FMG – Macquarie rates the stock as Outperform

Fortescue Metals Group has announced it expects to report earnings of US$4.0-4.1b for the first half FY21, marginally below the estimate of US$4.3b forecast by Macquarie.

The broker expects the company will maintain a dividend payout ratio of 80% which should deliver a first half dividend of $1.37.

Macquarie considers earnings upgrade momentum remains strong with the company trading on FY21 and FY22 free cash flow yields of 13% and 18%, respectively, at spot prices.

The Outperform rating is unchanged and the target is reduced to $27 from $27.20.

Sector: Materials.


Target price is $27.00.Current Price is $24.32. Difference: $2.68 – (brackets indicate current price is over target). If FMG meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).



Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →