PE of 3.2 based on an eps of $0.05 (this PE is based on a share price of $0.16) is the least you would expect. Especially considering that the outlook based on the order book and tender pipeline, should be sustainable for some years.

MAH - MACMAHON HOLDINGS LIMITED

Macquarie rates MAH as Outperform (1) - Macmahon's December-half result outpaced Macquarie on revenue but disappointed on earnings as margins fell to 15.1% from 17.1% due to rising costs and failed cost recoveries.

Management raised FY23 revenue guidance by 15%, expecting cost recoveries to land in the second half.

EPS forecasts fall -4% in FY23; and rise 5% in FY24 (to reflect Batu Hijau phase 8); and decrease -1% to -2% in FY25 and beyond.

Outperform rating and 25c target price retained.

Target price is $0.25 Current Price is $0.16 Difference: $0.09 If MAH meets the Macquarie target it will return approximately 56% (excluding dividends, fees and charges). The company's fiscal year ends in June.

Forecast for FY23:

Macquarie forecasts a full year FY23 dividend of 0.80 cents and EPS of 3.00 cents . At the last closing share price the estimated dividend yield is 5.00%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.33.

Forecast for FY24:

Macquarie forecasts a full year FY24 dividend of 0.90 cents and EPS of 5.00 cents . At the last closing share price the estimated dividend yield is 5.63%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.20.