Broker reactionOrd Minnett rates PLS as Buy (1) - Realised...

Broker reaction
Ord Minnettrates PLS asBuy(1) -

Realised pricing for Pilbara Minerals was lower than Ord Minnett expected in the June quarter due to higher discounts for the shipping of lower-average-grade concentrate. No guidance was given for FY23. The Buy rating and $3.50 target are unchanged.

In noting growth plans are funded and the cash balance is rising, the analyst believes capital returns will come to the fore.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is$3.50Current Price is$2.73Difference:$0.77
IfPLSmeets the Ord Minnett target it will return approximately28%(excluding dividends, fees and charges).

Current consensus price target is$3.43, suggesting upside of24.5%(ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Ord Minnett forecasts a full yearFY22EPS of19.00cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is14.37. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is20.9, implying annual growth ofN/A. Current consensus DPS estimate isN/A, implying a prospective dividend yield ofN/A. Current consensus EPS estimate suggests the PER is13.2.

Forecast for FY23:

Ord Minnett forecasts a full yearFY23EPS of66.00cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is4.14. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is53.0, implying annual growth of153.6%. Current consensus DPS estimate is9.7, implying a prospective dividend yield of3.5%. Current consensus EPS estimate suggests the PER is5.2.