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Australian Broker Call *Extra* Edition – Sep 15, 2021

Daily Market Reports | Sep 15 2021

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

FNArena will be updating Special Editions of this Report in September dedicated to the August Reporting Season.

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)

AIA   AMS   ARB   ASX   AVN (2)   AX1   BLX   BOT   BRG   BXB   CL1 (2)   COH   CQR   CSL   CTD   DMP (2)   DRR   EHL (3)   EML   EVS   FPH   HDN   INA (2)   ING   IPH (2)   IRI   LIC (2)   MMM   MNY   NCM   NEA   NWH (2)   NWL   OBL   OTW   OZL (2)   PME (2)   PPT   PSQ   SGF   SUL   SXL   SXY (2)   TAH   TLX   TPG   VCX   WPL  

AIA    AUCKLAND INTERNATIONAL AIRPORT LIMITED

Infrastructure & Utilities – Overnight Price: $7.16

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

Auckland International Airport's reported underlying loss of -NZ$41.8m was in line with guidance and Jarden's forecast. The broker notes results reflect the tough operating environment, with international passengers declining -93% year-on-year and domestic volumes declining -17%.

While the company has not provided an outlook for FY22, it was noted that given current lockdowns total operating expenditure was likely to be at the lower end of the previously guided -NZ$160-175m. 

Jarden expects property business to remain the core earnings driver for the next year, with the company expecting to spend NZ$50.5-64.2m in property development in FY22.

The Underweight rating and target price of NZ$6.60 are retained.

This report was published on August 20, 2021.

Current Price is $7.16. Target price not assessed.
Current consensus price target is $6.90, suggesting downside of -3.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.47 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1529.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.6, implying annual growth of N/A.
Current consensus DPS estimate is 0.4, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 1193.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 7.96 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 90.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.5, implying annual growth of 1983.3%.
Current consensus DPS estimate is 13.8, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 57.3.

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

AMS    ATOMOS LIMITED

Consumer Electronics – Overnight Price: $1.56

Shaw and Partners rates ((AMS)) as Buy (1) –

Atomos has delivered strong FY21 results, with Shaw and Partners noting record revenue of $78.6m, up 77% on the previous year, gross profit of $37.4m, up 133% on the previous year, and underlying earnings of $8.2m, a $15.4m increase on a negative result in FY21. 

The broker highlights results were well ahead of forecast. Further, with the company flagging underlying earnings margins trending towards 12-15%, Shaw upgrades underlying earnings estimates to $12.2m in FY22 (from $10.2m). 

The forecast is on the conservative side of Atomos' guidance, and Shaw sees upside risk on new product launches.

The Buy rating is retained and the target price increases to $2.00 from $1.58. 

This report was published on August 19, 2021.

Target price is $2.00 Current Price is $1.56 Difference: $0.44
If AMS meets the Shaw and Partners target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.38.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.33.

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

ARB    ARB CORPORATION LIMITED

Automobiles & Components – Overnight Price: $47.58

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

ARB Corp has confirmed a strong result for FY21, observes Wilsons, reporting profit before tax growth of 90% on the previous year, and management has confirmed momentum has continued into FY22 with strong global sales. 

Wilsons is confident in sustained sales growth driven by new vehicle model releases, continuation of the instant asset write-off scheme, and a broader product range. The broker has increased sales forecasts by 6-7%.

The Overweight rating is retained and the target price increases to $55.00 from $48.40. 

This report was published on August 18, 2021.

Target price is $55.00 Current Price is $47.58 Difference: $7.42
If ARB meets the Wilsons target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $46.93, suggesting downside of -2.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 69.00 cents and EPS of 135.40 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 138.9, implying annual growth of -0.8%.
Current consensus DPS estimate is 72.4, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 34.7.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 69.00 cents and EPS of 130.80 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 144.0, implying annual growth of 3.7%.
Current consensus DPS estimate is 74.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 33.4.

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

ASX    ASX LIMITED

Wealth Management & Investments – Overnight Price: $83.34

Jarden rates ((ASX)) as Underweight (2) –

ASX's FY21 profit after tax of $481m was largely in line with estimates, and a 1% beat on Jarden's forecast, while underlying earnings were 2% ahead of expectations.

Looking ahead, Jarden notes its 4% earnings per share growth outlook for FY22 may fall to 1% given risk to Futures volume recovery. Jarden had previously forecast 10% recovery in Futures volumes, but current lockdowns present risk to this assumption. 

The broker updates earnings per share guidance by 1.5%, 0.1% and -1.2% through to FY24. The Underweight rating is retained and the target price increases to $76.50 from $74.95.

This report was published on August 19, 2021. 

Target price is $76.50 Current Price is $83.34 Difference: minus $6.84 (current price is over target).
If ASX meets the Jarden target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $77.41, suggesting downside of -8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 233.70 cents and EPS of 259.70 cents.
At the last closing share price the estimated dividend yield is 2.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 256.8, implying annual growth of 3.4%.
Current consensus DPS estimate is 230.3, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 32.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 242.30 cents and EPS of 269.20 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 264.6, implying annual growth of 3.0%.
Current consensus DPS estimate is 237.4, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 31.9.

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

AVN    AVENTUS GROUP

REITs – Overnight Price: $3.36

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

While Aventus Group has not provided FY22 earnings guidance due to covid uncertainty, Goldman Sachs' positive view remains based on development upside in the group's portfolio, the operating portfolio’s relative strength, and a solid balance sheet with gearing below the target 30-40% range.

Goldman Sachs continues to believe the group is relatively well-positioned in the current environment, given that its large format retail portfolio derives 37% of income from everyday needs tenants and the remainder from homewares, electrical, furniture, bedding, and hardware, all of which the broker expect to continue to perform relatively well.

Buy Rating is maintained and the target price increases to $3.40 from $3.26.

This report was published on August 18, 2021.

Target price is $3.40 Current Price is $3.36 Difference: $0.04
If AVN meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $3.14, suggesting downside of -6.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 19.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 5.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.4, implying annual growth of -73.2%.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 17.4.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 22.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.7, implying annual growth of 6.7%.
Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 16.3.

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


Moelis rates ((AVN)) as Sell (5) –

Following Aventus Group's FY21 result, which was in line with revised guidance provided in June, Moelis estimates the group can deliver earnings per share (EPS) growth in FY22, despite pending covid risks, translating to an FY22 distribution per unit (DPU) yield of 5.3%.

Driven by a $297m net valuation uplift with the weighted average credit rating compressing -72bps in FY21, to 6.01%, net tangible assets increased to $2.69 from $2.24 in December 2020.

Moelis notes while ongoing sector tailwinds will remain supportive, and sector cap rates continue firming, the broker views these as being more than priced into the current share price.

Sell rating is maintained, and the target price increases to $2.97 from $2.90.

This report was released on August 19, 2021.

Target price is $2.97 Current Price is $3.36 Difference: minus $0.39 (current price is over target).
If AVN meets the Moelis target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.14, suggesting downside of -6.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.50 cents and EPS of 19.30 cents.
At the last closing share price the estimated dividend yield is 5.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.4, implying annual growth of -73.2%.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 17.4.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 17.80 cents and EPS of 20.10 cents.
At the last closing share price the estimated dividend yield is 5.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.7, implying annual growth of 6.7%.
Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 16.3.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $2.05

Bell Potter rates ((AX1)) as Buy (1) –

While online is providing some cushioning,  Accent Group's trading update for the first 7 weeks of first-half FY22 showed like-for-like sales (including store closures) down -16%, observes Bell Potter.

Lockdowns are expected to slow the rebalance of stock levels, but at the same time, Bell Potter believes having excess inventory is a preferred position ahead of the key December quarter given the underlying global supply chain risks.

The company recently disclosed that it is in process of landlord negotiations to work out the appropriate rent terms during lockdowns, hence containing first half FY22 rent cash outlay to a fair level.

Having cut first-half FY22 estimates to reflect lockdown impacts, the broker's FY22 earnings estimates fall by -21%, yet there is no material change in FY23/FY24.

Buy rating is unchanged and the target price is lowered to $2.90 from $3.30.

This report was published on August 20, 2021.

Target price is $2.90 Current Price is $2.05 Difference: $0.85
If AX1 meets the Bell Potter target it will return approximately 41% (excluding dividends, fees and charges).
Current consensus price target is $2.50, suggesting upside of 8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 9.30 cents and EPS of 11.50 cents.
At the last closing share price the estimated dividend yield is 4.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.0, implying annual growth of -22.6%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 21.0.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 13.30 cents and EPS of 16.70 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 12.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.8, implying annual growth of 43.6%.
Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 14.6.

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

BLX    BEACON LIGHTING GROUP LIMITED

Furniture & Renovation – Overnight Price: $2.05

Jarden rates ((BLX)) as Buy (2) –

Despite a tough fourth quarter, Beacon Lighting reported a 85% year-on-year profit after tax increase to $37.7m, which Jarden notes was a slight beat on guidance and the broker's forecast. Group sales also increased 13.3% on the previous year to around $289m. 

