Ann: ING FY2023 First Half Interim Results Presentation, page-11

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Monday, 20 February 2023

ING - INGHAMS GROUP LIMITED

Macquarie rates ING as Upgrade to Outperform from Neutral (1) - Macquarie observes Inghams Group has successfully transitioned from the operating disruptions experienced in FY22. First half earnings and net profit were ahead of expectations and the strong result increases the broker's confidence in an earnings recovery.

As a result, the rating is upgraded to Outperform from Neutral and the target raised to $2.97 from $2.62. Multiples also appear more attractive, with the stock trading on 13.3x and 11.0x FY23 and FY24 PE, respectively, a -15% and -25% discount to peers.

Target price is $2.97 Current Price is $2.74 Difference: $0.23 If ING meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges). Current consensus price target is $2.98, suggesting upside of 8.8%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY23:

Macquarie forecasts a full year FY23 dividend of 10.30 cents and EPS of 20.60 cents . At the last closing share price the estimated dividend yield is 3.76%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.30. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.9, implying annual growth of 89.4%. Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 15.3.

Forecast for FY24:

Macquarie forecasts a full year FY24 dividend of 15.40 cents and EPS of 25.00 cents . At the last closing share price the estimated dividend yield is 5.62%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.96. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.3, implying annual growth of 30.2%. Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 11.8.

Market Sentiment: 0.5All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources