Got this in an email ...Thu, 17 Aug at 9:22 amThursday, 17...

Got this in an email ...Thu, 17 Aug at 9:22 am

Thursday, 17 August 2023

FBU - FLETCHER BUILDING LIMITED

Macquarie rates FBU as Outperform (1) - While FY23 results from Fletcher Building were in line with expectations the result was messier than Macquarie anticipated, with some guessing required as to the ultimate costs around the Iplex product claim and silicosis claims. No FY24 guidance was provided.

The legacy construction issue is less of a concern to the broker. Macquarie strongly believes there are structural changes occurring in Australasian manufacturing/distribution and values these businesses more meaningfully as a result.

Outperform rating and the target reduced to NZ$7.39 from NZ$7.70.

Current Price is $4.60. Target price not assessed. Current consensus price target is $5.30, suggesting upside of 15.1%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY24:

Macquarie forecasts a full year FY24 dividend of 32.15 cents and EPS of 45.37 cents . At the last closing share price the estimated dividend yield is 6.99%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.14. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.7, implying annual growth of N/A. Current consensus DPS estimate is 30.7, implying a prospective dividend yield of 6.7%. Current consensus EPS estimate suggests the PER is 10.3.

Forecast for FY25:

Macquarie forecasts a full year FY25 dividend of 33.98 cents and EPS of 48.40 cents . At the last closing share price the estimated dividend yield is 7.39%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.50. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.7, implying annual growth of 8.9%. Current consensus DPS estimate is 34.2, implying a prospective dividend yield of 7.4%. Current consensus EPS estimate suggests the PER is 9.4.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.Market Sentiment: 0.6All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources