Just got this in an email ....Wed, 21 Sept at 9:35 amWednesday,...

Just got this in an email ....Wed, 21 Sept at 9:35 am


Wednesday, 21 September 2022

NHC - NEW HOPE CORPORATION LIMITED

Credit Suisse rates NHC as Outperform (1) - While FY22 results for New Hope revealed few surprises compared to the forecasts by Credit Suisse and consensus, total dividends of 56c exceeded the 54c expected.

The total dividend payout was comprised of a fully franked final dividend of 31c and a fully franked special dividend of 25c, equating to a payout ratio of more than 45% of earnings (EBITDA).

The analyst had previously suggested a dividend payout ratio of 45% of earnings would serve as a possible for catalyst for a positive re-rate. The company's share price appeared to rally in response yesterday.

In Credit Suisse's opinion, New Hope continues to present compelling value and the Outperform rating is retained. The target slips to $7.80 from $7.90 after FY22 results are incorporated.

Target price is $7.80 Current Price is $5.94 Difference: $1.86 If NHC meets the Credit Suisse target it will return approximately 31% (excluding dividends, fees and charges). Current consensus price target is $5.58, suggesting downside of -6.1%(ex-dividends)The company's fiscal year ends in July.

Forecast for FY23:

Credit Suisse forecasts a full year FY23 dividend of 167.00 cents and EPS of 284.00 cents . At the last closing share price the estimated dividend yield is 28.11%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.09. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 224.8, implying annual growth of N/A. Current consensus DPS estimate is 151.3, implying a prospective dividend yield of 25.5%. Current consensus EPS estimate suggests the PER is 2.6.

Forecast for FY24:

Credit Suisse forecasts a full year FY24 dividend of 139.00 cents and EPS of 237.00 cents . At the last closing share price the estimated dividend yield is 23.40%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.51. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.8, implying annual growth of -29.4%. Current consensus DPS estimate is 95.0, implying a prospective dividend yield of 16.0%. Current consensus EPS estimate suggests the PER is 3.7.

Market Sentiment: 0.5All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources