Just got this ... FNArenaExcerpts From Today's Broker...

Just got this ... FNArena

Excerpts From Today's Broker Call

Wednesday, 27 January 2021

FMG - FORTESCUE METALS GROUP LTD

Macquarie rates FMG as Outperform (1) - Fortescue Metals Group has announced it expects to report earnings of US$4.0-4.1b for the first half FY21, marginally below the estimate of US$4.3b forecast by Macquarie.

The broker expects the company will maintain a dividend pay out ratio of 80% which should deliver a first half dividend of $1.37.

Macquarie considers earnings upgrade momentum remains strong with the company trading on FY21 and FY22 free cash flow yields of 13% and 18%, respectively, at spot prices.

The Outperform rating is unchanged and the target is reduced to $27 from $27.20.

Target price is $27.00 Current Price is $24.32 Difference: $2.68 If FMG meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges). Current consensus price target is $21.79, suggesting downside of -13.9%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 207.00 cents and EPS of 258.80 cents . At the last closing share price the estimated dividend yield is 8.51%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.40. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 314.4, implying annual growth of N/A. Current consensus DPS estimate is 268.6, implying a prospective dividend yield of 10.6%. Current consensus EPS estimate suggests the PER is 8.0.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 138.90 cents and EPS of 173.70 cents . At the last closing share price the estimated dividend yield is 5.71%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.00. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 203.5, implying annual growth of -35.3%. Current consensus DPS estimate is 198.1, implying a prospective dividend yield of 7.8%. Current consensus EPS estimate suggests the PER is 12.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values. Market Sentiment: 0.3All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources