article 3 months old

Australian Broker Call *Extra* Edition – Nov 16, 2021

Daily Market Reports | Nov 16 2021

This story features BOSS ENERGY LIMITED, and other companies. For more info SHARE ANALYSIS: BOE

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)

BOE   BRG   DSK (2)   GNC (2)   GPR   HPG   JAN   LTR   M7T   NEA   PPH   RHC   SSG   XRO (3)  

BOE    BOSS ENERGY LIMITED

Uranium – Overnight Price: $0.36

Bell Potter rates ((BOE)) as Initiation of coverage with a Speculative Buy (1) –

Bell Potter expects Boss Energy will be Australia’s next uranium producer with the pending restart of operations at the flagship Honeymoon project. The broker initiates coverage with a Speculative Buy rating and $0.44 target price.

The project has an estimated 12-month lead time to first production, and potential to produce 2.45mlbs per annum within three years of restart, explains the analyst. It's thought the project is a lower-risk development opportunity in a tier 1 jurisdiction.

Bell Potter assesses a key catalyst will be the reaching a final investment decision (FID). The company is expected to have first mover advantage to lock-in lucrative beginning-of-cycle contracts, prior to additional supply entering the market.

This report was published on November 12, 2021.

Target price is $0.44 Current Price is $0.36 Difference: $0.08
If BOE meets the Bell Potter target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.00 cents.

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $30.49

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

Following Breville Group's AGM, Bell Potter makes no material changes to revenue or earnings (EBITDA) forecasts. Management noted demand continues to be solid.

The analyst believes the company is trading at fair value and retains its Hold rating. The target price falls to $30.15 from $30.50. While challenges remain in supply chain and logistics, the broker likes the long-term growth prospects.

This report was published on November 12, 2021.

Target price is $30.15 Current Price is $30.49 Difference: minus $0.34 (current price is over target).
If BRG meets the Bell Potter target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $33.59, suggesting upside of 11.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 30.00 cents and EPS of 76.40 cents.
At the last closing share price the estimated dividend yield is 0.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.6, implying annual growth of 16.5%.
Current consensus DPS estimate is 31.0, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 39.2.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 36.10 cents and EPS of 90.90 cents.
At the last closing share price the estimated dividend yield is 1.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.9, implying annual growth of 14.8%.
Current consensus DPS estimate is 35.4, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 34.1.

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

DSK    DUSK GROUP LIMITED

Household & Personal Products – Overnight Price: $3.13

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

Canaccord Genuity believes Dusk Group will be a winner from the ‘gifting’ trade into Xmas. The analyst also sees potential upside from overseas expansion and acquisitions, which are not currently factored into the share price.

Moreover, gross margins are up on the previous corresponding period and foreign exchange tailwinds are offsetting higher freight costs, explains the broker.

The Buy rating and $3.35 target price are unchanged.

This report was published on November 12, 2020.

Target price is $3.35 Current Price is $3.13 Difference: $0.22
If DSK meets the Canaccord Genuity target it will return approximately 7% (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 26.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 8.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.10.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 27.00 cents and EPS of 33.20 cents.
At the last closing share price the estimated dividend yield is 8.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.43.

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


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

A trading update from Dusk Group revealed sales down -13.0% on the same period last year in the nineteen weeks year to date, which does not surprise Shaw and Partners who note a post-lockdown surge in sales July-October last year.

Yet sales were up 30% on the pre-covid period, with online up 19% year on year and 227% from pre-covid. The period was impacted by store closures in the recent lockdowns, but all stores have now reopened.

Gross margins are up on FY21 despite supply constraints with some help from price increases at end-June. Shaw has cut forecast earnings and reduced its target to $3.50 from $3.80, and retains Buy on a longer term view.

Target price is $3.50 Current Price is $3.13 Difference: $0.37
If DSK meets the Shaw and Partners target it will return approximately 12% (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 23.00 cents and EPS of 30.50 cents.
At the last closing share price the estimated dividend yield is 7.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.26.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 25.00 cents and EPS of 33.30 cents.
At the last closing share price the estimated dividend yield is 7.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.40.

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

GNC    GRAINCORP LIMITED

Agriculture – Overnight Price: $6.86

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

GrainCorp's FY21 underlying profit of $139.3m was ahead of Bell Potter's $126.3m forecast and at the upper-end of guidance. While the 2H21 DPS of 10cps was well below the expected 29cps forecast, a buyback of up to $50m was announced.

Despite FY22 upside from two of the largest ever consecutive east coast crops, the analyst is expecting the crop size to normalise, leading to a material fall in earnings (EBITDA) and EPS.

Management expects another above average crop will likely support Agribusiness earnings into FY22. The broker upgrades profit forecast by 24% in FY22 and downgrades FY23 by -3%. The target price rises to $6.15 from $6 and the Hold rating is unchanged.

This report was published on November 12, 2021.

Target price is $6.15 Current Price is $6.86 Difference: minus $0.71 (current price is over target).
If GNC meets the Bell Potter target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.32, suggesting upside of 7.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 25.00 cents and EPS of 73.10 cents.
At the last closing share price the estimated dividend yield is 3.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.6, implying annual growth of N/A.
Current consensus DPS estimate is 23.9, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 9.8.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 20.00 cents and EPS of 40.60 cents.
At the last closing share price the estimated dividend yield is 2.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.8, implying annual growth of -32.8%.
Current consensus DPS estimate is 22.8, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 14.5.

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


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

Wilsons lifts its target price for GrainCorp to $6.95 from $6.04 after higher grain volumes and significant margin expansion led to a 5% FY21 results beat. The broker feels the strong near-term earnings outlook will likely see the focus turn to growth investment opportunities.

The analyst assumes ‘through-cycle’ earnings, below the company’s guidance and concedes forecasting is difficult, with the currently-elevated grain volumes and earnings.

This report was published on November 12, 2021.

Target price is $6.95 Current Price is $6.86 Difference: $0.09
If GNC meets the Wilsons target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $7.32, suggesting upside of 7.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 30.00 cents and EPS of 60.30 cents.
At the last closing share price the estimated dividend yield is 4.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.6, implying annual growth of N/A.
Current consensus DPS estimate is 23.9, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 9.8.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 22.00 cents and EPS of 42.30 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 16.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.8, implying annual growth of -32.8%.
Current consensus DPS estimate is 22.8, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 14.5.

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

GPR    GEOPACIFIC RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.23

Shaw and Partners rates ((GPR)) as Downgrade to Hold from Buy (3) –

Inclement weather, increased PNG covid cases and poor execution have led to delays to the development of Geopacific Resources' Woodlark Island gold project. All non-essential activities on the site will be deferred until the first half 2022.

Shaw and Partners has subsequently downgraded to Hold from Buy and is now reviewing its forecasts pending an update on funding, development capital and a revised schedule for Woodlark expected in early 2022.

To that end FNArena has removed prior earnings and dividend forecasts and target price.

Current Price is $0.23. Target price not assessed.

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

HPG    HIPAGES GROUP HOLDINGS LIMITED

Online media & mobile platforms – Overnight Price: $4.09

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

Goldman Sachs adjusts FY22 assumptions to reflect further clarity on revenue and margin expectations for hipages Group for FY22. The Buy rating is retained and the target price increases to $4.95 from $4.90.

The broker sees an opportunity to capture a greater share of gross merchandise value (GMV) among its tradie base by focusing on larger trade businesses.

Moreover, expansion beyond maintenance, repairs and renovation could include areas such as property management, retail, insurance and community/government work, suggests the analyst.

This report was published on November 11, 2021.

Target price is $4.95 Current Price is $4.09 Difference: $0.86
If HPG meets the Goldman Sachs target it will return approximately 21% (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 0.00 cents.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 68.17.

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

JAN    JANISON EDUCATION GROUP LIMITED

Education & Tuition – Overnight Price: $1.23

Taylor Collison rates ((JAN)) as Initiation of coverage with Speculative Buy (1) –

Taylor Collison initiates coverage on Janison Education Group with a Speculative Buy rating and $1.38 target price. The company has partnered with the OECD to digitally deliver the Programme for International Student Assessment (PISA) test globally.

The analyst also feels the continued digital roll-out of the International Competitions Assessments for Schools (ICAS) assessment should underpin strong medium-term revenue growth.

As a result of low variable costs, the broker envisages increasing margins, once revenue climbs from assessment products. Taylor Collison believes the core IP, named the Insights assessment platform, is now a world leader, particularly in servicing school clients.

This report was published on November 5, 2021.

Target price is $1.38 Current Price is $1.23 Difference: $0.15
If JAN meets the Taylor Collison target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.12 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 109.82.

Forecast for FY23:

Taylor Collison forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.00.

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

LTR    LIONTOWN RESOURCES LIMITED

New Battery Elements – Overnight Price: $1.65

Bell Potter rates ((LTR)) as Speculative Buy (1) –

Liontown Resources 100% owns the Kathleen Valley lithium project and has released a definitive feasibility study (DFS). Also released, was a scoping study on integrating a downstream lithium hydroxide refining capability.

Bell Potter notes the company is now developing a significantly larger project, building spodumene concentrate production towards 700ktpa in the long term, from initial levels of around 500ktpa.

The broker notes the next steps include project permitting, offtake agreements, front-end engineering and design (FEED) and financing ahead of the final investment decision (FID) by mid-2022.

