Just got this in an email ...
Wed, 22 Dec at 9:37 amDon't know if it was posted before ??
Wednesday, 22 December 2021
PLS - PILBARA MINERALS LIMITED
Macquarie rates PLS as Outperform (1) - Macquarie upgrades earnings for Australian lithium miners, expecting strong electric vehicle sales volumes will support a four-year run of record spot lithium prices.
The broker increases CY22 regional lithium prices 3% to 18%, and CY23-CY25 prices by 12% to 22%.
The broker expects spodumene prices will peak in mid-2022 but increases its peak assumption by a hefty 100%.
Pilbara Minerals is Macquarie's preferred pure play lithium producer, the broker estimating a five-year and 10-year compound annual growth of 20% and 14% respectively.
Pilbara enjoys the largest earnings leverage to the spodumene price, a downgrade in production guidance and tight shipping market removes only slightly dimming the glory.
Macquarie upgrades Pilbara's earnings forecasts 18% to 61% across FY22 to FY24.
Outperform rating retained. Target price jumps to $3.70 from $2.50.
Target price is $2.80 Current Price is $2.51 Difference: $0.29 If PLS meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges). Current consensus price target is $2.56, suggesting upside of 2.1%(ex-dividends)The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of 19.70 cents . At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.74. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 17.4, implying annual growth of N/A. Current consensus DPS estimate is 3.2, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 14.4.
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of 29.10 cents . At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.63. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 25.5, implying annual growth of 46.6%. Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 1.7%. Current consensus EPS estimate suggests the PER is 9.8.
Market Sentiment: 0.3All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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