Analysts bullish on Fonterra numbers
Source: dairynews.today
Analysts remain optimistic about Fonterra's financial outlook post-Mainland sale, with steady earnings and dividends forecasted.
Analysts are exhibiting strong confidence in Fonterra's financial projections following the sale of the Mainland consumer businesses. Forsyth Barr anticipates that Fonterra will stabilize, achieving around 52 cents earnings per share annually.
The sale is expected to generate dividends of approximately 37 cents. Craig's Investment Partners predicts earnings per share for Fonterra at 66 cents for the current financial year, with subsequent earnings of 59 cents for the following two years.
With a presumed payout ratio of 70%, dividends are estimated to be 47 cents, 42 cents, and 41 cents consecutively. The anticipated sale of Mainland Group is valued between $2.5 billion and $3 billion according to equities analysts, Matt Montgomerie and Benjamin Crozier.
Fonterra reports a significant 16% rise in operating earnings to $208 million in the first half of FY25, largely attributed to promising results from Fonterra Australia’s ingredients products, contrasting their previous year's losses.
The projected dividend yields for the company suggest an impressive return, with Fonterra Group shares (FCG) and Fonterra Shareholder Fund units (FSF) expected to generate 11-13% gross dividend yields in FY25.
As of the latest updates, the FCG share price stands at $4.95, reflecting a monthly increase of 20 cents, while FSF has risen from $5.10 to $5.76 since the month's start.
The sale is expected to generate dividends of approximately 37 cents. Craig's Investment Partners predicts earnings per share for Fonterra at 66 cents for the current financial year, with subsequent earnings of 59 cents for the following two years.
With a presumed payout ratio of 70%, dividends are estimated to be 47 cents, 42 cents, and 41 cents consecutively. The anticipated sale of Mainland Group is valued between $2.5 billion and $3 billion according to equities analysts, Matt Montgomerie and Benjamin Crozier.
Fonterra reports a significant 16% rise in operating earnings to $208 million in the first half of FY25, largely attributed to promising results from Fonterra Australia’s ingredients products, contrasting their previous year's losses.
The projected dividend yields for the company suggest an impressive return, with Fonterra Group shares (FCG) and Fonterra Shareholder Fund units (FSF) expected to generate 11-13% gross dividend yields in FY25.
As of the latest updates, the FCG share price stands at $4.95, reflecting a monthly increase of 20 cents, while FSF has risen from $5.10 to $5.76 since the month's start.
