Ann: Orora - Results News Release - FY18, page-19

ORA - ORORA LIMITED​

Morgans rates ORA as Add (1)

Orora's result came in broadly in line with the broker, but required a 2% earnings beat from Australasia to offset a -5% miss from North America. The broker has trimmed FY19 forecasts and dropped its target to $3.70 from $3.87.

The company was very quiet on the M&A front in FY18, the broker notes, as it concentrated on bedding down its new cloud-based system. With that now in place, a solid pipeline of opportunities looms in FY19 and Orora has balance sheet strength to exploit. Add retained.
Target price is $3.70 Current Price is $3.46 Difference: $0.24 If ORA meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges). Current consensus price target is $3.54, suggesting upside of 2.4%(ex-dividends)The company's fiscal year ends in June.
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 13.00 cents and EPS of 19.00 cents .At the last closing share price the estimated dividend yield is 3.76%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.21. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.6, implying annual growth of 5.1%.Current consensus DPS estimate is 13.3, implying a prospective dividend yield of 3.8%.Current consensus EPS estimate suggests the PER is 18.6.Forecast for FY20:
Morgans forecasts a full year FY20 dividend of 14.00 cents and EPS of 19.00 cents .At the last closing share price the estimated dividend yield is 4.05%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.21. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 19.4, implying annual growth of 4.3%.Current consensus DPS estimate is 14.2, implying a prospective dividend yield of 4.1%.Current consensus EPS estimate suggests the PER is 17.8.​