S32 - SOUTH32 LIMITED Morgans rates S32 as Add (1) - Morgans...

S32 - SOUTH32 LIMITED

Morgans rates S32 as Add (1) - Morgans assesses a "mixed" 2Q operational and sales result for South32, with Illawarra a big miss against expectation, while there were in-line performances for key assets Worsley, Cannington, Hillside and Cerro Matoso.
In an important outcome, according to the analysts, opex costs were contained and FY24 guidance was reaffirmed. FY24 production guidance was lowered Alumar, Mozal and molybdenum (Sierra Gorda).
The Add rating is unchanged and the target falls to $4.75 from $4.80.
Target price is $4.75 Current Price is $3.15 Difference: $1.6 If S32 meets the Morgans target it will return approximately 51% (excluding dividends, fees and charges). Current consensus price target is $3.92, suggesting upside of 24.3%(ex-dividends)The company's fiscal year ends in June.
Forecast for FY24:
Morgans forecasts a full year FY24 dividend of 6.19 cents and EPS of 11.63 cents . At the last closing share price the estimated dividend yield is 1.97%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.08. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 15.2, implying annual growth of N/A. Current consensus DPS estimate is 6.7, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 20.7.
Forecast for FY25:
Morgans forecasts a full year FY25 dividend of 4.84 cents and EPS of 34.60 cents . At the last closing share price the estimated dividend yield is 1.53%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.10. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 36.4, implying annual growth of 139.5%. Current consensus DPS estimate is 12.8, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 8.7.