Adelaide Brighton’s FY21 earnings outpaced consensus and Credit Suisse’s forecasts by 2% despite non-recurring costs sharply outpacing guidance (more than double), thanks to higher property realisations and better lime pricing.
Corporate earnings disappointed due to a second-half reallocation.
The broker was pleased that the cost clip was non-recurring and the company has forecast a 5% increase in FY24 incremental infrastructure revenue based on the government pipeline.
Target price rises to $3.40 from $3. Neutral rating retained.
Sector: Materials.
Target price is $3.40.Current Price is $3.24. Difference: $0.16 – (brackets indicate current price is over target). If ABC meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