The broker highlights the strong result despite lockdowns demonstrates the model and management quality. Given ongoing lockdowns, Jarden has lowered FY22 earnings forecast by -6.2%, and expects sales to normalise to pre-covid levels by FY24.

The Overweight rating is retained and the target price decreases to $2.10 from $2.20.

This report was published on August 19, 2021.

Target price is $2.10 Current Price is $2.05 Difference: $0.05
If BLX meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 7.70 cents and EPS of 11.70 cents.
At the last closing share price the estimated dividend yield is 3.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.52.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 7.20 cents and EPS of 10.90 cents.
At the last closing share price the estimated dividend yield is 3.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.81.

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

BOT    BOTANIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.07

Euroz Hartleys rates ((BOT)) as Speculative Buy (2) –

Euroz Hartleys is initiating coverage of Botanix Pharmaceuticals Ltd with a Speculative Buy recommendation and a target price of $0.17.

Botanix Pharmaceuticals is a clinical stage synthetic cannabinoid pharmaceutical company which the broker believes is planning to make its mark in major global markets in dermatology and antimicrobials with four individual clinical programs.

Assuming the individual programs are ultimately clinically successful, the broker expects the potential upside for the company is huge.

While Euroz Hartleys suspects the market is pricing in unsuccessful outcomes, the broker's initial assessment into the company’s programs and clinical studies suggests otherwise.

With an enterprise value of $50m, the broker argues there is a very promising risk-to-reward case.

Target price is $0.17 Current Price is $0.07 Difference: $0.1
If BOT meets the Euroz Hartleys target it will return approximately 143% (excluding dividends, fees and charges).

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $29.29

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

Breville Group reported underlying earnings of $136.4m for FY21, a 20.5% year-on-year increase. Wilsons notes the result is despite a -$31.3m increase in marketing costs.

While no quantitative guidance has been provided, Wilsons notes the company has pointed to FY22 being a transition year. The broker further highlighted considerable risks exist for material supply, input costs and freight charges in the first half of FY22.

The Market Weight rating is retained and the target price decreases to $26.69 from $32.00.

This report was published on August 18, 2021. 

Target price is $26.69 Current Price is $29.29 Difference: minus $2.6 (current price is over target).
If BRG meets the Wilsons target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $33.59, suggesting upside of 10.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 31.50 cents and EPS of 73.30 cents.
At the last closing share price the estimated dividend yield is 1.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.6, implying annual growth of 16.5%.
Current consensus DPS estimate is 31.0, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 39.6.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 37.00 cents and EPS of 85.50 cents.
At the last closing share price the estimated dividend yield is 1.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.9, implying annual growth of 14.8%.
Current consensus DPS estimate is 35.4, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 34.5.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $11.24

Jarden rates ((BXB)) as Buy (2) –

Brambles has reported underlying earnings of US$879m for FY21, against a backdrop of strong revenue growth. 

Jarden particularly noted Brambles was able to meet guidance to increase US Pallets' underlying earnings margins by 100 basis points, despite cost inflation and an increase in IPEP charges, the majority of which came from a -$60m increase in surcharges.

Given expected higher capital expenditure, including -$180m in deferred capital expenditure now set to be added to FY22 results, as well as higher depreciation and amortisation in the next year, Jarden's earnings per share forecasts remain largely unchanged despite an increase in top-line forecasts.

The broker awaits a clearer outlook following the company's strategy day in September. The Overweight rating is retained and the target price increases to $12.75 from $11.85. 

This report was published on August 18, 2021.

Target price is $12.75 Current Price is $11.24 Difference: $1.51
If BXB meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $12.75, suggesting upside of 16.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 31.66 cents and EPS of 52.94 cents.
At the last closing share price the estimated dividend yield is 2.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.1, implying annual growth of N/A.
Current consensus DPS estimate is 34.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 19.5.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 35.52 cents and EPS of 54.67 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.2, implying annual growth of 9.1%.
Current consensus DPS estimate is 37.5, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 17.9.

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

CL1    CLASS LIMITED

Cloud services – Overnight Price: $1.82

Jarden rates ((CL1)) as Buy (1) –

Jarden notes Class' FY22 outlook is solid, with the company guiding to revenue of $65m, an 18% year-on-year increase, and underlying earnings of $25m.

Class has announced the acquisition of legal documents software provider Topdocs for $13m, expected to accelerate document management customer growth by 28%. 

Reflecting the impact of Class' newest acquisition, Jarden updates revenue forecasts 5% and 4% for FY22 and FY23 respectively.

The Buy rating and target price of $2.58 are retained.

This report was published on August 17, 2021.

Target price is $2.58 Current Price is $1.82 Difference: $0.76
If CL1 meets the Jarden target it will return approximately 42% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 5.00 cents and EPS of 6.30 cents.
At the last closing share price the estimated dividend yield is 2.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.89.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 6.00 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 3.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.27.

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


Wilsons rates ((CL1)) as Upgrade to Overweight from Market Weight (1) –

Class' FY21 results were largely in line with Wilsons' expectations, with revenue up 15% and underlying earnings up 16% on FY20 results.

The company also announced its fourth acquisition in 18 months, which the broker notes will continue to accelerate top-line growth. Class has acquired TopDocs for -$13m, expected to close in September 2021. 

Looking ahead, Class is guiding to 18% revenue growth in FY22, comprised of 13% organic growth and 4% acquisitive growth. 

The rating is upgraded to Overweight from Market Weight and the target price increases to $2.31 from $2.26. 

This report was published on August 18, 2021.

Target price is $2.31 Current Price is $1.82 Difference: $0.49
If CL1 meets the Wilsons target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 2.40 cents and EPS of 5.50 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.09.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 2.40 cents and EPS of 6.60 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.58.

Market Sentiment: 1.0
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: $230.00

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

Overall, Cochlear's volumes have recovered with cochlear implants around 10% up on pre-covid levels while the mix (paediatrics/adults) has restored to norms, Wilsons observes.

Wilsons also notes that while Europe remains sluggish, emerging market activity resumed in the second half, while OSIA 2 adoption was stronger than the broker expected.

FY22 net profit guidance is in line with FY19, which Wilsons suspects will deliver flat to mid-single-digit revenue growth this year.

The broker has not made any material changes to forecasts at this stage, but notes the conservative outlook is laden with covid caveats.

Market Weight rating and $230 target maintained.

This report was released on August 20, 2021.

Target price is $230.00 Current Price is $230.00 Difference: $0
If COH meets the Wilsons target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $222.64, suggesting downside of -5.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Current consensus EPS estimate is 421.5, implying annual growth of -15.1%.
Current consensus DPS estimate is 312.3, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 55.8.

Forecast for FY23:

Current consensus EPS estimate is 494.2, implying annual growth of 17.2%.
Current consensus DPS estimate is 379.9, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 47.6.

Market Sentiment: -0.1
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: $3.92

Jarden rates ((CQR)) as Buy (2) –

Wilsons notes that while Charter Hall Retail REIT will be impacted by ongoing lockdowns in FY22, the company has historically been less affected than competitors.

The broker is forecasting a -$8m rent loss in the first half of FY22 and a quick recovery once restrictions are lifted. 

The broker also highlighted the company looks set to build on the acquisitive momentum of last year, having started FY22 with the $51.2m acquisition of Butler Central. Wilson assumes the company will add a further $100m in acquisitions per year.

The Overweight rating is retained and the target price increases to $4.30 from $4.20.

This report was first issue on August 17, 2021.

Target price is $4.30 Current Price is $3.92 Difference: $0.38
If CQR meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $3.80, suggesting downside of -3.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 23.70 cents and EPS of 27.90 cents.
At the last closing share price the estimated dividend yield is 6.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.3, implying annual growth of -46.4%.
Current consensus DPS estimate is 24.5, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 14.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 26.30 cents and EPS of 29.20 cents.
At the last closing share price the estimated dividend yield is 6.71%.
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 28.5, implying annual growth of 4.4%.
Current consensus DPS estimate is 25.9, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 13.8.

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: $300.68

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

Goldman Sachs notes while there are many reasons to like CSL, the current enterprise valuation, 21% above the 5-year average, does not appear to reflect supply/cost uncertainties that remain more elevated than the broker had expected to see at this stage.

Goldman Sachs has revised FY22 forecasts to reflect a softer margin development (-4%). While Goldman Sachs posts a modest upgrade to FY23 (1%), the broker still forecasts -6% below consensus.

Goldman Sachs retains its Neutral rating with the target price increasing to $305 from $302.

This report was published on August 18, 20201.

Target price is $305.00 Current Price is $300.68 Difference: $4.32
If CSL meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $308.84, suggesting upside of 1.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 283.32 cents and EPS of 665.07 cents.
At the last closing share price the estimated dividend yield is 0.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 666.3, implying annual growth of N/A.
Current consensus DPS estimate is 309.2, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 45.8.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 332.54 cents and EPS of 763.50 cents.
At the last closing share price the estimated dividend yield is 1.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 802.1, implying annual growth of 20.4%.
Current consensus DPS estimate is 351.9, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 38.0.

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

CTD    CORPORATE TRAVEL MANAGEMENT LIMITED

Travel, Leisure & Tourism – Overnight Price: $21.76

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

Corporate Travel has reported a final FY21 underlying earnings loss of -$7.2, which, while down on the previous corresponding period, was a $6.5m beat on Bell Potter's forecast. Similarly, profit after tax was down year-on-year to -$31.0m (loss).

Despite this, Bell Potter notes Corporate Travel Management performed well ahead of listed peers throughout covid-19, and reported a strong fourth quarter result.

While the company is yet to provide FY22 guidance, dividends are expected to return. Following the FY21 results, Bell Potter has updated FY22 earnings per share forecasts by -1.2%, -0.3% and 5.4% through to FY24. 

The Buy rating is retained and the target price increases to $24.00 from $22.60.

The report was published on August 19, 2021.

Target price is $24.00 Current Price is $21.76 Difference: $2.24
If CTD meets the Bell Potter target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $23.65, suggesting upside of 12.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 15.00 cents and EPS of 34.00 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 64.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.7, implying annual growth of N/A.
Current consensus DPS estimate is 15.2, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 47.2.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 28.00 cents and EPS of 76.80 cents.
At the last closing share price the estimated dividend yield is 1.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.7, implying annual growth of 114.1%.
Current consensus DPS estimate is 42.7, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 22.0.

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

DMP    DOMINO'S PIZZA ENTERPRISES LIMITED

Food, Beverages & Tobacco – Overnight Price: $164.98

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

Domino's Pizza Enterprises has reported solid FY21 results, with profit after tax of $188.2m, a 29.2% year-on-year increase. Network sales increased 14.6% and same store sales were up 9.3%.

Bell Potter notes the Japan sector was the highlight of results, with underlying earnings up 52.8% year-on-year, same store sales up 21.8% and 126 new store adds.

The broker also highlights positive momentum has continued into FY22. The company has increased new store opening pace and is now guiding to 9-12% new store openings in the next 3-5 years. 

The Buy rating is retained and the target price increases to $155.00 from $132.00.

This report was published on August 19, 2021.

Target price is $155.00 Current Price is $164.98 Difference: minus $9.98 (current price is over target).
If DMP meets the Bell Potter target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $116.07, suggesting downside of -29.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 203.30 cents and EPS of 254.20 cents.
At the last closing share price the estimated dividend yield is 1.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 64.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 254.2, implying annual growth of 19.5%.
Current consensus DPS estimate is 186.7, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 65.0.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 248.20 cents and EPS of 310.20 cents.
At the last closing share price the estimated dividend yield is 1.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 303.1, implying annual growth of 19.2%.
Current consensus DPS estimate is 232.5, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 54.5.

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


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

Apart from the strong topline performance, Goldman Sachs believes the revised growth outlook was a major positive from Domino's Pizza's FY21 result, with store growth targets increasing by circa 20% including Taiwan, and with rollout momentum in Europe and Japan expected to remain at record levels.

Management also provided medium-term milestones of around 4000 stores in 2023 and 5000 stores in 2026-27 which to the broker implies an exceptionally strong rollout in the near term.

Overall, Goldman Sachs revises earnings forecasts by around 3.4% and 3.7% respectively in FY22 and FY23 but notes more significantly in the medium term reflecting the improved pipeline.

The broker maintains its Buy rating and the target price increases to $154.90 from $121.40.

This report was published on August 19, 2021.

Target price is $154.90 Current Price is $164.98 Difference: minus $10.08 (current price is over target).
If DMP 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 $116.07, suggesting downside of -29.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 222.00 cents and EPS of 277.00 cents.
At the last closing share price the estimated dividend yield is 1.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 59.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 254.2, implying annual growth of 19.5%.
Current consensus DPS estimate is 186.7, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 65.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 265.00 cents and EPS of 332.00 cents.
At the last closing share price the estimated dividend yield is 1.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 303.1, implying annual growth of 19.2%.
Current consensus DPS estimate is 232.5, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 54.5.

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

DRR    DETERRA ROYALTIES LIMITED

Iron Ore – Overnight Price: $3.91

Shaw and Partners rates ((DRR)) as Initiation of coverage with Hold (3) –

Shaw and Partners notes the highlight of Deterra Royalties FY21 was the successful demerger from Iluka Resources ((ILU)), offering a operating and capital expenditure free mining option to Australian investors.

Deterra Royalties' inaugural financial year results showed $145.2m in revenue and $94.3m profit after tax, both in line with consensus forecasts. The company also delivered a 13.97 cents per share full year dividend, which Shaw and Partners notes represents eight months of royalties income. 

It is Shaw and Partners' view that Deterra Royalties represents the most significant iron ore growth profile, but consensus iron ore price forecasts offset most top line growth by 2025. 

The broker is Hold rated with a target price of $4.30.

This report was published on August 19, 2021.

Target price is $4.30 Current Price is $3.91 Difference: $0.39
If DRR meets the Shaw and Partners target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $4.97, suggesting upside of 27.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 27.00 cents and EPS of 27.20 cents.
At the last closing share price the estimated dividend yield is 6.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.7, implying annual growth of 60.9%.
Current consensus DPS estimate is 28.3, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 27.00 cents and EPS of 27.90 cents.
At the last closing share price the estimated dividend yield is 6.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.4, implying annual growth of -4.5%.
Current consensus DPS estimate is 28.5, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 14.2.

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

EHL    EMECO HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $1.15

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

Following Emeco Holdings' "mixed" FY21 result, Bell Potter believes resilient east coast coal markets and underlying strength in gold and iron ore contribute to the strong expectation of improving utilisation across FY22.

The broker's updated outlook results in minor revisions to underlying earnings per share (EPS) estimates for FY22 and FY23 respectively.

Bell Potter has also revised cash flow for the higher sustaining capex expectations, plus -$10-15m of growth capex for Pit N Portal.

The broker believes the company's robust balance sheet, heightened free cash flow profile, underutilised asset base, and mixed commodity exposure is undervalued at market prices.

The Buy rating and the target price of $1.55 are retained.

This report was published on August 20, 2021.

Target price is $1.55 Current Price is $1.15 Difference: $0.4
If EHL meets the Bell Potter target it will return approximately 35% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.70 cents and EPS of 14.70 cents.
At the last closing share price the estimated dividend yield is 4.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.82.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 5.30 cents and EPS of 16.60 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 6.93.

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


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

Emeco Holdings delivered headline earnings at the top end of the recently provided guidance and has flagged that 25%-40% of earnings would be used in capital management.

The company announced a 1.25c dividend, plus a $4m buyback.

Segmentally, Canaccord Genuity notes the commentary was bullish for all groups with some second-half FY22 weighting in rental and Pit N Portal. The utilisation commentary on the call indicated positive momentum heading into FY23, with the suggestion of potential for high 60's in FY23 compared to the broker's current assumption of 63.5%.

The broker has increased capex assumptions slightly based on the result commentary, with group earnings estimates increasing by 4% and 5% for FY22 and FY23 respectively.

Buy rating is unchanged and the target price increases to $1.51 from $1.44.

This report was published on August 19, 2021.

Target price is $1.51 Current Price is $1.15 Difference: $0.36
If EHL meets the Canaccord Genuity target it will return approximately 31% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 4.10 cents and EPS of 13.70 cents.
At the last closing share price the estimated dividend yield is 3.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.39.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 4.60 cents and EPS of 15.20 cents.
At the last closing share price the estimated dividend yield is 4.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.57.

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


Moelis rates ((EHL)) as Buy (1) –

Following Emeco Holdings’ FY21 earnings of $238m, at top end of guidance and in line, the company noted that while no quantitative guidance was provided it was comfortable with current consensus FY22 operating earnings ($262m).

Moelis' favourable investment view is based on commodity price strength which supports a growth outlook and utilisation recovery. 

Moelis notes while gold is now the company's largest exposure at 37% FY21 revenue, the eastern region comprises 70-80% of rental earnings and historically had strong leverage to coal prices.

The broker believes the recent strong recovery in coal prices could be a potential driver of utilisation recovery and earnings growth.

With the company trading on a 6.8x enterprise multiple, a -25% discount to its peer average of 9.0x, Moelis believes the company's valuation remains attractive.

Moelis maintains the Buy rating and the target increases to $1.81 from $1.50.

This report was published on August 18, 2021.

Target price is $1.81 Current Price is $1.15 Difference: $0.66
If EHL meets the Moelis target it will return approximately 57% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 5.00 cents and EPS of 14.50 cents.
At the last closing share price the estimated dividend yield is 4.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.93.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 5.00 cents and EPS of 16.10 cents.
At the last closing share price the estimated dividend yield is 4.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.14.

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

EML    EML PAYMENTS LIMITED

Business & Consumer Credit – Overnight Price: $3.85

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

With EML Payments having delivered a FY21 result, which Wilsons described as comprehensive, the broker thinks it is time for the market to look past the PFS Card Services regulatory issues and towards a bigger picture.

Wilsons notes EML Payments has incurred -$11.5m in one-off payments and ongoing fees in response to Central Bank concerns, and impact has been limited so far.

Looking ahead, the company is guiding to a 22% revenue increase, a 15% underlying earnings increase and a -6% net profit after tax decrease in FY22. Wilsons has updated FY22 forecasts to reflect guidance.

The Overweight rating is retained and the target price increases to $4.71 from $4.14.

This report was released on August 18, 2021.

Target price is $4.71 Current Price is $3.85 Difference: $0.86
If EML meets the Wilsons target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $4.58, suggesting upside of 18.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 8.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.8, 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 66.7.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 13.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.8, implying annual growth of 103.4%.
Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 32.8.

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

EVS    ENVIROSUITE LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.18

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

Envirosuite's reported FY21 revenue of $48.6m was in line with Bell Potter's forecast and company guidance, while underlying earnings loss of -$4.5m was a beat on the broker's expected -$5.4m.

Bell Potter notes the better-than-expected result was driven by lower operating expenditure and cost of goods. 

It was also noted that Envirosuite ended the year with a cash balance of $17.6m, ahead of the broker's forecast, and no bank debt. Bell Potter is forecasting mid to high teens percentage growth in FY22 and FY23, and expects a lower underlying earnings loss in the coming year but an underlying earnings profit in FY23. 

The Buy rating is retained and the target price increases to $0.175 from $0.15.

This report was published on August 19, 2021.

Target price is $0.18 Current Price is $0.18 Difference: minus $0.005 (current price is over target).
If EVS meets the Bell Potter target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.71.

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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $30.34

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

Fisher & Paykel Healthcare's first four month results for FY21 are tracking ahead of Wilsons' model, with revenue of NZ$583m around 9% ahead of the broker's expectations. The broker explains results are largely from Hardware sales outside the major markets.

Wilsons notes the New Apps segment, which includes OptiFlow, was up 17% on the previous corresponding period. The broker points to ongoing practice change towards use of high flow nasal cannula as a driver of results. 

The Overweight rating and target price of $35.00 are retained.

This report was published on August 18, 2021.

Target price is $35.00 Current Price is $30.34 Difference: $4.66
If FPH meets the Wilsons target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $32.50, suggesting upside of 6.9%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 37.44 cents and EPS of 65.14 cents.
At the last closing share price the estimated dividend yield is 1.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.1, implying annual growth of N/A.
Current consensus DPS estimate is 37.9, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 48.2.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 38.37 cents and EPS of 66.64 cents.
At the last closing share price the estimated dividend yield is 1.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.6, implying annual growth of 2.4%.
Current consensus DPS estimate is 41.0, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 47.0.

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

HDN    HOMECO DAILY NEEDS REIT

REITs – Overnight Price: $1.60

Jarden rates ((HDN)) as Buy (1) –

Homeco Daily Needs REIT reported its first full-year results, delivering a slight beat on Jarden's forecast with funds from operations per share of 4.1 cents. 

Portfolio occupancy increased to 99.3% from 98.7% and cash collections are approximately 99%. Jarden describes FY21 results as solid, and expects the company will remain active and acquisitive in FY22. 

The company also reiterated guidance for FY22 funds from operations per share of 8.3 cents and dividend per share of 8.0 cents. It is Jarden's view this shows management's optimistic outlook for the year ahead. 

The Buy rating is retained and the target price increases to $1.65 from $1.55.

This report was issued on April 21, 2021.

Target price is $1.65 Current Price is $1.60 Difference: $0.05
If HDN meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $1.65, suggesting upside of 1.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 8.00 cents and EPS of 8.80 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.6, implying annual growth of 51.1%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 18.8.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 8.40 cents and EPS of 8.80 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 18.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.1, implying annual growth of 5.8%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 17.8.

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

INA    INGENIA COMMUNITIES GROUP

Aged Care & Seniors – Overnight Price: $6.38

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

While Ingenia Communities Group has not provided FY22 guidance given ongoing restrictions along the east coast of Australia, Goldman Sachs notes the start to the year has been positive with 34 homes settled year-to-date and a strong pipeline of 330 homes deposited and contracted versus around 200 at beginning of FY21.

Due to a disrupted near-term outlook for holidays, the broker cuts the FY22 earning per share (EPS) forecast by -1.5%, however, higher medium-term settlements drive a 4.8% upgrade to FY23 EPS.

The broker notes acquisition remains a key element of Ingenia’s growth strategy and believes the company has reasonable headroom to reach its target.

Neutral rating is unchanged: Target price $6.75.

This report was published on August 19, 2021.

Target price is $6.75 Current Price is $6.38 Difference: $0.37
If INA meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 11.80 cents and EPS of 23.60 cents.
At the last closing share price the estimated dividend yield is 1.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.03.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 16.70 cents and EPS of 33.40 cents.
At the last closing share price the estimated dividend yield is 2.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.10.

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


Moelis rates ((INA)) as Hold (3) –

Despite projecting 10% year-on-year growth in settlement volumes, Moelis expects Ingenia Communities Group's development earnings to only grow by 5% in FY22.

This is due to a change in the project mix towards lower price-point projects such as Harvey Bay in QLD, which the broker notes should keep overall development earnings margins flat.

The broker notes the group provides exposure to a growing defensive-growth annuity stream and network of holiday parks leveraged to strong underlying demand for domestic travel.

Overall, Moelis expects earnings per share (EPS) compound annual growth rate (CAGR) of 9% between FY21-24 based on the group's growing settlements profile and earnings contributions from acquisitions.

The Hold rating is retained and the target price increases to $6.47 from $5.89.

This report was published on August 19, 2021.

Target price is $6.47 Current Price is $6.38 Difference: $0.09
If INA meets the Moelis target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 11.70 cents and EPS of 24.60 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.93.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 13.40 cents and EPS of 28.10 cents.
At the last closing share price the estimated dividend yield is 2.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.70.

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

ING    INGHAMS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $4.10

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

While covid is expected to continue to present challenges for first half FY22, Goldman Sachs believes Ingham Group's successful track record in handling the pandemic over the last 18 months means the company is well equipped to manage any disruption going forward.

The broker notes that retail, which is by far the group's biggest channel, should continue to display strong demand in FY22.

While working capital management has been strong over the half, the broker suspects that improving inventories may be compromised by further lockdown measures, plus any underlying weakening in wholesale and QSR channels.

While no FY22 earnings guidance has been provided, the broker has marginally upgraded FY22/FY23 earnings per share (EPS) estimates.

The Buy rating and the target price of $4.50 are retained.

This report was published on August 20, 2021.

Target price is $4.50 Current Price is $4.10 Difference: $0.4
If ING meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $4.20, suggesting upside of 2.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 19.50 cents and EPS of 28.50 cents.
At the last closing share price the estimated dividend yield is 4.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.5, implying annual growth of 18.1%.
Current consensus DPS estimate is 17.5, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 15.4.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 21.50 cents and EPS of 29.90 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 13.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.4, implying annual growth of 10.9%.
Current consensus DPS estimate is 19.6, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 13.9.

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

IPH    IPH LIMITED

Legal – Overnight Price: $9.18

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

IPH Ltd recently acquired Applied Marks, an online trademark business, and is actively pursuing further opportunities, observes Bell Potter.

The broker believes IPH is well placed as a leading ‘one-stop gateway’ for Asia-Pacific and sees growth prospects emanating from the growth of the market itself, and market share gains.

Having factored in the Applied Mark acquisition, and updates to model and forex assumptions, the broker's FY22, FY23, and FY24 earnings per share (EPS) estimates increase by low to mid-single-digits.

The Buy rating is unchanged and the target price increases to $9.90 from $8.15.

This report was published on August 20, 2021.

Target price is $9.90 Current Price is $9.18 Difference: $0.72
If IPH meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 30.00 cents and EPS of 38.70 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.72.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 33.00 cents and EPS of 42.20 cents.
At the last closing share price the estimated dividend yield is 3.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.75.

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


Jarden rates ((IPH)) as Buy (1) –

IPH has delivered a solid earnings beat in FY21, with underlying earnings of $124.3m and revenue of $363.5m. It is Jarden's view the company has reported good results that highlight operating leverage and strong momentum in the Asian business. 

The broker notes IPH has been highly acquisitive and estimates the company to have a debt-funded acquisition capacity of around $240m.

Jarden has updated underlying earnings forecasts by 4% across FY22 and FY23 on higher margin assumptions. The Buy rating is retained and the target price increases to $9.49 from $8.55. 

This report was published on August 19, 2021. 

Target price is $9.49 Current Price is $9.18 Difference: $0.31
If IPH meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 38.40 cents and EPS of 38.40 cents.
At the last closing share price the estimated dividend yield is 4.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.91.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 42.00 cents and EPS of 42.00 cents.
At the last closing share price the estimated dividend yield is 4.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.86.

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

IRI    INTEGRATED RESEARCH LIMITED

IT & Support – Overnight Price: $1.86

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

Integrated Research's FY21 net profit was down -67% but was 9% above Bell Potter's forecast due largely to lower forex losses than the broker was expecting.

While Integrated Research did not provide any FY22 guidance, the company's FY22 action plan reveals plans to accelerate the transition to SaaS benefits. Another key performance indicator highlighted by the company for FY22 includes 75 new customers and 100% growth in cloud deferred revenue backlog, observes Bell Potter.

The broker is forecasting a rebound in FY22 after the tough FY21 and forecasts low double-digit revenue growth and strong double-digit earnings growth.

The Hold rating is unchanged and the target price is lowered to $2.10 from $2.25.

This report was published on August 20, 2021.

Target price is $2.10 Current Price is $1.86 Difference: $0.24
If IRI meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 1.00 cents and EPS of 9.00 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 20.67.

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

LIC    LIFESTYLE COMMUNITIES LIMITED

Aged Care & Seniors – Overnight Price: $22.00

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

Lifestyle Communities' FY21 result was in line with the guidance provided in July, and the company has guided to 1100-1300 new home settlements between FY22-FY24.

While the plan remains to add two new sites per year, Canaccord Genuity notes the sites are becoming larger.

As a result, the broker has increased assumptions in the future pipeline to 225 homes per community and this has increased the future assumed pipeline to 4,500 homes, an uplift of 40%.

While the company is trading at a 9% premium to Canaccord's valuation, in the broker's view it remains one of the best long-term exposures to the aging population thematic, offering a superior business model, product, and management team.

Hold rating unchanged, and the target price is increased to $17.30 from $13.40.

The report was published on August 19, 2021.

Target price is $17.30 Current Price is $22.00 Difference: minus $4.7 (current price is over target).
If LIC meets the Canaccord Genuity target it will return approximately minus 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 10.00 cents and EPS of 63.00 cents.
At the last closing share price the estimated dividend yield is 0.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.92.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 12.00 cents and EPS of 69.40 cents.
At the last closing share price the estimated dividend yield is 0.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.70.

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


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

Goldman Sachs expects Lifestyle Communities' strong 3-year guidance for FY22-FY24 new home settlements and resales to drive materially higher annuity rental and deferred management fee (DMF) earnings over the long term.

The broker expects the upsizing of the debt facility by $100m to $375m will allow for further property acquisitions, ultimately driving a faster pace of new home settlements, leading to a larger rental and DMF annuity.

The broker notes while FY22 and FY23 earnings per share (EPS) changes appear minor, resales and rental income have been upgraded circa 12% which has been offset by slightly lower development margins due to mix.

The Buy rating is retained and the target price increases 21% to $21.60.

This report was published on August 19, 2021.

Target price is $21.60 Current Price is $22.00 Difference: minus $0.4 (current price is over target).
If LIC meets the Goldman Sachs 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 FY22:

Goldman Sachs forecasts a full year FY22 dividend of 10.10 cents and EPS of 56.70 cents.
At the last closing share price the estimated dividend yield is 0.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.80.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 11.90 cents and EPS of 61.50 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 35.77.

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: $1.78

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

While Marley Spoon delivered a "mixed" second half FY21 result, Wilsons is impressed with sales growth (up 36%) offset by higher costs, as recently outlined in the second quarter FY21 result.

During the half, revenue increased 36% on the previous period, while an earnings loss of -EUR15.6m was significantly greater than the -EUR2.2m loss in first half FY20, due to contribution margin compression, plus higher marketing and general and admin expense.

Marley Spoon confirmed guidance for 2021 revenue growth of 30-35% and a margin of 29%.

Wilsons continues to see significant upside to forecasts if the current trajectory of revenue growth continues.

The Overweight rating is retained and the target price is reduced to $3.17 from $3.85. 

This report was published on August 20, 2021.

Target price is $3.17 Current Price is $1.78 Difference: $1.39
If MMM meets the Wilsons target it will return approximately 78% (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 26.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.74.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 19.72 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.02.

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

MNY    MONEY3 CORPORATION LIMITED

Business & Consumer Credit – Overnight Price: $3.48

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

Money3 Corp's FY21 results were exceptionally strong according to Bell Potter. The company delivered profit after tax of $39.2m and underlying earnings of $82.4m, a 35.8% year-on-year increase.

Bell Potter highlights results were driven by 38.5% loan book growth to $600.9m, and firm credit quality control. The company is yet to provide formal guidance for FY22, but expects to achieve more than 20% year-on-year earnings growth. 

The broker increases earnings per share estimates by 0.2% and 5.6% for FY22 and FY23 respectively. 

The Buy rating is retained and the target price increases to $4.15 from $3.70.

This report was published on August 19, 2021.

Target price is $4.15 Current Price is $3.48 Difference: $0.67
If MNY 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 FY22:

Bell Potter forecasts a full year FY22 dividend of 11.40 cents and EPS of 22.50 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.47.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 14.50 cents and EPS of 28.60 cents.
At the last closing share price the estimated dividend yield is 4.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.17.

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

NCM    NEWCREST MINING LIMITED

Gold & Silver – Overnight Price: $24.47

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

While Newcrest Mining's FY22 guidance was softer than Goldman Sachs' expectations, especially due to higher than expected all-in costs at key assets, higher capex, gold and copper production guidance were in line with the broker's previous estimates at the group level.

Lihir’s outlook proved -10-20% below the broker's earlier forecasts, offset by stronger production expectations at Telfer.

Meantime, Newcrest's major project pipeline, which continues to progress, including studies at Cadia, Red Chris block cave, Lihir and Havieron.

Goldman Sachs has reduced FY22 earnings by high single digits on weaker than expected FY22 all-in cost guidance. After carrying forward higher operating costs at Cadia, and higher corporate costs and provisions, the broker has reduced net asset value by -6% to $33.68/sh.

The Buy rating is retained and the target price is lowered to $33.00 from $34.00. 

This report was published on August 20, 2021. 

Target price is $33.00 Current Price is $24.47 Difference: $8.53
If NCM meets the Goldman Sachs target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $29.63, suggesting upside of 20.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 21.28 cents and EPS of 200.19 cents.
At the last closing share price the estimated dividend yield is 0.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 134.4, implying annual growth of N/A.
Current consensus DPS estimate is 37.6, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 35.91 cents and EPS of 248.74 cents.
At the last closing share price the estimated dividend yield is 1.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 138.3, implying annual growth of 2.9%.
Current consensus DPS estimate is 41.3, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 17.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NEA    NEARMAP LIMITED

Software & Services – Overnight Price: $1.94

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

Following a reported FY21 result that was broadly in line with market expectations, Nearmap noted it expects to capitalise on strong momentum and retained its medium-term target to grow annual contract value between 20% and 40%, with the North American portfolio to surpass that of A&NZ in FY22.

The broker's Buy rating and target price of $3.15 are both unchanged. 

The report was first published on August 18, 2021.

Target price is $3.15 Current Price is $1.94 Difference: $1.21
If NEA meets the Canaccord Genuity target it will return approximately 62% (excluding dividends, fees and charges).
Current consensus price target is $2.58, suggesting upside of 33.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.33.

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.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 48.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.8, 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 241.3.

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

NWH    NRW HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $1.86

Euroz Hartleys rates ((NWH)) as Initiation of coverage with Buy (1) –

NRW Holdings has guided the market in FY22 to revenues between $2.4bn and $2.5bn, generating earnings of between $145m and $155m, up strongly on FY21.

 Euroz Hartleys notes the forecasts are supported by $2bn in visible revenue and $14.5bn of (within 12 months) opportunity.

The broker believes the FY21 result, which was at the higher end of guidance, plus the outlook statement, with a little explanation, should go a long way to driving share price momentum over the short and medium-term.

Fundamentally,  Euroz Hartleys believes the investment case is well supported by long-term management track record, the order book, balance sheet, outlook statement, and dividend.

The broker notes catalysts include contract wins in the normal course and improving margins. Buy rating: Target $3.06.

This report was issued on August 19, 2021.

Target price is $3.06 Current Price is $1.86 Difference: $1.2
If NWH meets the Euroz Hartleys target it will return approximately 65% (excluding dividends, fees and charges).

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


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

NRW Holdings' FY21 result was strong given expected labour cost inflation and weather impacts, according to Jarden. The company reported operating earnings of around $121m. 

