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Australian Broker Call *Extra* Edition – Jul 25, 2022

Daily Market Reports | Jul 25 2022

This story features ALKANE RESOURCES LIMITED, and other companies. For more info SHARE ANALYSIS: ALK

An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

AKE   ALK   BPT   DOC   EVS   GDG   HMY   HUB   JBH   KMD   MAP   NSR   PDL (2)   PDN   PEB   PFP   PLT   RUL   SUN  

AKE    ALLKEM LIMITED

New Battery Elements – Overnight Price: $10.24

Bell Potter rates ((AKE)) as Buy (1) –

Allkem announced the June quarter trading results which showed lower than expected production and higher costs  from the smaller Mt Cattlin, points out Bell Potter.

The broker notes Stage 2 expansion of Olaroz is on track for commencing production in late 2022.

Accounting for a lift in lithium prices and a reduction in the production forecasts at Mt Cattlin for FY23, the broker's earnings forecasts are increased by 1% for FY22 and 14% for FY23.

Bell Potter considers Allkem has a strong balance sheet and good cash flow from existing projects to grow the business and target an ongoing 10% share of the global lithium market.

The Buy rating is maintained. The target falls to $17.43 from $17.53.

This report was published on July 20, 2022.

Target price is $17.43 Current Price is $10.24 Difference: $7.19
If AKE meets the Bell Potter target it will return approximately 70% (excluding dividends, fees and charges).
Current consensus price target is $14.51, suggesting upside of 41.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 66.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 17.1.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 15.00 cents and EPS of 133.10 cents.
At the last closing share price the estimated dividend yield is 1.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 105.0, implying annual growth of 75.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 9.8.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ALK    ALKANE RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.71

Bell Potter rates ((ALK)) as Buy (1) –

Bell Potter assesses the June quarter trading update for Alkane Resources.

The broker points out that Tomingley Gold operations reported results broadly lin in line with forecasts and the expansion approvals are on track for the September quarter.

The company also outlined some important developments for the Northern Molong Porphyry project.

Adjusting for the June quarter results and updated commodity price forecasts, Bell Potter changes earnings forecasts by -3% and 8% for FY22 and FY23, respectively.

The price target is maintained at $1.30 with a Buy rating.

This report was published on July 19, 2022.

Target price is $1.30 Current Price is $0.71 Difference: $0.59
If ALK meets the Bell Potter target it will return approximately 83% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.83.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.46.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BPT    BEACH ENERGY LIMITED

Crude Oil – Overnight Price: $1.79

Bell Potter rates ((BPT)) as Buy (1) –

Beach Energy's June quarter revenue of $504m exceeded Bell Potter's forecasts of $430, up 10% on a year ago.

Higher gas prices and sales volumes underpinned an increase in cash flow to $165m from $7m in the previous quarter.

Bell Potter points out Beach Energy is trading at a discount to other producers and the company will benefit from higher east coast gas prices.

The anaylsts upgrade earnings forecasts by 13% for FY22 and adjust FY23 down -9%. Buy rating retained. Target is raised to $2.40 from $2.00.

This report was published on July 20, 2022.

Target price is $2.40 Current Price is $1.79 Difference: $0.61
If BPT meets the Bell Potter target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $1.98, suggesting upside of 10.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 3.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 1.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.0, implying annual growth of 80.1%.
Current consensus DPS estimate is 2.3, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 7.2.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 2.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 1.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.4, implying annual growth of 9.6%.
Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 6.5.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

DOC    DOCTOR CARE ANYWHERE GROUP PLC

Healthcare services – Overnight Price: $0.19

Bell Potter rates ((DOC)) as Buy (1) –

Bell Potter considers Doctor Care Anywhere with the 1H22 revenue and cash position yet to be reported by the company.

The broker highlights the company is looking to improve margins with am increase in consultations from workflow changes and AXA continues to be a supportive partner.

There are no major changes to earnings forecasts, but the price target is lowered to reflect the recent de-rating of small cap companies and growth stocks, explains the analyst.

Buy retained. Target is reduced to $0.35 from $0.53.

This report was published on July 20, 2022.

Target price is $0.35 Current Price is $0.19 Difference: $0.16
If DOC meets the Bell Potter target it will return approximately 84% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.67 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.48.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.03 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.36.

This company reports in GBP. All estimates have been converted into AUD by FNArena at present FX values.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

EVS    ENVIROSUITE LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.16

Sequoia rates ((EVS)) as Accumulate (2) –

Nice of the broker, Sequoia, reminding us all this company listed in February 2008 under the name Pacific Environment Ltd.

Today, EnviroSuite provides industry with a Software as a Service (SaaS) and Solution as a Service in managing and mitigating environmental impacts.

Following the release of Q4 numbers, Sequoia believes cross-selling opportunities between divisions are starting to come through. The broker remains of the view this company has a "massive" total serviceable addressable market (SAM) on the horizon.

Current forecasts, explains the broker, assume a progressive recovery in the Aviation business, on top of accelerating growth in Omnis and EVS Water. Accumulate/High Risk. Target $0.175, up from $0.17 prior.

Earnings forecasts have been pared back (larger losses).

This report was published on July 14, 2022.

Target price is $0.18 Current Price is $0.16 Difference: $0.015
If EVS meets the Sequoia target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Sequoia forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.00.

Forecast for FY23:

Sequoia forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.78.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GDG    GENERATION DEVELOPMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $1.34

Moelis rates ((GDG)) as Buy (1) –

Following Generation Development's June quarter update, Moelis observes how investment bond net inflows of +$113m were offset by -$151m of negative investment performance as a result of the market decline in the June-quarter.

New investment-linked annuity product 'LifeIncome' attracted its first $2m in sales while Lonsec Investment Solutions' assets under management (AUM) increased by 85% yoy to $3.6bn.

Estimates have been lowered, it appears predominantly to reflect lower profits from investment bonds, but Moelis retains a positive view and lines up multiple reasons as to why, including high growth momentum and the company developing into the local market leader in investment bonds.

Buy. Target falls to $1.90 from $2.04.

This report was published on July 22, 2022.

Target price is $1.90 Current Price is $1.34 Difference: $0.56
If GDG meets the Moelis target it will return approximately 42% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 2.00 cents and EPS of 2.90 cents.
At the last closing share price the estimated dividend yield is 1.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.21.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 2.00 cents and EPS of 3.60 cents.
At the last closing share price the estimated dividend yield is 1.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.22.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HMY    HARMONEY CORP LIMITED

Diversified Financials – Overnight Price: $0.80

Jarden rates ((HMY)) as Buy (1) –

Harmoney announced FY22 trading update in line with Jarden's expectations and offered upbeat guidance for FY23, ahead of the analyst's expectations.

The broker highlights Harmoney anticipates a positive cash profit for FY22 and earnings growth continuing in FY23 from existing customers. 

In FY23 the analyst forecasts 45% growth in the gross loan book from estimated 20% origination volume growth. 

Jarden adjusts earnings forecasts by -0.8% for FY22 and 1.9% for FY23. Target price increases to $1.15 from $1.05. Buy rating.

This report was published on July 21, 2022.

Target price is $1.15 Current Price is $0.80 Difference: $0.35
If HMY meets the Jarden target it will return approximately 44% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.47 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 170.94.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.85.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $24.07

Jarden rates ((HUB)) as Neutral (3) –

Jarden sees the 4Q22 net inflows for Hub24 as in line with recent guidance and notes the funds under administration (FUA) at $49.7bn are below expectations from the impact of weaker markets.

The broker envisages downside risks to consensus earnings forecasts from slower net inflows and the moderation in new advisers alongside an expected weaker market outlook.

Earnings forecasts lowered by -0.3% and -1.7% for FY22 and FY23 and Jarden believes there is limited upside value with the shares trading around 39x FY23 earnings.

