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Australian Broker Call *Extra* Edition – Jun 11, 2021

Daily Market Reports | Jun 11 2021

This story features AI-MEDIA TECHNOLOGIES LIMITED, and other companies. For more info SHARE ANALYSIS: AIM

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)

AIM   AIZ   AMA   APD   APE   AQR   AST   AVA   CAR   CBA   CQE   CRN   DXS   ENN   EOS   GDF   GNC (3)   HMY   HPG   HRL   MAD   MMM (2)   MTO   MTS (2)   NAN   ORI   PPH   PRN   PWG   RDC   SHV   SUN (2)   TIE   TWE (2)   XRO (3)   YOJ  

AIM    ACCESS INNOVATION HOLDINGS LIMITED

Commercial Services & Supplies – Overnight Price: $0.93

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

Access Innovation has acquired US-based video and captioning technology provider, EEG Enterprises for total consideration of up to US$34m or circa 10x FY21 earnings.

Bell Potter views the EEG deal as transformational due to its complementary product offering that expands Access Innovation into a vertically integrated service provider with an increasingly compelling customer value proposition.

Bell Potter assumes the EEG deal is completed before the close of FY21 and has a full 12-month contribution in FY22.

The net result is material earnings per share upgrades of 100%-plus in both FY22 and FY23.

Buy rating is retained and target price increases to $1.40 from $1.35.

This report was published on May 13,  2021.

Target price is $1.40 Current Price is $0.93 Difference: $0.47
If AIM meets the Bell Potter target it will return approximately 51% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.21.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.95.

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

AIZ    AIR NEW ZEALAND LIMITED

Transportation & Logistics – Overnight Price: $1.50

Jarden rates ((AIZ)) as Sell (5) –

High jet fuel costs are increasing earnings pressure on Air New Zealand during a time of operational uncertainty, with prices per barrel up 24% since the start of 2021. In that past three months higher fuel prices have reduced Jarden's profit before tax forecast for FY22 by -NZD$50m. 

Under the current uncertain operating market the broker expects Air New Zealand to have limited long-haul fuel hedging in place, which could leave the company exposed to price swings on the highest fuel consumption flights as new routes open up in the coming year. 

Despite this, the broker still considers normalisation of borders and the recapitalisation of the company's balance sheet as key near-term issues, but notes the pressure on earnings caused by fuel pricing reduces investment appeal. 

The Sell rating is retained and the target price decreases to NZD$1.10 from NZD$1.15. 

This report was published on May 11, 2021. 

Current Price is $1.50. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 29.42 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.10.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.98 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.34.

This company reports in NZD. 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

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.59

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

Shortages in workers and parts appear to Bell Potter to have continued into April and May. Job vacancy ads from AMA Group on sites such as Seek are considered still higher-than-usual, and there are ongoing reports regarding a shortage of vehicle parts.

In addition, the broker expects the group to bear the short-term cost of what appears to be higher-than-usual parts inflation, driven by increased shipping costs. So, despite a likely strong rebound in repair volumes, fourth quarter margin compression is expected.

As a result, the analyst downgrades normalised earnings (EBITDA) forecasts for FY21-23 by -6%, -13% and -15%, respectively. The Buy rating is unchanged and the target price falls to $0.70 from $0.85.

This report was published on May 13, 2021.

Target price is $0.70 Current Price is $0.59 Difference: $0.11
If AMA meets the Bell Potter target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 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 147.50.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 295.00.

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

APD    APN PROPERTY GROUP

Real Estate – Overnight Price: $0.91

Moelis rates ((APD)) as Downgrade to Sell from Buy (5) –

Dexus Property Group ((DXS)) has announced it has entered into a binding scheme implementation deed to acquire all units in APN Property Group for $0.915, expected to be effective in late July. 

Dexus has secured a call option over 19.9% of APN Property's issued capital at the offer price. The offer price will be reduced by any distributions up to $0.015 cents per security. 

With Moelis' latest valuations of the company's net tangible assets at $0.460, the offer implies a $0.455 valuation for APN Property's funds management business. 

Moelis considers a competing proposal unlikely and recommends investors take profits. 

The rating is downgraded to Sell and the target price increases to $0.915 from $0.68. 

This report was published on May 12, 2021.

Target price is $0.92 Current Price is $0.91 Difference: $0.005
If APD meets the Moelis target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 3.50 cents and EPS of 3.60 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.28.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 3.50 cents and EPS of 3.60 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.28.

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

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components – Overnight Price: $15.99

Bell Potter rates ((APE)) as Upgrade to Buy from Hold (1) –

Bell Potter upgrades EPS forecasts for 2021-23 by 16%, 7% and 7%, respectively, after an investor presentation and another strong month for new vehicle sales in April.

The forecasts were driven by increases in margin forecasts and modest increases in revenue estimates. The rating is upgraded to Buy from Hold and the target to $17.50 from $16.50.

This report was published on May 13, 2021.

Target price is $17.50 Current Price is $15.99 Difference: $1.51
If APE meets the Bell Potter target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $16.92, suggesting upside of 5.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 42.50 cents and EPS of 108.40 cents.
At the last closing share price the estimated dividend yield is 2.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 92.6, implying annual growth of 60.8%.
Current consensus DPS estimate is 54.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 17.3.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 44.50 cents and EPS of 79.60 cents.
At the last closing share price the estimated dividend yield is 2.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 79.6, implying annual growth of -14.0%.
Current consensus DPS estimate is 49.2, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 20.1.

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

AQR    APN CONVENIENCE RETAIL REIT

REITs – Overnight Price: $3.74

Moelis rates ((AQR)) as Buy (1) –

APN Convenience Retail has announced the acquisition of six service station and convenience retail assets in Queensland for $59m, expected to settle in September. The majority of all six sites are let to 7-Eleven, with the remainder made up of convenience retail sites.

