News: NCK Nick Scali Expects FY NPAT Of $78 Mln-$80 Mln, page-8

I just got this ... Wed, 5 May at 9:35 am

NCK - NICK SCALI LIMITED

Citi rates NCK as Buy (1) - Trading conditions appear slightly better than previously forecast and with an elevated order book at the end of April combined with housing tailwinds Citi finds its FY22 forecasts are looking increasingly conservative.

Citi estimates sales growth during the four months to April was 73% with written sales order growth to the tune of 95%. The broker calculates the gap between sales and written order growth that was observed in the first half is narrowing and, in turn, this suggests freight constraints are being reduced.

The broker reiterates a Buy rating, noting a dividend yield of 8% and a strong balance sheet that can support acquisitions. Target is $12.05.

Target price is $12.05 Current Price is $10.42 Difference: $1.63 If NCK meets the Citi target it will return approximately 16% (excluding dividends, fees and charges). The company's fiscal year ends in June.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 80.00 cents and EPS of 96.20 cents . At the last closing share price the estimated dividend yield is 7.68%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.83.

Forecast for FY22:

Citi forecasts a full year FY22 dividend of 48.60 cents and EPS of 59.00 cents . At the last closing share price the estimated dividend yield is 4.66%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.66.

Market Sentiment: 1.0All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources