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Australian Broker Call *Extra* Edition – Dec 10, 2021

Daily Market Reports | Dec 10 2021

This story features APM HUMAN SERVICES INTERNATIONAL LIMITED, and other companies. For more info SHARE ANALYSIS: APM

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)

APM   BOQ   BSL   CAR   COD   CSL   IAG   KZA   MGH   MTS   NXT   PWH   RIO   SGM (2)   SLA   TCL   TLX  

APM    APM HUMAN SERVICES INTERNATIONAL LIMITED

Healthcare – Overnight Price: $2.96

Goldman Sachs rates ((APM)) as Initiation of coverage with Buy (1) –

Goldman Sachs initiates coverage on APM Human Services International. With a focus in employment, disability and allied health services spanning ten countries, operations are backed by long-term government contracts and a $2.5bn per annum tender pipeline

The broker notes the New Employment Services Model could see the company double its market share in mainstream employment services programs over the long term. 

The broker initiates with a Buy rating and a target price of $3.60.

This report was published on December 8, 2021.

Target price is $3.60 Current Price is $2.96 Difference: $0.64
If APM meets the Goldman Sachs target it will return approximately 22% (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 4.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 1.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.41.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 10.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 3.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.58.

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

BOQ    BANK OF QUEENSLAND LIMITED

Banks – Overnight Price: $7.94

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

Goldman Sachs' takeaways from Bank of Queensland's annual general meeting include on track revenue and better than expected costs. The company reaffirmed FF22 guidance of at least 2% positive jaws and guided to a -1% year-on-year expense decline. 

The broker notes momentum has continued in the first quarter, particularly in housing and business lending. The Bank of Queensland, Virgin Money Australia and Bank of Queensland Specialist housing portfolio grew by around $1bn in the quarter. 

The Buy rating is retained and the target price increases to $9.67 from $9.66.

This report was published on December 8, 2021.

Target price is $9.67 Current Price is $7.94 Difference: $1.73
If BOQ meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $10.42, suggesting upside of 31.2%(ex-dividends)
The company's fiscal year ends in August.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 64.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.1, implying annual growth of 10.7%.
Current consensus DPS estimate is 46.7, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 10.7.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 67.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.2, implying annual growth of 2.8%.
Current consensus DPS estimate is 50.3, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 10.4.

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

BSL    BLUESCOPE STEEL LIMITED

Steel & Scrap – Overnight Price: $21.47

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

Goldman Sachs reinitiates on Bluescope Steel with the company set to benefit from structural steel market changes including increased ferrous scrap demand to support steel decarbonisation, decreased Chinese exports, and emissions targets and infrastructure driving demand.

Goldman Sachs expects Bluescope Steel will report record earnings in FY22, but expects this to be a peak and is forecasting a more than -50% decline in pre-tax earnings in FY23 despite continuing demand.

The broker reinitiates with a Neutral rating and a target price of $24.00.

This report was published on December 6, 2021.

Target price is $24.00 Current Price is $21.47 Difference: $2.53
If BSL meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $27.01, suggesting upside of 25.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 60.00 cents and EPS of 567.00 cents.
At the last closing share price the estimated dividend yield is 2.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 562.8, implying annual growth of 137.5%.
Current consensus DPS estimate is 55.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 3.8.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 50.00 cents and EPS of 260.00 cents.
At the last closing share price the estimated dividend yield is 2.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 309.0, implying annual growth of -45.1%.
Current consensus DPS estimate is 55.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 6.9.

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

CAR    CARSALES.COM LIMITED

Automobiles & Components – Overnight Price: $26.44

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

Following the investor day held by Carsales.com, Jarden lists several opportunities that were discussed yet cautions investors against expecting these to translate quickly into near-term earnings. 

The broker sets an Underweight rating and notes the company's valuation is high compared to other online classified Australian companies and global peers. Target price is $24.50.

Opportunities alluded to by management included digital retailing, digital trade-ins and dynamic pricing. Also, Encar is evolving to a one-stop vehicle portal for all comers from an online classified business largely for dealers.

This report was published on December 7, 2021.

Target price is $24.50 Current Price is $26.44 Difference: minus $1.94 (current price is over target).
If CAR meets the Jarden target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $24.32, suggesting downside of -8.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 51.40 cents and EPS of 64.20 cents.
At the last closing share price the estimated dividend yield is 1.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 68.3, implying annual growth of 29.8%.
Current consensus DPS estimate is 54.7, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 38.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 57.20 cents and EPS of 71.50 cents.
At the last closing share price the estimated dividend yield is 2.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 77.1, implying annual growth of 12.9%.
Current consensus DPS estimate is 63.5, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 34.3.

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

COD    CODA MINERALS LIMITED

Mining – Overnight Price: $1.03

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

Coda Minerals has announced an extension of its South Australian Elizabeth Creek copper project mineralisation envelope to the north, east and south at the Emmie Bluff Deeps following discovery of a major iron oxide copper-gold system in June, notes Shaw and Partners.

The broker expects a maiden resource upgrade for Emmie Bluff in the December quarter and notes this could be a key catalyst for the company.

The Buy rating and target price of $2.30 are retained.

This report was published on December 7, 2021.

Target price is $2.30 Current Price is $1.03 Difference: $1.27
If COD meets the Shaw and Partners target it will return approximately 123% (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 26.41.

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 26.41.

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

CSL    CSL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $304.68

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

Wilson's increases CSL's target price to $350 from $320, expecting the company will emerge from covid with new structural advantages, most notably an uptick in subcutaneous IG usage patterns. Overweight rating retained.

The broker notes three important research-and-development projects will be ready in 2022: CSL112 for acute coronary's syndrome; garadacimab; and EtranaDez haeophilia B gene threapy. Wilsons also expects the anti-FcRn fear mongering will subside.

FY24 EPS estimates are upgraded 8% in anticipation of increased HIZENTRA sales and improved gross margins from EtranaDez. FY22 and FY23 are unchanged.

This report was issued December 7, 2021.

Target price is $350.00 Current Price is $304.68 Difference: $45.32
If CSL meets the Wilsons target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $311.23, suggesting upside of 2.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of -6.63 cents and EPS of 656.28 cents.
At the last closing share price the estimated dividend yield is – 0.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 682.2, implying annual growth of N/A.
Current consensus DPS estimate is 316.4, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 44.7.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 23.75 cents and EPS of 773.55 cents.
At the last closing share price the estimated dividend yield is 0.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 821.0, implying annual growth of 20.3%.
Current consensus DPS estimate is 360.6, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 37.1.

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

IAG    INSURANCE AUSTRALIA GROUP LIMITED

Insurance – Overnight Price: $4.50

Jarden rates ((IAG)) as Buy (1) –

Insurance Australia Group's strategic targets highlight to Jarden upside risk, despite rising natural peril costs and inflationary pressures. It's thought both risks should be reflected in pricing rather than impacting margins.

The company reaffirmed its reported margin and group written premium guidance. Management also noted the potential for Business Insurance reserve releases to support capital management in the 2H of 2022.

Buy and $5.65 target retained.

This report was published on December 7, 2021.

Target price is $5.65 Current Price is $4.50 Difference: $1.15
If IAG meets the Jarden target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $5.17, suggesting upside of 14.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 19.00 cents and EPS of 21.80 cents.
At the last closing share price the estimated dividend yield is 4.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.5, implying annual growth of N/A.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 22.0.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 27.00 cents and EPS of 31.10 cents.
At the last closing share price the estimated dividend yield is 6.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.1, implying annual growth of 42.0%.
Current consensus DPS estimate is 21.7, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 15.5.

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

KZA    KAZIA THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.14

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

A clinical study of Kazia Therapeutics' paxalisib has reported median progression free survival and median overall survival were each extended 3 months, to 8.4 months and 15.7 months. Bell Potter notes this under performs previous results but remains clinically significant.

Noting a clear unmet need in glioblastoma, the broker waits to see if the FDA may accelerate approval based on latest data.

The Speculative Buy rating is retained and the target price decreases to $2.40 from $2.50.

This report was published on December 7, 2021.

Target price is $2.40 Current Price is $1.14 Difference: $1.26
If KZA meets the Bell Potter target it will return approximately 111% (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 16.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.99.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 16.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.99.

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

MGH    MAAS GROUP HOLDINGS LIMITED

Building Products & Services – Overnight Price: $5.11

Moelis rates ((MGH)) as Buy (1) –

MAAS Group Holdings has reiterated FY22 underlying earnings guidance of $115-125m, which Moelis notes implies year-on-year organic growth of around 33% at the upper end, and 58% including acquisitions.

The broker also noted potential further upside from near-term acquisitions which could contribute a further annualised underlying earnings benefit of $11-14m if completed. Moelis upgrades underlying earnings forecasts by 3% and 17% for FY22 and FY23. 

The Buy rating and target price of $5.92 are retained.

This report was published on December 2, 2021. 

Target price is $5.92 Current Price is $5.11 Difference: $0.81
If MGH meets the Moelis target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 1.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.22.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 9.00 cents and EPS of 28.80 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 17.74.

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

MTS    METCASH LIMITED

Food, Beverages & Tobacco – Overnight Price: $4.43

Jarden rates ((MTS)) as Buy (1) –

Following 1H results for Metcash, Jarden increases its rating to Buy from Overweight and lifts its target price to $4.80 from $3.90. Profit is estimated to be 22% above consensus forecasts and Hardware became the largest earnings (EBIT) contributor for the first time.

The analyst feels the higher-margin vertically-integrated Hardware segment deserves a premium multiple, which should drive a re-rating for Metcash over time.

Elsewhere, Food earnings were a 4% beat versus the analyst's estimate, and online supermarket sales are growing at around 20-40% year-on-year. 

This report was published on December 6, 2021.

Target price is $4.80 Current Price is $4.43 Difference: $0.37
If MTS meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $4.57, suggesting upside of 3.1%(ex-dividends)
The company's fiscal year ends in April.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 22.00 cents and EPS of 29.20 cents.
At the last closing share price the estimated dividend yield is 4.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.9, implying annual growth of 15.0%.
Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 16.5.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 22.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 4.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.2, implying annual growth of 1.1%.
Current consensus DPS estimate is 19.2, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 16.3.

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

NXT    NEXTDC LIMITED

Cloud services – Overnight Price: $12.15

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

Wilsons reiterates its Overweight rating and $15.19 target price for NEXTDC, noting capacity additions in the Australian market and appreciating the company's positioning in Asia, as it prepares for what could be a very large opportunity.

The Asian venture is not without risk, but the broker believes the company will prevail.

This report was published on December 7, 2021.

Target price is $15.10 Current Price is $12.15 Difference: $2.95
If NXT meets the Wilsons target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $14.73, suggesting upside of 21.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 289.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.2, 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 1012.5.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 433.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.2, implying annual growth of 250.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 289.3.

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

PWH    PWR HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $8.42

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

Despite issuing modest downgrades of 1-2% to PWR Holdings' earnings per share forecasts through to FY24, Bell Potter affirms expected FY21 year-on-year revenue and underlying earnings growth of 20% and 22% respectively, notably all organic, is still a strong growth year.

The broker notes despite forecasting modest 2% underlying earnings growth for the first half the release of first half results may be a share price catalyst, with the company likely to update on key areas including staffing levels which are already over 400 from 363 in June.

The Hold rating is retained and the target price decreases to $8.50 from $9.25.

This report was published on December 7, 2021.

Target price is $8.50 Current Price is $8.42 Difference: $0.08
If PWH meets the Bell Potter target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.10 cents and EPS of 20.40 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.27.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 13.30 cents and EPS of 24.70 cents.
At the last closing share price the estimated dividend yield is 1.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.09.

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

RIO    RIO TINTO LIMITED

Bulks – Overnight Price: $95.80

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

Goldman Sachs reiterates its Buy rating for Rio Tinto and sets a target price of $121 share after a recent roundtable with Rio Tinto Aluminium's Chief executive Ian Vella.

The broker appreciates the company's low emission aluminium exposure – it has one of the highest margin, lowest carbon-emission aluminium business globally, thanks to strong hydro power – and expects the ELYSIS inert anode technology could yield billions of dollars.

The broker sees the company as a free-cash-flow story rather than a growth story for the next six months, but believes the company will return to growth in FY22 and FY23.

This report was published on December 7, 2021.

Target price is $121.00 Current Price is $95.80 Difference: $25.2
If RIO meets the Goldman Sachs target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $105.71, suggesting upside of 10.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 13.66 cents and EPS of 1688.78 cents.
At the last closing share price the estimated dividend yield is 0.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1879.8, implying annual growth of N/A.
Current consensus DPS estimate is 1443.8, implying a prospective dividend yield of 15.1%.
Current consensus EPS estimate suggests the PER is 5.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 10.75 cents and EPS of 1273.55 cents.
At the last closing share price the estimated dividend yield is 0.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1222.7, implying annual growth of -35.0%.
Current consensus DPS estimate is 885.0, implying a prospective dividend yield of 9.2%.
Current consensus EPS estimate suggests the PER is 7.8.

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

SGM    SIMS LIMITED

Steel & Scrap – Overnight Price: $14.83

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

Goldman Sachs reinitiates on Sims Metals with the company set to benefit from structural steel market changes including increased ferrous scrap demand to support steel decarbonisation, decreased Chinese exports, and emissions targets and infrastructure driving demand.

Sims Metals is targeting a 40% ferrous scrap volume increase by FY24 and a doubling of US non-ferrous volumes by FY25, and the broker estimates every 0.5m tonne per annum volume increase to be $25m underlying earnings accretive.

Sims Metal is Goldman Sachs preferred steel pick. The broker reinitiates with a Buy rating and a target price of $20.00.

This report was published on December 6, 2021.

Target price is $20.00 Current Price is $14.83 Difference: $5.17
If SGM meets the Goldman Sachs target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $18.32, suggesting upside of 23.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 54.00 cents and EPS of 252.00 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 5.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 207.9, implying annual growth of 82.2%.
Current consensus DPS estimate is 57.6, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 7.1.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 50.00 cents and EPS of 188.00 cents.
At the last closing share price the estimated dividend yield is 3.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 138.1, implying annual growth of -33.6%.
Current consensus DPS estimate is 43.6, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 10.7.

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


Jarden rates ((SGM)) as Buy (1) –

In a move that will add around 50,000 tonnes of ferrous and non-ferrous secondary metal per annum, Sims has acquired metals recycler, Recyclers Australia for -$18m. Jarden feels the transaction is consistent with the company's strategy for accretive bolt-on acquisitions. 

Separately, the analyst partly ascribes recent share price weakness to a devaluation in the Turkish lira, and believes any further weakness would present an even better buying opportunity.

The broker retains its Buy rating and $17.50 target price.

This report was first published on December 7, 2021.

Target price is $17.50 Current Price is $14.83 Difference: $2.67
If SGM meets the Jarden target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $18.32, suggesting upside of 23.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 54.10 cents and EPS of 193.20 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 207.9, implying annual growth of 82.2%.
Current consensus DPS estimate is 57.6, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 7.1.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 53.30 cents and EPS of 201.20 cents.
At the last closing share price the estimated dividend yield is 3.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 138.1, implying annual growth of -33.6%.
Current consensus DPS estimate is 43.6, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 10.7.

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

SLA    SILK LASER AUSTRALIA LIMITED

Healthcare services – Overnight Price: $4.28

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

Wilson's upgrades Silk Laser Australia's target price 17% to $5.25 a share and retains an Overweight rating.

The broker says Silk Laser aims to gain category leadership in the corporatised approach to non-surgical aesthetics, which could yield compelling advantages and justify a premium.

Then there's strong fundamentals and improved margins heading into 2022; and Wilsons expects the "Zoom" face phenomenon could support injectables growth.

This report was published on December 7, 2021. 

Target price is $5.25 Current Price is $4.28 Difference: $0.97
If SLA meets the Wilsons target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 15.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.34.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 23.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.61.

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

TCL    TRANSURBAN GROUP LIMITED

Infrastructure & Utilities – Overnight Price: $13.70

Jarden rates ((TCL)) as Neutral (3) –

On concerns Transurban Group may have to pay the bulk of the West Gate Tunnel cost overrun, Jarden lowers its target price to $13.50 from $13.70 and maintains its Neutral rating.

Despite this negative, the broker raises its FY22 and FY23 consolidated earnings (EBITDA) forecasts by 5.4% and 5.0%, respectively, after increasing traffic forecasts for all Australian toll roads. Moreover, the rising inflation rate benefits tariff increases.

The analyst believes management prefers to use capital releases to finance growth projects, instead of distributions. As a result dividend estimates are lowered for FY22, FY23 and FY24 to 41cps, 58cps and 63cps, respectively.

This report was published on December 6, 2021.

Target price is $13.50 Current Price is $13.70 Difference: minus $0.2 (current price is over target).
If TCL meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $14.90, suggesting upside of 8.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 41.10 cents and EPS of 4.40 cents.
At the last closing share price the estimated dividend yield is 3.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 311.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.3, implying annual growth of N/A.
Current consensus DPS estimate is 41.8, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 187.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 58.40 cents and EPS of 26.30 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.2, implying annual growth of 190.4%.
Current consensus DPS estimate is 59.7, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 64.6.

Market Sentiment: 0.7
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: $7.50

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

Wilson's upgrades Telix Pharmaceutical's target price to $10.35 and retains an Overweight rating.

The broker notes Telix is moving towards its first years of material revenue generation and expects the company will continue to trade much higher than its discounted-cash-flow valuation (target price is 53% above discounted cash flow valuation).

FDA approvals for ILLUCIX are still pending approval – a December 23 date has been set and the market will be keeping a keen eye peeled.

This report was first published on December 7, 2021.

Target price is $10.35 Current Price is $7.50 Difference: $2.85
If TLX meets the Wilsons target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 19.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 38.86.

Forecast for FY22:

Wilsons 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 258.62.

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

APM BOQ BSL CAR COD CSL IAG KZA MGH MTS NXT PWH RIO SGM SLA TCL TLX

For more info SHARE ANALYSIS: APM - APM HUMAN SERVICES INTERNATIONAL LIMITED

For more info SHARE ANALYSIS: BOQ - BANK OF QUEENSLAND LIMITED

For more info SHARE ANALYSIS: BSL - BLUESCOPE STEEL LIMITED

For more info SHARE ANALYSIS: CAR - CARSALES.COM LIMITED

For more info SHARE ANALYSIS: COD - CODA MINERALS LIMITED

For more info SHARE ANALYSIS: CSL - CSL LIMITED

For more info SHARE ANALYSIS: IAG - INSURANCE AUSTRALIA GROUP LIMITED

For more info SHARE ANALYSIS: KZA - KAZIA THERAPEUTICS LIMITED

For more info SHARE ANALYSIS: MGH - MAAS GROUP HOLDINGS LIMITED

For more info SHARE ANALYSIS: MTS - METCASH LIMITED

For more info SHARE ANALYSIS: NXT - NEXTDC LIMITED

For more info SHARE ANALYSIS: PWH - PWR HOLDINGS LIMITED

For more info SHARE ANALYSIS: RIO - RIO TINTO LIMITED

For more info SHARE ANALYSIS: SGM - SIMS LIMITED

For more info SHARE ANALYSIS: SLA - SILK LASER AUSTRALIA LIMITED

For more info SHARE ANALYSIS: TCL - TRANSURBAN GROUP LIMITED

For more info SHARE ANALYSIS: TLX - TELIX PHARMACEUTICALS LIMITED