Thursday, 11 November 2021NCM - NEWCREST MINING LIMITED
Credit Suisse rates NCM as Outperform (1) - Newcrest Mining will acquire Pretium Resources resources and the Brucejack mine for US$2.73bn, which will add an incremental 370,000 ozpa of gold over the medium term. The acquisition will be funded 50:50 in scrip and cash.
Credit Suisse notes the mine presents technical challenges which have meant reserves have been downgraded in recent years. Yet Newcrest Mining is confident it can deliver value to justify the premium paid. Outperform rating and $31 target maintained.
Target price is $31.00 Current Price is $25.12 Difference: $5.88 If NCM meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges). Current consensus price target is $29.57, suggesting upside of 17.7%(ex-dividends)The company's fiscal year ends in June.
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 19.86 cents and EPS of 126.63 cents . At the last closing share price the estimated dividend yield is 0.79%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.84. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 128.1, implying annual growth of N/A. Current consensus DPS estimate is 34.2, implying a prospective dividend yield of 1.4%. Current consensus EPS estimate suggests the PER is 19.6.
Forecast for FY23:
Credit Suisse forecasts a full year FY23 dividend of 24.60 cents and EPS of 121.56 cents . At the last closing share price the estimated dividend yield is 0.98%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.67. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 126.2, implying annual growth of -1.5%. Current consensus DPS estimate is 44.0, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 19.9.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.Market Sentiment: 0.8All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
