Australian Broker Call *Extra* Edition – Aug 08, 2023

This story features AUCKLAND INTERNATIONAL AIRPORT LIMITED, and other companies. For more info SHARE ANALYSIS: AIA

An additional news report on the recommendation, valuation, forecast and opinion changes and updates 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)

AIA   ANZ (2)   ASX   BEN   CCX   GUD   LTR   NEC   NWS   OML   RMD (3)   SUN (2)   SWM   XRO  

AIA    AUCKLAND INTERNATIONAL AIRPORT LIMITED

Infrastructure & Utilities – Overnight Price: $7.71

Goldman Sachs rates ((AIA)) as Initiation of coverage with Neutral (3) –

Goldman Sachs initiates coverage of Auckland International Airport with a Neutral rating and NZ$8.70 target. The broker estimates a 50% underlying earnings growth rate for the five years to FY27. This will be underpinned by an 80% uplift in aeronautical segment earnings.

The broker notes the company has outlined a significant investment program over 10 years with 85% of the associated cash outflow expected in the next five years that will compress free cash generation. Hence, a dividend payout is modelled at the bottom of the 70-90% range over the medium term.

This report was published on August 6, 2023.

Current Price is $7.71. Target price not assessed.
Current consensus price target is $7.05, suggesting downside of -8.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 2.75 cents and EPS of 8.26 cents.
At the last closing share price the estimated dividend yield is 0.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 93.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.3, implying annual growth of N/A.
Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 82.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 11.93 cents and EPS of 17.44 cents.
At the last closing share price the estimated dividend yield is 1.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of 94.6%.
Current consensus DPS estimate is 15.1, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 42.6.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ANZ    ANZ GROUP HOLDINGS LIMITED

Banks – Overnight Price: $25.30

Goldman Sachs rates ((ANZ)) as Buy (1) –

Goldman Sachs notes the ACCC has denied merger authorisation between ANZ Bank and Suncorp Bank, not satisfied that the acquisition will not substantially lessen competition.

ANZ Bank has acknowledged the decision and will now obtain a review by the independent Australian Competition Tribunal.

Goldman Sachs understands Suncorp Group supports ANZ Bank with the next step of the merger authorisation.

Buy rating and $27.38 target maintained.

This report was published on August 4, 2023.

Target price is $27.38 Current Price is $25.30 Difference: $2.08
If ANZ meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $26.41, suggesting upside of 4.4%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 162.00 cents and EPS of 239.00 cents.
At the last closing share price the estimated dividend yield is 6.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 239.1, implying annual growth of -4.4%.
Current consensus DPS estimate is 162.5, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 10.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 162.00 cents and EPS of 217.00 cents.
At the last closing share price the estimated dividend yield is 6.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 225.0, implying annual growth of -5.9%.
Current consensus DPS estimate is 163.0, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 11.2.

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

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

Jarden notes the ACCC decision not to grant a merger authorisation for ANZ Bank and Suncorp Bank. The ACCC believes the deal would limit options for second-tier bank combinations that could strengthen competition, assessing a Bendigo and Adelaide Bank merger with Suncorp Bank as a more realistic scenario.

Jarden notes Suncorp Group does not support a regional bank tie up and, with ANZ Bank seeking a review through the Australian Competition Tribunal, there is still potential for the merger to be completed, albeit towards the end of FY24. Overweight rating and $24.80 target maintained.

This report was published on August 4, 2023.

Target price is $24.80 Current Price is $25.30 Difference: minus $0.5 (current price is over target).
If ANZ meets the Jarden target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $26.41, suggesting upside of 4.4%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 163.00 cents and EPS of 231.00 cents.
At the last closing share price the estimated dividend yield is 6.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 239.1, implying annual growth of -4.4%.
Current consensus DPS estimate is 162.5, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 10.6.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 163.00 cents and EPS of 222.00 cents.
At the last closing share price the estimated dividend yield is 6.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 225.0, implying annual growth of -5.9%.
Current consensus DPS estimate is 163.0, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 11.2.

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

ASX    ASX LIMITED

Wealth Management & Investments – Overnight Price: $62.74

Jarden rates ((ASX)) as Neutral (3) –

Despite the Reserve Bank of Australia maintaining cash rates, Jarden notes daily average futures volumes grew 12% on ASX, supported by short-term interest-rate futures contract growth of 38%. Activity elsewhere remains soft.

While there is scope for revenue momentum to improve as trading and capital raising recover from cyclical lows, the broker considers the outlook uncertain. Given the risks a Neutral rating is maintained with the $63.50 target.

This report was published on August 4, 2023.

Target price is $63.50 Current Price is $62.74 Difference: $0.76
If ASX meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $63.91, suggesting upside of 1.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 231.60 cents and EPS of 257.30 cents.
At the last closing share price the estimated dividend yield is 3.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 243.7, implying annual growth of -7.2%.
Current consensus DPS estimate is 219.8, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 25.7.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 226.20 cents and EPS of 266.10 cents.
At the last closing share price the estimated dividend yield is 3.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 259.6, implying annual growth of 6.5%.
Current consensus DPS estimate is 226.6, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 24.2.

Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BEN    BENDIGO & ADELAIDE BANK LIMITED

Banks – Overnight Price: $9.18

Goldman Sachs rates ((BEN)) as Neutral (3) –

Bendigo & Adelaide Bank has announced the impairment of software intangibles of -$33.3m and additional non-cash restructuring costs of -$27.5m.

The broker notes while net interest margins have outperformed prior expectations, it appears to have been at the expense of volume momentum.

Goldman Sachs makes minor changes to estimates and does not believe the changes are material. Neutral rating and $9.58 target maintained.

This report was published on August 4, 2023.

Target price is $9.58 Current Price is $9.18 Difference: $0.4
If BEN meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $9.43, suggesting upside of 2.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 60.00 cents and EPS of 90.00 cents.
At the last closing share price the estimated dividend yield is 6.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.7, implying annual growth of 4.7%.
Current consensus DPS estimate is 60.4, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 10.0.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 62.00 cents and EPS of 82.00 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 11.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.8, implying annual growth of -7.5%.
Current consensus DPS estimate is 60.8, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 10.8.

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

CCX    CITY CHIC COLLECTIVE LIMITED

Apparel & Footwear – Overnight Price: $0.62

Wilsons rates ((CCX)) as Market Weight (3) –

City Chic Collective has sold Evans and its EMEA inventory to AK Retail for $12m as part of a strategic review. The other European business, Navabi, was closed.

Wilsons welcomes the disposal of the EMEA operations as the core business never performed to expectations and there were broader issues with excess inventory.

Total closure costs are estimated at -$3m with details of the impairments and further restructuring expected at the August results. Market Weight. Target is $0.36.

This report was published on August 4, 2023.

Target price is $0.36 Current Price is $0.62 Difference: minus $0.26 (current price is over target).
If CCX meets the Wilsons target it will return approximately minus 42% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.55, suggesting downside of -11.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 13.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.4, 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 N/A.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 10.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is N/A, implying annual growth of N/A.
Current consensus DPS estimate is 0.2, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GUD    G.U.D. HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $10.37

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

G.U.D. Holdings is expecting net cash proceeds of around $56m from the sale and purchase agreement with Waterco to divest Davey Water Products for a total enterprise value of $65m.

Wilsons considers the sale a logical move by management given a lack of earnings improvement for Davey over the past two years. 

G.U.D. Holdings will now become a pure automotive play with less debt, summarises the analyst.

The Overweight rating and $11 target are unchanged.

This report was published on August 8, 2023.

Target price is $11.00 Current Price is $10.37 Difference: $0.63
If GUD meets the Wilsons target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $11.70, suggesting upside of 12.8%(ex-dividends)

Forecast for FY23:

Current consensus EPS estimate is 79.1, implying annual growth of 245.6%.
Current consensus DPS estimate is 42.4, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 13.1.

Forecast for FY24:

Current consensus EPS estimate is 89.0, implying annual growth of 12.5%.
Current consensus DPS estimate is 51.5, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 11.7.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

LTR    LIONTOWN RESOURCES LIMITED

New Battery Elements – Overnight Price: $2.74

Wilsons rates ((LTR)) as Market Weight (3) –

There was nothing to suggest any material slippage regarding Liontown Resources' intention to commission the Kathleen Valley project before the end of FY24, when the analysts at Wilsons recently visited the site.

The broker does feel, however, there should be relatively little volume produced or shipped before the end of the financial year.

Shipments of the first direct shipping ore (DSO) are expected in the 4Q, notes the analyst.

The $2.90 target and Market Weight rating are unchanged.

This report was published on August 8, 2023.

Target price is $2.90 Current Price is $2.74 Difference: $0.16
If LTR meets the Wilsons target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $2.91, suggesting upside of 6.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 685.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.7, 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 N/A.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 456.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.5, 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 N/A.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NEC    NINE ENTERTAINMENT CO. HOLDINGS LIMITED

Print, Radio & TV – Overnight Price: $2.15

Goldman Sachs rates ((NEC)) as Buy (1) –

Goldman Sachs updates estimates ahead of the August earnings season. The broker forecasts FY23 EBITDA for Nine Entertainment of $593m.

Buy rating maintained. Target rises to $2.45 from $2.40.

This report was published on August 4, 2023.

Target price is $2.45 Current Price is $2.15 Difference: $0.3
If NEC meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $2.47, suggesting upside of 15.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 11.00 cents and EPS of 15.40 cents.
At the last closing share price the estimated dividend yield is 5.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.0, implying annual growth of -8.3%.
Current consensus DPS estimate is 11.5, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 13.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 12.00 cents and EPS of 15.60 cents.
At the last closing share price the estimated dividend yield is 5.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.9, implying annual growth of 5.6%.
Current consensus DPS estimate is 12.1, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 12.7.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NWS    NEWS CORPORATION

Print, Radio & TV – Overnight Price: $31.13

Goldman Sachs rates ((NWS)) as Buy (1) –

Goldman Sachs updates estimates ahead of the August earnings season. The broker forecasts FY23 EBITDA for News Corp of U$1.39bn.

The broker awaits commentary on media reports of S&S acquisition interests. Buy rating maintained. Target rises to $34.90 from $31.00.

This report was published on August 4, 2023.

Target price is $34.90 Current Price is $31.13 Difference: $3.77
If NWS meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $29.33, suggesting downside of -5.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 67.35 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.9, implying annual growth of N/A.
Current consensus DPS estimate is 30.4, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 43.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 101.77 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 119.4, implying annual growth of 66.1%.
Current consensus DPS estimate is 30.4, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 26.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

OML    OOH!MEDIA LIMITED

Out of Home Advertising – Overnight Price: $1.43

Goldman Sachs rates ((OML)) as Neutral (3) –

Goldman Sachs updates estimates ahead of the August earnings season. The broker forecasts first half FY23 EBITDA for oOh!media of $53m and assesses the market has strengthened towards the end of the June half.

Target is raised to $1.49 from $1.30. Neutral.

This report was published on August 4, 2023.

Target price is $1.49 Current Price is $1.43 Difference: $0.06
If OML meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $1.61, suggesting upside of 12.4%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 6.00 cents and EPS of 10.80 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.7, implying annual growth of 45.6%.
Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 6.00 cents and EPS of 10.90 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.4, implying annual growth of 22.1%.
Current consensus DPS estimate is 4.9, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 15.2.

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

RMD    RESMED INC

Medical Equipment & Devices – Overnight Price: $29.40

Goldman Sachs rates ((RMD)) as Buy (1) –

Goldman Sachs observes ResMed has been added to the list of companies suffering a slower recovery in gross margins yet considers the forward profile attractive. Gross margins of 56.5% in FY23 were below FY20 levels.

Nevertheless the broker considers, in the current context, the factors suppressing gross margin are understandable and likely to abate. Buy rating reiterated. Target is reduced to $38.40 from $39.60.

This report was published on August 4, 2023.

Target price is $38.40 Current Price is $29.40 Difference: $9
If RMD meets the Goldman Sachs target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $36.57, suggesting upside of 24.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 29.80 cents and EPS of 107.29 cents.
At the last closing share price the estimated dividend yield is 1.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 112.3, implying annual growth of N/A.
Current consensus DPS estimate is 29.6, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 26.2.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 119.21 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 124.8, implying annual growth of 11.1%.
Current consensus DPS estimate is 32.9, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 23.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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

Jarden notes record quarterly US device sales revenue was overshadowed by weaker sales in the rest of the world while the expectations of a turning point in gross margins failed to materialise.

Operating leverage was also absent from ResMed's results and the inroads into the inventory, which would have helped cash conversion, is now more a second half FY24 story, in the broker's view.

Jarden downgrades FY24 and FY25 estimates for EPS by -9.1% and -9.8% respectively. Overweight maintained. Target is reduced to $36.10 from $38.57.

This report was published on August 7, 2023.

Target price is $36.10 Current Price is $29.40 Difference: $6.7
If RMD meets the Jarden target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $36.57, suggesting upside of 24.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 268.22 cents and EPS of 106.69 cents.
At the last closing share price the estimated dividend yield is 9.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 112.3, implying annual growth of N/A.
Current consensus DPS estimate is 29.6, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 26.2.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 286.10 cents and EPS of 126.96 cents.
At the last closing share price the estimated dividend yield is 9.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 124.8, implying annual growth of 11.1%.
Current consensus DPS estimate is 32.9, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 23.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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

Wilsons believes investors should take advantage of the sell-off in ResMed following the fourth quarter results. The broker observes the market is bemoaning the impacts on gross margin.

Yet this means little, in the broker's view, either competitively or strategically and points out that global flow generator sales are still growing at around 25% two years into a major competitor recall.

