I just got this ...Thu, 3 June at 9:26 amThursday, 3 June...

I just got this ...Thu, 3 June at 9:26 am

Thursday, 3 June 2021

CSR - CSR LIMITED

Citi rates CSR as Buy (1) - The construction industry is experiencing a period of meaningful commodity price inflation, explains Citi. While the spike in costs may be transitory, it's felt current levels will likely underpin higher housing inflation for at least the nine months through to March quarter 2022.

The broker thinks the ability to offset this via price rises and cost savings will be limited, driving margin pressure. It's estimated an additional 5% increase in raw material costs would equate to an average -10% earnings (EBIT) headwind to FY22 estimates.

The risks are estimated to be lower for CSR, given a high level of vertical integration. The Buy rating and $7.40 target are maintained.

Target price is $7.40 Current Price is $6.04 Difference: $1.36 If CSR meets the Citi target it will return approximately 23% (excluding dividends, fees and charges). Current consensus price target is $6.40, suggesting upside of 5.9%(ex-dividends)The company's fiscal year ends in March.

Forecast for FY22:

Citi forecasts a full year FY22 dividend of 25.50 cents and EPS of 36.80 cents . At the last closing share price the estimated dividend yield is 4.22%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.41. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.5, implying annual growth of 17.9%. Current consensus DPS estimate is 25.8, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 17.0.

Forecast for FY23:

Citi forecasts a full year FY23 dividend of 28.50 cents and EPS of 40.50 cents . At the last closing share price the estimated dividend yield is 4.72%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.91. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.5, implying annual growth of 5.6%. Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 16.1.

Market Sentiment: 0.3All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources