Australian Broker Call *Extra* Edition – Dec 20, 2021

This story features AIR NEW ZEALAND LIMITED, and other companies. For more info SHARE ANALYSIS: AIZ

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)

AIZ   BIO   BWX   CHC   CLW   CQR   CWN   GDC   ILU   MCL   MFD   NEA   NTO   RHC (2)   SDR   SGF   TSI   WOW  

AIZ    AIR NEW ZEALAND LIMITED

Transportation & Logistics – Overnight Price: $1.43

Jarden rates ((AIZ)) as Sell (5) –

The New Zealand Government has extended a revised support package to Air New Zealand, which should boost liquidity to NZ$2bn from NZ$1.5bn, says Jarden.

The existing government debt facility falls to NZ$1bn from NZ$1.5bn, allowing the company to issue NZ$1bn of non-voting redeemable preference shares to the government.

Jarden says the airline now enjoys greater balance sheet flexibility and better gearing options, but the balance sheet remains strained and the company's cash burn expectations are unchanged.

FY22 earnings are downgraded to reflect longer-than-expected lockdown restrictions. Sell rating retained. Target price falls to NZ80c from NZ85c.

This report was published on December 14, 2021.

Current Price is $1.43. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 26.64 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.37.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.35 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 60.77.

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

BIO    BIOME AUSTRALIA LIMITED

Overnight Price: $0.11

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

Canccord Genuity initiates coverage on Biome Australia, a producer of complementary medicines including probiotics and nutraceuticals. The company is still in early stages of commercialisation but offers product differentiation in a growing market.

The broker noted Biome Australia has a $4.6bn total addressable market, with the complementary medicine market doubling in the last decade. Further, an evidence-based probiotic range to be recommended with prescription antibiotics could see adjunct market growth.

Canaccord Genuity expects pharmacy network growth for products in the next year.

The broker initiates with a Speculative Buy rating and a target price of $0.31.

This report was published on December 15, 2021.

Target price is $0.31 Current Price is $0.11 Difference: $0.2
If BIO meets the Canaccord Genuity target it will return approximately 182% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.24.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.86.

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

BWX    BWX LIMITED

Household & Personal Products – Overnight Price: $4.27

Jarden rates ((BWX)) as Initiation of coverage with Overweight (2) –

Jarden initiates coverage of vertically integrated natural beauty and wellness company BWX with an Overweight rating and $4.65 target price.

The company owns, manufactures and distributes its four main brands: Sukin, Mineral Fusion, Go-To and Andalou and owns two online marketplaces: Flora & Faun, and Nourished Life.

Jarden considers BWX to be one of the cheapest Australian global growth plays and says the company's push overseas will require investment in marketing and product development. 

Jarden is at the bottom of consensus but acknowledges upside risk. 

This report was published on December 14, 2021.

Target price is $4.65 Current Price is $4.27 Difference: $0.38
If BWX meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $5.73, suggesting upside of 34.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 13.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.9, implying annual growth of -12.7%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 28.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 18.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.8, implying annual growth of 32.9%.
Current consensus DPS estimate is 7.0, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 21.6.

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

CHC    CHARTER HALL GROUP

REITs – Overnight Price: $21.61

Jarden rates ((CHC)) as Buy (1) –

Jarden expects Charter Hall Group, finding itself in a sweet spot of unprecedented demand for real assets, investment capacity, strong asset management strategy and diversified investor support, will issue another 26% upgrade to guidance.

The broker expects operating earnings per share will outpace upgraded guidance and accelerate to 12% to 15% a year, from 11% to 12% now, and flags a re-rating as transaction activity continues to hold, surprising the bears.

Buy rating retained. Target price rises to $23.80 from $21.10.

This report was published on December 13, 2021.

Target price is $23.80 Current Price is $21.61 Difference: $2.19
If CHC meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $22.54, suggesting upside of 4.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 40.10 cents and EPS of 108.50 cents.
At the last closing share price the estimated dividend yield is 1.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 88.9, implying annual growth of -13.2%.
Current consensus DPS estimate is 40.1, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 24.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 42.50 cents and EPS of 98.00 cents.
At the last closing share price the estimated dividend yield is 1.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 92.2, implying annual growth of 3.7%.
Current consensus DPS estimate is 42.8, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 23.4.

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

CLW    CHARTER HALL LONG WALE REIT

REITs – Overnight Price: $5.16

JP Morgan rates ((CLW)) as Overweight (1) –

Charter Hall Group ((CHC)) announced $3.5bn of revaluations, including strong uplifts for Charter Hall Long WALE REIT.

For the retail REIT, revaluations of 8.1% result in a greater than $7bn portfolio, as the average cap rate tightened -37bp in the 1H to 4.41%, explains the analyst.

The broker keeps its Overweight rating and $5.60 target price.

This report was published on December 14, 2021.

Target price is $5.60 Current Price is $5.16 Difference: $0.44
If CLW meets the JP Morgan target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $5.42, suggesting upside of 5.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 31.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 6.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.1, implying annual growth of -72.6%.
Current consensus DPS estimate is 30.9, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 16.6.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 33.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 6.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.0, implying annual growth of 2.9%.
Current consensus DPS estimate is 31.7, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 16.1.

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

CQR    CHARTER HALL RETAIL REIT

REITs – Overnight Price: $4.35

JP Morgan rates ((CQR)) as Neutral (3) –

Charter Hall Group ((CHC)) announced $3.5bn of revaluations, including a strong uplift for Charter Hall Retail REIT. This leads JP Morgan to raise its target price to $4.40 from $4.00. The Neutral rating is maintained.

For the retail REIT, revaluations of 8.5% result in a greater than $4bn portfolio, as the average cap rate tightened -43bp to 5.38%, notes the broker.

The analyst forecasts FY22 EPS at the upper end of the guidance range and keeps the DPS estimate in-line with guidance at  24.3cpu.

This report was published on December 14, 2021.

Target price is $4.40 Current Price is $4.35 Difference: $0.05
If CQR meets the JP Morgan target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $4.09, suggesting downside of -6.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 24.30 cents.
At the last closing share price the estimated dividend yield is 5.59%.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.1, implying annual growth of -44.8%.
Current consensus DPS estimate is 24.5, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 26.10 cents.
At the last closing share price the estimated dividend yield is 6.00%.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.7, implying annual growth of 2.1%.
Current consensus DPS estimate is 25.7, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 15.2.

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

CWN    CROWN RESORTS LIMITED

Gaming – Overnight Price: $11.10

Jarden rates ((CWN)) as Neutral (3) –

Jarden expects the gaming outlook should improve for Sydney and Melbourne once restrictions are lifted, and expects Crown Sydney's big skew towards a VIP Market, at a time when global competitors are shifting away from junket plays, will reap rewards. 

On the flipside, staff shortages and higher labour costs are likely to continue to drag.

Neutral rating retained. Target price eases from $12.10 to $12.09.

This report was published on December 13, 2021.

Target price is $12.09 Current Price is $11.10 Difference: $0.99
If CWN meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $13.40, suggesting upside of 20.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 10.00 cents and EPS of minus 12.70 cents.
At the last closing share price the estimated dividend yield is 0.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 87.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -9.3, implying annual growth of N/A.
Current consensus DPS estimate is 6.7, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 40.00 cents and EPS of 39.40 cents.
At the last closing share price the estimated dividend yield is 3.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.8, implying annual growth of N/A.
Current consensus DPS estimate is 46.5, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 27.2.

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

GDC    GLOBAL DATA CENTRE GROUP

Cloud services – Overnight Price: $1.91

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

The acquisition of a $15m Bangkok data centre and the $7.1m France Nates 3 data centre has expanded Global Data Centre Group's capacity, notes Shaw and Partners. Each has utilistion of 0.6 megawatts and capacity to grow to 2.4 and 1.2 megawatts respectively.

Combined with investing in capacity expansion at its Guam data centre, the broker estimates the company will enter FY23 with annualised revenue of $$22m and further headroom for growth.

Revenue forecasts are upgraded 12%, 27% and 37% through to FY24.

The Buy rating is retained and the target price increases to $3.58 from $3.03.

This report was published on December 14, 2021.

Target price is $3.58 Current Price is $1.91 Difference: $1.67
If GDC meets the Shaw and Partners target it will return approximately 87% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 86.82.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.41.

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

ILU    ILUKA RESOURCES LIMITED

Mineral Sands – Overnight Price: $10.02

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

Iluka Resources' recent discovery of a larger-than-expected Wimmera rare-earths and zircon maiden resource in Victoria pleases Goldman Sachs.

EPS forecasts increase 6% for 2022 and 5% for 2023 to reflect the broker's positive zircon and rutile price forecasts.

Goldman Sachs notes the company is trading at a discount to rare-earth and mineral-sands peers; boasts strong growth prospects; and the price outlook remains supportive.

The broker sits 20% above consensus and holds a Buy rating. Target price rises to $11.90 from $10.50.

This report was published on December 14, 2021. 

Target price is $11.90 Current Price is $10.02 Difference: $1.88
If ILU meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $9.70, suggesting downside of -3.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 33.00 cents and EPS of 65.00 cents.
At the last closing share price the estimated dividend yield is 3.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.4, implying annual growth of -87.0%.
Current consensus DPS estimate is 34.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 13.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 30.00 cents and EPS of 87.00 cents.
At the last closing share price the estimated dividend yield is 2.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 85.0, implying annual growth of 14.2%.
Current consensus DPS estimate is 37.2, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 11.8.

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

MCL    MIGHTY CRAFT LIMITED

Food, Beverages & Tobacco – Overnight Price: $0.34

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

With Mighty Craft's newly launched no-carb Better Beer, a collaboration with Torquay Beverage Company and social influencers The Inspired Unemployed, selling out in its first week Canaccord Genuity advises stores were restocked with 600,000 litres.

Company guidance has Better Beer volumes of 3m litres for FY22, which the broker notes would make the product Mighty Craft's largest beer brand by volume and implies a $12m revenue benefit.

The Speculative Buy and target price of $0.51 are retained. 

This report was published on December 14, 2021.

Target price is $0.51 Current Price is $0.34 Difference: $0.17
If MCL meets the Canaccord Genuity target it will return approximately 50% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.86.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.33.

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

MFD    MAYFIELD CHILDCARE LIMITED

Childcare – Overnight Price: $1.14

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

Mayfield Childcare has acquired fourteen childcare centres from Genius Education at a price of $39.2m. Canaccord Genuity notes the purchase brings operations to 36 centres and places Mayfair Childcare in the twenty largest childcare centre operators in Australia.

The transaction also sets in place an incubator partnership where Genuis Education childcare centres will be sold to Mayfield once they reach agreed occupancy and profitability, giving the company ability to grow its portfolio 10-20% annually.

The broker updates forecasts, almost doubling 2022 underlying earnings to $16.2m and noting 9% accretion to earnings per share.

The Buy rating is retained and the target price increases to $1.70 from $1.32.

This report was published on December 15, 2021.

Target price is $1.70 Current Price is $1.14 Difference: $0.56
If MFD meets the Canaccord Genuity target it will return approximately 49% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 5.00 cents and EPS of 12.20 cents.
At the last closing share price the estimated dividend yield is 4.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.34.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 8.50 cents and EPS of 17.60 cents.
At the last closing share price the estimated dividend yield is 7.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.48.

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

NEA    NEARMAP LIMITED

Software & Services – Overnight Price: $1.54

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

Canaccord Genuity expects Nearmap achieved modest growth in Australia and New Zealand in the first half, while North America annual contract value is expected to exceed Australia/New Zealand in the second quarter.

The broker notes this implies North American annual contract value will exceed $53.7m, implying more than 50% year-on-year growth, while group annual contract value is estimated at over $142m, ahead of forecasts.

Canaccord notes Nearmap is one of the fastest growing ASX-listed SaaS companies. The Buy rating and target price of $3.00 are retained.

The report was first published on December 14, 2021.

Target price is $3.00 Current Price is $1.54 Difference: $1.46
If NEA meets the Canaccord Genuity target it will return approximately 95% (excluding dividends, fees and charges).
Current consensus price target is $2.53, suggesting upside of 64.5%(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 25.67.

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 44.00.

How do these forecasts compare to market consensus projections?

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

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $2.35

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

A meeting with management of Connective, recently taken over by Nitro Software, further clarified for Wilsons the company's product and strategic fit.

The analyst believes the acquisition increases Nitro Software's capability in eSignatures and adds between 10%-25% to annual recurring revenue (ARR). Moreover, the deal expands the company's presence in the US market.

The broker maintains an Overweight rating and sets a $4.33 target price.

This report was published on December 13, 2021.

Target price is $4.33 Current Price is $2.35 Difference: $1.98
If NTO meets the Wilsons target it will return approximately 84% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 7.84 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.99.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 8.77 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.81.

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

RHC    RAMSAY HEALTH CARE LIMITED

Healthcare services – Overnight Price: $66.99

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

Goldman Sachs emerged from Ramsay Health Care's investor event feeling optimistic.

The broker believes the company is better positioned than most of its peers and appreciates its leading market share, good track record on brownfield expansion and solid balance sheet.

Goldman Sachs notes UK fundamentals are improving as covid wanes, given the backlog of volumes, and expects stronger operating conditions in Australia; improving sales and surgical mixes boosting the picture.

Buy rating and $74 target price are retained. 

This report was published on December 14, 2021. 

Target price is $74.00 Current Price is $66.99 Difference: $7.01
If RHC meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $71.52, suggesting upside of 6.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 123.00 cents and EPS of 216.00 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 182.6, implying annual growth of -5.5%.
Current consensus DPS estimate is 113.6, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 36.7.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 156.00 cents and EPS of 273.00 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 24.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 275.7, implying annual growth of 51.0%.
Current consensus DPS estimate is 155.7, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 24.3.

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

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Jarden rates ((RHC)) as Buy (1) –

Ramsay Health Care will pay $1.5bn for Elysium, gaining an exposure to the higher margin mental-health segment in the UK.

Jarden says the purchase will make Ramsay one of the largest mental health providers across Australia France and Britain.

The transaction will be funded through existing debt facilities and finalised by the end of March quarter.

The broker estimates the deal will prove 4.5% accretive in FY23 and 5.3% in FY24; but after accounting for weakness in Ramsay's existing operations, cuts EPS forecasts -7.1% in FY22; -2.6% in FY23 and -6.7% in FY24.

Buy rating retained. Target price rises to $88 from $84.40.

This report was published on December 14, 2021.

Target price is $88.00 Current Price is $66.99 Difference: $21.01
If RHC meets the Jarden target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $71.52, suggesting upside of 6.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 45.00 cents and EPS of 172.30 cents.
At the last closing share price the estimated dividend yield is 0.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 182.6, implying annual growth of -5.5%.
Current consensus DPS estimate is 113.6, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 36.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 69.10 cents and EPS of 294.20 cents.
At the last closing share price the estimated dividend yield is 1.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 275.7, implying annual growth of 51.0%.
Current consensus DPS estimate is 155.7, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 24.3.

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

SDR    SITEMINDER LIMITED

Overnight Price: $6.49

Goldman Sachs rates ((SDR)) as Initiation of coverage with Neutral (3) –

Goldman Sachs initiates coverage of SiteMinder, a global provider of hotel technology solutions, with a Neutral rating and $6.90 target price, considering it a growth play.

The broker appreciates the company's leading channel management product, its simple, open ecosystem and all-in-one solution.

The company operates in 150 countries but has penetration of just 1% in a total addressable market of $9.3bn, says the broker.

Goldman Sachs expects a resumption in volume growth once covid restrictions end, and that sales should benefit from a rapidly expanding product suite.

Neutral rating reflects uncertainty about the timing of resumption in global travel and the broker spies long-term valuations of $15.90.

This report was published on December 14, 2021.

Target price is $6.90 Current Price is $6.49 Difference: $0.41
If SDR meets the Goldman Sachs target it will return approximately 6% (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 minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 811.25.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 927.14.

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

SGF    SG FLEET GROUP LIMITED

Vehicle Leasing & Salary Packaging – Overnight Price: $2.44

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

Expecting supply chain issues to continue into the second half of FY22, Canaccord Genuity has updated forecasts for SG Fleet Group but notes that demand has not been lost but rather repositioned to FY23.

Expecting the company has an order pipeline of around 13,000 vehicles, the broker notes outlook contributes to an appealing risk-reward.

Canaccord Genuity has removed 3,000 vehicle deliveries equating to a $3m commission, and 3,000 disposals equating to $10.8m from FY22 expectations.

The Buy rating was retained and the target price decreased to $3.58 from $3.72.

This report was issued on December 15, 2021.

Target price is $3.58 Current Price is $2.44 Difference: $1.14
If SGF meets the Canaccord Genuity target it will return approximately 47% (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 13.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 5.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.84.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 15.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 6.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.76.

Market Sentiment: 1.0
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 Buy (1) –

An activation event for Top Shelf International Holding saw the company issue 1000 NFTs for Australian agave, which Canaccord Genuity notes have sold out. A purchase gave investors access to geo-tagged agave plants equivalent to 35 litres of agave spirit.

Although the activation provided exposure for the company's agave spirit brand, it additionally demonstrated investor and consumer intererest in an Australian agave product and generated $1m for the brand.

The Speculative Buy rating and target price of $2.51 are retained.

This report was released on December 15, 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

WOW    WOOLWORTHS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $37.66

Jarden rates ((WOW)) as Overweight (2) –

Woolworths guides to a -7% to -9% decline in first-half Australia Food earnings, a -15% miss on Jarden's forecasts, due to higher costs, operating deleverage and category pressure.

FY22 EPS forecasts fall -14% and FY23 forecasts ease -3% to -5%.

The broker believes the decline is temporary and forecasts an EPS compound annual growth rate of 11% over FY22 to FY25.

Jarden considers Wooloworths and Wesfarmers ((WES)) as best-positioned to capitalise on growing brand trust to expand into right-to-play adjacencies and verticals.

Overweight rating retained. Target price eases to $39.70 from $40.90. Dividend forecasts fall.

This report was published on December 14, 2021. 

Target price is $39.70 Current Price is $37.66 Difference: $2.04
If WOW meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $37.14, suggesting downside of -1.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 81.00 cents and EPS of 112.50 cents.
At the last closing share price the estimated dividend yield is 2.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 115.5, implying annual growth of -30.0%.
Current consensus DPS estimate is 86.3, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 32.6.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 93.00 cents and EPS of 128.70 cents.
At the last closing share price the estimated dividend yield is 2.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 137.2, implying annual growth of 18.8%.
Current consensus DPS estimate is 99.9, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 27.4.

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

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