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Australian Broker Call *Extra* Edition – Dec 09, 2021

Daily Market Reports | Dec 09 2021

This story features COLLINS FOODS LIMITED, and other companies. For more info SHARE ANALYSIS: CKF

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)

CKF (2)   CLU   COD   GNC   GUD   IKE   NST   OPY   SCP   TLX   TSI (2)   TWE  

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco – Overnight Price: $13.07

Jarden rates ((CKF)) as Downgrade to Neutral from Buy (3) –

Strength in the KFC Australia brand and strong recovery in European business drove a 3% underlying earnings beat for Collins Foods in the first half, with Jarden noting momentum has continued into the second half.

Given Collins Foods is currently trading close to Jarden's 12-month target price the broker has downgraded its rating, but continues to view the company as an attractive business. 

The rating is downgraded to Neutral from Buy and the target price increases to $14.16 from $13.31.

This report was issued November 30, 2021.

Target price is $14.16 Current Price is $13.07 Difference: $1.09
If CKF meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $14.53, suggesting upside of 11.2%(ex-dividends)
The company's fiscal year ends in May.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 25.00 cents and EPS of 49.80 cents.
At the last closing share price the estimated dividend yield is 1.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.9, implying annual growth of 76.6%.
Current consensus DPS estimate is 27.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 26.2.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 28.00 cents and EPS of 53.60 cents.
At the last closing share price the estimated dividend yield is 2.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.6, implying annual growth of 9.4%.
Current consensus DPS estimate is 30.2, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 23.9.

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


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

Despite cycling a strong previous comparable period, Collins Foods has delivered a robust first half according to Wilsons, with a 16% year-on-year profit after tax increase driven by a notable earnings improvement from KFC Europe. 

The downside of results was a drag from weaker earnings from the Taco Bell brand, but impact was offset. As many as 24 additional store openings are expected in FY22 across all brands, as well as 9 store acquisitions in the Netherlands. 

The Overweight rating is retained and the target price increases to $15.75 from $15.30.

This report was published on December 1, 2021.

Target price is $15.75 Current Price is $13.07 Difference: $2.68
If CKF meets the Wilsons target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $14.53, suggesting upside of 11.2%(ex-dividends)
The company's fiscal year ends in May.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 25.00 cents and EPS of 51.20 cents.
At the last closing share price the estimated dividend yield is 1.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.9, implying annual growth of 76.6%.
Current consensus DPS estimate is 27.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 26.2.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 29.00 cents and EPS of 57.20 cents.
At the last closing share price the estimated dividend yield is 2.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.6, implying annual growth of 9.4%.
Current consensus DPS estimate is 30.2, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 23.9.

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

CLU    CLUEY LIMITED

Education & Tuition – Overnight Price: $1.10

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

Bell Potter has changed Cluey's analyst, resulting in a fall in the target price to $1.60 from $1.70.

Buy rating is retained, the broker remaining positive on the company, appreciating its large and growing Australian market, particularly given the structural shifts in the education industry to online learning post covid.

Bell Potter believes Cluey's AI and data driven platform differentiates it from competitors as does its scalable business model, and spies opportunities for expansion through mergers and acquisitions (the company made its first acquisition of Code Camp for $8m in October).

The broker upgrades revenue forecasts while increasing earnings loss forecasts (thanks to higher operating expenses).

This report was published on December 2, 2021.

Target price is $1.60 Current Price is $1.10 Difference: $0.5
If CLU meets the Bell Potter target it will return approximately 45% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 11.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.24.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.74.

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

COD    CODA MINERALS LIMITED

Mining – Overnight Price: $0.93

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

Shaw and Partners initiates coverage on Coda Minerals with a Buy rating and $2.30 target price. The company is focused upon the discovery and development of base, battery and precious metals in Australia.

The analyst believes the existing resource at the company’s flagship Elizabeth Creek Copper-Cobalt Project in South Australia is only the tip of the iceberg. The Cameron River Copper-Gold Project in Queensland (up to 80%) is also considered highly prospective after recent rock chip sampling.

Shaw highlights both projects are leveraged to the right themes of electrification and precious metals, and located near world class mines.

This report was published on December 1, 2021.

Target price is $2.30 Current Price is $0.93 Difference: $1.37
If COD meets the Shaw and Partners target it will return approximately 147% (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 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.85.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.85.

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

GNC    GRAINCORP LIMITED

Agriculture – Overnight Price: $7.21

Bell Potter rates ((GNC)) as Downgrade to Sell from Hold (5) –

The December 21 ABARES crop report includes an east coast winter crop forecast of 29.1mt, edging out last year’s previous high of 28.6mt. Despite this forecast, Bell Potter downgrades its rating to Sell from Hold and leaves its $6.15 target price unchanged.

While the brokers FY22 earnings forecast for GrainCorp reflect seasonal highs, the broker expects a -35-40% contraction in earnings and -45-50% contraction in profit when conditions normalise.

This report was published on December 1, 2021.

