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Australian Broker Call *Extra* Edition – Oct 14, 2021

Daily Market Reports | Oct 14 2021

This story features ARISTOCRAT LEISURE LIMITED, and other companies. For more info SHARE ANALYSIS: ALL

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)

ALL   BHP (2)   BXB   CIM   CXL   CYG   DUB   EM2   KSN   OZL   PDI   PEN   PFP   PPH   SFR   TLS   TLX   TNT   WBC   ZBT  

ALL    ARISTOCRAT LEISURE LIMITED

Gaming – Overnight Price: $44.88

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

Aristocrat Leisure highlighted the strength of the land-based business in its investor briefing, and Goldman Sachs notes the company continues to take share.

The focus remains on moving into adjacencies, with lotteries in Oregon and New York cited. In Australia, pent-up demand has been in evidence although the second half will be affected by lockdowns in Victoria and NSW.

Goldman Sachs retains a Buy rating with a $48.60 target.

This report was published on September 16, 2021.

Target price is $48.60 Current Price is $44.88 Difference: $3.72
If ALL meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $44.39, suggesting downside of -2.4%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 48.00 cents and EPS of 130.00 cents.
At the last closing share price the estimated dividend yield is 1.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 124.7, implying annual growth of -42.3%.
Current consensus DPS estimate is 41.5, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 36.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 68.00 cents and EPS of 169.00 cents.
At the last closing share price the estimated dividend yield is 1.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 161.4, implying annual growth of 29.4%.
Current consensus DPS estimate is 63.5, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 28.2.

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

BHP    BHP GROUP LIMITED

Bulks – Overnight Price: $37.59

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

BHP Group has briefed investors on the Jansen potash project in Canada. The project economics for stage I were reiterated with a long-run potash price of US$320/t. Goldman Sachs only includes stage I in modelling.

BHP Group estimates an internal rate of return for the 4.3 5mtpa stage I of 12-14%, and 18-20% for stages 2-4. Cost assumptions are unchanged. First production from stage I is expected in late 2026.

Goldman Sachs is not rated on BHP Group.

This report was published on September 15, 2021.

Current Price is $37.59. Target price not assessed.
Current consensus price target is $47.30, suggesting upside of 24.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 566.04 cents and EPS of 708.21 cents.
At the last closing share price the estimated dividend yield is 15.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 574.1, implying annual growth of N/A.
Current consensus DPS estimate is 427.0, implying a prospective dividend yield of 11.2%.
Current consensus EPS estimate suggests the PER is 6.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 423.86 cents and EPS of 617.86 cents.
At the last closing share price the estimated dividend yield is 11.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 400.3, implying annual growth of -30.3%.
Current consensus DPS estimate is 292.0, implying a prospective dividend yield of 7.7%.
Current consensus EPS estimate suggests the PER is 9.5.

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


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

BHP Group updated on the Jansen potash project in Canada, which is expected to produce around 4.35mtpa of potash per annum. An internal rate of return of 12-14% is expected with the payback period of seven years from first production.

The broker suggests the final investment decision was almost inevitable given the time taken to reach that point.

Still, as a future-facing commodity with growth options, the broker believes the company can slot Jansen into the potash market in March the same way that Fortescue Metals ((FMG)) entered the iron ore market.

Shaw and Partners retains a Buy rating and the target price of $56.00.

This report was published on September 16, 2021.

Target price is $56.00 Current Price is $37.59 Difference: $18.41
If BHP meets the Shaw and Partners target it will return approximately 49% (excluding dividends, fees and charges).
Current consensus price target is $47.30, suggesting upside of 24.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 535.34 cents and EPS of 448.84 cents.
At the last closing share price the estimated dividend yield is 14.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 574.1, implying annual growth of N/A.
Current consensus DPS estimate is 427.0, implying a prospective dividend yield of 11.2%.
Current consensus EPS estimate suggests the PER is 6.6.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 502.92 cents and EPS of 463.19 cents.
At the last closing share price the estimated dividend yield is 13.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 400.3, implying annual growth of -30.3%.
Current consensus DPS estimate is 292.0, implying a prospective dividend yield of 7.7%.
Current consensus EPS estimate suggests the PER is 9.5.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $10.12

Jarden rates ((BXB)) as Downgrade to Underweight from Overweight (4) –

Further to the investor briefing, Jarden reduces estimates for earnings per share by -9% for FY22, and -7% for FY23 and FY24.

A combination of higher capital expenditure and operating expenditure intensity along with the uncertainty surrounding the recovery from the pandemic has made the broker more cautious.

In order to become more positive a sustained competitive rationale needs to be in place and the company deliver benefits from its transformation. Rating is downgraded to Underweight from Overweight and the target is reduced to $11.60 from $12.75.

This report was published on September 15, 2021.

Target price is $11.60 Current Price is $10.12 Difference: $1.48
If BXB meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $12.60, suggesting upside of 24.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 32.55 cents and EPS of 48.63 cents.
At the last closing share price the estimated dividend yield is 3.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.4, implying annual growth of N/A.
Current consensus DPS estimate is 30.4, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 18.0.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 34.41 cents and EPS of 51.95 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.5, implying annual growth of 9.0%.
Current consensus DPS estimate is 34.1, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 16.5.

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

CIM    CIMIC GROUP LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $20.67

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

Shaw and Partners continues to assess CIMIC Group as undervalued. There are several reasons, including a controlling majority shareholder and related lack of transparency as well as a history of underperforming contracts.

The broker believes the problem lies with investors having reduced visibility on the true performance of the equity-accounted joint ventures and, thus, it makes comparing the value versus peers difficult.

The broker's forward earnings forecasts now exclude any contribution from the Ventia and Thiess joint ventures. The current valuation of the group combines the value for these two stakes in a stand-alone estimate.

All up, Shaw and Partners continues to rate the stock Buy with a target of $26.50.

This report was issued on September 15, 2021.

Target price is $26.50 Current Price is $20.67 Difference: $5.83
If CIM meets the Shaw and Partners target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $24.90, suggesting upside of 19.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 87.00 cents and EPS of 134.10 cents.
At the last closing share price the estimated dividend yield is 4.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 139.0, implying annual growth of N/A.
Current consensus DPS estimate is 92.1, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 15.0.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 97.00 cents and EPS of 132.10 cents.
At the last closing share price the estimated dividend yield is 4.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 157.3, implying annual growth of 13.2%.
Current consensus DPS estimate is 99.2, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 13.2.

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

CXL    CALIX LIMITED

Mining Sector Contracting – Overnight Price: $5.30

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

Canaccord Genuity believes the Carbon Direct investment will be pivotal for the company. Management has invested EUR15m for a 6.98% equity stake. This should provide significant carbon capture expertise and the global networks the company can leverage.

The broker acknowledges valuing the stock for short-term is difficult, given the largely pre-commercialisation nature of its technology. Yet the unfolding opportunity is apparent.

The broker expects momentum to continue and the expanding number of end markets for the company's products provides optionality. Buy rating maintained. Target is raised to $6.40 from $3.50.

This report was published in September 16, 2021.

Target price is $6.40 Current Price is $5.30 Difference: $1.1
If CXL meets the Canaccord Genuity target it will return approximately 21% (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 0.00 cents and EPS of minus 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 189.29.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 160.61.

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

CYG    COVENTRY GROUP LIMITED

Hardware & Equipment – Overnight Price: $1.65

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

Shaw and Partners initiates on industrial products supplier Coventry Group. The broker notes in the last four years the company has realised significant operational and financial improvement, and has been able to execute acquisitional activity. 

It is the broker's view that business improvement and additional acquisitive potential is yet to be reflected in Coventry Group's share price. Shaw and Partners expects continued earnings improvement, forecasting FY22 underlying earnings of $15.5m. 

The broker initiates with a Buy rating and a target price of $2.00.

This report was published on September 9, 2021.

Target price is $2.00 Current Price is $1.65 Difference: $0.35
If CYG meets the Shaw and Partners target it will return approximately 21% (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 5.00 cents and EPS of 9.30 cents.
At the last closing share price the estimated dividend yield is 3.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.74.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 7.00 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 4.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.87.

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

DUB    DUBBER CORPORATION LIMITED

Cloud services – Overnight Price: $3.20

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

Dubber Corporation has reported an organic growth rate of 100% in FY21, finishing up the year with around $16m in additional organic annual recurring revenue. A fourth quarter contribution of $5m was 25% ahead of Shaw and Partners' forecast. 

While the company increased revenue conversion rates to 83% in the second half of FY21, Shaw and Partners expects conversion rates to increase further in the first half of FY22. The broker forecasts 100% revenue growth to $44m in FY22. 

Further, Dubber Corporation has raised around $110m, bringing total cash to around $140m, which in the broker's view leaves the company well placed for inorganic growth through acquisitive action in the next year.

The company has been raised to the ASX 300. The Buy rating is retained and the target price increases to $4.60 from $3.23.

This report was published on September 14, 2021.

Target price is $4.60 Current Price is $3.20 Difference: $1.4
If DUB meets the Shaw and Partners target it will return approximately 44% (excluding dividends, fees and charges).

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

EM2    EAGLE MOUNTAIN MINING LIMITED

Mining – Overnight Price: $0.69

Canaccord Genuity rates ((EM2)) as Initiation of coverage with Buy (1) –

Canaccord Genuity considers the Oracle Ridge copper project in Arizona a potentially meaningful mining operation. The JORC 2012 resource of 12mt at 1.5% copper has been defined and will be the subject of an ongoing drilling campaign that is expected to provide an upgrade by mid FY22.

The broker also flags a third drill rig is being mobilised which will pivot to 24/7 drilling, offering a strong endorsement of the company's methods. The broker initiates coverage with a Speculative Buy rating and $1.70 target.

This report was published on September 16, 2021.

Target price is $1.70 Current Price is $0.69 Difference: $1.01
If EM2 meets the Canaccord Genuity target it will return approximately 146% (excluding dividends, fees and charges).

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

KSN    KINGSTON RESOURCES LIMITED

Mining – Overnight Price: $0.19

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

The Misima gold project in PNG now stands at 169mt at 0.71g/t for 3.8m ounces of gold. While the increase in the resource is just 6% and there is a minor decrease in grade Canaccord Genuity notes significant increases in indicated resources, which now stand at 98mt at 0.8g/t for 2.5m ounces.

The broker continues to believe the company is one of the most undervalued gold stocks under coverage, comparing favourably to developer peers. This is in light of the potential for Misima to host one of the largest undeveloped gold reserves on the ASX not held by a producer.

Speculative Buy rating and $0.65 target maintained.

This report was published on September 17, 2021.

Target price is $0.65 Current Price is $0.19 Difference: $0.46
If KSN meets the Canaccord Genuity target it will return approximately 242% (excluding dividends, fees and charges).

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

OZL    OZ MINERALS LIMITED

Copper – Overnight Price: $22.98

Bell Potter rates ((OZL)) as Initiation of coverage with Hold (3) –

OZ Mineral's Prominent Hill Mine shaft expansion has received development approval, with early site works to commence this year to increase average copper production to 53,000 tonnes per annum from 43,000, and gold production to 101,000 ounces per annum from 93,000. 

The company has reported a pre-production capital cost of $597m and expects works will add an additional 6 years to the mine life, to total 15 years. 

In Bell Potter's view, OZ Minerals is making strategic choices to develop long-life, low-cost assets. The broker updates earnings forecasts 59%, 131% and 66% through to 2023. 

The Hold rating is retained and the target price increases to $22.93 from $15.60.

This report was published on September 14, 2021.

Target price is $22.93 Current Price is $22.98 Difference: minus $0.05 (current price is over target).
If OZL meets the Bell Potter target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $24.55, suggesting upside of 3.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 24.00 cents and EPS of 162.50 cents.
At the last closing share price the estimated dividend yield is 1.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 170.7, implying annual growth of 161.7%.
Current consensus DPS estimate is 35.8, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 13.9.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 24.00 cents and EPS of 159.20 cents.
At the last closing share price the estimated dividend yield is 1.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 162.3, implying annual growth of -4.9%.
Current consensus DPS estimate is 32.2, implying a prospective dividend yield of 1.4%.
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

PDI    PREDICTIVE DISCOVERY LIMITED

Gold & Silver – Overnight Price: $0.20

Canaccord Genuity rates ((PDI)) as Spec Buy (1) –

Predictive Discovery has further results from the Bankan gold project in Guinea. All three holes intersected a continuation of the high-grade central zone at depths of up to 433m. Canaccord Genuity now awaits the maiden resource.

The broker retains a Speculative Buy rating with a $0.24 target.

This report was published on September 16, 2021.

Target price is $0.24 Current Price is $0.20 Difference: $0.04
If PDI meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).

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

PEN    PENINSULA ENERGY LIMITED

Uranium – Overnight Price: $0.28

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

Peninsula Energy has provided an update on field demonstration trials for its Lance Project. Shaw and Partners' view is that trial results show incrementally positive progress and improved uranium grades. 

The broker notes Peninsula Energy has begun to evaluate alternative uranium recovery process options. The broker expects a revised feasibility study, taking in account field demonstration data, in the first half of FY22

The Buy rating and target price of $0.30 are retained. 

This report was published on September 9, 2021.

Target price is $0.30 Current Price is $0.28 Difference: $0.02
If PEN meets the Shaw and Partners target it will return approximately 7% (excluding dividends, fees and charges).

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

PFP    PROPEL FUNERAL PARTNERS LIMITED

Consumer Products & Services – Overnight Price: $4.31

Moelis rates ((PFP)) as Buy (1) –

The company has acquired three funeral service providers in Adelaide for $17.6m and Moelis increases FY23 estimates for earnings per share by 5% to reflect the accretion.

Looking through the disruptions caused by lockdowns the broker is positive on the stock as an attractive, defensive growth proposition. Buy rating maintained. Target is $4.57.

This report was published on September 14, 2021. 

Target price is $4.57 Current Price is $4.31 Difference: $0.26
If PFP meets the Moelis target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 9.60 cents and EPS of 13.80 cents.
At the last closing share price the estimated dividend yield is 2.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.23.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 11.40 cents and EPS of 16.30 cents.
At the last closing share price the estimated dividend yield is 2.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.44.

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

PPH    PUSHPAY HOLDINGS LIMITED

Software & Services – Overnight Price: $1.74

Jarden rates ((PPH)) as Buy (1) –

The main message Jarden derived from the investor briefing is the focus on growth. The company provided addressable market estimates that was significantly larger than the broker had assumed.

Management also flagged steady digital donations and usage patterns as the US economy re-opens. The Catholic segment has been highlighted as a market opportunity of US$30bn in annual donations with customer testimonials highlighting a strong initial response.

The broker retains a Buy rating with an NZ$2.24 target.

This report was published on September 14, 2021.

Current Price is $1.74. Target price not assessed.
Current consensus price target is $1.90, suggesting upside of 10.5%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.18 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.6, 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 30.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 3.06 cents and EPS of 6.11 cents.
At the last closing share price the estimated dividend yield is 1.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.8, implying annual growth of 21.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 25.3.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SFR    SANDFIRE RESOURCES LIMITED

Copper – Overnight Price: $5.37

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

Drilling updates from Sandfire Resources' Motheo copper development project have confirmed potential additional resource. Shaw and Partners notes a reserve update is expected this quarter. 

The broker notes the initial resource was estimated at around 30,000 tonnes per year for 12 years, with additional development to increase production to 55,000 tonnes per annum by FY24. Commentary now suggests a potential further production and mine life increase.

The Buy rating and target price of $8.60 are retained. 

This report was published on September 9, 2021. 

Target price is $8.60 Current Price is $5.37 Difference: $3.23
If SFR meets the Shaw and Partners target it will return approximately 60% (excluding dividends, fees and charges).
Current consensus price target is $6.49, suggesting upside of 18.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 21.80 cents and EPS of 108.80 cents.
At the last closing share price the estimated dividend yield is 4.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.0, implying annual growth of -11.1%.
Current consensus DPS estimate is 25.1, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 6.9.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 6.60 cents and EPS of 33.00 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 16.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.1, implying annual growth of -61.1%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 17.6.

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

TLS    TELSTRA CORPORATION LIMITED

Telecommunication – Overnight Price: $3.85

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

The investor briefing was consistent with Goldman Sachs' prior expectations. Earnings growth targets were provided for FY25 implying a high degree of confidence.

Mid-single digit operating earnings growth is anticipated per annum along with a similar trajectory for mobile services. The dividend policy has also been revised back towards 100% of earnings per share.

While on-market buybacks and unfranked dividends were a part of the update, Goldman Sachs expects buybacks will be prioritised. Buy rating and $4.40 target maintained.

This report was published on September 16, 2021.

Target price is $4.40 Current Price is $3.85 Difference: $0.55
If TLS meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $4.38, suggesting upside of 13.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 16.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 4.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.3, implying annual growth of -15.0%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 28.9.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 16.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 4.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.6, implying annual growth of 17.3%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 24.7.

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: $5.63

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

The National Comprehensive Cancer Network has added PSMA PET imaging to prostate cancer guidelines. This applies to Telix Pharmaceuticals' Illuccix, although Wilsons notes the treatment is yet to receive new drug approval from the FDA.

PSMA PET imaging offers an alternative to standard bone and soft tissue imaging, and is considering equally or more effective than conventional imaging techniques. 

The Overweight rating and target price of $6.75 are retained.

This report was first published on September 14, 2021.

Target price is $6.75 Current Price is $5.63 Difference: $1.12
If TLX meets the Wilsons target it will return approximately 20% (excluding dividends, fees and charges).

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

TNT    TESSERENT LIMITED

IT & Support – Overnight Price: $0.24

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

Tesserent has become one of the leading operators in Australia's domestic cyber security market and Shaw and Partners initiates coverage with a Buy rating and $0.31 target.

The company has pursued several acquisitions in this highly fragmented market which has allowed it to build an end-to-end service offering, marketed as Cyber 360.

The company provides its clients, chiefly large enterprises and governments, with mission-critical services covering a range of cyber security requirements.

The broker believes the strategic shift over the past couple of years has transformed the company and the financial upside is starting to come through.

This report was published on September 15, 2021.

Target price is $0.31 Current Price is $0.24 Difference: $0.07
If TNT meets the Shaw and Partners target it will return approximately 29% (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 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.29.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.67.

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

WBC    WESTPAC BANKING CORPORATION

Banks – Overnight Price: $25.30

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

The PNG Independent Consumer and Competition Commission has denied the proposed acquisition of the Westpac PNG business by Securities ((KSL)), stating that it is not satisfied the acquisition will not substantially lessen competition in the relevant markets.

Bell Potter is disappointed yet considers this just a minor hurdle in Westpac's strategy to sell its Pacific business. Hold rating and $27.50 target maintained.

This report was published on September 15, 2021.

Target price is $27.50 Current Price is $25.30 Difference: $2.2
If WBC meets the Bell Potter target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $28.37, suggesting upside of 11.7%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 112.00 cents and EPS of 178.00 cents.
At the last closing share price the estimated dividend yield is 4.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 157.6, implying annual growth of 147.3%.
Current consensus DPS estimate is 112.3, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 16.1.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 124.00 cents and EPS of 184.00 cents.
At the last closing share price the estimated dividend yield is 4.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 183.0, implying annual growth of 16.1%.
Current consensus DPS estimate is 127.2, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 13.9.

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

ZBT    ZEBIT, INC

Business & Consumer Credit – Overnight Price: $0.57

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

Shaw and Partners adjusts forecasts given the accelerating trajectory, noting that FY23 is now likely to be positive in terms of operating earnings (EBITDA), which is a year earlier than previously expected.

A step up in marketing expenditure is starting to deliver on the opportunity that is available to the company with its clear first-mover advantage. The Buy rating and target price of $2.00 are retained. 

This report was published on September 15, 2021.

Target price is $2.00 Current Price is $0.57 Difference: $1.43
If ZBT meets the Shaw and Partners target it will return approximately 251% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 13.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.25.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 11.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.14.

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

ALL BHP BXB CIM CXL CYG DUB EM2 FMG KSL KSN OZL PDI PEN PFP PPH SFR TLS TLX TNT WBC ZBT

For more info SHARE ANALYSIS: ALL - ARISTOCRAT LEISURE LIMITED

For more info SHARE ANALYSIS: BHP - BHP GROUP LIMITED

For more info SHARE ANALYSIS: BXB - BRAMBLES LIMITED

For more info SHARE ANALYSIS: CIM - CIMIC GROUP LIMITED

For more info SHARE ANALYSIS: CXL - CALIX LIMITED

For more info SHARE ANALYSIS: CYG - COVENTRY GROUP LIMITED

For more info SHARE ANALYSIS: DUB - DUBBER CORPORATION LIMITED

For more info SHARE ANALYSIS: EM2 - EAGLE MOUNTAIN MINING LIMITED

For more info SHARE ANALYSIS: FMG - FORTESCUE METALS GROUP LIMITED

For more info SHARE ANALYSIS: KSL - KINA SECURITIES LIMITED

For more info SHARE ANALYSIS: KSN - KINGSTON RESOURCES LIMITED

For more info SHARE ANALYSIS: OZL - OZ MINERALS LIMITED

For more info SHARE ANALYSIS: PDI - PREDICTIVE DISCOVERY LIMITED

For more info SHARE ANALYSIS: PEN - PENINSULA ENERGY LIMITED

For more info SHARE ANALYSIS: PFP - PROPEL FUNERAL PARTNERS LIMITED

For more info SHARE ANALYSIS: PPH - PUSHPAY HOLDINGS LIMITED

For more info SHARE ANALYSIS: SFR - SANDFIRE RESOURCES LIMITED

For more info SHARE ANALYSIS: TLS - TELSTRA CORPORATION LIMITED

For more info SHARE ANALYSIS: TLX - TELIX PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: TNT - TESSERENT LIMITED

For more info SHARE ANALYSIS: WBC - WESTPAC BANKING CORPORATION

For more info SHARE ANALYSIS: ZBT - ZEBIT, INC