Ann: DTL 1H FY25 Interim Results Briefing, page-2

Some broker research out today.

Shaw and Partners rates SRG as Buy (1) -

Shaw and Partners surmises the 95% run-up in SRG Global's share price over the last year and management's FY25 earnings guidance upgrade of 1.2% underwhelmed investors.

The analyst notes 1H25 financial metrics came in below forecasts, and earnings forecasts are revised to reflect the 1H25 run rates, the broker explains.

Shaw and Partners raises net profit after tax estimates by 7% and 5.3% for FY25/FY26, highlighting a potential pipeline of work at $8.5bn.

Shaw and Partners retains its Buy, High Risk rating. Target price rises to $1.60 from $1.40.

Target price is $1.60 Current Price is $1.40 Difference: $0.205
If SRG meets the Shaw and Partners target it will return approximately 15%(excluding dividends, fees and charges).

Current consensus price target is $1.49, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Shaw and Partners forecasts a full year FY25 dividend of 5.20 cents and EPS of 8.50 cents. At the last closing share price the estimated dividend yield is 3.73%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.41. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.5, implying annual growth of 28.6%. Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY26:

Shaw and Partners forecasts a full year FY26 dividend of 5.40 cents and EPS of 8.90 cents. At the last closing share price the estimated dividend yield is 3.87%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.67. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.3, implying annual growth of 9.4%. Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 15.0.