Target price is $6.15 Current Price is $7.21 Difference: minus $1.06 (current price is over target).
If GNC meets the Bell Potter target it will return approximately minus 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.54, suggesting upside of 4.6%(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 75.10 cents.
At the last closing share price the estimated dividend yield is 3.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.8, implying annual growth of 24.3%.
Current consensus DPS estimate is 24.5, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 9.5.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 20.00 cents and EPS of 41.90 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.7, implying annual growth of -31.8%.
Current consensus DPS estimate is 25.3, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 13.9.

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

GUD    G.U.D. HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $11.85

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

GUD Holdings has announced the $745m acquisition of vehicle accessory manufacturer AutoPacific Group, with Wilsons positively noting the purchase increases the company's exposure to the 4WD segment and improves manufacturing capabilities. 

The broker upgrades earnings per share forecasts 8-9% in FY23 and FY24.

The Overweight rating and target price of $15.10 are retained. 

This report was published on December 1, 2021.

Target price is $15.10 Current Price is $11.85 Difference: $3.25
If GUD meets the Wilsons target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $14.71, suggesting upside of 24.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 63.00 cents and EPS of 76.60 cents.
At the last closing share price the estimated dividend yield is 5.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.0, implying annual growth of 29.2%.
Current consensus DPS estimate is 44.8, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 72.00 cents and EPS of 100.60 cents.
At the last closing share price the estimated dividend yield is 6.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 96.9, implying annual growth of 15.4%.
Current consensus DPS estimate is 53.3, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 12.2.

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

IKE    IKEGPS GROUP LIMITED

Hardware & Equipment – Overnight Price: $0.83

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

Following ikeGPS Group’s 1H21 result, Bell Potter downgrades earnings estimates though only due to costs brought forward to support the development of the company’s platform. No material changes were made to the broker’s revenue forecasts. 

The company remains in the early stages of commercialisation of the IKE insight AI product, explains the analyst. 

The US$1.2trn infrastructure bill should see increased distribution pole-related development and deployment activity across the US network, notes Bell Potter. It’s thought this may add to the company’s new contract opportunities.

The broker maintains its Buy rating and lowers its target price to $1.25 from $1.45.

This report was published on December 1, 2021.

Target price is $1.25 Current Price is $0.83 Difference: $0.42
If IKE meets the Bell Potter target it will return approximately 51% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.59 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.60.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 4.05 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.51.

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

NST    NORTHERN STAR RESOURCES LIMITED

Gold & Silver – Overnight Price: $9.33

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

Northern Star Resources has signed an agreement for a private placement of a convertible senior unsecured debenture with Osisko Mining in Canada. The funds will assist with the advancement of Osisko’s Windfall project, explains Shaw and Partners.

Also, Osisko and Northern Star have agreed to negotiate the terms of an earn-in and joint-venture on up to a 50% interest in the high-grade Windfall gold deposit.

The analyst considers it flattering that Northern Star is attracting global attention for its underground gold mining expertise. The Buy rating is maintained and a $12 target price is set.

This report was published on December 1, 2021.

Target price is $12.00 Current Price is $9.33 Difference: $2.67
If NST meets the Shaw and Partners target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $11.75, suggesting upside of 25.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 22.00 cents and EPS of 71.30 cents.
At the last closing share price the estimated dividend yield is 2.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.6, implying annual growth of -71.6%.
Current consensus DPS estimate is 24.1, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 28.6.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 25.00 cents and EPS of 106.90 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 8.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.1, implying annual growth of 1.5%.
Current consensus DPS estimate is 25.5, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 28.2.

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

OPY    OPENPAY GROUP LIMITED

Business & Consumer Credit – Overnight Price: $1.00

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

Openpay Group has confirmed a 12-month partnership agreement with American Express in the US that will allow it to accept American Express as a payment method, and allow American Express merchants to connect to Openpay payment solutions.

In Shaw and Partners view this deal gives Openpay potential to leverage into other segments and additional regions, and will likely accelerate US operations. The partnership will also see both companies collaborate on further product development.

The Buy rating and target price of $3.50 are retained.

This report was published on December 3, 2021.

Target price is $3.50 Current Price is $1.00 Difference: $2.5
If OPY meets the Shaw and Partners target it will return approximately 250% (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 34.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.87.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 16.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.06.

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

SCP    SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP RE LIMITED

REITs – Overnight Price: $2.85

Jarden rates ((SCP)) as Buy (1) –

Jarden reiterates its Buy rating and $3.15 target price for SCA Property Group after the company announced a joint venture with GIC to invest in Melbourne and Sydney metropolitan assets.

The broker says the deal should give SCA greater flexibility in consolidating a highly fragmented and attractive asset class, and confirms Jarden's forecasts for a big rise in net tangible assets between December 21 and June 22.

The company is one of the broker's top sector picks, offering a compound annual growth rate of 6% beyond FY22, net-tangible-asset upside and a 5.1% dividend yield.

This report was published on December 2, 2021.