Jarden notes the result was driven by additional contributions from recent acquisitions, recovery in mining margins, and a strengthening outlook into FY22. Looking ahead, the company is guiding to FY22 revenue of $2.4-2.5bn, with $2bn of this covered by work-in-hand, and operating earnings of $145-155m. 

The Overweight rating and target price of $2.90 are retained. 

This report was published on August 19, 2021.

Target price is $2.90 Current Price is $1.86 Difference: $1.04
If NWH meets the Jarden target it will return approximately 56% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 12.30 cents and EPS of 22.20 cents.
At the last closing share price the estimated dividend yield is 6.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.38.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 13.50 cents and EPS of 24.20 cents.
At the last closing share price the estimated dividend yield is 7.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.69.

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

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $14.59

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

Goldman Sachs notes the three key outlook items flagged by Netweath Group include funds under advice (FUA) net flows guidance for FY22 of circa $10bn, while the group is not expecting material change to the admin fee margin in FY22, with the impact of recent repricing now in the base.

The broker also notes the group will strategically step up its investment in people and tech over FY22, after which growth in expenses will normalise in FY23.

On balance, Goldman Sachs downgrades FY22-23 earnings per share (EPS) by -5.4% and -1.3% respectively, and also introduces FY24 estimates.

Goldman Sachs notes downgrades are primarily a function of slightly higher admin fee margins based on recent outlook comments, against a rebased expense profile where the broker now forecast a -3% reduction in earnings margin into FY22.

The Neutral rating remains and the target price is lowered to $15.33 from $16.33.

This report was published on August 18, 2021. 

Target price is $15.33 Current Price is $14.59 Difference: $0.74
If NWL meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $16.53, suggesting upside of 11.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 21.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 1.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.8, implying annual growth of 14.4%.
Current consensus DPS estimate is 20.9, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 57.4.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 25.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 1.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.0, implying annual growth of 16.3%.
Current consensus DPS estimate is 24.1, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 49.3.

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

OBL    OMNI BRIDGEWAY LIMITED

Diversified Financials – Overnight Price: $3.65

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

Omni Bridgeway's FY21 results were broadly as Euroz Hartleys' had expected with commentary providing line of sight of what the broker sees as heightened front-end activity.

Euroz Hartleys remains comfortable with 2022 and 2023 forecasts and is looking for significantly improved profitability during these periods.

Estimated Portfolio Value (EPV) is at $20.1m, up from $15.8m over the previous period and committed funds increased from $312m in 2020 to $413m in 2021.

The broker notes forecasts for 2022 are largely underpinned by an outcome on Wivenhoe. Buy rating. Price target $5.65.

This report was issued August 20, 2021.

Target price is $5.65 Current Price is $3.65 Difference: $2
If OBL meets the Euroz Hartleys target it will return approximately 55% (excluding dividends, fees and charges).

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

OTW    OVER THE WIRE HOLDINGS LIMITED

Cloud services – Overnight Price: $4.64

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

While Over the Wire Holdings did not provide any FY22 guidance, the company is targeting 15% organic recurring revenue growth in FY22 which is consistent with recent years, observes Bell Potter.

Over the Wire also signaled plans to “maximise opportunities, operational leverage, and savings from completion of Tier 1 voice provider”.

Largely driven by reductions in margin estimates plus modest reductions in revenue forecasts, Bell Potter has downgraded FY22 and FY23 earnings forecasts by 8% and 5% respectively.

The Hold rating and target price of $5.00 are retained. 

This report was published on August 20, 2021. 

Target price is $5.00 Current Price is $4.64 Difference: $0.36
If OTW meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.50 cents and EPS of 11.40 cents.
At the last closing share price the estimated dividend yield is 0.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.70.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 5.50 cents and EPS of 16.10 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.82.

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

OZL    OZ MINERALS LIMITED

Copper – Overnight Price: $24.94

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

As expected, Goldman Sachs notes OZ Minerals approved the Prominent Hill underground expansion to 6Mtpa while capex has increased by circa 30% to $600m due to scope changes and industry cost inflation.

The broker had already assumed 10-15% capex inflation across the company's $3bn of growth spend across the portfolio.

Goldman Sachs increases 2021 and 2022 earning per share by 8% and 13% after lowering costs, and the broker's net asset value  estimate is down -1% to $25.8/sh on higher capex at Prominent Hill

The Neutral rating is retained with the target price increasing 0.4% to $25.40.

This report was published on August 18, 2021.

Target price is $25.40 Current Price is $24.94 Difference: $0.46
If OZL meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $23.69, suggesting downside of -2.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 37.40 cents and EPS of 189.00 cents.
At the last closing share price the estimated dividend yield is 1.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 167.3, implying annual growth of 156.5%.
Current consensus DPS estimate is 33.2, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 14.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 50.60 cents and EPS of 253.00 cents.
At the last closing share price the estimated dividend yield is 2.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 154.0, implying annual growth of -7.9%.
Current consensus DPS estimate is 30.8, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 15.8.

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


Shaw and Partners rates ((OZL)) as Buy (1) –

Operational performance, higher copper volumes and stronger prices have driven a beat for OZ Minerals in the first half of FY21. The company reported a 237% increase in profit after tax for the half, to total $269m, an approximate 15% beat on consensus forecasts.

OZ Minerals also announced a fully franked 8 cent per share dividend, as well as an 8 cent per share special dividend from strong financial performance. 

The company has signed off on the final investment decision for Prominent Hill, extending mine life, lowering operating costs, increasing annual production and enabling lower emissions. 

The Buy rating is retained and the target price decreases to $22.50 from $25.00. 

This report was published on August 19, 2021.

Target price is $22.50 Current Price is $24.94 Difference: minus $2.44 (current price is over target).
If OZL meets the Shaw and Partners target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $23.69, suggesting downside of -2.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 25.00 cents and EPS of 160.90 cents.
At the last closing share price the estimated dividend yield is 1.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 167.3, implying annual growth of 156.5%.
Current consensus DPS estimate is 33.2, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 14.5.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 30.00 cents and EPS of 158.40 cents.
At the last closing share price the estimated dividend yield is 1.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 154.0, implying annual growth of -7.9%.
Current consensus DPS estimate is 30.8, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 15.8.

Market Sentiment: 0.3
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: $58.85

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

Pro Medicus' FY21 revenue of $68m implies 19% growth on the previous year, and 35% growth in the second half. The company also reported earnings margin improvement to 62%.

It is Bell Potter's view that Pro Medicus continues to be attractive, highlighting the company's demonstrated ability to leverage earnings potential, having increased revenue by $20m in the last two years while increasing cash operating expenses only by -$1.3m, and a strong customer base that includes 9 of the top 20 US hospitals.

Looking forward, the broker notes the company has a full pipeline, including at least two contracts signed in FY21 that are yet to be implemented. Bell Potter expects the company will deliver solid revenue and earnings growth in FY22. 

The Hold rating is retained and the target price increases to $62.00.

This report was published on August 19, 2021.

Target price is $62.00 Current Price is $58.85 Difference: $3.15
If PME meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 20.50 cents and EPS of 40.90 cents.
At the last closing share price the estimated dividend yield is 0.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 143.89.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 26.50 cents and EPS of 53.00 cents.
At the last closing share price the estimated dividend yield is 0.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 111.04.

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


Moelis rates ((PME)) as Downgrade to Sell from Hold (5) –

While no quantified guidance was provided following Pro Medicus' FY21 underlying net profit result, which was 4% ahead of consensus, the company noted that despite record contract wins in FY21, the pipeline remains "healthy" in terms of both quality and quantity.

Moelis believes strong growth in FY22 is largely underwritten by the 5 large US contracts already announced in FY21. With a healthy pipeline of opportunities and an increased demand for cloud-based solutions (allowing more rapid deployment), the broker assumes the company will win another 3 large contracts in FY22, which will contribute to second half FY22.

From FY23 and beyond Moelis assumes the company will achieve $22.5m pa from new contracts.

The broke estimates -5% earnings per share (EPS) reductions capture costs returning in FY22, while outer years earnings estimates increase to capture 30% peak penetration.

Moelis downgrades Pro Medicus to Sell from Hold with the target increasing to $51.61 from $47.17.

This report was published on August 18, 2021.

Target price is $51.61 Current Price is $58.85 Difference: minus $7.24 (current price is over target).
If PME meets the Moelis target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 19.00 cents and EPS of 42.40 cents.
At the last closing share price the estimated dividend yield is 0.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 138.80.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 22.50 cents and EPS of 55.50 cents.
At the last closing share price the estimated dividend yield is 0.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 106.04.

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

PPT    PERPETUAL LIMITED

Wealth Management & Investments – Overnight Price: $41.52

Jarden rates ((PPT)) as Downgrade to Underweight from Overweight (2) –

It is Jarden's view that Perpetual's sizeable cost growth guidance and continued Barrow Hanley outflows in FY22 are likely to hamper short-term earnings.