The Neutral rating is retained and the target price decreases to $23.75 from $23.85.

This report was published on July 21, 2022.

Target price is $23.75 Current Price is $24.07 Difference: minus $0.32 (current price is over target).
If HUB meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $29.67, suggesting upside of 23.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 19.70 cents and EPS of 43.80 cents.
At the last closing share price the estimated dividend yield is 0.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.0, implying annual growth of 222.3%.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 58.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 25.10 cents and EPS of 56.70 cents.
At the last closing share price the estimated dividend yield is 1.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.2, implying annual growth of 44.4%.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 40.7.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

JBH    JB HI-FI LIMITED

Consumer Electronics – Overnight Price: $44.46

Jarden rates ((JBH)) as Underweight (4) –

JB Hi-Fi pre-announced FY22 results which are nothing short of "electric" comments Jarden with stronger 4Q22 sales, inventory draw down and the much better than expected margins from promotions, inflation and cost controls.

The analysts see the growing risks of macro-economic headwinds to consumer electronic spending in the 2Q23, alongside increasing competition from direct-to-consumer, Amazon, Bunnings, KMart and B2B brands.

Jarden notes the valuation is not high and awaits the July trading update at the FY22 August 15 earnings announcement.

The Underweight rating is unchanged and the price target is raised to $39.50 from $38.90.

This report was published on July 21, 2022.

Target price is $39.50 Current Price is $44.46 Difference: minus $4.96 (current price is over target).
If JBH meets the Jarden target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $46.69, suggesting upside of 5.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 289.00 cents and EPS of 474.30 cents.
At the last closing share price the estimated dividend yield is 6.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 478.4, implying annual growth of 8.5%.
Current consensus DPS estimate is 316.8, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 9.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 251.00 cents and EPS of 388.00 cents.
At the last closing share price the estimated dividend yield is 5.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 366.2, implying annual growth of -23.5%.
Current consensus DPS estimate is 242.8, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 12.1.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

KMD    KMD BRANDS LIMITED

Sports & Recreation – Overnight Price: $0.97

Canaccord Genuity rates ((KMD)) as Hold (3) –

Canaccord Genuity finds it hard to construct a narrative either side of its Hold rating. It is clear the recovery for the New Zealand economy has been sluggish and management has already conceded inventories might be higher than usual, triggering question marks about margins.

The broker does concede, given how hard the pandemic has hit KMD Brands, this could potentially be one of the few in the sector to achieve strong growth in FY23.

The analysts hold a rather bearish view on the outlook for consumer spending and outdoor remains a competitive category, they point out.

Canaccord Genuity retains its Hold rating. Price target $1.05 (unchanged). Both EPS and DPS forecasts have increased.

This report was published on July 14, 2022.

Target price is $1.05 Current Price is $0.97 Difference: $0.08
If KMD meets the Canaccord Genuity target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in July.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 5.61 cents and EPS of 5.61 cents.
At the last closing share price the estimated dividend yield is 5.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.28.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 6.55 cents and EPS of 9.35 cents.
At the last closing share price the estimated dividend yield is 6.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.37.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MAP    MICROBA LIFE SCIENCES LIMITED

Overnight Price: $0.28

Bell Potter rates ((MAP)) as Hold (3) –

Microba Life Sciences announced 4Q22 revenues of $1.86m, rising 59% on the previous year ang bringing FY22 revenues to $4.7m, compared to Bell Potter's forecast of $4.6m.

The company continues to develop and roll out new products with $30.5m cash in hand, assesses the analyst, providing funding until FY24.

The valuation is reduced to reflect a higher cost of capital plus a capital raising down the track. The price target is lowered to 34c from 40c and the Speculative Hold rate is retained.

This report was published on July 20, 2022.

Target price is $0.34 Current Price is $0.28 Difference: $0.06
If MAP meets the Bell Potter target it will return approximately 21% (excluding dividends, fees and charges).

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.09.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.83.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NSR    NATIONAL STORAGE REIT

REITs – Overnight Price: $2.37

Moelis rates ((NSR)) as Hold (3) –

National Storage REIT has issued upgraded FY22 EPS guidance, now forecasting a minimum of 10.5cps (from 10cps prior) and Moelis notes strong RevPAM growth and positive occupancy growth continue to underpin strong growth momentum.

While acquisition momentum has slowed due to more competition and higher interest rates, Moelis still sees capacity for further acquisitions and developments.

The new Net Tangible Asset (NTA) calculation sits at $2.34, an increase by 25cps with estimated gearing of 23% as at June.

Moelis has made no changes to its Hold rating or $2.37 price target.

This report was published on July 22, 2022.

Target price is $2.37 Current Price is $2.37 Difference: $0
If NSR meets the Moelis target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $2.33, suggesting downside of -1.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 10.00 cents and EPS of 10.50 cents.
At the last closing share price the estimated dividend yield is 4.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.4, implying annual growth of -65.7%.
Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 22.8.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 10.30 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 4.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.3, implying annual growth of -1.0%.
Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 23.0.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PDL    PENDAL GROUP LIMITED

Wealth Management & Investments – Overnight Price: $4.75

Bell Potter rates ((PDL)) as Buy (1) –

Continued outflows and negative market returns pushed funds under management at Pendal Group down by -11.1% to $111bn, notes Bell Potter, adding the fund manager is hardly the only one doing it tough this year.

A reminder, Pendal's FuM stood at $139.2bn at 30 September 2021.

The broker suggests maybe a tie-up with Perpetual ((PPT)) is not such a bad idea? But why was no update provided on the announced share buyback?

All eyes peeled on further commentary as to how management wants to  keep a lid on cost growth, to be expected with the FY22 release in August.

Buy. Target drops to $5.90 (was $6.90) on further reductions to estimates.

This report was published on July 18, 2022.

Target price is $5.90 Current Price is $4.75 Difference: $1.15
If PDL meets the Bell Potter target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $4.61, suggesting downside of -2.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 46.00 cents and EPS of 48.10 cents.
At the last closing share price the estimated dividend yield is 9.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.1, implying annual growth of -7.4%.
Current consensus DPS estimate is 44.4, implying a prospective dividend yield of 9.3%.
Current consensus EPS estimate suggests the PER is 9.9.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 38.00 cents and EPS of 41.30 cents.
At the last closing share price the estimated dividend yield is 8.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.9, implying annual growth of -21.2%.
Current consensus DPS estimate is 34.4, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 12.5.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Jarden rates ((PDL)) as Buy (1) –

Jarden has nominated Pendal Group as the fund manager with the highest EPS growth potential on the ASX, currently priced at "compelling valuation".

Broad performance improvement should attract fund inflows over the coming two years, predicts the broker. Jarden also sees Pendal as well-positioned to deal with cost increases.

Meanwhile in the short term, the June-quarterly update saw worsening fund outflows, well-below what Jarden was expecting.

Estimates have been cut, which pulls back the price target to $4.45 from $4.70. Buy rating retained (see positive commentary above).

This report was published on July 18, 2022.

Target price is $4.45 Current Price is $4.75 Difference: minus $0.3 (current price is over target).
If PDL meets the Jarden target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.61, suggesting downside of -2.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 43.90 cents and EPS of 46.70 cents.
At the last closing share price the estimated dividend yield is 9.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.1, implying annual growth of -7.4%.
Current consensus DPS estimate is 44.4, implying a prospective dividend yield of 9.3%.
Current consensus EPS estimate suggests the PER is 9.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 31.10 cents and EPS of 34.60 cents.
At the last closing share price the estimated dividend yield is 6.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.9, implying annual growth of -21.2%.
Current consensus DPS estimate is 34.4, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 12.5.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PDN    PALADIN ENERGY LIMITED

Uranium – Overnight Price: $0.64

Bell Potter rates ((PDN)) as Speculative Buy (1) –

Paladin Energy announced the restart of the Langer Heinrich Mine with expected production in the March quarter 2024, in-line with Bell Potter's expectations.

