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I just got this ...Fri, 25 June at 9:32 am

Friday, 25 June 2021

S32 - SOUTH32 LIMITED

Credit Suisse rates S32 as Upgrade to Outperform from Neutral (1) - Credit Suisse lifts the rating for South32 to Outperform from Neutral and raises the target price to $3.60 from $3. It's anticipated the global aluminium market will head into protracted deficits from 2022. Its also felt being ESG-compliant is a big plus for the company.

The broker believes aluminium should be in high demand for its role in electricity transmission, solar projects and light-weight. Credit Suisse forecasts the aluminium price to climb to US$1.20/lb next year.

The analyst expects a free cashflow contribution from the company’s aluminium division of 44% in 2022, or 62% if the alumina

refineries are included.

Target price is $3.60 Current Price is $2.91 Difference: $0.69 If S32 meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges). Current consensus price target is $3.47, suggesting upside of 19.3%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 6.35 cents and EPS of 15.01 cents . At the last closing share price the estimated dividend yield is 2.18%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.39. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.6, implying annual growth of N/A. Current consensus DPS estimate is 6.4, implying a prospective dividend yield of 2.2%. Current consensus EPS estimate suggests the PER is 18.7.

Forecast for FY22:

Credit Suisse forecasts a full year FY22 dividend of 10.59 cents and EPS of 26.59 cents . At the last closing share price the estimated dividend yield is 3.64%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.94. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.5, implying annual growth of 69.9%. Current consensus DPS estimate is 10.5, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 11.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.Market Sentiment: 0.9All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources