Ann: Proposed issue of securities - JLG, page-4

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Thursday, 2 May 2024

JLG - JOHNS LYNG GROUP LIMITED

Macquarie rates JLG as Outperform (1) - US peer FirstService Corp reported March Q organic revenue down -6% and earnings margin down -120bps to 8.4% on lower storm-related claims year on year.

Johns Lyng USA is not cycling material storm-related revenue, Macquarie notes, and the broker is more focussed on execution of the US strategy.

While the US first half FY24 result disappointed, management remains focussed on roll-out of new service lines and the operating

model in the US. Macquarie continues to believe in the US growth story, with the Allstate panel win a positive catalyst for growth.

Outperform and $7.40 target retained.

Target price is $7.40 Current Price is $5.62 Difference: $1.78 If JLG meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges). Current consensus price target is $7.29, suggesting upside of 29.7%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY24:

Macquarie forecasts a full year FY24 dividend of 10.00 cents and EPS of 18.40 cents . At the last closing share price the estimated dividend yield is 1.78%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.54. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.2, implying annual growth of 12.6%. Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 1.7%. Current consensus EPS estimate suggests the PER is 27.8.

Forecast for FY25:

Macquarie forecasts a full year FY25 dividend of 11.00 cents and EPS of 23.50 cents . At the last closing share price the estimated dividend yield is 1.96%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.91. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.5, implying annual growth of 11.4%. Current consensus DPS estimate is 10.6, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 25.0.

Market Sentiment: 0.8All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources