Australian Broker Call *Extra* Edition – Aug 17, 2023

This story features LIFE360 INC, and other companies. For more info SHARE ANALYSIS: 360

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)

360   AZJ   BEN   CAR   CIP   COH (2)   CQR   CSL (2)   EQT   FCL   GUD   JBH   PME (3)   RGN  

360    LIFE360 INC

Software & Services – Overnight Price: $8.57

Goldman Sachs rates ((360)) as Buy (1) –

Goldman Sachs believes a platform has been created by Life360's 2Q results for an acceleration in quarterly net additions and revenue.
Monthly active user (MAU) growth of 29% year-on-year was considered strong.

Cost control positively surprised the analysts, with Q2 adjusted earnings (EBITDA) of US$6m exceeding the broker's forecast for US$2m, and driving FY23 guidance to US$9-14m from US$5-10m.

Management remains positive on the International opportunity and plans to launch full membership in the UK in Q4, followed by
multiple other geographies in FY24/25.

Goldman Sachs raises its target to $10.50 from $9.20. Buy.

This report was published on August 16, 2023.

Target price is $10.50 Current Price is $8.57 Difference: $1.93
If 360 meets the Goldman Sachs target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 15.83 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.14.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 30.17 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.41.

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

AZJ    AURIZON HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $3.67

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

Goldman Sachs updates estimates to incorporate the actual FY23 results. Estimates for EPS are altered less than -5% across the forecast period and the broker does not believe the changes are material.

There is no change to the investment view and Goldman Sachs observes the key risks include upgrading the FY30 bulk target and market opportunity, lower/higher growth expenditure requirements and changes in the coal outlook.

Target is reduced to $3.90 from $4.05 and a Neutral rating is maintained.

This report was published on August 14, 2023.

Target price is $3.90 Current Price is $3.67 Difference: $0.23
If AZJ meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $3.93, suggesting upside of 6.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 19.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 5.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.0, implying annual growth of 66.8%.
Current consensus DPS estimate is 18.3, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 14.7.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 29.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.5, implying annual growth of 14.0%.
Current consensus DPS estimate is 22.2, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 12.9.

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: $9.33

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

Bendigo & Adelaide Bank's FY23 cash earnings of $576.9m were slightly higher than Goldman Sachs expected. Bad debts were notably lower than expected.

The broker adjusts FY24 and FY25 cash estimates for EPS up by 3% and 2%, respectively, because of higher average interest-earning assets and lower net diluted share count.

Neutral rating retained. The broker believes the business is on the right path to improving operating efficiencies through its cost management initiatives. Target is $9.57.

This report was published on August 14, 2023.

Target price is $9.57 Current Price is $9.33 Difference: $0.24
If BEN meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $9.32, suggesting downside of -0.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 64.00 cents and EPS of 85.00 cents.
At the last closing share price the estimated dividend yield is 6.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.0, implying annual growth of -5.6%.
Current consensus DPS estimate is 63.0, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 11.2.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 64.00 cents and EPS of 85.00 cents.
At the last closing share price the estimated dividend yield is 6.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.8, implying annual growth of 1.0%.
Current consensus DPS estimate is 62.8, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 11.1.

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

CAR    CARSALES.COM LIMITED

Automobiles & Components – Overnight Price: $26.74

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

The FY23 earnings from Carsales were broadly in line with Goldman Sachs estimates. The main positive was the Brazilian revenue acceleration in the second half as regional expansion pays dividends and subsidiaries gain traction.

Combined with a dynamic pricing and finance tailwind, the broker envisages strong growth in FY24.

The main negatives from the results were the challenges from Tyres Group, while higher impairments and capital expenditure are offsetting the EBITDA outlook. Goldman Sachs revises FY24-26 EBITDA up by 3-4% and retains a Neutral rating. Target rises 12% to $26.10.

This report was published on August 14, 2023.

Target price is $26.10 Current Price is $26.74 Difference: minus $0.64 (current price is over target).
If CAR meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $27.73, suggesting upside of 3.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 72.00 cents and EPS of 89.00 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 82.2, implying annual growth of -54.7%.
Current consensus DPS estimate is 65.8, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 32.5.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 79.00 cents and EPS of 98.00 cents.
At the last closing share price the estimated dividend yield is 2.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.9, implying annual growth of 14.2%.
Current consensus DPS estimate is 74.7, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 28.5.

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

CIP    CENTURIA INDUSTRIAL REIT

REITs – Overnight Price: $3.05

Moelis rates ((CIP)) as Buy (1) –

Centuria Industrial REIT's FY23 results were in line with Moelis' estimates. FY24 guidance appears conservative and the broker notes this is based on an average FY24 BBSW of 4.6%.

Ongoing market rental growth continues to limit the downside risk to the company's NTA, Moelis notes and, with the portfolio materially under-rented, the trust is favourably positioned to ride out the challenges facing the sector.

The REIT has also largely mitigated balance-sheet concerns during FY23 by recycling capital into a joint venture. Buy rating retained. Target is $3.62.

This report was published on August 14, 2023.

Target price is $3.62 Current Price is $3.05 Difference: $0.57
If CIP meets the Moelis target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $3.42, suggesting upside of 12.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 16.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 5.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.0, implying annual growth of N/A.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 17.9.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 16.20 cents and EPS of 17.20 cents.
At the last closing share price the estimated dividend yield is 5.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.1, implying annual growth of 0.6%.
Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 17.8.

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

COH    COCHLEAR LIMITED

Medical Equipment & Devices – Overnight Price: $246.20

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

Cochlear Implant (CI) unit growth rose to 18% in H2 from 14% in H1, which helped Cochlear's FY23 group revenue along to a 16% increase, a 6% beat against the consensus forecast.

Goldman Sachs highlights double-digit revenue growth for each segment and geography, with all exceeding consensus estimates. Also, referral rates to CI's are showing signs of increasing.

Management doesn't expect a recurrence of support provided by covid-backlog surgeries and market share gains.

The broker, on the other hand, believes there will be ongoing market share gains, noting Cochlear has taken advantage of the strong sales momentum in FY23 to increase investment into growth/commercialisation initiatives.

Goldman Sachs raises its target by 6% to $280 and retains its Buy rating.

This report was published on August 16, 2023.

Target price is $280.00 Current Price is $246.20 Difference: $33.8
If COH meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $235.73, suggesting downside of -4.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 393.00 cents and EPS of 561.00 cents.
At the last closing share price the estimated dividend yield is 1.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 551.3, implying annual growth of 20.6%.
Current consensus DPS estimate is 386.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 44.7.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 454.00 cents and EPS of 647.00 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 622.1, implying annual growth of 12.8%.
Current consensus DPS estimate is 436.1, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 39.6.

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

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

Wilsons notes FY23 net profit of $305m was at the top end of guidance, beating estimates, and this supports FY24 guidance for growth in net profit of 16-23%, which is well ahead of expectations.

The broker suggests guidance appears bullish only because consensus was still conservative after a few years of erratic activity during the pandemic.

Wilsons assesses the stock is approaching fair value and retains a Market Weight rating while raising the target to $230.84 from $215.25.

This report was published on August 16, 2023.

Target price is $230.84 Current Price is $246.20 Difference: minus $15.36 (current price is over target).
If COH meets the Wilsons target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $235.73, suggesting downside of -4.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 402.50 cents and EPS of 566.60 cents.
At the last closing share price the estimated dividend yield is 1.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 551.3, implying annual growth of 20.6%.
Current consensus DPS estimate is 386.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 44.7.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 408.70 cents and EPS of 581.60 cents.
At the last closing share price the estimated dividend yield is 1.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 622.1, implying annual growth of 12.8%.
Current consensus DPS estimate is 436.1, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 39.6.

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

CQR    CHARTER HALL RETAIL REIT

REITs – Overnight Price: $3.38

Moelis rates ((CQR)) as Buy (1) –

Moelis lowers its earnings forecasts for Charter Hall Retail REIT following FY23 results due to higher forecast funding costs, and lowers its target to $4.02 from $4.10

Pretty much in line with the analyst's forecasts, the REIT reported reported FY23 EPU of 28.7c and a 25.8cpu dividend, while management guided to a FY24 EPU of 27.4c, with a payout ratio of 90-95%.