Overweight maintained. Target is reduced to $36.25 and $37.76.

This report was published on August 4, 2023.

Target price is $36.25 Current Price is $29.40 Difference: $6.85
If RMD meets the Wilsons target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $36.57, suggesting upside of 24.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 27.57 cents and EPS of 104.90 cents.
At the last closing share price the estimated dividend yield is 0.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 112.3, implying annual growth of N/A.
Current consensus DPS estimate is 29.6, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 26.2.

Forecast for FY25:

Wilsons forecasts a full year FY25 EPS of 124.13 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 124.8, implying annual growth of 11.1%.
Current consensus DPS estimate is 32.9, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 23.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SUN    SUNCORP GROUP LIMITED

Insurance – Overnight Price: $13.77

Goldman Sachs rates ((SUN)) as Buy (1) –

Goldman Sachs notes the ACCC has denied merger authorisation between ANZ Bank and Suncorp Bank, not satisfied that the acquisition will not substantially lessen competition.

ANZ Bank has acknowledged the decision and will now obtain a review by the independent Australian Competition Tribunal.

Goldman Sachs understands Suncorp Group supports ANZ Bank with the next step of the merger authorisation.

Buy rating and $14.53 target maintained.

This report was published on August 4, 2023.

Target price is $14.53 Current Price is $13.77 Difference: $0.76
If SUN meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $14.92, suggesting upside of 8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 70.00 cents and EPS of 94.00 cents.
At the last closing share price the estimated dividend yield is 5.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 94.6, implying annual growth of 75.8%.
Current consensus DPS estimate is 73.7, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 14.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 79.00 cents and EPS of 104.00 cents.
At the last closing share price the estimated dividend yield is 5.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 106.1, implying annual growth of 12.2%.
Current consensus DPS estimate is 80.7, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 13.0.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Jarden rates ((SUN)) as Buy (1) –

Jarden notes the ACCC decision not to grant a merger authorisation for ANZ Bank and Suncorp Bank. The ACCC believes the deal would limit options for second-tier bank combinations that could strengthen competition, assessing a Bendigo and Adelaide Bank merger with Suncorp Bank as a more realistic scenario.

Jarden notes Suncorp Group does not support a regional bank tie up and, with ANZ Bank seeking a review through the Australian Competition Tribunal, there is still potential for the merger to be completed, albeit towards the end of FY24.

Buy rating and $14.95 target maintained.

This report was published on August 4, 2023.

Target price is $14.95 Current Price is $13.77 Difference: $1.18
If SUN meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $14.92, suggesting upside of 8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 74.00 cents and EPS of 95.90 cents.
At the last closing share price the estimated dividend yield is 5.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 94.6, implying annual growth of 75.8%.
Current consensus DPS estimate is 73.7, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 14.6.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 77.00 cents and EPS of 111.70 cents.
At the last closing share price the estimated dividend yield is 5.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 106.1, implying annual growth of 12.2%.
Current consensus DPS estimate is 80.7, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 13.0.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SWM    SEVEN WEST MEDIA LIMITED

Print, Radio & TV – Overnight Price: $0.40

Goldman Sachs rates ((SWM)) as Sell (5) –

Goldman Sachs updates estimates ahead of the August earnings season. The broker forecasts FY23 EBITDA for Seven West Media of $281m. The broker updates estimates to reflect TV market trends, weaker newspaper advertising expenditure.

The Sell rating is retained. Target is reduced to $0.38 from $0.41.

This report was published on August 4, 2023.

Target price is $0.38 Current Price is $0.40 Difference: minus $0.02 (current price is over target).
If SWM meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.48, suggesting upside of 20.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.8, implying annual growth of -26.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 4.1.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 8.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.5, implying annual growth of -3.1%.
Current consensus DPS estimate is 1.9, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 4.2.

Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

XRO    XERO LIMITED

Accountancy – Overnight Price: $120.80

Goldman Sachs rates ((XRO)) as Buy (1) –

Xero has announced a price rise for UK subsccribers from September 13, broadly consistent with changes made in Australasia. Goldman Sachs believes these pricing changes are a key positive for the near-term profitability of the company amid upside risk to FY24 revenue growth expectations.

Going forward, the trade-off between price-led growth and UK market penetration is expected to be a key debate among investors. Buy rating and $147 target maintained.

This report was published on August 4, 2023.

Target price is $147.00 Current Price is $120.80 Difference: $26.2
If XRO meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $113.27, suggesting downside of -6.2%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 93.64 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 129.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 92.2, 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 131.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 140.46 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 86.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 154.5, implying annual growth of 67.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 78.2.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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