MFG - MAGELLAN FINANCIAL GROUP LIMITED UBS rates MFG as Downgrade to Sell from Neutral (5)
- Retail funds under management are experiencing outflows and UBS anticipates there would have been around ~$255m of retail net outflows during August. Meanwhile pressure on fees is elevated.The higher-than-average fees and below-average performance is likely to put pressure on the company to lower base management fees, in the broker's opinion, and the rating is downgraded to Sell from Neutral. Earnings estimates are lowered by ~3% for FY22 to reflect these assumptions.
Target is reduced to $35.00 from $52.70.Target price is $35.00 Current Price is $40.50 Difference: minus $5.50 (current price is over target). If MFG meets the UBS target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $44.27, suggesting upside of 9.3% (ex-dividends) The company's fiscal year ends in June. Forecast for FY22: UBS forecasts a full year FY22 EPS of 228.00 cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.76.
How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 248.9, implying annual growth of 72.1%. Current consensus DPS estimate is 241.9, implying a prospective dividend yield of 6.0%. Current consensus EPS estimate suggests the PER is 16.3. Forecast for FY23: UBS forecasts a full year FY23 EPS of 251.00 cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.14. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 269.2, implying annual growth of 8.2%. Current consensus DPS estimate is 253.0, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 15.0. Market Sentiment: -0.2 All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources.
MFG Price at posting:
$39.73 Sentiment: Buy Disclosure: Held
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