The broker expects a relatively robust operating performance given 24% of income has direct CPI exposure, with a further 35% of income indirectly CPI-linked through turnover rent clauses. Buy.

This report was published on August 16, 2023.

Target price is $4.02 Current Price is $3.38 Difference: $0.64
If CQR meets the Moelis target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $3.93, suggesting upside of 16.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 25.10 cents and EPS of 27.70 cents.
At the last closing share price the estimated dividend yield is 7.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.4, implying annual growth of 321.5%.
Current consensus DPS estimate is 25.2, implying a prospective dividend yield of 7.5%.
Current consensus EPS estimate suggests the PER is 12.3.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 25.80 cents and EPS of 28.40 cents.
At the last closing share price the estimated dividend yield is 7.63%.
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 28.4, implying annual growth of 3.6%.
Current consensus DPS estimate is 26.1, implying a prospective dividend yield of 7.7%.
Current consensus EPS estimate suggests the PER is 11.9.

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

CSL    CSL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $271.59

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

CSL confirmed headline numbers for FY23 after a pre-announcment in mid-June, which Goldman Sachs notes resulted in an uncharacteristic profit warning. Hence, the broker was keen to review greater detail on the composition of the surprise.

The analysts suggest a few under-appreciated impacts on the company. Firstly, elevated labour costs and higher donor fees are resulting in a slower than expected decline in the Cost-per-Litre metric.

The broker also feels there was some over-optimism on the Rika device for plasma collection, which is lagging revised expectations and has only been rolled out to ten sites.

Aditionally, Vifor may be tracking below expectations which could be partly due to a greater threat from generics, explains Goldman Sachs.

The broker continues to believe CSL shares are oversold though with limited clarity on recovery prospects a Hold rating is kept. The target rises to $296 fom $295.

This report was published on August 16, 2023.

Target price is $296.00 Current Price is $271.59 Difference: $24.41
If CSL meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $330.53, suggesting upside of 21.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 421.15 cents and EPS of 861.71 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 31.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 970.9, implying annual growth of N/A.
Current consensus DPS estimate is 423.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 28.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 474.91 cents and EPS of 969.24 cents.
At the last closing share price the estimated dividend yield is 1.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1235.2, implying annual growth of 27.2%.
Current consensus DPS estimate is 542.0, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 22.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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

The FY23 net profit was at the top end of guidance and slightly ahead of Wilsons estimates. CSL has reiterated full year FY24 net profit guidance of US$2.9-3bn, which implies a recovery in base fractionation gross profitability, the broker adds.

The broker is cautious about the near-term margins for CSL Behring but assesses upgrades for Seqirus/Vifor offset this.

Vifor appears to be an "unloved acquisition" but the broker observes performance of Injectafer could be the "most interesting" aspect in the result. Overweight maintained. Target is reduced to $342.50 from $342.69.

This report was published on August 16, 2023.

Target price is $342.50 Current Price is $271.59 Difference: $70.91
If CSL meets the Wilsons target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $330.53, suggesting upside of 21.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 418.16 cents and EPS of 938.47 cents.
At the last closing share price the estimated dividend yield is 1.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 970.9, implying annual growth of N/A.
Current consensus DPS estimate is 423.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 28.0.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 473.12 cents and EPS of 1089.46 cents.
At the last closing share price the estimated dividend yield is 1.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1235.2, implying annual growth of 27.2%.
Current consensus DPS estimate is 542.0, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 22.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

EQT    EQT HOLDINGS LIMITED

Diversified Financials – Overnight Price: $26.55

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

EQT Holdings has confirmed it will exit the UK and Ireland businesses. Wilsons estimates the company invested $17.8m since 2017 in this area through a combination of initial principle and losses. The company has confirmed either it may sell the business for a small amount or close it in the medium term.

Ultimately, Wilsons expects an exit will allow management to focus on the integration of AET and its attractive underlying domestic segments. Further detail is awaited before the broker updates forecasts. Overweight rating and $33.90 target contained.

This report was published on August 15, 2023.

Target price is $33.90 Current Price is $26.55 Difference: $7.35
If EQT meets the Wilsons target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 107.90 cents and EPS of 119.80 cents.
At the last closing share price the estimated dividend yield is 4.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.16.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 149.50 cents and EPS of 163.50 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.24.

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

FCL    FINEOS CORPORATION HOLDINGS PLC

Cloud services – Overnight Price: $2.15

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

Fineos Corp's FY23 update also came with an equity raising of up to $45m, which Goldman Sachs feels may have been expected by the market given a low cash balance.

The FY23 preliminary result was broadly in line with expectations held by the broker, highlighted by lower-than-expected cost-of-goods-sold (COGS) and opex, due to the initial impact of the company's cost-out program.

FY24 guidance was around -5% below expectations for revenue due to both softer-than-anticipated Subscription and Services revenue growth, explain the analysts.

Buy rating. The target price rises to $2.40 from $2.10. The broker awaits further management commentary regarding the contract pipeline and assumptions used to derive FY24 revenue guidance.

This report was published on August 16, 2023.

Target price is $2.40 Current Price is $2.15 Difference: $0.25
If FCL meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $3.22, suggesting upside of 49.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 12.67 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -6.7, 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 FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 9.51 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.2, 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 N/A.

This company reports in EUR. 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

GUD    G.U.D. HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $11.34

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

G.U.D. Holdings posted a strong FY23 with all three automotive businesses exceeding forecasts through higher sales growth and margin expansion. Wilsons believes this result has changed the narrative for investors.

Resilience and stability in the core automotive business have been complemented by renewed enthusiasm for APG and its earnings prospects, the broker adds.

No explicit guidance was provided yet the pathway to $80m of EBIT in APG appears within reach. Other acquisitions are also expected to deliver attractive growth, primarily via expanded product ranges and easing of supply constraints.

The Overweight rating is maintained and the target is raised to $13.04 from $11.00.

This report was published on August 16, 2023.

Target price is $13.04 Current Price is $11.34 Difference: $1.7
If GUD meets the Wilsons target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $13.16, suggesting upside of 16.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 49.00 cents and EPS of 88.60 cents.
At the last closing share price the estimated dividend yield is 4.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.2, implying annual growth of 24.8%.
Current consensus DPS estimate is 48.8, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 13.0.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 53.00 cents and EPS of 97.40 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 94.2, implying annual growth of 8.0%.
Current consensus DPS estimate is 50.5, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 12.0.

Market Sentiment: 0.9
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: $47.03

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

The FY23 result from JB Hi-Fi was largely in line at the top line although beat Goldman Sachs estimates at the EBIT line because of an outperformance by The Good Guys.

In terms of the outlook, the broker observes the first half sales will be more challenged because of elevated comparables. Inventory continues to be managed tightly at JB Hi-Fi Australia.

The broker also points out, while the level and depth of promotions are increasing, much of this is funded by suppliers from freight cost savings, although floor discounts have also returned. Neutral rating retained. Target is $44.40.

This report was published on August 14, 2023.

Target price is $44.40 Current Price is $47.03 Difference: minus $2.63 (current price is over target).
If JBH meets the Goldman Sachs target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $44.82, suggesting downside of -4.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 225.00 cents and EPS of 344.00 cents.
At the last closing share price the estimated dividend yield is 4.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 331.6, implying annual growth of -30.9%.
Current consensus DPS estimate is 219.3, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 14.2.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 227.00 cents and EPS of 347.00 cents.
At the last closing share price the estimated dividend yield is 4.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 341.9, implying annual growth of 3.1%.
Current consensus DPS estimate is 224.7, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 13.8.

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

PME    PRO MEDICUS LIMITED

Medical Equipment & Devices – Overnight Price: $70.07

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

Buy-rated Goldman Sachs raises its target for Pro Medicus to $80 from $76 in the wake of FY23 results after marking-to-market for sector/peer multiples and lowering sales and earnings forecasts by around -1% across FY24 and FY25.

The broker notes limited new information, beyond re-confirmation of several positive key growth drivers, and raises its profit forecasts by 1-2% over FY24-25 to reflect an interest income tailwind.

Earnings (EBIT) margins held steady at 67%, note the analysts, who highlight net margins have expanded to around 50% in FY23 from circa 30% in FY17. Buy.

Management continues to highlight a wide range of pipeline opportunities across various segments. These including Tier-1 academics (both large and small), integrated deviery networks (IDNs), as well as renewed interest from the for-profit sector.

This report was published on August 16, 2023.

Target price is $80.00 Current Price is $70.07 Difference: $9.93
If PME meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $56.75, suggesting downside of -19.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 40.00 cents and EPS of 76.00 cents.
At the last closing share price the estimated dividend yield is 0.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 92.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.5, implying annual growth of 21.4%.
Current consensus DPS estimate is 35.5, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 99.4.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 48.00 cents and EPS of 93.00 cents.
At the last closing share price the estimated dividend yield is 0.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 75.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.9, implying annual growth of 38.9%.
Current consensus DPS estimate is 48.7, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 71.6.

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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Moelis rates ((PME)) as Hold (3) –

The FY23 results from Pro Medicus exceeded expectations at all levels, driven by new contracts in the US, FX tailwinds from a weaker Australian dollar and price growth.

No quantified guidance was provided although the company did indicate its pipeline was strong across all market segments.

Moelis upgrades estimates by 4-6% to capture a higher base and stronger revenue outlook.

The broker expects the company will be able to achieve more than 30% market share in the US radiology and cardiology markets over time because of its high-quality product suite. Hold maintained. Target is $72.19.

This report was published on August 15, 2023.

Target price is $72.19 Current Price is $70.07 Difference: $2.12
If PME meets the Moelis target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $56.75, suggesting downside of -19.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 38.00 cents and EPS of 72.80 cents.
At the last closing share price the estimated dividend yield is 0.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 96.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.5, implying annual growth of 21.4%.
Current consensus DPS estimate is 35.5, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 99.4.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 44.00 cents and EPS of 85.20 cents.
At the last closing share price the estimated dividend yield is 0.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 82.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.9, implying annual growth of 38.9%.
Current consensus DPS estimate is 48.7, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 71.6.

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

Wilsons observes FY23 was a strong growth year for Pro Medicus, led by the US Visage business achieving 42% top-line growth from five new contracts. Sales revenue was in line with forecasts.

The company expects first commercial revenue from the OneViewer cardiology product as well as AI algorithms within the next six months and the broker assesses there is a large opportunity for Visage in the cardiology segment.

AI is not in the broker's forecasts but is considered a key area for future research. Overweight rating maintained. Target rises to $79.73 from $76.04.

This report was published on August 16, 2023.

Target price is $79.73 Current Price is $70.07 Difference: $9.66
If PME meets the Wilsons target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $56.75, suggesting downside of -19.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 37.60 cents and EPS of 75.10 cents.
At the last closing share price the estimated dividend yield is 0.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 93.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.5, implying annual growth of 21.4%.
Current consensus DPS estimate is 35.5, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 99.4.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 48.70 cents and EPS of 97.40 cents.
At the last closing share price the estimated dividend yield is 0.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 71.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.9, implying annual growth of 38.9%.
Current consensus DPS estimate is 48.7, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 71.6.

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

RGN    REGION GROUP

REITs – Overnight Price: $2.19

Moelis rates ((RGN)) as Buy (1) –

The FY24 guidance from Region Group was below expectations and Moelis notes there are three reasons for this; cost inflation exceeding rental growth in the near term, a lack of acquisition fees within the GIC mandate and a reversion of maintenance expenditure and leasing incentives back to historical levels.

Management has indicated the potential for divesting some of its smaller assets, with proceeds used to help fund developments and the broker expects this could be yield accretive over time.

Moelis continues to believe the stock is a defensive proposition during a weak consumer environment and retains a Buy rating. Target is reduced to $2.67 from $2.75.

This report was published on August 15, 2023.

Target price is $2.67 Current Price is $2.19 Difference: $0.48
If RGN meets the Moelis target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $2.49, suggesting upside of 13.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 13.70 cents and EPS of 15.70 cents.
At the last closing share price the estimated dividend yield is 6.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.1, implying annual growth of N/A.
Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 13.80 cents and EPS of 15.70 cents.
At the last closing share price the estimated dividend yield is 6.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.0, implying annual growth of -0.6%.
Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 13.7.

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

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