Credit Suisserates AKE asUpgrade to Outperform from Neutral(1) -
Credit Suisse sharply upgrades its spot lithium price forecasts and upgrades Allkem to Outperform from Neutral.
After applying this to Allkem, and a realignment of the production profile at James Bay, the broker raises Allkem's target price to $13.20 a share from $8.70.
The broker prefers Allkem to Pilbara Minerals ((PLS)) on valuation grounds, and considers Allkem offers a more diversified portfolio, better return metrics and synergies to pursue several growth channels.
Target price is$13.20Current Price is$11.43Difference:$1.77
IfAKEmeets the Credit Suisse target it will return approximately15%(excluding dividends, fees and charges).
Current consensus price target is$11.70, suggesting upside of3.9%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY22:
| Credit Suisse forecasts a full yearFY22dividend of0.00cents and EPS of36.37cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is31.43. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is31.4, implying annual growth ofN/A. Current consensus DPS estimate is1.3, implying a prospective dividend yield of0.1%. Current consensus EPS estimate suggests the PER is35.9. |
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Forecast for FY23:
| Credit Suisse forecasts a full yearFY23dividend of59.77cents and EPS of119.50cents.
At the last closing share price the estimated dividend yield is5.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is9.56. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is53.6, implying annual growth of70.7%. Current consensus DPS estimate is17.7, implying a prospective dividend yield of1.6%. Current consensus EPS estimate suggests the PER is21.0. |
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