Bell Potter retains a Speculative Buy rating and raises the target to $2.15 from $1.33.

This report was published on November 12, 2021.

Target price is $2.15 Current Price is $1.65 Difference: $0.5
If LTR meets the Bell Potter target it will return approximately 30% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 412.50.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 206.25.

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

M7T    MACH7 TECHNOLOGIES LIMITED

Healthcare services – Overnight Price: $0.93

Shaw and Partners rates ((M7T)) as Buy (1) –

The three things that drew Shaw and Partners attention at Mach7 Technologies' AGM were an observable impact from new sales & marketing leadership, management comfortable with the FY22 outlook, and a future underpinned by multiple drivers.

Shaw initiated coverage of Mach7 only last week suggesting a positive outlook and potential for operating leverage is not being captured in current valuation, implying the stock may have "fallen through the cracks" of investor focus.

Nothing has changed, and the broker reiterates its belief the stock will be another strong software re-rate story. Buy and $1.50 target retained.

Target price is $1.50 Current Price is $0.93 Difference: $0.57
If M7T meets the Shaw and Partners target it will return approximately 61% (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 minus 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 54.71.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 116.25.

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

NEA    NEARMAP LIMITED

Software & Services – Overnight Price: $1.81

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

During Nearmap's AGM, management retained its medium-term annual contract value (ACV) growth guidance of between 20%-40%. Initial FY22 guidance for the ACV to increase to between $150m-$160m on a constant currency basis was also provided.

The gap between FY22 guidance and the medium-term growth target caused the -11% share price fall on the day of the AGM, believes the analyst. It's thought the company will meet the upper-end of guidance, given traditionally conservative outlook statements.

The broker retains its Buy rating and lowers its target price to $3 from $3.15.

The report was first published on November 11, 2021.

Target price is $3.00 Current Price is $1.81 Difference: $1.19
If NEA meets the Canaccord Genuity target it will return approximately 66% (excluding dividends, fees and charges).
Current consensus price target is $2.53, suggesting upside of 43.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.5, 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 N/A.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 51.71.

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.

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

PPH    PUSHPAY HOLDINGS LIMITED

Software & Services – Overnight Price: $1.44

Shaw and Partners rates ((PPH)) as Hold (3) –

Following a soft first half for FY22, Pushpay Holdings has decreased full-year underlying earnings guidance by -6%, with Shaw and Partners noting performance in the core donor management business appears to be a driver of results. 

The broker reduces underlying earnings forecasts by -15-18% through to FY24 and sits below the bottom-end of range for FY22, noting rising wage pressures continue to push staffing costs higher. 

The Hold rating is retained and the target price decreases to $1.55 from $2.05.

This report was published on November 11, 2021.

Target price is $1.55 Current Price is $1.44 Difference: $0.11
If PPH meets the Shaw and Partners target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $1.90, suggesting upside of 31.0%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 4.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.2, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 27.9.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.2, implying annual growth of 19.2%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 23.4.

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

RHC    RAMSAY HEALTH CARE LIMITED

Healthcare services – Overnight Price: $68.58

Jarden rates ((RHC)) as Buy (1) –

The surprise for Jarden in Q1 unaudited results released by Ramsay Health Care was a decline in earnings (EBIT) versus the previous corresponding period of -115.9% for the UK and -45.4% for Europe. However, covid-specific issues are expected to abate over time.

The broker maintains its Buy rating though lowers FY22-24 EPS estimates by -16.6%, -3.2% and -2.8%, respectively. This effectively delays the recovery by 6 to 12 months, explains the analyst. The target price falls to $84.30 from $87.70.

Jarden points out increased Q1 labour costs were a factor, as isolation orders impacted staffing.

This report was published on November 12, 2021.

Target price is $84.30 Current Price is $68.58 Difference: $15.72
If RHC meets the Jarden target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $68.88, suggesting upside of 1.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 74.40 cents and EPS of 185.50 cents.
At the last closing share price the estimated dividend yield is 1.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 187.3, implying annual growth of -3.0%.
Current consensus DPS estimate is 121.4, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 36.2.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 115.00 cents and EPS of 286.70 cents.
At the last closing share price the estimated dividend yield is 1.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 267.7, implying annual growth of 42.9%.
Current consensus DPS estimate is 161.8, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 25.3.

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

SSG    SHAVER SHOP GROUP LIMITED

Household & Personal Products – Overnight Price: $1.11

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

Shaw and Partners notes Shaver Shop Group's year-to-date sales growth of 7.2% despite lockdown impacts in key states that saw more than -6,100 trading days lost, is a very positive result for the company. 

Online continued to drive results, with online sales up 58.6% year-to-date and equating to more than 50% of total sales, while store sales rebounded following lockdowns. Importantly, the broker noted no material impact to sales is expected from hyped supply chain issues. 

The Buy rating and target price of $1.50 are retained. 

This report was published on November 11, 2021.

Target price is $1.50 Current Price is $1.11 Difference: $0.39
If SSG meets the Shaw and Partners target it will return approximately 35% (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 8.00 cents and EPS of 12.70 cents.
At the last closing share price the estimated dividend yield is 7.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.74.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 10.00 cents and EPS of 16.10 cents.
At the last closing share price the estimated dividend yield is 9.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.89.

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

XRO    XERO LIMITED

Accountancy – Overnight Price: $145.84

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

The 1H result by Xero was marginally below Goldman Sachs' expectations, with weaker International net adds and growth in average return per user (ARPU) offset by lower churn and improving total lifetime value (LTV).

The analyst highlights management's plans for price rises in the US and the rest of the world (RoW), and upside risk in the terminal penetration assumptions from subscriber strength in A&NZ.

The Buy rating is retained and the target price decreases to $158 from $165.

This report was published on November 11, 2021. 

Target price is $158.00 Current Price is $145.84 Difference: $12.16
If XRO meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $134.17, suggesting downside of -7.4%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.94 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15514.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.1, 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 2040.7.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 14.11 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1033.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.6, implying annual growth of 500.0%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 0.0%.
Current consensus EPS estimate suggests the PER is 340.1.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Jarden rates ((XRO)) as Buy (1) –

Jarden's core investment thesis remains unchanged, despite Xero's 1H result being a miss versus consensus forecasts. More positively, subscriptions and costs (sales and marketing) were better than the analyst had expected.

The broker lifts its revenue estimates due to stronger subscriptions across all markets, partially offset by lower average revenue per user (ARPU). 

Jarden expects merger and acquisition to accelerate as the company embeds past acquisitions. The Buy rating and $150 target are retained.

This report was published on November 11, 2021.

Target price is $150.00 Current Price is $145.84 Difference: $4.16
If XRO meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $134.17, suggesting downside of -7.4%(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 minus 0.38 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 38787.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.1, 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 2040.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 36.39 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 400.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.6, implying annual growth of 500.0%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 0.0%.
Current consensus EPS estimate suggests the PER is 340.1.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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

After Xero's recent share price weakness and following 1H results, Wilsons lifts its rating to Overweight from Market Weight and raises its target price to $156.82 from $107.54. This increase is largely driven by a roll forward of the financial model and increasing multiples.

Annualised monthly recurring revenue (AMRR) rose by 29% on the previous corresponding period, which reflects 23% subscriber growth, explains the analyst. Growth in average revenue per user (ARPU) was more than 5%. 

Management reiterated guidance for FY22 operating expenses.

This report was published on November 12, 2021.

Target price is $156.82 Current Price is $145.84 Difference: $10.98
If XRO meets the Wilsons target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $134.17, suggesting downside of -7.4%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 31.69 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 460.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.1, 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 2040.7.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 68.08 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 214.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.6, implying annual growth of 500.0%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 0.0%.
Current consensus EPS estimate suggests the PER is 340.1.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
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.

Share on FacebookTweet about this on TwitterShare on LinkedIn

Click to view our Glossary of Financial Terms

CHARTS

BOE BRG DSK GNC GPR HPG JAN LTR M7T NEA PPH RHC SSG XRO

For more info SHARE ANALYSIS: BOE - BOSS ENERGY LIMITED

For more info SHARE ANALYSIS: BRG - BREVILLE GROUP LIMITED

For more info SHARE ANALYSIS: DSK - DUSK GROUP LIMITED

For more info SHARE ANALYSIS: GNC - GRAINCORP LIMITED

For more info SHARE ANALYSIS: GPR - GEOPACIFIC RESOURCES LIMITED

For more info SHARE ANALYSIS: HPG - HIPAGES GROUP HOLDINGS LIMITED

For more info SHARE ANALYSIS: JAN - JANISON EDUCATION GROUP LIMITED

For more info SHARE ANALYSIS: LTR - LIONTOWN RESOURCES LIMITED

For more info SHARE ANALYSIS: M7T - MACH7 TECHNOLOGIES LIMITED

For more info SHARE ANALYSIS: NEA - NEARMAP LIMITED

For more info SHARE ANALYSIS: PPH - PUSHPAY HOLDINGS LIMITED

For more info SHARE ANALYSIS: RHC - RAMSAY HEALTH CARE LIMITED

For more info SHARE ANALYSIS: SSG - SHAVER SHOP GROUP LIMITED

For more info SHARE ANALYSIS: XRO - XERO LIMITED