Cost expectations rise from higher labour and raw materials, alongside infrastructure and utility works to US$118m, some 36% above initial company estimates and compared to the US$100m analysts' forecast.

Bell Potter considers Paladin Energy is the most liquid and largest uranium stock on the ASX.

The Speculative Buy rating is retained and the target price is lowered to $1.05 from $1.06.

This report was published on July 20, 2022.

Target price is $1.05 Current Price is $0.64 Difference: $0.41
If PDN meets the Bell Potter target it will return approximately 64% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.39 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.21.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.39 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.21.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PEB    PACIFIC EDGE LIMITED

Medical Equipment & Devices – Overnight Price: $0.62

Bell Potter rates ((PEB)) as Speculative Buy (1) –

The 1Q23 testing volumes for Pacific Edge showed total laboratory throughput up 13% to 7,055 from the previous quarter and unique ordering clinicians rose 14% to 894, points out Bell Potter.

The broker explains there is growth in the APAC region depending on the new usage in Australia and highlights Northern Health has included the Cxbladder Monitor for bladder cancer patients. To grow the service further agreements in Australian public hospitals will be required.

Bell Potter retains a Speculative Buy rating with a target of $0.95.

This report was published on July 20, 2022.

Target price is $0.95 Current Price is $0.62 Difference: $0.33
If PEB meets the Bell Potter target it will return approximately 53% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.29.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 2.63 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.57.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PFP    PROPEL FUNERAL PARTNERS LIMITED

Consumer Products & Services – Overnight Price: $4.71

Bell Potter rates ((PFP)) as Buy (1) –

Bell Potter updates the coverage of Propel Funeral Partners with a change of analyst.

The broker views Propel Funeral Partners as well placed to consolidate the very fragmented funeral market with strong management and some $149m in available debt facilities.

Bell Potter's analysis sees the company as the second largest operator in A&NZ and estimates the company can grow market share to around 12% by FY25.

The stock trades at a premium rating which the broker believes is justified in light of the current operations, M&A potential and the solid historical performance.

Accordingly the stock is awarded a Buy rating. The price target is $5.40.

This report was published on July 21, 2022.

Target price is $5.40 Current Price is $4.71 Difference: $0.69
If PFP meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.90 cents and EPS of 14.20 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.17.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 12.60 cents and EPS of 15.80 cents.
At the last closing share price the estimated dividend yield is 2.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.81.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PLT    PLENTI GROUP LIMITED

Business & Consumer Credit – Overnight Price: $0.64

Wilsons rates ((PLT)) as Overweight (1) –

Plenti Group's Q1 market update has triggered lower forecasts at Wilsons. Overweight rating has been retained in combination with a $1.40 price target (was $1.60).

Other than loan originations, which were negative quarter-on-quarter, Wilsons found all other key operational metrics surprised to the upside.

The broker argues management at the lender and customers are preparing for higher interest rates. Also: no forward guidance has been provided.

Apart from anticipated larger losses in the short term, Wilsons has also pushed out achieving profitability to FY25, instead of FY24 as was projected previously.

This report was published on July 21, 2022.

Target price is $1.40 Current Price is $0.64 Difference: $0.76
If PLT meets the Wilsons target it will return approximately 119% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.22.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.56.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RUL    RPMGLOBAL HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $1.52

Moelis rates ((RUL)) as Initiation of coverage with Buy (1) –

Moelis has initiated coverage of RPMGlobal with a maiden Buy rating accompanied by a $1.94 price target.

The broker views the company as a well-established provider of services to mining companies with a Tier-1 customer base, profitable operations, well-capitalised and with a strong organic growth profile.

Moelis highlights there is a growing ESG focus at the company, including via new emissions software applications. Revenue growth is projected into double-digit percentages for at least the four years ahead.

