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Australian Broker Call *Extra* Edition – Dec 23, 2021

Daily Market Reports | Dec 23 2021

This story features AERIS RESOURCES LIMITED, and other companies. For more info SHARE ANALYSIS: AIS

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)

AIS   AX1   CBO   CLW   CTD   HLO   HLS   IGO   JLG   LPD   NAB   SEK   SGM   SHL   TCL   UNI   UWL  

AIS    AERIS RESOURCES LIMITED

Copper – Overnight Price: $0.16

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

Aeris Resources has published a Maiden Mineral Resource for the Constellation deposit, increasing the global Resource at Tritton by 20%, and deeper exploration drilling suggests a much bigger resource and extended mine life of (6-7 years), says Bell Potter.

The news met the broker's forecasts, the copper grade coming in at the top end of forecasts.

Buy rating retained. Target price rises to 24c from 22c.

This report was published on December 17, 2021.

Target price is $0.24 Current Price is $0.16 Difference: $0.08
If AIS meets the Bell Potter target it will return approximately 50% (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 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.57.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.33.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $2.36

Wilsons rates ((AX1)) as Initiation of coverage with Overweight (1) –

Wilsons initiates coverage of Accent Group with an Overweight rating and $2.70 target price, citing exceptional recent growth and the cornering of the youth shoe market.

The broker expects the company will expand into youth apparel and possibly the international market, gaining market and category share, and expanding margins.

Wilsons concedes reopening risks exist heading into FY22 but to date, the company's performance has been strong.

This report was published on December 17, 2021.

Target price is $2.70 Current Price is $2.36 Difference: $0.34
If AX1 meets the Wilsons target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $2.84, suggesting upside of 20.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 9.30 cents and EPS of 11.10 cents.
At the last closing share price the estimated dividend yield is 3.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.8, implying annual growth of -24.0%.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 21.9.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 13.60 cents and EPS of 16.30 cents.
At the last closing share price the estimated dividend yield is 5.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.2, implying annual growth of 50.0%.
Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 14.6.

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

CBO    COBRAM ESTATE OLIVES LIMITED

Agriculture – Overnight Price: $1.92

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

Cobram Estate Olives has announced a $50m equity raising (underwritten) to fund the Boort mill upgrade and US acreage expansion, causing Bell Potter to downgrade EPS forecasts -5% in FY23 and -4% in FY25 to reflect the dilution. 

Management's trading update confirmed strong sales, particular in Australia; a sharp fall in statutory earnings (EBITDA) in FY22; and in-line costs.

Target price eases to $2.30 from $2.35. Buy rating retained, the broker believing Cobram provides exposure to a premium brand in a rapidly growing market.

This report was published on December 17, 2021.

Target price is $2.30 Current Price is $1.92 Difference: $0.38
If CBO meets the Bell Potter target it will return approximately 20% (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 3.30 cents and EPS of 0.20 cents.
At the last closing share price the estimated dividend yield is 1.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 960.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 3.30 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 1.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.20.

Market Sentiment: 1.0
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: $5.01

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

JP Morgan updates its financial model for Charter Hall Long WALE REIT for the ALE Property Group acquisition, portfolio
revaluations and the sale of the old Virgin headquarters.

The broker points out the acquisition has placed some short term pressure on the share price, which should now moderate upon completion of the deal.

The target price rises to $5.80 from $5.60 and the Overweight rating is maintained.

This report was published on December 17, 2021.

Target price is $5.80 Current Price is $5.01 Difference: $0.79
If CLW meets the JP Morgan target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $5.42, suggesting upside of 8.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 30.70 cents.
At the last closing share price the estimated dividend yield is 6.13%.

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 6.2%.
Current consensus EPS estimate suggests the PER is 16.1.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 31.50 cents.
At the last closing share price the estimated dividend yield is 6.29%.

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 6.3%.
Current consensus EPS estimate suggests the PER is 15.7.

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

CTD    CORPORATE TRAVEL MANAGEMENT LIMITED

Travel, Leisure & Tourism – Overnight Price: $21.41

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

In a transaction expected by management to be around 7% earnings accretive to FY19 pro-forma EPS (post synergies), Corporate Travel Management has acquired Helloworld Travel's ((HLO)) Corporate Travel division for $175m.

The current valuation for Corporate Travel Management largely captures a recovery in profitability and the broker retains its Neutral rating. The target price rises to $22.50 from $21.00.

The analyst suggests there will only be a minor impact from the omicron variant upon the North American and A&NZ businesses. Meanwhile, the European business reported a record October before November was impacted.

This report was published on December 17, 2021.

Target price is $22.50 Current Price is $21.41 Difference: $1.09
If CTD meets the JP Morgan target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $25.47, suggesting upside of 18.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 23.00 cents and EPS of 56.00 cents.
At the last closing share price the estimated dividend yield is 1.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.4, implying annual growth of N/A.
Current consensus DPS estimate is 13.8, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 48.2.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 52.00 cents and EPS of 113.00 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 96.5, implying annual growth of 117.3%.
Current consensus DPS estimate is 43.5, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 22.2.

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

HLO    HELLOWORLD TRAVEL LIMITED

Travel, Leisure & Tourism – Overnight Price: $2.36

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

JP Morgan assesses a highly accretive impact from Helloworld Travel's disposal of its Corporate Travel division. Apart from the $175m sale price, accretion is expected to arise from a reduced risk of equity dilution and management's ability to redeploy excess capital.

As a result, the target price rises to $2.90 from $2.20. The analyst estimates the transaction will heighten leverage to a recovery in leisure travel, and hence, more potential variability in near-term earnings forecasts.

The Overweight rating is maintained.

This report was published on December 16, 2021.

Target price is $2.90 Current Price is $2.36 Difference: $0.54
If HLO meets the JP Morgan target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.73.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 0.00 cents and EPS of 17.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.88.

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

HLS    HEALIUS LIMITED

Healthcare services – Overnight Price: $5.39

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

Jarden sharply upgrades Sonic Healthcare and Healius ((HLS)) earnings in response to recent M&A and covid PCR volumes across Australia, Germany and US (due to surging infections and omicron), and a -15% cut to the Australian PCR reimbursement (the broker had been expecting a -25% cut).

Healius plans to buy Agelix Biolabs for -$301.3m. Jarden says the business should be 1.8% EPS accretive by FY23 and 3.2% by FY24 and considers the acquisition a good fit.

Healius's EPS forecasts rise 56.2% in FY22, 18.4% in FY22 and 6.4% i n FY24. Target price rises to $5.67 from $5.16. Overweight rating retained.

This report was published on December 19, 2021.

Target price is $5.67 Current Price is $5.39 Difference: $0.28
If HLS meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $5.42, suggesting upside of 0.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 51.90 cents and EPS of 84.60 cents.
At the last closing share price the estimated dividend yield is 9.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.0, implying annual growth of 531.0%.
Current consensus DPS estimate is 21.1, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 10.2.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 19.80 cents and EPS of 32.60 cents.
At the last closing share price the estimated dividend yield is 3.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.9, implying annual growth of -45.5%.
Current consensus DPS estimate is 15.4, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 18.7.

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

IGO    IGO LIMITED

Nickel – Overnight Price: $11.05

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

Strategists at JP Morgan have upgraded lithium forecasts by 30-70% over 2022-23. While peak prices are expected in 2022-23 as new
supply emerges, an ongoing deficit is expected to keep prices above historical averages for the foreseeable future.

The broker keeps its Overweight rating for its key pick IGO and increases its target price to $12.30 from $11.60. 

In a separate and later report, JP Morgan reviews IGO's all-cash bid of $3.36/share for Western Areas ((WSA)). It's felt some investors may disapprove of the overall dilution of the company's lithium exposure, via the increased nickel weighting.

The price paid is also considered full by the analyst and the transaction will potentially constrain the company's ability to pay dividends. The revised target price from the December 15 broker update is unchanged and the Overweight rating is unchanged.

These reports were published on December 15 and December 17, 2021.

Target price is $12.30 Current Price is $11.05 Difference: $1.25
If IGO meets the JP Morgan target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $9.28, suggesting downside of -16.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 9.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 0.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.2, implying annual growth of 83.0%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 25.0.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 40.00 cents and EPS of 118.00 cents.
At the last closing share price the estimated dividend yield is 3.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.7, implying annual growth of 71.3%.
Current consensus DPS estimate is 14.8, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 14.6.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $8.43

Moelis rates ((JLG)) as Buy (1) –

Moelis considers Johns Lyng Group's US acquisition of Reconstruction Experts for A$200m to be highly accretive, offering an earn-out of up to $81m.

The deal was struck on a multiple of 7.8x and will be funded through a $230m equity raising, comprising a $187m placement at $7 and a $42.5m entitlement offer at $6.80.

Moelis estimates accretion to be 64% and the total addressable market US$100bn.

Combined with a flexible balance sheet and domestic growth from existing panel growth, client wins and strata and facilities management, the broker expects the purchase will contribute to multi-year earnings growth.

Buy rating retained. Target price is $9.78.

This report was published on December 14, 2021.

Target price is $9.78 Current Price is $8.43 Difference: $1.35
If JLG 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 7.90 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 0.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.83.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 109.10 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 12.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.15.

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

LPD    LEPIDICO LIMITED

New Battery Elements – Overnight Price: $0.04

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

Lithium hopeful Lepidico has signed binding offtakes for 100% of its lithium and caesium sulphate production with commodity trader Traxys, which will underpin the company's debt financing (expected early 2022), reports Shaw & Partners.

The broker has upgraded its lithium price forecasts triggering a 92% and 60% uptick in its earnings (EBITDA) forecasts for FY24 and FY25.

Shaw notes that Lepidico is pioneering an alternative source of lithium which, if successful, would make the target price appear "very conservative".

Target price rises to 5.7c to 3.1c. Buy, High Risk rating retained.

This report was published on December 17, 2021.

Target price is $0.06 Current Price is $0.04 Difference: $0.017
If LPD meets the Shaw and Partners target it will return approximately 43% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.00.

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

NAB    NATIONAL AUSTRALIA BANK LIMITED

Banks – Overnight Price: $28.54

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

Bell Potter counts the pluses and minuses for National Australia Bank after the annual general meeting, and the pluses triumph.

Now Australia's second largest bank by market capitalisation with a payout ratio approaching its maximum, the 40% progression on returning its capital surplus, and the purchase of Citigroup's Oz consumer business, all support the broker's optimism.

Governance and regulatory changes pleased, no big one-offs were reported and the bank's Business and Private Banking market did well. FY22 and FY23 earnings forecasts inch up 1%. Target price rises to $32 from $31. Buy rating retained.

This report was published on December 17, 2021.

Target price is $32.00 Current Price is $28.54 Difference: $3.46
If NAB meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $29.47, suggesting upside of 3.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 133.00 cents and EPS of 192.00 cents.
At the last closing share price the estimated dividend yield is 4.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 197.2, implying annual growth of 2.2%.
Current consensus DPS estimate is 137.2, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 14.5.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 135.00 cents and EPS of 195.00 cents.
At the last closing share price the estimated dividend yield is 4.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 215.2, implying annual growth of 9.1%.
Current consensus DPS estimate is 149.3, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 13.3.

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

SEK    SEEK LIMITED

Jobs & Skilled Labour Services – Overnight Price: $32.70

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

Jarden initiates coverage of Seek with an Overweight rating and $40.10 target price, representing a return of 19.2%.

The broker says higher than normal churn and employment challenges are triggering an uptick in advertising volumes, expects upside from each mark to market and that the company's first-half result will outpace guidance.

Jarden believes the market is underestimating the fund and forecasts strong annual revenue per unit and spies solid offshore potential, although China may prove an investment drain, and a gradual return to pre-covid growth.

This report was published on December 16, 2021.

Target price is $40.10 Current Price is $32.70 Difference: $7.4
If SEK meets the Jarden target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $35.05, suggesting upside of 7.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 45.70 cents and EPS of 60.90 cents.
At the last closing share price the estimated dividend yield is 1.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.7, implying annual growth of 73.8%.
Current consensus DPS estimate is 39.6, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 53.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 52.60 cents and EPS of 70.10 cents.
At the last closing share price the estimated dividend yield is 1.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.7, implying annual growth of 14.8%.
Current consensus DPS estimate is 45.0, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 46.9.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SGM    SIMS LIMITED

Steel & Scrap – Overnight Price: $15.85

Jarden rates ((SGM)) as Buy (1) –

Sims continues on the acquisition path, adding US east-coast privately owned Atlantic Recycling Group (which Jarden says appears to be highly profitable) to its shopping cart for US$37m plus working capital adjustments.

The announcement follows hot on the heels of the purchase of Recyclers Australia this month for $18m. 

The broker expects smaller players will continue to be snapped up by large listed companies as the circularity theme gains momentum in global steel production.

Jarden says the purchase should strengthen Sims' business in the region, and the two companies appear to have an existing relationship through Sims' global brokerage.

FY22 and FY23 earnings (EBIDTA) estimates rise 0.5% and 0.9%. The broker spies FX risks from the Turkish lira in FY22 and favours FY23. Target price edges up to $17.70 from $17.50. Buy rating retained.

This report was first published on December 16, 2021.

Target price is $17.70 Current Price is $15.85 Difference: $1.85
If SGM meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $18.32, suggesting upside of 15.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 54.40 cents and EPS of 194.40 cents.
At the last closing share price the estimated dividend yield is 3.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.15.

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 3.6%.
Current consensus EPS estimate suggests the PER is 7.6.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 53.40 cents and EPS of 201.60 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 7.86.

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 2.8%.
Current consensus EPS estimate suggests the PER is 11.5.

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

SHL    SONIC HEALTHCARE LIMITED

Healthcare services – Overnight Price: $45.52

Jarden rates ((SHL)) as Neutral (3) –

Jarden updates Sonic Healthcare and Healius ((HLS)) in response to recent M&A and covid PCR volumes across Australia, Germany and US (due to surging infections and omicron), and a -15% cut to the Australian PCR reimbursement (the broker had been expecting a -25% cut).

Sonic recently purchased Dallas-based anatomical pathology business ProPath for an undisclosed sum, funded through cash and debt, and management says the acquisition will be immediately EPS accretive, but not material.

EPS forecasts rise 39.6% in FY22, 18.4% in FY23 and 3.5% in FY24.

Neutral rating is retained. Target price slips to $38.64 from $38.77.

This report was published on December 19, 2021.

Target price is $38.64 Current Price is $45.52 Difference: minus $6.88 (current price is over target).
If SHL meets the Jarden target it will return approximately minus 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $45.75, suggesting upside of 0.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 231.10 cents and EPS of 352.50 cents.
At the last closing share price the estimated dividend yield is 5.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 279.5, implying annual growth of 1.5%.
Current consensus DPS estimate is 107.4, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 126.40 cents and EPS of 192.80 cents.
At the last closing share price the estimated dividend yield is 2.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 176.8, implying annual growth of -36.7%.
Current consensus DPS estimate is 113.4, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 25.7.

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: $13.66

Jarden rates ((TCL)) as Neutral (3) –

Transurban Group have settled with the D&C subcontractor and the Victorian State Government over the $3.4bn West Gate Tunnel cost overruns, without resorting to expensive legal action, and a completion date of 2025 was agreed.

The bill will be split evenly between Transurban and the government, Transurban paying an adidtional $300m pertaining to insurance costs, site activation and project management costs. Transurban will not have to bear the cost of any covid overruns.

Jarden says the good news is work on Westgate will continue. 

Neutral rating retained. Target price rises to $13.90 from $13.50, given Jarden had been expecting a higher cost. 

This report was published on December17, 2021.

Target price is $13.90 Current Price is $13.66 Difference: $0.24
If TCL meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $14.78, suggesting upside of 8.2%(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 3.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 310.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of N/A.
Current consensus DPS estimate is 41.3, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 160.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 58.70 cents and EPS of 26.80 cents.
At the last closing share price the estimated dividend yield is 4.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.6, implying annual growth of 154.1%.
Current consensus DPS estimate is 59.5, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 63.2.

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

UNI    UNIVERSAL STORE HOLDINGS LIMITED

Apparel & Footwear – Overnight Price: $6.81

Jarden rates ((UNI)) as Initiation of coverage with Neutral (3) –

Jarden initiates coverage of Universal Store Holdings with an $8 target price and Neutral rating, implying an 18.4% total shareholder return.

The broker admires the company's strong supply chain management and geographic exposure, which have helped it out-compete peers during covid, and says the company has the largest store growth pipeline in Jarden's apparel industry coverage.

Jarden pegs an EPS compound annual growth rate of 26% to FY25.

The broker is confident on the company's outlook but sits about -10% below consensus out to FY24, expecting lower sales and slightly higher costs, and foresees an earnings miss. Jarden favours Accent Group ((AX1)).

This report was published on December 15, 2021.

Target price is $8.00 Current Price is $6.81 Difference: $1.19
If UNI meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $8.83, suggesting upside of 29.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 17.00 cents and EPS of 26.40 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.9, implying annual growth of -10.2%.
Current consensus DPS estimate is 10.5, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 22.8.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 26.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 3.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.6, implying annual growth of 49.2%.
Current consensus DPS estimate is 16.5, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 15.3.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $4.40

Bell Potter rates ((UWL)) as Downgrade to Hold from Buy (3) –

Bell Potter upgrades Uniti Group's target price to $4.75 from $4.50 to account for market movements and time creep; and raises the valuation multiple to 22x from 20x to reflect Aussie Broadband's strong share-price performance; and a sharp forecast first-half debt reduction and/or the start of the share buyback.

But the broker downgrades to Hold from Buy to reflect a low 2% expected return.

This report was published on December 17, 2021.

Target price is $4.75 Current Price is $4.40 Difference: $0.35
If UWL meets the Bell Potter target it will return approximately 8% (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 11.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.29.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 1.50 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 0.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.84.

Market Sentiment: 0.3
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

AIS AX1 CBO CLW CTD HLO HLS IGO JLG LPD NAB SEK SGM SHL TCL UNI UWL WSA

For more info SHARE ANALYSIS: AIS - AERIS RESOURCES LIMITED

For more info SHARE ANALYSIS: AX1 - ACCENT GROUP LIMITED

For more info SHARE ANALYSIS: CBO - COBRAM ESTATE OLIVES LIMITED

For more info SHARE ANALYSIS: CLW - CHARTER HALL LONG WALE REIT

For more info SHARE ANALYSIS: CTD - CORPORATE TRAVEL MANAGEMENT LIMITED

For more info SHARE ANALYSIS: HLO - HELLOWORLD TRAVEL LIMITED

For more info SHARE ANALYSIS: HLS - HEALIUS LIMITED

For more info SHARE ANALYSIS: IGO - IGO LIMITED

For more info SHARE ANALYSIS: JLG - JOHNS LYNG GROUP LIMITED

For more info SHARE ANALYSIS: LPD - LEPIDICO LIMITED

For more info SHARE ANALYSIS: NAB - NATIONAL AUSTRALIA BANK LIMITED

For more info SHARE ANALYSIS: SEK - SEEK LIMITED

For more info SHARE ANALYSIS: SGM - SIMS LIMITED

For more info SHARE ANALYSIS: SHL - SONIC HEALTHCARE LIMITED

For more info SHARE ANALYSIS: TCL - TRANSURBAN GROUP LIMITED

For more info SHARE ANALYSIS: UNI - UNIVERSAL STORE HOLDINGS LIMITED

For more info SHARE ANALYSIS: UWL - UNITI GROUP LIMITED

For more info SHARE ANALYSIS: WSA - WESTERN AREAS LIMITED