The company is guiding to cost growth of 17-21%, above Jarden's 13% growth forecast, given higher-than-expected distributed team spend. 

Additionally, Jarden estimates Barrow Hanley will experience outflows of -9% in the next year. Jarden updates earnings per share forecasts by -21%, -8% and 4% through to FY24. 

Despite the FY22 outlook, Perpetual's profit after tax for FY21 of $124m was in line with Jarden's forecast. 

The rating is downgraded to Underweight from Overweight and the target price decreases to $36.75 from $39.15.

This report was published on August 20, 2021.

Target price is $36.75 Current Price is $41.52 Difference: minus $4.77 (current price is over target).
If PPT meets the Jarden target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $40.14, suggesting downside of -1.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 183.00 cents and EPS of 214.20 cents.
At the last closing share price the estimated dividend yield is 4.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 244.7, implying annual growth of 81.3%.
Current consensus DPS estimate is 195.6, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 16.6.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 197.70 cents and EPS of 231.40 cents.
At the last closing share price the estimated dividend yield is 4.76%.
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 264.5, implying annual growth of 8.1%.
Current consensus DPS estimate is 211.8, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 15.4.

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

PSQ    PACIFIC SMILES GROUP LIMITED

Healthcare services – Overnight Price: $2.51

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

Pacific Smiles Group reported solid FY21 results, including a 73% increase in net profit after tax to $14m, but Wilsons notes the intensity and longevity of the delta outbreak in New South Wales in likely to impact profitability in the first half of FY22.

While previous lockdowns would suggest quick volume returns when restrictions ease, given the absence of JobKeeper this year, the broker decreases profitability forecasts. 

Wilsons notes its -11% earnings per share forecast decrease for FY23 could be conservative as it is yet to reflect the company's accelerated rollout plans. 

The Overweight rating is retained and the target price decreases to $2.75 from $2.95. 

This report was published on August 19, 2021.

Target price is $2.75 Current Price is $2.51 Difference: $0.24
If PSQ meets the Wilsons target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 100.40.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 6.30 cents and EPS of 9.00 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 27.89.

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

SGF    SG FLEET GROUP LIMITED

Vehicle Leasing & Salary Packaging – Overnight Price: $2.70

Canaccord Genuity rates ((SGF)) as Initiation of coverage with Buy (1) –

Due to what Canaccord Genuity regards as a stable revenue profile, broad technology, and mobility offerings, supportive market conditions and undemanding valuation, the broker has initiated coverage of SG Fleet Group with a Buy recommendation and a $3.72 price target.

Canaccord is drawn to the benefits flowing from LeasePlan plus what the broker deems to be strengthening operating conditions for fleet managers, supported by a sharp recovery in Australian new car sales and the group confirming strong growth in its leads and order pipeline.

This report was issued on August 19, 2021.

Target price is $3.72 Current Price is $2.70 Difference: $1.02
If SGF meets the Canaccord Genuity target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 14.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 5.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.74.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 15.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 5.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.38.

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

SUL    SUPER RETAIL GROUP LIMITED

Automobiles & Components – Overnight Price: $11.99

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

Super Retail Group has reported a strong FY21 result, with underlying earnings up 80% year-on-year. Bell Potter notes the result was driven by growth in like-for-like sales, gross margin expansion and operating expenditure leverage. 

The broker further highlighted Super Retail is well positioned to navigate lockdowns, with a strong net cash position of $242.3m at the end of FY21.

Following the modest beat in results, Bell Potter increases earnings per share forecasts by 1.7%, 0.8% and 0.3% through to FY24.

The Hold rating is retained and the target price increases to $12.35 from $12.05.

This report was published on August 19, 2021.

Target price is $12.35 Current Price is $11.99 Difference: $0.36
If SUL meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $13.76, suggesting upside of 11.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 51.60 cents and EPS of 86.00 cents.
At the last closing share price the estimated dividend yield is 4.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.3, implying annual growth of -31.6%.
Current consensus DPS estimate is 57.9, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 13.5.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 48.80 cents and EPS of 81.40 cents.
At the last closing share price the estimated dividend yield is 4.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 90.8, implying annual growth of -0.5%.
Current consensus DPS estimate is 55.6, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 13.5.

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

SXL    SOUTHERN CROSS MEDIA GROUP LIMITED

Print, Radio & TV – Overnight Price: $2.13

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

While Southern Cross Media Group delivered a beat on earnings, lower net debt, strongly growing digital audio revenues, and the return of a strong dividend in FY21, Canaccord Genuity is mindful of tougher competition through the balance of FY22.

The broker notes there are set to be numerous moving parts between the group's FY21 and FY22, notably the lower revenue from the regional TV affiliate switch, offset by the lower payaway.

Canaccord expects around $40m of non-repeat cost benefits to roll out of non-revenue related costs, together with investment in Digital Audio, CPI increases, and reversals of other temporary costs. The broker estimate overheads will increase from $245m in FY21 to $306m in FY22.

Overall, the broker's revenue and total costs forecasts come down by -11% each, resulting in an -8% lower FY22 earnings forecast, with similar changes in FY23.

The Buy rating is unchanged and the price target decreases to $2.50 from $2.70.

This report was published on August 19, 2021.

Target price is $2.50 Current Price is $2.13 Difference: $0.37
If SXL meets the Canaccord Genuity target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $2.07, suggesting downside of -1.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 12.00 cents and EPS of 15.00 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 14.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.0, implying annual growth of -1.1%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 11.7.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 14.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 6.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.2, implying annual growth of 1.1%.
Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 11.5.

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

SXY    SENEX ENERGY LIMITED

Crude Oil – Overnight Price: $3.39

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

Following the FY21 result, broadly in line with Bell Potter estimates, Senex Energy is guiding to further strong growth in FY22.

Production guidance is up 27%, while earnings guidance of $75-85m, up 47%, is weaker than Bell Potter had previously expected, as the outlook for realised prices proved different.

Buy rating is unchanged and the target price is lowered to $3.70 from $3.75.

This report was published on July 21, 2021.

Target price is $3.70 Current Price is $3.39 Difference: $0.31
If SXY meets the Bell Potter target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $3.79, suggesting upside of 12.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 8.00 cents and EPS of 23.80 cents.
At the last closing share price the estimated dividend yield is 2.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.5, implying annual growth of -45.7%.
Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 17.3.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 15.00 cents and EPS of 40.40 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 8.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.7, implying annual growth of 42.1%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 12.2.

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


Jarden rates ((SXY)) as Buy (1) –

Senex Energy has reported underlying earnings for FY21 of $57m and profit after tax of $5.4m. Jarden notes the final dividend of 5 cents per share was surprisingly strong.

Looking ahead, the company is guiding to production of 21-23 petajoules and underlying earnings of $75-85m for FY22, both in line with the broker's expectations.

Jarden notes free cash flow guidance of $50-60m is now at the upper end of previous guidance despite oil hedging losses in the year, which is largely attributed to sustained capital expenditure guidance now -50% below prior expectations. 

It is Jarden's view that Senex Energy has a clear path to doubling current production to 36 petajoules per annum by the end of FY23, and considers the company a relatively low-risk investment. 

The Buy rating and target price of $4.15 are retained. 

This report was published on August 19, 2021.

Target price is $4.15 Current Price is $3.39 Difference: $0.76
If SXY meets the Jarden target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $3.79, suggesting upside of 12.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 8.00 cents and EPS of 15.60 cents.
At the last closing share price the estimated dividend yield is 2.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.5, implying annual growth of -45.7%.
Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 17.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 8.50 cents and EPS of 19.00 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 17.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.7, implying annual growth of 42.1%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 12.2.

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

TAH    TABCORP HOLDINGS LIMITED

Gaming – Overnight Price: $4.85

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

While current lockdowns are a headwind for Tabcorp Holdings' retail wagering and gaming services business, Goldman Sachs notes this is partly offset by tailwinds for its digital Lotteries and wagering businesses.

The broker expects the company's -$20-25m in earnings savings from its optimisation program in FY22 to cushion lockdown headwinds.

Goldman Sachs believes management comments underpin the broker's thesis that OzLotto game changes will likely be approved towards the back end of FY22, which the broker expects to provide a meaningful tailwind for FY23 earnings.

Goldman Sachs makes minor earnings changes across FY22-23 and introduces FY24 estimates. 

Buy rating maintained and target increases to $5.89 from $5.83.

This report was issued August 18, 2021.

Target price is $5.89 Current Price is $4.85 Difference: $1.04
If TAH meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $5.49, suggesting upside of 12.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 17.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 3.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of 46.9%.
Current consensus DPS estimate is 14.9, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 26.9.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 19.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 3.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.1, implying annual growth of 16.6%.
Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 23.1.

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

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $6.87

Bell Potter rates ((TLX)) as Downgrade to Hold from Buy (3) –

While there was no significant trading update accompanying Telix Pharmaceuticals' first half FY21 earnings announcement, Bell Potter suspects all eyes are now on FDA approval of Illuccix for the imaging of recurrent prostate cancer which is due in September.

The broker notes a further 16 countries are also likely to approve the drug this calendar year.

The company has notional cash of $61m which the broker believes is more than sufficient to support ongoing operations. 

Following the recent share price movement, Bell Potter downgrades Telix Pharmaceuticals to Hold from Buy and the target price is unchanged at $8.00.

This report was issued August 20, 2021.

Target price is $8.00 Current Price is $6.87 Difference: $1.13
If TLX meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 16.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.65.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 120.53.

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

TPG    TPG TELECOM LIMITED

Telecommunication – Overnight Price: $6.48

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

Following TPG Telecom's first-half FY21 result, highlighted by a disappointing revenue trend, but including a cost control-driven earnings beat, the company provided no guidance. Management did re-iterate its previous 2021 and 2023 synergy targets.

With the intention of maximising shareholder return, the company announced a strategic review of its 1,200 owned mobile sites (towers plus rooftops).

Goldman Sachs notes in the TPG/Vodafone scheme booklet, Vodafone disclosed ownership of 467 mobile sites. This suggests to the broker that either the 1,200 sites will include TPG 400 small cells, or that there has been significant construction activity since merger completion.

Neutral rating is maintained, and the price target is increased to $6.30 from $6.20.

This report was published on August 20, 2021. 

Target price is $6.30 Current Price is $6.48 Difference: minus $0.18 (current price is over target).
If TPG meets the Goldman Sachs target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.53, suggesting upside of 16.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 15.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 2.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.6, implying annual growth of -77.2%.
Current consensus DPS estimate is 12.8, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 44.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 23.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 3.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.2, implying annual growth of 31.5%.
Current consensus DPS estimate is 13.0, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 33.6.

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

VCX    VICINITY CENTRES

REITs – Overnight Price: $1.72

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

Goldman Sachs believes Vicinity Centres is positioned to weather any further uncertainty related to the prolonged covid impacted environment.

The broker believes this is especially so given its low gearing enables the company to absorb further asset devaluations and fund medium/long-term large-scale mixed-use developments post-covid.

However, the broker notes the operating environment remains challenging, particularly in NSW & Voictoria where 75%-80% of tenants are not trading.

The company did not provide FY22 earnings guidance due to the uncertainty around the covid delta variant outbreak, but Goldman Sachs notes management's plans to target a distribution based on an adjusted funds from operations payout ratio of 95%-100%.

The Buy rating is unchanged and the target price is lowered -2% to $1.77.

This report was published on August 18, 2021. 

Target price is $1.77 Current Price is $1.72 Difference: $0.05
If VCX meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $1.64, suggesting downside of -4.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.8, implying annual growth of N/A.
Current consensus DPS estimate is 8.0, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 17.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.7, implying annual growth of 19.4%.
Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 14.7.

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

WPL    WOODSIDE PETROLEUM LIMITED

NatGas – Overnight Price: $20.81

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

As highlighted by Goldman Sachs recently, the outlook for Woodside Petroleum is driven by the planned delivery of the Scarborough project with the final investment decision (FID) targeted by the end of 2021 as well as the progress on the proposed merger of the portfolio with BHP Petroleum by second quarter 2022.

Total expenditure guidance is unchanged at -US$2.9-3.2bn, and full-year trading costs including Corpus Christi are expected at -US$1.1-1.3bn.

Management commentary confirmed this implies traded LNG volumes are expected to nearly double in the second half, although it also highlighted the trading increase as opportunistic on market conditions and may not carry forward.

As a result of the higher trading activity, the broker expects 25% of LNG sales volumes to come from trading in 2021, up from 7% in 2020.

Goldman Sachs is currently not rated on Woodside.

This report was published on August 18, 2021.

Current Price is $20.81. Target price not assessed.
Current consensus price target is $25.97, suggesting upside of 26.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 144.99 cents and EPS of 180.90 cents.
At the last closing share price the estimated dividend yield is 6.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 169.3, implying annual growth of N/A.
Current consensus DPS estimate is 121.0, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 211.49 cents and EPS of 263.37 cents.
At the last closing share price the estimated dividend yield is 10.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 181.8, implying annual growth of 7.4%.
Current consensus DPS estimate is 115.2, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 11.3.

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


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

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

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

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CHARTS

AIA AMS ARB ASX AVN AX1 BLX BOT BRG BXB CL1 COH CQR CSL CTD DMP DRR EHL EML EVS FPH HDN ILU INA ING IPH IRI LIC MMM MNY NCM NEA NWH NWL OBL OTW OZL PME PPT PSQ SGF SUL SXL SXY TAH TLX TPG VCX WPL

For more info SHARE ANALYSIS: AIA - AUCKLAND INTERNATIONAL AIRPORT LIMITED

For more info SHARE ANALYSIS: AMS - ATOMOS LIMITED

For more info SHARE ANALYSIS: ARB - ARB CORPORATION LIMITED

For more info SHARE ANALYSIS: ASX - ASX LIMITED

For more info SHARE ANALYSIS: AVN - AVENTUS GROUP

For more info SHARE ANALYSIS: AX1 - ACCENT GROUP LIMITED

For more info SHARE ANALYSIS: BLX - BEACON LIGHTING GROUP LIMITED

For more info SHARE ANALYSIS: BOT - BOTANIX PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: BRG - BREVILLE GROUP LIMITED

For more info SHARE ANALYSIS: BXB - BRAMBLES LIMITED

For more info SHARE ANALYSIS: CL1 - CLASS LIMITED

For more info SHARE ANALYSIS: COH - COCHLEAR LIMITED

For more info SHARE ANALYSIS: CQR - CHARTER HALL RETAIL REIT

For more info SHARE ANALYSIS: CSL - CSL LIMITED

For more info SHARE ANALYSIS: CTD - CORPORATE TRAVEL MANAGEMENT LIMITED

For more info SHARE ANALYSIS: DMP - DOMINO'S PIZZA ENTERPRISES LIMITED

For more info SHARE ANALYSIS: DRR - DETERRA ROYALTIES LIMITED

For more info SHARE ANALYSIS: EHL - EMECO HOLDINGS LIMITED

For more info SHARE ANALYSIS: EML - EML PAYMENTS LIMITED

For more info SHARE ANALYSIS: EVS - ENVIROSUITE LIMITED

For more info SHARE ANALYSIS: HDN - HOMECO DAILY NEEDS REIT

For more info SHARE ANALYSIS: ILU - ILUKA RESOURCES LIMITED

For more info SHARE ANALYSIS: INA - INGENIA COMMUNITIES GROUP

For more info SHARE ANALYSIS: ING - INGHAMS GROUP LIMITED

For more info SHARE ANALYSIS: IPH - IPH LIMITED

For more info SHARE ANALYSIS: IRI - INTEGRATED RESEARCH LIMITED

For more info SHARE ANALYSIS: LIC - LIFESTYLE COMMUNITIES LIMITED

For more info SHARE ANALYSIS: MMM - MARLEY SPOON AG

For more info SHARE ANALYSIS: MNY - MONEY3 CORPORATION LIMITED

For more info SHARE ANALYSIS: NCM - NEWCREST MINING LIMITED

For more info SHARE ANALYSIS: NEA - NEARMAP LIMITED

For more info SHARE ANALYSIS: NWH - NRW HOLDINGS LIMITED

For more info SHARE ANALYSIS: NWL - NETWEALTH GROUP LIMITED

For more info SHARE ANALYSIS: OBL - OMNI BRIDGEWAY LIMITED

For more info SHARE ANALYSIS: OTW - OVER THE WIRE HOLDINGS LIMITED

For more info SHARE ANALYSIS: OZL - OZ MINERALS LIMITED

For more info SHARE ANALYSIS: PME - PRO MEDICUS LIMITED

For more info SHARE ANALYSIS: PPT - PERPETUAL LIMITED

For more info SHARE ANALYSIS: PSQ - PACIFIC SMILES GROUP LIMITED

For more info SHARE ANALYSIS: SGF - SG FLEET GROUP LIMITED

For more info SHARE ANALYSIS: SUL - SUPER RETAIL GROUP LIMITED

For more info SHARE ANALYSIS: SXL - SOUTHERN CROSS MEDIA GROUP LIMITED

For more info SHARE ANALYSIS: SXY - SENEX ENERGY LIMITED

For more info SHARE ANALYSIS: TAH - TABCORP HOLDINGS LIMITED

For more info SHARE ANALYSIS: TLX - TELIX PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: TPG - TPG TELECOM LIMITED

For more info SHARE ANALYSIS: VCX - VICINITY CENTRES

For more info SHARE ANALYSIS: WPL - WOODSIDE PETROLEUM LIMITED