Revenues were stagnant before taking a dive in FY21 but the broker explains RPMGlobal was going through a transition period during which upfront payments have been replaced with subscription sales and the sale of the Geogas division.

RPMGlobal should be profitable in FY23 on current projections.

This report was published on July 21, 2022.

Target price is $1.94 Current Price is $1.52 Difference: $0.42
If RUL meets the Moelis target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.28 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 542.86.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.26 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 120.63.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SUN    SUNCORP GROUP LIMITED

Insurance – Overnight Price: $11.01

Jarden rates ((SUN)) as Overweight (2) –

Jarden reviews the earnings forecasts for Suncorp Group post the sale of the bank operations.

The broker's earnings estimates are revised down for FY24 by -6.7% to reflect the sale and the anticipated changes in capital management, including a special $400m dividend.

The divestment is viewed as strategically sensible by the analyst, however the valuation for the remaining insurance business is now calculated to be on par with competitor Insurance Australia Group ((IAG)) for FY24.

Jarden highlights the attractive valuations for the general insurance sector and rates IAG ahead of Suncorp Group, but QBE Insurance ((QBE)) is the top pick.

The price target remains at $13.10 and an Overweight rating is maintained.

This report was published on July 21, 2022.

Target price is $13.10 Current Price is $11.01 Difference: $2.09
If SUN meets the Jarden target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $13.17, suggesting upside of 19.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 44.00 cents and EPS of 52.60 cents.
At the last closing share price the estimated dividend yield is 4.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.4, implying annual growth of -34.0%.
Current consensus DPS estimate is 42.2, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 20.6.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 95.70 cents and EPS of 92.50 cents.
At the last closing share price the estimated dividend yield is 8.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 90.1, implying annual growth of 68.7%.
Current consensus DPS estimate is 70.8, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 12.2.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

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CHARTS

ALK BPT DOC EVS GDG HMY HUB IAG JBH KMD MAP NSR PDL PDN PEB PFP PLT PPT QBE RUL SUN

For more info SHARE ANALYSIS: ALK - ALKANE RESOURCES LIMITED

For more info SHARE ANALYSIS: BPT - BEACH ENERGY LIMITED

For more info SHARE ANALYSIS: DOC - DOCTOR CARE ANYWHERE GROUP PLC

For more info SHARE ANALYSIS: EVS - ENVIROSUITE LIMITED

For more info SHARE ANALYSIS: GDG - GENERATION DEVELOPMENT GROUP LIMITED

For more info SHARE ANALYSIS: HMY - HARMONEY CORP LIMITED

For more info SHARE ANALYSIS: HUB - HUB24 LIMITED

For more info SHARE ANALYSIS: IAG - INSURANCE AUSTRALIA GROUP LIMITED

For more info SHARE ANALYSIS: JBH - JB HI-FI LIMITED

For more info SHARE ANALYSIS: KMD - KMD BRANDS LIMITED

For more info SHARE ANALYSIS: MAP - MICROBA LIFE SCIENCES LIMITED

For more info SHARE ANALYSIS: NSR - NATIONAL STORAGE REIT

For more info SHARE ANALYSIS: PDL - PENDAL GROUP LIMITED

For more info SHARE ANALYSIS: PDN - PALADIN ENERGY LIMITED

For more info SHARE ANALYSIS: PEB - PACIFIC EDGE LIMITED

For more info SHARE ANALYSIS: PFP - PROPEL FUNERAL PARTNERS LIMITED

For more info SHARE ANALYSIS: PLT - PLENTI GROUP LIMITED

For more info SHARE ANALYSIS: PPT - PERPETUAL LIMITED

For more info SHARE ANALYSIS: QBE - QBE INSURANCE GROUP LIMITED

For more info SHARE ANALYSIS: RUL - RPMGLOBAL HOLDINGS LIMITED

For more info SHARE ANALYSIS: SUN - SUNCORP GROUP LIMITED