Moelis forecasts these acquisitions will take total service station assets to over 100 with a total valuation of more than $700m by the end of FY21. 

The company also recently announced the completion of 10-year lease extensions to 13 sites let to EG Group and released revaluations of these sites. Valuation of these sites increased 25.9%, driven by the lease renewals and strong transactional evidence.

This equates to a 4% increase in the company's net tangible assets. The Buy rating and target price of $4.11 are retained. 

This report was published on May 12, 2021.

Target price is $4.11 Current Price is $3.74 Difference: $0.37
If AQR meets the Moelis target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 22.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.00.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 23.60 cents and EPS of 23.50 cents.
At the last closing share price the estimated dividend yield is 6.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.91.

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

AST    AUSNET SERVICES

Infrastructure & Utilities – Overnight Price: $1.75

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

AusNet Services' underlying earnings for FY21 of $1,155m proved -7% below Goldman Sachs' forecast. The announcement of FY21 results saw the company's share price decrease -7.7%. 

The provided dividend per share forecast for FY22 of 9.5 cents suggested no growth on FY21, and was also below the brokers expectation. 

Despite this, Goldman Sachs considers the company well-positioned for underlying asset base growth in the medium-term as it leverages continued acceleration of Australian renewable generation investment.

The Buy rating are target price of $2.15 are retained. 

This report was published on May 12, 2021. 

Target price is $2.15 Current Price is $1.75 Difference: $0.4
If AST meets the Goldman Sachs target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $1.85
The company's fiscal year ends in March.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 9.50 cents and EPS of 7.39 cents.
At the last closing share price the estimated dividend yield is 5.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.5, implying annual growth of -6.7%.
Current consensus DPS estimate is 9.7, implying a prospective dividend yield of N/A.
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AVA    AVA RISK GROUP LIMITED

Overnight Price: $0.41

Canaccord Genuity rates ((AVA)) as Buy (1) –

AVA Risk Group issued a trading update guiding to much lower second half earnings (EBITDA) than Canaccord Genuity expected. The miss was due to delays caused by covid-19, and the consequent inability to win new contracts and implement existing contracts.

The broker lowers FY21 and FY22 earnings (EBITDA) estimates by -32% and -25%. The target price falls to $0.58 from $0.95 and the Buy rating is maintained.

A delay in the implementation of the balance of the Indian Ministry of Defence contract highlights to the broker the importance of this contract to AVA's profitability. It also shows the need to replace it with new recurring revenue based contracts.

This report was published on May 13, 2021.

Target price is $0.58 Current Price is $0.41 Difference: $0.17
If AVA meets the Canaccord Genuity target it will return approximately 41% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 2.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 4.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.20.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 2.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 4.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.20.

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: $19.36

Goldman Sachs rates ((CAR)) as No Rating (-1) –

Carsales has announced a $600m equity raising to fund the proposed acquisition of a 49% stake in Trader Interactive for $797m. The company will also undertake a $222m debt facility extension. 

Trader Interactive operates US marketplaces across commercial truck, RV, power sports and equipment, with a record of 11% revenue compound annual growth rate. The non-auto total addressable market in the US is estimated at $3.1bn. 

The acquisition is expected to complete by the first half of FY22 and to be mid-single digit accretive during the first year. 

The company forecasts FY21 revenue of $422-426m and underlying earnings of $239.1-243.1m. 

Goldman Sachs has provided no rating. 

This report was published on May 12, 2021. 

Current Price is $19.36. Target price not assessed.
Current consensus price target is $22.34, suggesting upside of 15.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 57.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.4, implying annual growth of 25.6%.
Current consensus DPS estimate is 50.8, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 32.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 64.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.6, implying annual growth of 12.1%.
Current consensus DPS estimate is 54.5, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 29.1.

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

CBA    COMMONWEALTH BANK OF AUSTRALIA

Banks – Overnight Price: $101.85

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

Commonwealth Bank's third quarter earnings from operations of $2.4bn showed a 85% increase on the same quarter last year, but not enough to justify a 42% valuation premium on its peers according to Goldman Sachs. 

CommBank reported a quarterly benefit from bad and doubtful debt of $136m driven by a $6.5bn reduction to credit provision levels on an improved economic outlook. 

The broker did lift earnings per share forecasts for FY21, FY22 and FY23 by 6.4%, 6.5% and 6.5% respectively. 

The Sell rating is retained and the target price increases to $80.26 from $73.64. 

This report was published on May 12, 2021. 

Target price is $80.26 Current Price is $101.85 Difference: minus $21.59 (current price is over target).
If CBA meets the Goldman Sachs target it will return approximately minus 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $87.38, suggesting downside of -14.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 446.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 476.0, implying annual growth of -12.6%.
Current consensus DPS estimate is 343.3, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 21.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 480.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 518.0, implying annual growth of 8.8%.
Current consensus DPS estimate is 386.5, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 19.7.

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

CQE    CHARTER HALL SOCIAL INFRASTRUCTURE REIT

Childcare – Overnight Price: $3.52

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

The announcement of a $1.7bn investment boost into childcare as part of the Australian government's 2021-2022 budget suggests the important role the childcare industry will play in the reinvigoration of the economy, according to Goldman Sachs. 

This increased government support for the sector should point to a strong second half of FY21 for Charter Hall Social Infrastructure REIT, with the broker pointing to external growth and accretive acquisitions as a critical driver of earnings growth.

The company's strong balance sheet and current liquidity should allow for capital allocation to growth, with Goldman Sachs estimating a 3% accretion to funds from operation for every $50m of debt-funded acquisitions. 

While the company is under-rented by current standards, this allows room for positive rental reversions and rental revenue growth. Charter Hall Infrastructure has minimal near-term leases set to expire, but the broker allows for 2.5% like-for-like rental growth over the next three years. 

The Buy rating is retained and the target price increases to $3.60 from $3.45. 

This report was published on May 13, 2021.

Target price is $3.60 Current Price is $3.52 Difference: $0.08
If CQE meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 15.70 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 4.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.00.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 18.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.56.

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

CRN    CORONADO GLOBAL RESOURCES

Coal – Overnight Price: $0.83

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

Coronado Global Resources has undertaken a capital restructure raising US$550m in debt and equity in order to repay an around US$330m Syndicated Facility Agreement (SFA) and strengthen the balance sheet. The target falls to $1.10 from $1.30. Buy rated. 

Goldman Sachs suggests the refinancing removes maintenance covenants and extends the maturity of debt.

This provides the company with financial flexibility in a tough met coal market, notes the analyst. FY21-23 EPS estimates are lowered by -149%, -25% and -51%, respectively, after adjusting for a higher share count and revisions to interest and transaction expenses.

This report was published on May 11, 2021. 

Target price is $1.10 Current Price is $0.83 Difference: $0.27
If CRN meets the Goldman Sachs target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $1.11, suggesting upside of 34.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 1.35 cents and EPS of minus 0.81 cents.
At the last closing share price the estimated dividend yield is 1.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 102.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.8, 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 FY22:

Goldman Sachs forecasts a full year FY22 dividend of 2.69 cents and EPS of 1.48 cents.
At the last closing share price the estimated dividend yield is 3.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 56.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.9, implying annual growth of N/A.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 10.5.

This company reports in USD. 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

DXS    DEXUS

REITs – Overnight Price: $10.95

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

Dexus has entered into a Scheme Implementation Agreement to acquire all units in APN Property Group ((APD)) at an all-cash consideration of $0.915. The agreement comprises $320m equity value and $308m enterprise value. 

APN Property Group directors have recommended unit holders vote in favour of the agreement and the scheme is expected to be implemented by August. The company expects immediate gratification to adjusted funds from operations. 

A successful transaction will see total funds under management increase by around 15%. Jarden observes there has been limited disclosure about the retention of key APN Property staff. 

The Overweight rating and target price of $10.60 are retained. 

This report was published on May 11, 2021. 

Target price is $10.60 Current Price is $10.95 Difference: minus $0.35 (current price is over target).
If DXS meets the Jarden target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.42, suggesting downside of -4.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 50.50 cents and EPS of 65.90 cents.
At the last closing share price the estimated dividend yield is 4.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.2, implying annual growth of -29.6%.
Current consensus DPS estimate is 51.1, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 17.3.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 51.00 cents and EPS of 66.10 cents.
At the last closing share price the estimated dividend yield is 4.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.5, implying annual growth of 0.5%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 17.2.

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

ENN    ELANOR INVESTORS GROUP

Wealth Management & Investments – Overnight Price: $1.89

Shaw and Partners rates ((ENN)) as Initiation of coverage with Buy (1) –

Shaw and Partners initiates coverage on pure play active real estate fund manager Elanor Investors Group. The company focuses on sectors that allow for a competitive advantage including metro offices, select retail and accommodation hotels, leisure and healthcare. 

The company currently has funds under management exceeding $2bn, which the broker expects to double in the next 3-5 years. Further, the company reported funds management income of around $15m in the first half of FY21, representing a 79% increase on the same period in the previous year. 

Elanor Investors has averaged an internal rate of return from management funds and investments of 20% per annum since 2014. The broker highlights a highly scaleable, capital light model as well as limited recent growth in corporate costs. 

The broker considers the Australian commercial real estate market to remain attractive and notes that Elanor Investors is exposed to several of its key investment themes. Shaw and Partners initiates coverage with a Buy rating and a target price of $2.60. 

This report was published on May 12, 2021. 

Target price is $2.60 Current Price is $1.89 Difference: $0.71
If ENN meets the Shaw and Partners target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 8.80 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 4.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.18.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 13.40 cents and EPS of 15.80 cents.
At the last closing share price the estimated dividend yield is 7.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.96.

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

EOS    ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED

Hardware & Equipment – Overnight Price: $4.37

Canaccord Genuity rates ((EOS)) as Buy (1) –

Canaccord Genuity notes that recent concerns over the balance sheet have been partially rectified by the receipt of an initial circa $30m cash inflow from one major customer.

This begins the process of unwinding the company's $138m contract asset that had built up over the past 12 months, explains the broker. Management anticipates further cash receipts of over $100m from this business by the fourth quarter. 

The analyst estimates the company now has between $70-80m of cash on hand. The Buy rating and $8.20 target are unchanged.

This report was published on May 12, 2021.

Target price is $8.20 Current Price is $4.37 Difference: $3.83
If EOS meets the Canaccord Genuity target it will return approximately 88% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 25.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.48.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 35.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.49.

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

GDF    GARDA PROPERTY GROUP

REITs – Overnight Price: $1.33

Moelis rates ((GDF)) as Upgrade to Buy from Hold (1) –

Updated valuations from Garda Property Group have increased the company's net tangible assets by 21% to total $1.45, equating to a $56m uplift across the portfolio.

Independent valuations on eight properties, as well as previous sales of three non-core properties above book value, have driven the increase in valuation, the largest of which came from the Cairns office accounting for $25m of the total uplift.

Moelis notes there is likely to be further growth to net tangible assets through additional cap rate compression.

The valuation increase reduces gearing to 31.8%, minimising perceived risk, and provides Garda with funding capacity to pursue potential accretive acquisitions, the broker comments.

Largely driven by an increase to the sum-of-the-parts valuation, the rating is upgraded to Buy and the target price increases to $1.40 from $1.26. 

This report was published on May 12, 2021.

Target price is $1.40 Current Price is $1.33 Difference: $0.07
If GDF meets the Moelis target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 7.20 cents and EPS of 7.40 cents.
At the last closing share price the estimated dividend yield is 5.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.97.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.50 cents and EPS of 7.90 cents.
At the last closing share price the estimated dividend yield is 5.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.84.

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

GNC    GRAINCORP LIMITED

Agriculture – Overnight Price: $5.20

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

GrainCorp's first half underlying profit of $50.5m was well ahead of Bell Potter's $16.9m forecast. Management also upgraded FY21 guidance. It's considered all major indicators of earnings for the business remain biased to the upside.

These include domestic grain discounts to international prices at levels better than FY17, and global canola crush margins consistent with FY20 levels, explains the broker. Also, favourable leads (soil moisture and the rainfall outlook) are positive for the FY22 crop.

The analyst's target price, which is predicated on normalised crop outcomes, is unchanged at $6.20. The Buy rating is also maintained.

This report was published on May 14, 2021.

Target price is $6.20 Current Price is $5.20 Difference: $1
If GNC meets the Bell Potter target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $6.30, suggesting upside of 21.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 23.00 cents and EPS of 42.80 cents.
At the last closing share price the estimated dividend yield is 4.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.2, implying annual growth of 48.0%.
Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 12.6.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 18.00 cents and EPS of 37.80 cents.
At the last closing share price the estimated dividend yield is 3.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.9, implying annual growth of -3.2%.
Current consensus DPS estimate is 24.3, implying a prospective dividend yield of 4.7%.
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


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

A strong winter harvest has been a key driver for GrainCorp to deliver first half results in line with bullish expectations, but Goldman Sachs also points to the company's self-help initiative execution as an encouraging sign.

Goldman Sachs considers the company's through-the-cycle earnings power post demerger as currently undervalued.

Off the back of mid-year results, GrainCorp has increased underlying earnings guidance for FY21 by 8% to $255-285m. The broker forecasts results in the top end of guidance, increasing underlying earnings for FY21 by 4% to $280m. 

The Buy rating is retained and the target price increases to $6.45 from $6.40. 

This report was published on May 13, 2021.

Target price is $6.45 Current Price is $5.20 Difference: $1.25
If GNC meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $6.30, suggesting upside of 21.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 18.00 cents and EPS of 43.00 cents.
At the last closing share price the estimated dividend yield is 3.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.2, implying annual growth of 48.0%.
Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 12.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 14.00 cents and EPS of 28.00 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 18.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.9, implying annual growth of -3.2%.
Current consensus DPS estimate is 24.3, implying a prospective dividend yield of 4.7%.
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


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

Wilsons assesses significant earnings growth in the first half, driven by the Agriproducts segment, which experienced significantly higher grain volumes and favourable trading conditions. This offsets a reversal in the crop production contract payment, notes the broker.

Management upgraded FY21 guidance, after strong margins offset modest reductions in out-loading volumes (due to timing issues).

The price target is increased to $5.36 from $5.18, due to slightly higher earnings, lower debt and recent strength in United Malt Group's ((UMG)) share price. The Market-weight rating is unchanged.

This report was published on May 14, 2021.

Target price is $5.36 Current Price is $5.20 Difference: $0.16
If GNC meets the Wilsons target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $6.30, suggesting upside of 21.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 16.00 cents and EPS of 42.30 cents.
At the last closing share price the estimated dividend yield is 3.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.2, implying annual growth of 48.0%.
Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 12.6.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 16.00 cents and EPS of 38.10 cents.
At the last closing share price the estimated dividend yield is 3.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.9, implying annual growth of -3.2%.
Current consensus DPS estimate is 24.3, implying a prospective dividend yield of 4.7%.
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

HMY    HARMONEY CORP LIMITED

Diversified Financials – Overnight Price: $1.40

Jarden rates ((HMY)) as Buy (1) –

Harmoney Corp’s trading update shows to Jarden a continuation of the strong volume growth in both A&NZ, with group originations for April increasing nine times year-on-year. It should be remembered this is compared to a heavily covid-impacted period.

Nonetheless, the update shows the loan book is now in growth mode, highlights the broker. The upgraded credit-decisioning and pricing engine, operational in Australia since February, has led to a doubling of the client conversion rate.

With the system to be launched in New Zealand in July, the analyst expects a significant improvement in new customer acquisition costs. The Buy rating and $3.30 target are unchanged.

This report was published on May 13, 2021. 

Target price is $3.30 Current Price is $1.40 Difference: $1.9
If HMY meets the Jarden target it will return approximately 136% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 700.00.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 127.27.

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

HPG    HIPAGES GROUP HOLDINGS LTD

Online media & mobile platforms – Overnight Price: $2.51

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

Following a strong third quarter, Hipages Group has reported app downloads by tradies are up 32% year-to-date on FY20 and consumer downloads in April were up 11% on April 2020. 

According to the broker, Hipages is building a compelling, structural growth marketplace, with growth in tradie subscriptions at a time when they don't require help to find work, illustrating the value of the product.

Further, the broker notes new TradieCore field service software provides opportunity for the company to grow market share and total addressable market.

The Buy rating and target price of $3.35 are retained.

This report was published on May 13, 2021.

Target price is $3.35 Current Price is $2.51 Difference: $0.84
If HPG meets the Goldman Sachs target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.20.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 125.50.

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

HRL    HRL HOLDINGS LTD

Industrial Sector Contractors & Engineers – Overnight Price: $0.13

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

Underpinned by the company's Analytica subsidiary, which delivered record revenue during the quarter, HRL Holdings' s trading update revealed third quarter revenue of $8.8m and underlying earnings of $2.0m.

While subject to a high level of uncertainty, Bell Potter has decided to adopt more conservative revenue growth assumptions for the Food & Environmental division.

The broker expects environmental services to see near-term demand tailwinds, with market share growth a further opportunity. 

Following Bell Potter's review, some more conservative future revenue forecasts see the broker's earnings per share estimates adjusted by 1.7%, -2.0%, and -4.7% over FY21-FY23.

After reviewing longer-dated revenue assumptions, the broker's FY22 and FY23 revenue estimates decrease -4.5% and -7.5% respectively.

Bell Potter believes the focus remains on potential M&A activity driving HRL’s presence in the larger Australian market, which the broker expects would materially improve its growth profile.

Buy reiterated with the target price lowering to $0.15 from $0.17.

The report was published on May 13, 2021.

Target price is $0.15 Current Price is $0.13 Difference: $0.02
If HRL 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 FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.67.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.67.

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

MAD    MADER GROUP LIMITED

Mining Sector Contracting – Overnight Price: $0.92

Euroz Hartleys rates ((MAD)) as Buy (1) –

Mader Group has delivered a third quarter update reporting revenue of $75.9m, up 5.7% on the previous corresponding period. Underlying earnings were also up on the previous corresponding period to $8.4m, but down on the second quarter thanks to increased overheads.

The North American region reported additional technicians and equipment during the quarter, but revenue was down -10% on second quarter due to increased costs ahead of revenue. Euroz Hartleys notes investors will be keen to see continued growth in this region during the fourth quarter, consistent with the broader sales pipeline. 

The Australian region reported significant demand and revenue was up by 7%. The Buy rating and target price of $1.21 are retained. 

This report was published on April 28, 2021.

Target price is $1.21 Current Price is $0.92 Difference: $0.29
If MAD meets the Euroz Hartleys target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Euroz Hartleys forecasts a full year FY21 dividend of 3.00 cents and EPS of 9.30 cents.
At the last closing share price the estimated dividend yield is 3.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.89.

Forecast for FY22:

Euroz Hartleys forecasts a full year FY22 dividend of 3.00 cents and EPS of 10.70 cents.
At the last closing share price the estimated dividend yield is 3.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.60.

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

MMM    MARLEY SPOON AG

Consumer Products & Services – Overnight Price: $2.64

Canaccord Genuity rates ((MMM)) as Buy (1) –

Marley Spoon has announced at its inaugural investor strategy day the intention to become a leading global meal-kit company in an addressable market worth an estimated $7trn.

Marley Spoon is aiming to generate revenue of $1.6bn in 2025, and $8bn by 2030 representing a compound annual growth rate of 30%, a near-term result that Canaccord finds to be achievable. 

To reach this target, Canaccord expects management to focus on increasing core base business, increasing service offering and basket size, growing into adjacent categories, and entering new geographies. 

The Buy rating and the target price of $4.30 are retained. 

The report was published on May 21, 2021.

Target price is $4.30 Current Price is $2.64 Difference: $1.66
If MMM meets the Canaccord Genuity target it will return approximately 63% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.08 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 126.92.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.08 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 126.92.

This company reports in EUR. 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


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

Marley Spoon management provided insight into the company's growth strategy, announcing long-term revenue targets of EUR$1bn by 2025 and EUR$5bn by 2030. This is significantly higher than Wilsons' forecast of EUR$1.3bn by 2030. 

Management explained revenue targets would be underpinned by four key growth drivers, these being growth in base business, growth in service offering and basket size, growth in adjacent categories, and entering new markets.

The company highlighted targets could be achieved by expected growth in its current total addressable market, and as such the broker feels the other growth drivers will provide only incremental opportunities for additional growth.

Marley Spoon reported current US household penetration of less than 1% and Wilsons notes this provides encouraging opportunity for expansion in that market. 

It was also noted that covid has accelerated US adoption of online grocery shopping which is now expected to account for 14.6% of total grocery sales in 2022 and 21.5% in 2025. This compares to pre-covid e-commerce grocery sales market share of 6.8%. 

The Overweight rating and target price of $3.85 are retained. 

This report was published on May 12, 2021.

Target price is $3.85 Current Price is $2.64 Difference: $1.21
If MMM meets the Wilsons target it will return approximately 46% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.28 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 49.99.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.72 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 97.06.

This company reports in EUR. 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

MTO    MOTORCYCLE HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $2.85

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

Having reviewed Motorcycle Holdings' target price, Wilsons has now confirmed a marginal increase off the back of the companies underlying earnings guidance for FY21 of $42-45m. 

Based on company guidance, the broker has increased it's underlying earnings forecasts for the next three years, with FY21 increasing 3%, FY22 increasing 31% and FY23 increasing 7%. 

The Market Weight rating is retained and the target price increases to $2.73 from $2.54. 

This report was published on May 12, 2021.

Target price is $2.73 Current Price is $2.85 Difference: minus $0.12 (current price is over target).
If MTO meets the Wilsons target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 18.50 cents and EPS of 48.40 cents.
At the last closing share price the estimated dividend yield is 6.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.89.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 18.50 cents and EPS of 38.30 cents.
At the last closing share price the estimated dividend yield is 6.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.44.

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

MTS    METCASH LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.53

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

Metcash is forecasting a -$10m impact to underlying earnings in FY22 after the Australian Federal Budget did not include an increase in tobacco excise duty. The company expects a -5.1% impact for its food division and -2.4% total group impact. 

Goldman Sachs has revised earnings forecasts for Metcash for FY22 to $571m. The Buy rating is retained and the target price decreases to $3.95 from $4.03. 

This report was published on May 12, 2021.

Target price is $3.95 Current Price is $3.53 Difference: $0.42
If MTS meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $3.91, suggesting upside of 10.6%(ex-dividends)
The company's fiscal year ends in April.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 19.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 5.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.6, implying annual growth of N/A.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 18.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 5.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.4, implying annual growth of -8.6%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 15.1.

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


Jarden rates ((MTS)) as Buy (2) –

Jarden cuts EPS estimates by circa -3% going forward to reflect a -$10m cut to earnings (EBIT) from the cessation of the annual excise increase in tobacco from FY22 onwards. 

The analyst also makes cuts to Food like-for-like sales forecasts in FY22 to reflect estimated moderating growth in independents. This may occur as consumers return to malls and shopping habits normalise. 

Jarden believes Food will retain a large portion of the consumers it has gained during covid and forecasts market share gains in FY22. The Overweight rating and $3.70 target price are retained.

This report was published on May 12, 2021.

Target price is $3.70 Current Price is $3.53 Difference: $0.17
If MTS meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $3.91, suggesting upside of 10.6%(ex-dividends)
The company's fiscal year ends in April.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 18.20 cents and EPS of 27.10 cents.
At the last closing share price the estimated dividend yield is 5.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.6, implying annual growth of N/A.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 18.50 cents and EPS of 26.30 cents.
At the last closing share price the estimated dividend yield is 5.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.4, implying annual growth of -8.6%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 15.1.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $5.49

Bell Potter rates ((NAN)) as Sell (5) –

With Nanosonics' outlook for revenue growth outside of the US looking bleak, Bell Potter believes downgrades to consensus for FY22 and FY23 are likely.

While revenue consensus implies record second half revenues, the broker considers this unlikely given the ongoing restrictions that applied to hospital access during the period – both for patients and sales reps alike.

The broker's FY21 earnings forecast is reduced by -$1.4m to $2.3m. Bell Potter retains its Sell rating with its target lowering to $4.50 from $4.95.

This report was published on May 13, 2021.

Target price is $4.50 Current Price is $5.49 Difference: minus $0.99 (current price is over target).
If NAN meets the Bell Potter target it will return approximately minus 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.85, suggesting upside of 6.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 784.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.5, implying annual growth of -26.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 219.6.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 238.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.2, implying annual growth of 148.0%.
Current consensus DPS estimate is 0.7, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 88.5.

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

ORI    ORICA LIMITED

Mining Sector Contracting – Overnight Price: $14.16

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

Despite challenges for the coal industry, Orica has reported solid first half results for FY21, but covid-related impacts are expected to cause a bigger drag on second half results than previously thought. 

Goldman Sachs notes Orica has seen longer-term impacts and slower-than-expected recovery from covid, and has underperformed accordingly. However, the broker remains confident the company is set for a strong demand recovery from FY22. 

As such, underlying earnings for FY21 are reduced -9% to account for slower recovery, but forecasts for FY22 and FY23 remain unchanged. 

The Buy rating and target price of $15.70 are retained. 

This report was published on May 13, 2021. 

Target price is $15.70 Current Price is $14.16 Difference: $1.54
If ORI meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $14.30, suggesting upside of 1.0%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 23.00 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 1.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.4, implying annual growth of 18.5%.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 28.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 52.00 cents and EPS of 95.00 cents.
At the last closing share price the estimated dividend yield is 3.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.8, implying annual growth of 50.4%.
Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 18.7.

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

PPH    PUSHPAY HOLDINGS LIMITED

Software & Services – Overnight Price: $1.61

Jarden rates ((PPH)) as Buy (1) –

Jarden assesses a strong FY21 result with processing volumes up 38%, operating revenue rising 40% and earnings increasing by 133%. This was driven by the ongoing shift towards digital donations across the customer base, explains the broker.

FY22 guidance includes -$2-$3m of expenses for supporting the Catholic segment expansion, with the balance of the -$6-$8m cost capitalised.

The analyst's mid-term earnings estimates fall -7% and -12% in FY22 and FY23, respectively. This is due to the Catholic segment investment and slight revisions in processing volume estimates over the medium term. 

The Buy rating is unchanged. The target price is decreased to NZ$2.10 from NZ$2.30

This report was published on May 12, 2021.

Current Price is $1.61. Target price not assessed.
Current consensus price target is $1.84
The company's fiscal year ends in March.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.25 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PRN    PERENTI GLOBAL LIMITED

Mining Sector Contracting – Overnight Price: $0.67

Moelis rates ((PRN)) as Hold (3) –

Perenti Global expects a softer outlook for FY21 and FY22 due to covid impacts, particularly on international projects and the ongoing tightening of the Australian labour market. FX headwinds also continue to weigh. 

While the valuation appears undemanding to Moelis, peers trading at similar levels are not expected to endure the same impact from international travel restrictions. Management also expects covid and labour market headwinds to continue for the next 12-18 months.

Nonetheless, the analyst continues to view the risk/reward as balanced and maintains a Hold rating. The target price is $0.72.

This report was published on May 14, 2021.

Target price is $0.72 Current Price is $0.67 Difference: $0.05
If PRN meets the Moelis target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 7.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 10.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.09.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.00 cents and EPS of 10.90 cents.
At the last closing share price the estimated dividend yield is 10.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.15.

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

PWG    PRIMEWEST

Real Estate – Overnight Price: $1.52

Euroz Hartleys rates ((PWG)) as Buy (1) –

Primewest Group has announced it has entered into a Bid Implementation Deed with Centuria Capital Group ((CNI)), with Primewest holders set to receive $1.51 per security. The merger places the company in the top four real estate funds managers on the ASX. 

Primewest investors will take home $0.20 cash per security, as well as 0.473 Centuria Capital securities per Primewest share, equating to a value of $1.31 based on Centuria Capital's latest close price. 

Euroz Hartleys notes the deal is materially earnings accretive, delivering a 19% earnings increase for a combined entity earning of $0.068. Primewest has upgraded earnings per share guidance accordingly. 

The combined group will have a proforma market capitalisation of $2.2bn and assets under management of $15.5bn. 

The Buy rating is retained with the target price of $1.49 under review. 

This report was published on April 19, 2021.

Target price is $1.49 Current Price is $1.52 Difference: minus $0.03 (current price is over target).
If PWG meets the Euroz Hartleys target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Euroz Hartleys forecasts a full year FY21 dividend of 5.00 cents and EPS of 5.30 cents.
At the last closing share price the estimated dividend yield is 3.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.68.

Forecast for FY22:

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

RDC    REDCAPE HOTEL GROUP

Travel, Leisure & Tourism – Overnight Price: $1.03

Moelis rates ((RDC)) as Buy (1) –

Redcape Hotel Group has upgraded FY21 EPS guidance following the continuation of strong trading conditions. Fourth quarter dividends have also been upgraded to 2.67cps from 1.83cps.

Based on Queensland industry data, the broker highlights gaming spend remains relatively elevated compared to pre-pandemic levels. It's believed the growth in revenue is due to a positive contribution from gaming, as well as food and beverage.

Moelis increases forecast earnings for FY21 by around 5%, and for FY22-23 by circa 7-8%, due to the stronger-than-anticipated rebound in pubs. The Buy rating is unchanged and the target price increases to $1.26 from $1.18.

This report was published on May 14, 2021.

Target price is $1.26 Current Price is $1.03 Difference: $0.23
If RDC meets the Moelis target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 8.20 cents and EPS of 10.20 cents.
At the last closing share price the estimated dividend yield is 7.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.10.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 8.30 cents and EPS of 10.40 cents.
At the last closing share price the estimated dividend yield is 8.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.90.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $5.80

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

The Californian almond crop subjective estimate for production is 3% above last year’s production of 3.12bn lbs, with a larger bearing area partly offset by a lower yield, explains Wilsons. It's thought consensus estimates were previously at around 2.8-2.95bn lbs.

The forecast is based on a telephone survey conducted from April 19 to May 6 from a sample of 500 almond growers. If the subjective estimate proves accurate, the analyst cautions almond prices are likely to remain below historical norms for longer.

The Overweight rating and $6.67 target are retained.

This report was published on May 13, 2021.

Target price is $6.67 Current Price is $5.80 Difference: $0.87
If SHV meets the Wilsons target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 5.10 cents and EPS of 9.20 cents.
At the last closing share price the estimated dividend yield is 0.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 63.04.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 17.10 cents and EPS of 31.00 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 18.71.

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

SUN    SUNCORP GROUP LIMITED

Insurance – Overnight Price: $11.29

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

After an earlier assessment by Goldman Sachs of a third quarter update by Suncorp Group, the broker makes minor changes to forecasts and adjusts the target price to $12.02 from $12.05.

The analyst amended FY21-FY23 earnings by 1.0%, -6.0% and 0.1%, largely on mildly improved bank revenue, asset quality trends and a lower FY22/23 gross insurance margin.

The Buy rating is maintained.

This report was published on May 11, 2021.

Target price is $12.02 Current Price is $11.29 Difference: $0.73
If SUN meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $11.83, suggesting upside of 4.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 50.00 cents and EPS of 71.00 cents.
At the last closing share price the estimated dividend yield is 4.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 72.0, implying annual growth of 45.5%.
Current consensus DPS estimate is 54.6, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 15.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 56.00 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 4.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.3, implying annual growth of -7.9%.
Current consensus DPS estimate is 52.6, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 17.0.

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


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

Suncorp Group provided additional insight to support its targeted general insurance underlying income tax return margin expansion at its investor forum. The company aims to increase the margin to 10-12% by FY23, from 7.1% in the first half of FY21. 

The strategy focused on driving operational efficiency and price optimisations through data and technology, which Jarden notes appears well-suited to a post-covid climate. Suncorp highlighted the majority of the margin expansion is back end-weighted with uplift expected in FY23. 

Based on the above, Jarden lowers earnings per share forecast -2.8% for FY22 but increases its forecast by 1.9% for FY23. 

The Overweight rating is retained and the target price increases to $12.00 from $11.65. 

This report was published on May 11, 2021. 

Target price is $12.00 Current Price is $11.29 Difference: $0.71
If SUN meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $11.83, suggesting upside of 4.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 62.00 cents and EPS of 69.40 cents.
At the last closing share price the estimated dividend yield is 5.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 72.0, implying annual growth of 45.5%.
Current consensus DPS estimate is 54.6, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 15.7.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 64.00 cents and EPS of 68.20 cents.
At the last closing share price the estimated dividend yield is 5.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.3, implying annual growth of -7.9%.
Current consensus DPS estimate is 52.6, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 17.0.

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

TIE    TIETTO MINERALS LTD

Gold & Silver – Overnight Price: $0.33

Euroz Hartleys rates ((TIE)) as Buy (1) –

Tietto Minerals continues to report high-grade results from the Abujar Gold Project. Euroz Hartleys notes the company continues to de-risk the project with potential for the planned open pit to be extended underground which would extend the mine life and sustain higher production. 

A resource update is expected late in the June quarter, with Tietto Minerals expecting to complete 50,000 metres of drilling in time for the update.The update will also include a front end engineering design. 

Euroz Hartleys maintains a Speculative Buy and a target price of $0.75. 

This report was published on May 11, 2021.

Target price is $0.75 Current Price is $0.33 Difference: $0.42
If TIE meets the Euroz Hartleys target it will return approximately 127% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Euroz Hartleys forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.50.

Forecast for FY22:

Euroz Hartleys forecasts a full year FY22 dividend of 0.00 cents and EPS of 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.57.

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

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco – Overnight Price: $11.94

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

Execution risks remain elevated for Treasury Wine Estates as the company adjusts to a post-pandemic, post-Chinese tariff market, comments Goldman Sachs.

During a strategy update to investors, Treasury Wine announced a shifting growth strategy focus to non-Penfolds brands, despite the less attractive margins. 

The broker explains the Penfolds division, which accounts for around 67% of underlying earnings, faces a near-term challenge of reallocation of a luxury portfolio originally targeted for the Chinese market.

Faster-than-expected recovery in on-premise sales in the Americas points to accelerated growth for Treasury Wine for FY22 in a region that has disappointed in recent years, notes the broker.

The company's underlying earnings guidance for FY21 of $495-515m exceeded Goldman Sachs expectations by 16%. 

The Neutral rating is retained and the target price increases to $10.60 from $9.30. 

This report was published on May 14, 2021. 

Target price is $10.60 Current Price is $11.94 Difference: minus $1.34 (current price is over target).
If TWE meets the Goldman Sachs target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.94, suggesting downside of -8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 27.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 2.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.7, implying annual growth of 15.1%.
Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 28.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 30.00 cents and EPS of 46.00 cents.
At the last closing share price the estimated dividend yield is 2.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.1, implying annual growth of 5.8%.
Current consensus DPS estimate is 23.6, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 27.1.

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


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

At the company's investor day, underlying trading was revealed to be better than Jarden expected. Management presented well and medium-term targets are considered realistic. 

The broker retains the Underweight rating though is becoming less negative, with the macro backdrop improving in the US as the economy reopens, and management executing to plan. If trends are to continue, there's considered scope for the company to re-rate.

The Underweight rating is retained as, relative to other companies under Jarden's coverage, the company doesn't look as compelling. The $9.70 target is unchanged.

This report was published on May 13, 2021.

Target price is $9.70 Current Price is $11.94 Difference: minus $2.24 (current price is over target).
If TWE meets the Jarden target it will return approximately minus 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.94, suggesting downside of -8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 27.00 cents and EPS of 41.10 cents.
At the last closing share price the estimated dividend yield is 2.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.7, implying annual growth of 15.1%.
Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 28.6.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 32.00 cents and EPS of 48.00 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 24.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.1, implying annual growth of 5.8%.
Current consensus DPS estimate is 23.6, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 27.1.

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

XRO    XERO LIMITED

Accountancy – Overnight Price: $133.11

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

Xero delivered FY21 revenue 2% ahead of Goldman Sachs' expectation, which the broker views as a positive result. The company increased investment into product and marketing to capitalise on a period of accelerating global digitisation, driving a -13% decrease in underlying earnings for the year. 

Blended annual revenue per user just missed Goldman Sachs' forecast, with the broker noting Hubdoc revenue is now bundled in the core product rather than separate revenue.

Goldman Sachs has revised revenue forecasts for FY22 and FY23 up by 3% and 4% respectively, but underlying earnings forecasts have decreased by -29% and -28% for the same periods based on the increased investment in research and development and advertising. 

The Buy rating is retained and the target price decreases -1% to $151.00 from $153.00. 

This report was published on May 13, 2021. 

Target price is $151.00 Current Price is $133.11 Difference: $17.89
If XRO meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $119.50
The company's fiscal year ends in March.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.72 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3574.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Jarden rates ((XRO)) as Buy (1) –

Jarden sees a strong runway of growth for Xero, with the company increasing its near-term investment in R&D. This is to capitalise on the opportunity to obtain a share in the large and under-penetrated global total addressable market, notes the analyst.

FY21 subscribers came in around 5% stronger than the broker expected, though revenue was circa -2% softer, due to weaker average revenue per user.

Jarden believes investors should focus on the top-line growth and take comfort in long-term profitability being achieved from the continued free cashflow growth and record margins during covid.

The Buy rating and $150 target are retained.

This report was published on May 13, 2021.

Target price is $150.00 Current Price is $133.11 Difference: $16.89
If XRO meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $119.50
The company's fiscal year ends in March.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 12.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1108.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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

The second half represented a faster return to material investment by Xero than Wilsons expected, as the company proactively sought, and capitalised upon, growth opportunities.

After the negative share price reaction, the broker is tempted to upgrade on fundamentals. However, the rating remains Market Weight, in part due to the potential for technology multiples to moderate on macroeconomic factors.

The analyst lowers the target price to $107.54 from $113.82, primarily due to a higher share count (-4% dilution) from a share issuance and the devaluation of the New Zealand dollar.

This report was published on May 14, 2021.

Target price is $107.54 Current Price is $133.11 Difference: minus $25.57 (current price is over target).
If XRO meets the Wilsons target it will return approximately minus 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $119.50
The company's fiscal year ends in March.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 26.44 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 503.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

YOJ    YOJEE LIMITED

Software & Services – Overnight Price: $0.14

Euroz Hartleys rates ((YOJ)) as Buy (2) –

Following strong revenue growth in the March quarter, Yojee has outlined a three-year growth pathway towards annual revenue of $49m based on existing enterprise clients and across its current 14 targeted countries in Asia-Pacific. 

The company reported $287,000 in revenue for the period, up 36% quarter-on-quarter, with $332,000 in cash receipts. 

Euroz Harleys noted the company also highlighted discussions with potential new enterprise clients, and expansion opportunities with existing clients, which could further boost revenue beyond the forecast by rapidly increasing market share. 

The broker maintains a Speculative Buy recommendation and $0.50 price target.

This report was published on April 20, 2021.

Target price is $0.50 Current Price is $0.14 Difference: $0.36
If YOJ meets the Euroz Hartleys target it will return approximately 257% (excluding dividends, fees and charges).

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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