BEN @$10 within 24 months, page-76

Excerpts From Today's Broker Call

Wednesday, 24 March 2021

BEN - BENDIGO AND ADELAIDE BANK LIMITED

Macquarie rates BEN as Upgrade to Outperform from Neutral (1) - Macquarie believes the regional banks are more leveraged to improving deposit pricing and following a period of underperformance upgrades Bendigo & Adelaide Bank to Outperform from Neutral.

The main downside risk stems from smaller margin benefits from improved pricing compared with estimates. Estimates for earnings per share are increased by up to 7% for FY21-23. Target is raised to $11.00 from $10.25.

Target price is $11.00 Current Price is $9.63 Difference: $1.37 If BEN meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges). Current consensus price target is $10.27, suggesting upside of 6.6%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 52.00 cents and EPS of 66.00 cents . At the last closing share price the estimated dividend yield is 5.40%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.59. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.3, implying annual growth of 16.1%. Current consensus DPS estimate is 51.0, implying a prospective dividend yield of 5.3%. Current consensus EPS estimate suggests the PER is 13.9.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 50.00 cents and EPS of 64.00 cents . At the last closing share price the estimated dividend yield is 5.19%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.05. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.1, implying annual growth of -0.3%. Current consensus DPS estimate is 51.8, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 13.9.

Market Sentiment: 0.0All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources