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Australian Broker Call *Extra* Edition – Sep 23, 2021

Daily Market Reports | Sep 23 2021

This story features AUDINATE GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: AD8

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)

AD8   ADH   AMA   BST   CHC   COE (2)   COH   CYC   E33   EHE   GEM   HUB   JLG   KGN   MND   NAN   NHF   NTO   OSL   RDY   SCG (2)   SEK   SHL (2)   SKI   SOM   UWL (2)   VEA   WSA  

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $9.84

Shaw and Partners rates ((AD8)) as Buy (1) –

Given the prior July update, FY21 sales were as expected by Shaw and Partners while earnings (EBITDA) were a beat. The broker anticipates US dollar growth of 35% while traditionally conservative management reiterated a return to growth of 25% to 30% in FY22.

The analyst makes no material changes to forecasts and maintains the Buy rating and $12 target price. Dante adoption has increased to 19x from 17x the nearest competitor.

While supply chain issues slowed new product releases in the second half, the broker points out the number of OEM's shipping products actually increased to 371 from 328, just below the 377 expected.

This report was published on August 24, 2021.

Target price is $12.00 Current Price is $9.84 Difference: $2.16
If AD8 meets the Shaw and Partners target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $11.72, suggesting upside of 19.4%(ex-dividends)
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 minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 984.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 364.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.5, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 280.3.

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

ADH    ADAIRS LIMITED

Furniture & Renovation – Overnight Price: $3.96

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

FY21 earnings (EBIT) were ahead of guidance and consensus forecasts, with the underlying businesses (Stores, Online, Mocka) performing well, according to Wilsons. The Overweight rating is maintained.

The analyst downgrades FY22 earnings forecasts due to lockdown restrictions for stores and a more conservative growth profile for Adairs online and Mocka. The target price falls to $5.30 from $5.80.

The broker remains attracted longer-term to the omni-channel strategy and a number of other attractive growth options.

This report was published on August 23, 2021.

Target price is $5.30 Current Price is $3.96 Difference: $1.34
If ADH meets the Wilsons target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $4.57, suggesting upside of 15.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 21.00 cents and EPS of 38.50 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 10.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.6, implying annual growth of -10.9%.
Current consensus DPS estimate is 21.5, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 11.8.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 24.00 cents and EPS of 50.10 cents.
At the last closing share price the estimated dividend yield is 6.06%.
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 38.5, implying annual growth of 14.6%.
Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 10.3.

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

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.50

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

Despite a challenging year, AMA Group reported underlying earnings of $116m, a 2% beat on Wilsons' expectations. First half volumes were affected by lockdowns, which Wilsons notes will continue to have near-term impact, and sustained cost inflation impacting margins.

Looking ahead, the broker feels AMA Group is well-placed to lead further consolidation in the panel repair industry, but notes acquisition activity in the near-term is constrained by the balance sheet. Wilsons expects full acquisition activity to recommence from FY23.

The broker forecasts a sales decrease of -16% in FY22 and FY23, largely on reduced acquisition activity, and an underlying earnings decrease of -20% in FY22 and -12% in FY23.

The Market Weight rating is retained and the target price decreases to $0.47 from $0.60.

This report was published on August 25, 2021.

Target price is $0.47 Current Price is $0.50 Difference: minus $0.03 (current price is over target).
If AMA meets the Wilsons target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 100.00.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.86.

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

BST    BEST & LESS GROUP HOLDINGS LIMITED

Apparel & Footwear – Overnight Price: $3.30

Bell Potter rates ((BST)) as Initiation of coverage with Buy (1) –

Bell Potter initiates coverage on Best & Less Group with a Buy rating and $3.30 target price. The company is an omni-channel value apparel retailer with 185 Best & Less stores in Australia and 61 Postie stores in New Zealand.

The target customer is a mum on a budget with children under the age of 17. There are around 1.5m loyalty members partly built on trust. A 2020 KPMG report pointed to a top-10 ranking regarding trustworthy brands in Australia.

Strength in the baby and kids category drives a sales opportunity to other categories, explains the analyst. Finally, research shows the value segment of the A&NZ clothing and footwear market is forecast to grow at a faster than mid/premium segments over FY20-FY24.

This report was published on August 24, 2021.

Target price is $3.30 Current Price is $3.30 Difference: $0
If BST meets the Bell Potter target it will return approximately 0% (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 19.70 cents and EPS of 32.80 cents.
At the last closing share price the estimated dividend yield is 5.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.06.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 21.00 cents and EPS of 35.10 cents.
At the last closing share price the estimated dividend yield is 6.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.40.

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

CHC    CHARTER HALL GROUP

REITs – Overnight Price: $18.50

Jarden rates ((CHC)) as Buy (1) –

Having reported 11.3% earnings per share underlying growth in FY21, it is Jarden's view that 11-12% underlying growth is sustainable for Charter Hall Group for the next few years. 

The broker notes strong assets under management growth, increase in Property Investments, outperformance from many funds, and significant investment capacity should drive growth for the company, and notes further potential upside to upgraded forecasts.

The Buy rating is retained and the target price increases to $20.30 from $17.20. 

This report was published on August 23, 2021.

Target price is $20.30 Current Price is $18.50 Difference: $1.8
If CHC meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $19.85, suggesting upside of 5.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 40.10 cents and EPS of 76.60 cents.
At the last closing share price the estimated dividend yield is 2.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 79.5, implying annual growth of -22.3%.
Current consensus DPS estimate is 40.1, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 23.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 42.50 cents and EPS of 81.40 cents.
At the last closing share price the estimated dividend yield is 2.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.1, implying annual growth of 2.0%.
Current consensus DPS estimate is 42.7, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 23.2.

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

COE    COOPER ENERGY LIMITED

Crude Oil – Overnight Price: $0.23

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

While FY21 results were pre-reported, production guidance for 3-3.6MMboe and underlying earnings (EBITDAX) of $60-70m were well below Bell Potter's expectations. The broker lowers its target price to $0.38 from $0.45 and maintains its Buy rating.

The analyst materially downgrades FY22 EPS forecasts due to disruptions from work on the Orbost gas processing plant and the March 2022 quarter cutover and commissioning of the Athena Gas Plant.

According to Bell Potter, delays at Sole have also set back balance sheet de-leveraging, resulting in a weaker position to fund future growth. Against this, tightening SE coast gas markets and a portfolio of projects are thought to be set to deliver production growth.

This report was published on August 24, 2021.

Target price is $0.38 Current Price is $0.23 Difference: $0.15
If COE meets the Bell Potter target it will return approximately 65% (excluding dividends, fees and charges).
Current consensus price target is $0.26, suggesting upside of 14.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 115.00.

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 N/A.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 1.40 cents and EPS of 2.70 cents.
At the last closing share price the estimated dividend yield is 6.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 25.6.

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


Jarden rates ((COE)) as Buy (2) –

Cooper Energy pre-announced FY21 results, reporting a profit loss of -$30m and underlying earnings of $60m. It is Jarden's view that recent share price underperformance was impacted by uncertainty around Orbost's production outlook. 

Looking ahead, Cooper Energy is guiding to FY22 underlying earnings of $60-70m and capital expenditure of $25-30m, a -$15m miss on Jarden's previous forecast. Cooper Energy's accounts indicate $60m in principal debt repayments by the end of FY22.

Jarden remains confident in the value of the stock, with valuations underpinned by an assumption that Orbost production will lift to 50 terajoules per day after Phase 2B. 

The Overweight rating and target price of $0.29 are retained. 

This report was published on August 23, 2021.

Target price is $0.29 Current Price is $0.23 Difference: $0.06
If COE meets the Jarden target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $0.26, suggesting upside of 14.8%(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 minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 38.33.

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 N/A.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 38.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 25.6.

Market Sentiment: 0.2
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: $236.03

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

Cochlear's underlying profit missed consensus forecasts by -7.5% and management guided FY22 profit to FY19 levels. The broker lowers EPS forecasts by -7%-9% and reduces the target price to $217.21 from $230.

With the N8 processor still not launched and competition expected to intensify in the second half, the analyst feels, by implication, management must be agreeing that underlying market growth looks weak.

This report was published on August 23, 2021.

Target price is $217.21 Current Price is $236.03 Difference: minus $18.82 (current price is over target).
If COH meets the Wilsons target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $222.64, suggesting downside of -5.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 291.10 cents and EPS of 415.80 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 56.77.

How do these forecasts compare to market consensus projections?

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 55.7.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 330.30 cents and EPS of 471.90 cents.
At the last closing share price the estimated dividend yield is 1.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.02.

How do these forecasts compare to market consensus projections?

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 47.5.

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

CYC    CYCLOPHARM LIMITED

Medical Equipment & Devices – Overnight Price: $1.70

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

Pre-reported first half revenues declined by -25% due primarily to covid-driven contraction in demand across markets in Canada and Europe, explains Bell Potter. However, the current period saw demand resume to pre-covid levels. 

The net loss (EBIT) for the period declined by -$2m to $3.6m and the interim dividend was unchanged at 0.5 cents per share. The broker maintains its Hold rating and decreases its target price to $1.85 from $1.90.

Management is highly confident regarding growth prospects in existing markets. No timing was provided for progress with the FDA to address the outstanding technical matters that were the subject of an earlier Complete Response Letter.

This report was published on August 24, 2021.

Target price is $1.85 Current Price is $1.70 Difference: $0.15
If CYC meets the Bell Potter target it will return approximately 9% (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 1.00 cents and EPS of minus 8.60 cents.
At the last closing share price the estimated dividend yield is 0.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.77.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 1.00 cents and EPS of minus 6.70 cents.
At the last closing share price the estimated dividend yield is 0.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.37.

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

E33    EAST 33 LIMITED

Food, Beverages & Tobacco – Overnight Price: $0.19

Shaw and Partners rates ((E33)) as Initiation of coverage with Buy (1) –

Shaw and Partners initiates coverage on East 33 with a Buy rating and $0.32 price target. At scale, the company is likely to account for around 40% of the market and produce/distribute over 40m oysters.

The company is involved in integrated producing, processing, distribution, branding and direct sales of premium oysters into the domestic market. Sydney rock oysters are highly scarce and are less prone to disease than Pacific oysters (majority of market globally).

The broker forecasts own production growing to 17m by FY24 from 4m in FY20. Apart from this growth, operating profit growth is expected via leverage from an increasing price, a fixed cost base and expansion into higher value channels.

This report was published on August 24, 2021.

Target price is $0.32 Current Price is $0.19 Difference: $0.13
If E33 meets the Shaw and Partners target it will return approximately 68% (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 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.60.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.13.

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

EHE    ESTIA HEALTH LIMITED

Aged Care & Seniors – Overnight Price: $2.29

Jarden rates ((EHE)) as Buy (1) –

Jarden notes a strong cost recovery in the second half was the main driver of improved earnings for Estia Health, which closed out FY21 with profit after tax of $6.2m.

Average occupancy was 91.8% during the second half and has increased to 92.8% in early FY22, which Jarden notes is resilient given lockdowns. 

The broker updates earnings per share forecasts by 4.0% and 8.1% for FY23. 

The Buy rating is retained and the target price decreases to $3.10 from $3.20.

This report was published on August 24, 2021.

Target price is $3.10 Current Price is $2.29 Difference: $0.81
If EHE meets the Jarden target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $2.28, suggesting downside of -1.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 7.30 cents and EPS of 10.50 cents.
At the last closing share price the estimated dividend yield is 3.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of 269.6%.
Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 27.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 9.40 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.9, implying annual growth of 28.2%.
Current consensus DPS estimate is 9.6, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 21.3.

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

GEM    G8 EDUCATION LIMITED

Childcare – Overnight Price: $1.00

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

First half underlying earnings (EBIT) were ahead of Wilsons expectations. No guidance was provided though wage costs are expected to be flat year-on-year, which will likely restrict the typical margin expansion as occupancy improvement is not expected to materialise. 

Management expects to recommence the dividend in the second half. While currently under review, Wilsons maintains its Overweight rating and $1.60 target price in the interim.

This report was published on August 23, 2021.

Target price is $1.60 Current Price is $1.00 Difference: $0.6
If GEM meets the Wilsons target it will return approximately 60% (excluding dividends, fees and charges).
Current consensus price target is $1.08, suggesting upside of 6.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Wilsons forecasts a full year FY21 EPS of 5.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.86.

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 2.3, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 24.3.

Forecast for FY22:

Wilsons forecasts a full year FY22 EPS of 6.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.7, implying annual growth of 83.3%.
Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 13.2.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $29.38

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

FY21 results revealed a -3% miss for underlying earnings (EBITDA) versus the forecast of Goldman Sachs. The broker increases its price target to $29.81 from $28.73 and retains its Buy rating. The final DPS of 5.5cps (fully franked) was below the 7.2cps estimated. 

Management expects a platform revenue margin of around 30bps in FY22 and will make near-term investment in distribution to support growth. Even with the elevated investment, the analyst expects robust near-term margin/earnings growth.

This report was published on August 24, 2021.

Target price is $29.81 Current Price is $29.38 Difference: $0.43
If HUB meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $29.79, suggesting downside of -2.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 23.00 cents and EPS of 51.00 cents.
At the last closing share price the estimated dividend yield is 0.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.8, implying annual growth of 205.0%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 78.4.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 30.00 cents and EPS of 66.00 cents.
At the last closing share price the estimated dividend yield is 1.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.2, implying annual growth of 26.8%.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 61.8.

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

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $6.08

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

Initial guidance was exceeded by 17% and 28% for revenue and earnings (EBITDA), respectively, over the course of FY21 and Goldman Sachs feels guidance is similarly conservative for FY22.

To back up this assertion, the broker explains the recently announced contract with the Victorian Government was excluded from management figures. Additionally, only contracted catastrophic events work was included.

The strata cross sell opportunity is a key driver of the analyst's above-consensus view. The target price falls to $6.80 from $7.10 and the Buy rating is unchanged.

This report was published on August 24, 2021.

Target price is $6.80 Current Price is $6.08 Difference: $0.72
If JLG meets the Goldman Sachs target it will return approximately 12% (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 6.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 0.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.77.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 7.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 1.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.43.

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

KGN    KOGAN.COM LIMITED

Retailing – Overnight Price: $10.01

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

A trading update from Kogan.com shows trading improved in the first quarter with an acceleration of sales on the fourth quarter result, but Jarden notes earnings pressure continues.

While the company achieved underlying earnings of $2.1m in July, it is the broker's view a combination of continued sales acceleration, gross margin improvement and reduced operating costs will be necessary for the company to achieve FY22 forecasts.

Taking into account higher operating costs, the broker updates underlying forecasts by -17% for FY22 and FY23.

The Underweight rating is retained and the target price decreases to $8.86 from $10.12.

This report was published on August 24, 2021.

Target price is $8.86 Current Price is $10.01 Difference: minus $1.15 (current price is over target).
If KGN meets the Jarden target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 17.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.54.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 16.00 cents and EPS of 27.50 cents.
At the last closing share price the estimated dividend yield is 1.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.40.

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

MND    MONADELPHOUS GROUP LIMITED

Mining Sector Contracting – Overnight Price: $9.25

Jarden rates ((MND)) as Buy (2) –

While Monadelphous Group's FY21 earnings before tax of $76m was an approximate 25% growth on FY20 results, it was a -1.1% miss on Jarden's forecast. The broker notes rising labour costs and lower labour productivity contributed to a flat earnings margin of 5.6%.

Further, margin pressure remains  and Jarden expects group underlying earnings margins to increase to 6.2% in FY22. 

Strong top-line performance was a positive from the result, with Engineering and Construction revenue up 59%. The broker updates earnings per share forecasts by -8.1% and -4.0% for FY22 and FY23 respectively. 

The Overweight rating is retained and the target price decreases to $11.80 from $12.80.

This report was published on August 25, 2021.

Target price is $11.80 Current Price is $9.25 Difference: $2.55
If MND meets the Jarden target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $10.97, suggesting upside of 17.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 54.90 cents and EPS of 63.70 cents.
At the last closing share price the estimated dividend yield is 5.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 47.6, implying annual growth of -4.2%.
Current consensus DPS estimate is 40.1, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 19.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 63.40 cents and EPS of 73.20 cents.
At the last closing share price the estimated dividend yield is 6.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.5, implying annual growth of 29.2%.
Current consensus DPS estimate is 52.8, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 15.2.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $6.17

Wilsons rates ((NAN)) as Upgrade to Market Weight from Underweight (3) –

With Nanosonics targeting a global launch of its CORIS endoscope project in FY23, Wilsons has increased the company's target price by 80%. The broker considers the project will add $20-$25m in incremental underlying earnings within 3-5 years from launch. 

The CORIS endoscope project aims to address the automated cleaning of flexible endoscopes.

Looking ahead, Wilsons is forecasting double digit revenue growth in FY22, and has upgraded FY22 and FY23 revenue forecasts by 5-9% noting an increase in consumables utilisation. 

The rating is upgraded to Market Weight from Underweight and the target price increases to $7.18 from $3.58.

This report was published on August 25, 2021.

Target price is $7.18 Current Price is $6.17 Difference: $1.01
If NAN meets the Wilsons target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $6.42, suggesting upside of 1.8%(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 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 257.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.4, implying annual growth of 54.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 143.2.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 137.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.7, implying annual growth of 75.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 81.8.

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

NHF    NIB HOLDINGS LIMITED

Insurance – Overnight Price: $6.72

Jarden rates ((NHF)) as Neutral (3) –

Jarden notes covid claims boosted nib Holdings' Australian Resident Health Insurance (arhi) division's FY21 net margins to a record 9.7%. The International Inbound Health Insurance (iihi) division is not expected to return to profitability until international travel resumes.

Group underlying operating profit of $204.9m was a -5% miss on Jarden's forecast and near the lower end of the company's guidance range. Jarden notes the miss was largely a reflection of iihi's -$5.9m underlying operating result.

The company is lifting iihi pricing in response to elevated claims from in-country international students. Jarden updates earnings per share forecasts by -4.6% and -2.0% for FY22 and FY23 respectively. 

The Neutral rating is retained and the target price increases to $6.90 from $6.70.

This report was published on August 23, 2021. 

Target price is $6.90 Current Price is $6.72 Difference: $0.18
If NHF meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $6.74, suggesting downside of -0.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 21.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.9, implying annual growth of -9.5%.
Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 21.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 22.00 cents and EPS of 31.50 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 21.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.5, implying annual growth of 1.9%.
Current consensus DPS estimate is 20.9, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 20.9.

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $3.49

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

Wilsons considers Nitro Software's trading update to be solid, noting more than 60% growth in the core subscription offering. The broker notes full-year revenue guidance looks conservative, implying $0.3m growth on the first half for a total $24.4m in the second half.

The broker expects 67% of the company's full-year revenue to come from subscriptions, up from 53% in FY20. Wilsons highlights the company will continue to benefit from the transition to a subscription model which will generate higher gross margins. 

It is Wilsons' view that Nitro Software will only seek to participate and not dominate, in order to capitalise on opportunity. 

The Overweight rating and target price of $4.22 are retained. 

This report was published on August 25, 2021.

Target price is $4.22 Current Price is $3.49 Difference: $0.73
If NTO meets the Wilsons target it will return approximately 21% (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 7.85 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 44.47.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 8.78 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 39.75.

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

OSL    ONCOSIL MEDICAL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.05

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

Following FY21 results, Wilsons lowers its target to $0.17 from $0.25 on revised equity capital issuance assumptions. Recent board instability is considered ill timed and, the broker believes, disconnects the share price from fundamentals ahead of upcoming catalysts.

The analyst highlights progress during FY21 on a myriad of tasks facing the company. Year end cash of $12m is considered adequate to deliver the Humanitarian Device Exemption application in the US, though it's felt the timing will likely slip into the first quarter of 2022.

This report was published on August 23, 2021.

Target price is $0.17 Current Price is $0.05 Difference: $0.12
If OSL meets the Wilsons target it will return approximately 240% (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 minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.50.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.55.

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

RDY    READYTECH HOLDINGS LIMITED

Software & Services – Overnight Price: $3.16

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

ReadyTech Holdings' FY21 results were in line with Wilsons' expectations, while both FY22 guidance and FY26 targets were  ahead of expectations. Continued momentum and accelerated revenue growth should drive consistent mid-teens growth beyond FY22.

The company is targeting FY26 organic revenue of $125m, noting LMS and TAFE wins in Education, an increase in Workforce Solutions growth, new Zambion all-in-one sales, and increased digitisation of Government and Justice will drive this result. 

Reflecting ongoing business momentum and medium-term guidance, Wilsons has materially lifted forecasts.

The Overweight rating is retained and the target price increases to $3.59 from $2.85.

This report was published on August 24, 2021.

Target price is $3.59 Current Price is $3.16 Difference: $0.43
If RDY meets the Wilsons target it will return approximately 14% (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 13.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.73.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 6.30 cents and EPS of 15.70 cents.
At the last closing share price the estimated dividend yield is 1.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.13.

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

SCG    SCENTRE GROUP

REITs – Overnight Price: $2.95

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

Goldman Sachs makes minor changes to forecasts after first half results and adjusts its target to $3.32 from $3.29. The Buy rating is unchanged. Assuming lockdown restrictions are largely eased by the end of October 2021, management expects a 14cps FY21 ditribution.

Occupancy was maintained at 98.5% and the analyst believes asset values have likely stabilised. Prior to snap lockdown restrictions, sales metrics showed signs of improvement along with a pick-up in leasing momentum, explains the broker.

Goldman Sachs highlights the group's portfolio recorded a positive revaluation gain of $41m in the six months to June 2021, which may suggest a floor has been reached.

This report was published on August 24, 2021.

Target price is $3.32 Current Price is $2.95 Difference: $0.37
If SCG meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $2.76, suggesting downside of -6.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 18.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.3, implying annual growth of N/A.
Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 18.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 22.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.0, implying annual growth of 22.7%.
Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 14.8.

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


Jarden rates ((SCG)) as Buy (2) –

While recovery for Scentre Group has been pushed out again, it is Jarden's view that FY22 could be a year of significant earnings recovery for the company. 

Looking to international peers as likely indicators of potential recovery, Jarden expects Scentre Group's  funds from operation to bounce by around 30% relatively quickly once Australia reopens, and sees 22% potential upside to the current price target. 

Further, the broker expects inorganic growth to become a part of the story again once Scentre Group's recovery is underway. 

The Overweight rating is retained and the target price increases to $3.45 from $3.30.

This report was published on August 24, 2021. 

Target price is $3.45 Current Price is $2.95 Difference: $0.5
If SCG meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $2.76, suggesting downside of -6.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 12.70 cents and EPS of 15.90 cents.
At the last closing share price the estimated dividend yield is 4.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.3, implying annual growth of N/A.
Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 18.2.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 15.60 cents and EPS of 20.60 cents.
At the last closing share price the estimated dividend yield is 5.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.0, implying annual growth of 22.7%.
Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 14.8.

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

SEK    SEEK LIMITED

Jobs & Skilled Labour Services – Overnight Price: $29.86

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

FY21 profit was a -12% miss versus Goldman Sachs forecast though only a -3% miss when adjusting for accounting changes. A stronger AN&Z outcome was the highlight while Zhaopin missed expectations. The target rises to $31 from $30.80. The Sell rating is unchanged.

FY22 earnings (EBITDA) guidance was 6% ahead of the analysts forecast reflective of the A&NZ revenue trends, along with expectations for margin expansion. On the other hand, guidance for profit was a -10% miss.

The miss was due to a forecast -$21m management fee and higher D&A given increased capex/capitalised expenses, explains the broker. Additionally, there are intentions for Zhaopin to aggressively re-invest given ongoing competition in China.

This report was published on August 24, 2021. 

Target price is $31.00 Current Price is $29.86 Difference: $1.14
If SEK meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $31.44, suggesting upside of 4.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 40.00 cents and EPS of 55.00 cents.
At the last closing share price the estimated dividend yield is 1.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.9, implying annual growth of 62.9%.
Current consensus DPS estimate is 35.6, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 53.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 40.00 cents and EPS of 61.00 cents.
At the last closing share price the estimated dividend yield is 1.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.6, implying annual growth of 17.0%.
Current consensus DPS estimate is 40.7, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 45.2.

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

SHL    SONIC HEALTHCARE LIMITED

Healthcare services – Overnight Price: $41.72

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

A sequential slowdown in covid testing was the primary driver of a sales and earnings dip for Sonic Healthcare in the second half, but Goldman Sachs notes the delta variant has driven a resurgence in testing demand since July. 

Despite this, the broker noted base business remains above pre-covid levels. The broker updates underlying earnings by 9% and 3% for FY22 and FY23 respectively.

It is Goldman Sachs' view that Sonic Healthcare's balance sheet is strong and that accretive capital deployment remains a key source of potential upside for the company, with around $1.5bn in capital available to deploy. 

The Neutral rating is retained and the target price increases to $40.70 from $37.50.

The report was published on August 23, 2021. 

Target price is $40.70 Current Price is $41.72 Difference: minus $1.02 (current price is over target).
If SHL meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $43.83, suggesting upside of 5.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 134.00 cents and EPS of 191.00 cents.
At the last closing share price the estimated dividend yield is 3.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 227.5, implying annual growth of -17.4%.
Current consensus DPS estimate is 97.6, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 103.00 cents and EPS of 147.00 cents.
At the last closing share price the estimated dividend yield is 2.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 153.4, implying annual growth of -32.6%.
Current consensus DPS estimate is 103.9, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 27.1.

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


Jarden rates ((SHL)) as No Rating (-1) –

Sonic Healthcare's FY21 profit after tax of $1,315m marked a 149% increase on the previous corresponding period, but Jarden notes the real surprise of Sonic Healthcare's result was an increase in Pathology underlying earnings margins to 30.8% from 21.3%. 

The broker highlighted additional covid testing, driven by the delta variant, is set to support earnings in the first half of FY22. Jarden's FY22 profit after tax forecast increases 6.3% to $822.9m, but the broker questions earnings sustainability as vaccinations increase.

The Neutral rating is retained and the target price decreases to $38.21 from $38.24.

This report was published on August 23, 2021.

Target price is $38.21 Current Price is $41.72 Difference: minus $3.51 (current price is over target).
If SHL 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 $43.83, suggesting upside of 5.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 111.90 cents and EPS of 170.70 cents.
At the last closing share price the estimated dividend yield is 2.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 227.5, implying annual growth of -17.4%.
Current consensus DPS estimate is 97.6, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 94.20 cents and EPS of 143.70 cents.
At the last closing share price the estimated dividend yield is 2.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 153.4, implying annual growth of -32.6%.
Current consensus DPS estimate is 103.9, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 27.1.

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

SKI    SPARK INFRASTRUCTURE GROUP

Infrastructure & Utilities – Overnight Price: $2.80

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

First half proportional earnings (EBITDA) were in-line with Goldman Sachs and consensus forecasts. It's thought the outlook continues to improve, as the renewable transition accelerates, requiring increasing transmission and distribution assets on the east coast.

However, the main game on the prior day involved Spark Infrastructure Group entering into a Scheme Implementation Deed with the bidding consortium of KKR, Ontario Teachers’ and PSP Investments to acquire the business.

Goldman Sachs remains Not Rated on the stock.

This report was published on August 24, 2021.

Current Price is $2.80. Target price not assessed.
Current consensus price target is $2.71, suggesting downside of -3.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 12.50 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 4.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 70.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.6, implying annual growth of -8.2%.
Current consensus DPS estimate is 11.7, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 50.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 12.50 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 4.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 93.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.2, implying annual growth of 10.7%.
Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 45.2.

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

SOM    SOMNOMED LIMITED

Medical Equipment & Devices – Overnight Price: $2.30

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

SomnoMed's FY21 revenue of $62.7m was a -3% miss on Wilsons' forecast but up 9% on FY20. The broker notes weakness in the US drove the miss. Further, underlying earnings of $3.9m were down -17% on the previous year, and well below the broker's expectations. 

Wilsons makes minor cuts to revenue modeling, but downgrades underlying earnings expectations for FY22 by -97% on increased research and development investment. 

Wilsons notes SomnoMed's stock has outperformed over the last year in anticipation of new tech innovations in the US Continuous Open Airway Therapy market. 

The Market Weight rating is retained and the target price increases to $2.40 from $1.65.

This report was published on August 25, 2021.

Target price is $2.40 Current Price is $2.30 Difference: $0.1
If SOM meets the Wilsons target it will return approximately 4% (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 minus 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 56.10.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.27.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $4.12

Goldman Sachs rates ((UWL)) as Downgrade to Neutral from Buy (3) –

FY21 was a 3% beat versus the forecast by Goldman Sachs. It's thought there are now capital managemnt options across FY22 after a strong cash performance which drove a reduction in gearing.

The broker points out growth in contracted premises were 4,000 ahead of expectation and skewed positively towards the higher returning detached premises. Also, second half average revenue per user (ARPU) was a 3% beat and is thought to underpin recurring revenues.

Despite this, the broker downgrades its rating to Neutral from Buy after recent share price outperformance. The target price rises to $4.40 from $3.80

This report was released on August 24, 2021.

Target price is $4.40 Current Price is $4.12 Difference: $0.28
If UWL meets the Goldman Sachs target it will return approximately 7% (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 0.00 cents and EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.45.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.69.

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


Jarden rates ((UWL)) as Downgrade to Overweight from Buy (2) –

Uniti Group's FY21 profit after tax of $53.4m was an 8.4% beat on Jarden's forecast, with the broker noting Wholesale and Infrastructure was the main driver of the beat. 

For Jarden, the highlight of the result was the gross 64,000 premised added to the contracted or in construction book, representing a 28%-60% beat on market expectations. The broker notes this should add to the longer-term growth profile for Uniti Group. 

The broker updates earnings per share forecasts by 17% and 15% for FY22 and FY23. It is Jarden's view that the key risk for the company is the impacts of lockdowns of timing of construction, connections and activations. 

The rating is downgraded to Overweight from Buy and the target price increases to $4.60 from $3.89.

This report was published on August 24, 2021.

Target price is $4.60 Current Price is $4.12 Difference: $0.48
If UWL meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 12.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.77.

Forecast for FY23:

Jarden 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 29.64.

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

VEA    VIVA ENERGY GROUP LIMITED

Crude Oil – Overnight Price: $2.28

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

After Viva Energy Group's first half results, Goldman Sachs continues to look through to 2022 earnings where upside risk to consensus expectations resides. The Buy rating and $2.70 target price are maintained. The DPS of 4.1cps was ahead of expectations.

Underlying earnings (EBITDA) were in-line with guidance and consensus forecasts and the expectation of the analyst. Management intends to return the proceeds from the REIT divestment through a capital return of $100m and a $40m on-market buy-back.

Refining returned to profit, but remain challenged by covid-19 impacts on both global and local fuel demand, explains the broker. It's thought the group is best positioned over the medium term as the Australian refining industry is rationalised.

This report was published on August 24, 2021.

Target price is $2.70 Current Price is $2.28 Difference: $0.42
If VEA meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $2.43, suggesting upside of 5.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 6.60 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 2.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.3, implying annual growth of N/A.
Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 20.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 9.10 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 3.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.6, implying annual growth of 38.1%.
Current consensus DPS estimate is 8.9, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 14.7.

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

WSA    WESTERN AREAS LIMITED

Nickel – Overnight Price: $2.97

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

The FY21 result was largely in-line with Goldman Sachs expectations and consensus forecasts. Free cash flow was in-line after $60m in operating cashflow for the year was more than offset by -$144m in capex and exploration, including -$84m for Odysseus/Cosmos.

For the latter, progress continues with a -$215m spend remaining over FY22/23. First ore from the underground is expected in the current September quarter, with first concentrate production expected mid-FY23.

FY22 production guidance was consistent with FY21 and the broker's prior forecasts, although unit costs are expected to be around -5% more year-on-year. Goldman Sachs raises its price target to $2.60 from $2.40 and retains its Neutral rating.

This report was published on August 24, 2021.

Target price is $2.60 Current Price is $2.97 Difference: minus $0.37 (current price is over target).
If WSA meets the Goldman Sachs target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.91, suggesting downside of -0.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 12.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.2, implying annual growth of N/A.
Current consensus DPS estimate is 0.8, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 91.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 2.00 cents and EPS of 20.70 cents.
At the last closing share price the estimated dividend yield is 0.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.1, implying annual growth of -96.9%.
Current consensus DPS estimate is 0.4, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 2930.0.

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


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

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

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

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CHARTS

AD8 ADH AMA BST CHC COE COH CYC E33 EHE GEM HUB JLG KGN MND NAN NHF NTO OSL RDY SCG SEK SHL SKI SOM UWL VEA WSA

For more info SHARE ANALYSIS: AD8 - AUDINATE GROUP LIMITED

For more info SHARE ANALYSIS: ADH - ADAIRS LIMITED

For more info SHARE ANALYSIS: AMA - AMA GROUP LIMITED

For more info SHARE ANALYSIS: BST - BEST & LESS GROUP HOLDINGS LIMITED

For more info SHARE ANALYSIS: CHC - CHARTER HALL GROUP

For more info SHARE ANALYSIS: COE - COOPER ENERGY LIMITED

For more info SHARE ANALYSIS: COH - COCHLEAR LIMITED

For more info SHARE ANALYSIS: CYC - CYCLOPHARM LIMITED

For more info SHARE ANALYSIS: E33 - EAST 33 LIMITED

For more info SHARE ANALYSIS: EHE - ESTIA HEALTH LIMITED

For more info SHARE ANALYSIS: GEM - G8 EDUCATION LIMITED

For more info SHARE ANALYSIS: HUB - HUB24 LIMITED

For more info SHARE ANALYSIS: JLG - JOHNS LYNG GROUP LIMITED

For more info SHARE ANALYSIS: KGN - KOGAN.COM LIMITED

For more info SHARE ANALYSIS: MND - MONADELPHOUS GROUP LIMITED

For more info SHARE ANALYSIS: NAN - NANOSONICS LIMITED

For more info SHARE ANALYSIS: NHF - NIB HOLDINGS LIMITED

For more info SHARE ANALYSIS: NTO - NITRO SOFTWARE LIMITED

For more info SHARE ANALYSIS: OSL - ONCOSIL MEDICAL LIMITED

For more info SHARE ANALYSIS: RDY - READYTECH HOLDINGS LIMITED

For more info SHARE ANALYSIS: SCG - SCENTRE GROUP

For more info SHARE ANALYSIS: SEK - SEEK LIMITED

For more info SHARE ANALYSIS: SHL - SONIC HEALTHCARE LIMITED

For more info SHARE ANALYSIS: SKI - SPARK INFRASTRUCTURE GROUP

For more info SHARE ANALYSIS: SOM - SOMNOMED LIMITED

For more info SHARE ANALYSIS: UWL - UNITI GROUP LIMITED

For more info SHARE ANALYSIS: VEA - VIVA ENERGY GROUP LIMITED

For more info SHARE ANALYSIS: WSA - WESTERN AREAS LIMITED