Target price is $3.15 Current Price is $2.85 Difference: $0.3
If SCP meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $2.94, suggesting upside of 3.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 15.00 cents and EPS of 17.20 cents.
At the last closing share price the estimated dividend yield is 5.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.9, implying annual growth of -60.7%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 16.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 16.50 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 5.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.5, implying annual growth of 3.6%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 16.3.

Market Sentiment: 0.2
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: $7.16

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

Brazil has approved Telix Pharmaceuticals' prostate cancer drug Illuccix – the second country to do so after Australia.

Bell Potter notes a US Federal Drug Administration decision on Illuccix is due on December 23 – and this will prove a major catalyst for the stock.

Pending approval, Illuccix should become the first commercially available drug in this class to use 68Ga, notes the broker.

Meanwhile, while Brazil is the largest healthcare market in South America, it offers limited access to advance healthcare services, suggesting it will be a fraction of the US market opportunity (revenue per patient is estimated at $1,000).

Earnings estimates rise 4% and 5% across FY22 and FY22. Target price rises to $8.30 from $8.00. Hold retained.

This report was published on December 2, 2021.

Target price is $8.30 Current Price is $7.16 Difference: $1.14
If TLX meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 18.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 38.09.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 10.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 70.89.

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

TSI    TOP SHELF INTERNATIONAL HOLDINGS LIMITED

Food, Beverages & Tobacco – Overnight Price: $1.50

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

Cannacord Genuity initiates coverage on Top Shelf International Holdings with a Buy rating and $2.51 target price.

The broker says the company is strategically well positioned in the "scale craft" category and cites a large attainable market, open to disruption by local and differentiated brands.

The broker notes the company has a proven track record of execution, more than doubling sales in FY21 to $20m, and boasts several growth levers, including: premiumisation; maturation; provenance; and a recently launched vodka brand.

The company is well positioned in the agave spirit market, which is experiencing supply constraints given the long plant maturation period.

This report was released on December 1, 2021.

Target price is $2.51 Current Price is $1.50 Difference: $1.01
If TSI meets the Canaccord Genuity target it will return approximately 67% (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 17.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.82.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.75.

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


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

Shaw and Partners initiates coverage on Top Shelf International Holdings with a Buy rating and $2.32 price target.

The Australian producer and marketer of spirit-based beverage brands including NED (whisky), Grainshaker (vodka) and agave has a brewhouse, distillery and maturation facility in Victoria.

In the same location there is a canning, bottling and kegging facility and an agave spirit production facility is underway, with the analyst forecasting inaugural sales in the 1H of 2024. NED and Grainshaker are already the fastest growing spirits in their categories.

Only 8% of spirits consumed in Australia are locally produced, and the broker takes note of industry feedback suggesting the potential to increase this level markedly.

This report was published on December 1, 2021.

Target price is $2.32 Current Price is $1.50 Difference: $0.82
If TSI meets the Shaw and Partners target it will return approximately 55% (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 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 51.72.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.42.

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

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco – Overnight Price: $11.94

Jarden rates ((TWE)) as Neutral (3) –

Updates from Treasury Wine Estates reaffirmed the 40-45% underlying earnings margin target continues to be a priority. The company continues to explore non-Australian product opportunity in China, but Jarden finds more immediate opportunity in the global reopening. 

While China continues to be important, Jarden expects a longer-term path to pre-tariff size. Elsewhere, market data has identified opportunity to engage customers and Jarden notes marketing could increase as the company pursues penetration and engagement.

The Neutral rating and target price of $11.60 are retained.

This report was published on November 30, 2021.

Target price is $11.60 Current Price is $11.94 Difference: minus $0.34 (current price is over target).
If TWE meets the Jarden target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $13.45, suggesting upside of 12.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 30.00 cents and EPS of 45.80 cents.
At the last closing share price the estimated dividend yield is 2.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.3, implying annual growth of 27.8%.
Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 27.0.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 34.00 cents and EPS of 53.00 cents.
At the last closing share price the estimated dividend yield is 2.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.3, implying annual growth of 22.6%.
Current consensus DPS estimate is 34.2, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 22.0.

Market Sentiment: 0.8
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

CKF CLU COD GNC GUD IKE NST OPY SCP TLX TSI TWE

For more info SHARE ANALYSIS: CKF - COLLINS FOODS LIMITED

For more info SHARE ANALYSIS: CLU - CLUEY LIMITED

For more info SHARE ANALYSIS: COD - CODA MINERALS LIMITED

For more info SHARE ANALYSIS: GNC - GRAINCORP LIMITED

For more info SHARE ANALYSIS: GUD - G.U.D. HOLDINGS LIMITED

For more info SHARE ANALYSIS: IKE - IKEGPS GROUP LIMITED

For more info SHARE ANALYSIS: NST - NORTHERN STAR RESOURCES LIMITED

For more info SHARE ANALYSIS: OPY - OPENPAY GROUP LIMITED

For more info SHARE ANALYSIS: TLX - TELIX PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: TSI - TOP SHELF INTERNATIONAL HOLDINGS LIMITED

For more info SHARE ANALYSIS: TWE - TREASURY WINE ESTATES LIMITED