Australian Broker Call *Extra* Edition – Feb 18, 2022

This story features ADORE BEAUTY GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: ABY

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)

ABY   BRG   CSL (2)   EBO   EHL   FBU   HPI   IPH   LRK   NWL   PME   RDY (2)   SIG   TAH   WHC  

ABY    ADORE BEAUTY GROUP LIMITED

Household & Personal Products – Overnight Price: $2.36

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

Adore Beauty Group's first half results were better than Shaw and Partners expected despite the impacts of covid. The company reported 18% revenue and sales increases, with sales momentum continuing into the early second half. 

Earnings were down -27% on the previous comparable period, not unexpected as the company had guided to increased investment. Looking ahead, the company is on track to launch its first private label skin care brand in the fourth quarter.

Shaw and Partners finds Adore Beauty Group positioned for long-term growth and continued benefit from the ongoing shift to digital retail. Already the category leader, the broker expects the company to further increase market share. 

The Buy rating is retained and the target price decreases to $3.50 from $6.00. 

This report was published on February 15, 2022.

Target price is $3.50 Current Price is $2.36 Difference: $1.14
If ABY meets the Shaw and Partners target it will return approximately 48% (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 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 76.13.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.00.

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $30.10

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

Breville Group's 1H normalised profit was 5.4% higher than Wilsons had forecast, despite lost sales from supply chain headwinds in Nth America, increased marketing costs and volatile input costs.

The broker applies a 50% valuation premium versus more mature peers, due to the growth strategy and attractive margins. The target rises to $30 from $26.69 and the Market-weight rating remains.

Management guides to ongoing supply chain and inflationary pressures and a ramp-up in R&D and technology costs. More positively, price increases will be implemented strategically.

This report was published on February 17, 2022.

Target price is $30.00 Current Price is $30.10 Difference: minus $0.1 (current price is over target).
If BRG meets the Wilsons target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $33.03, suggesting upside of 9.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 30.00 cents and EPS of 74.50 cents.
At the last closing share price the estimated dividend yield is 1.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.8, implying annual growth of 16.8%.
Current consensus DPS estimate is 30.2, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 39.2.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 35.00 cents and EPS of 87.00 cents.
At the last closing share price the estimated dividend yield is 1.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 88.9, implying annual growth of 15.8%.
Current consensus DPS estimate is 35.5, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 33.9.

Market Sentiment: 0.8
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: $277.00

Jarden rates ((CSL)) as Buy (2) –

CSL's 1H profit was 24% ahead of Jarden's forecast and a nearly 18% beat versus the consensus estimate, with earnings (EBIT) from Seqirus 21% ahead of consensus.

Management believes Behring margins will bottom in the 2H and Northern Hemisphere flu season earnings margins are sustainable.

In short, the broker believes company earnings have also reached a nadir, with significant upside from scale benefits. Margins are expected to expand as plasma collections return to pre-covid levels and increase thereafter.

The Overweight rating is unchanged and the target price rises to $357.4 from $349.9.

This report was published on February 17, 2022.

Target price is $357.40 Current Price is $277.00 Difference: $80.4
If CSL meets the Jarden target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $317.42, suggesting upside of 14.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 210.70 cents and EPS of 670.65 cents.
At the last closing share price the estimated dividend yield is 0.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 685.0, implying annual growth of N/A.
Current consensus DPS estimate is 295.5, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 40.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 364.15 cents and EPS of 789.04 cents.
At the last closing share price the estimated dividend yield is 1.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 824.2, implying annual growth of 20.3%.
Current consensus DPS estimate is 351.8, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 33.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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

Following CSL's strong overall 1H result, according to Wilsons, and upgraded guidance, the Overweight rating and $350 target price are maintained.

While guidance was maintained, the broker explains it was really increased, now that it includes -US$90-100m of Vifor transaction costs.

Wilsons believes the scale, scope and efficiency of the company's IG/albumin collection appears to be recovering, and the 1H likely marked the bottom for supply.

Should plasma collection costs have moved structurally higher, as the broker believes, then CSL's advantage of being the lowest-cost producer has only been deferred by covid.

This report was published on February 17, 2022.

Target price is $350.00 Current Price is $277.00 Difference: $73
If CSL meets the Wilsons target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $317.42, suggesting upside of 14.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 295.62 cents and EPS of 645.12 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 42.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 685.0, implying annual growth of N/A.
Current consensus DPS estimate is 295.5, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 40.4.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 355.42 cents and EPS of 809.06 cents.
At the last closing share price the estimated dividend yield is 1.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 824.2, implying annual growth of 20.3%.
Current consensus DPS estimate is 351.8, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 33.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

EBO    EBOS GROUP LIMITED

Healthcare services – Overnight Price: $38.30

Jarden rates ((EBO)) as Buy (2) –

Ebos Group's 1H results were in-line with Jarden's estimates. The dividend of NZ$0.47 was also as expected. Freights costs rises are being offset by volume growth, share gains and a gradual shift to a higher margin mix, explains the analyst.

Earnings (EBIT) for the Healthcare and Animal Care segments were up 17% and 15%, respectively. The latter benefits from increased pet ownership and spend, as well as strong brand positions via Black Hawk and Vitapet.

The broker maintains its Overweight rating due to the quality growth profile, the defensiveness of end-demand and management's track record on execution.

The Overweight rating is retained and the target price increases to NZ$40 from NZ$38.

This report was published on February 16, 2022.

Current Price is $38.30. Target price not assessed.
Current consensus price target is $39.94, suggesting upside of 4.3%(ex-dividends)

Forecast for FY22:

Current consensus EPS estimate is 126.1, implying annual growth of 11.4%.
Current consensus DPS estimate is 93.1, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 30.4.

Forecast for FY23:

Current consensus EPS estimate is 146.5, implying annual growth of 16.2%.
Current consensus DPS estimate is 106.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 26.1.

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

EHL    EMECO HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $0.89

Moelis rates ((EHL)) as Buy (1) –

Emeco Holding's December-half result met prior guidance and Moelis's prior estimate of $125m.

The ramp up of new projects and reallocation of fleet from rental to services eroded margins but the latter increased project tenure, says the broker. 

Strong cash generation continues to feature and management reiterates FY22 guidance. FY22 earnings estimates (EBITDA) fall -4%. FY23 estimates are fairly steady.

Meanwhile, strong commodity prices buoyed clients' optimism and triggered spending on new equipment. Moelis expects commodity-price strength will continue to drive demand and support margins.

Target price falls to $1.61 from $1.81. Buy rating retained.

This report was published on February 16, 2022.

Target price is $1.61 Current Price is $0.89 Difference: $0.72
If EHL meets the Moelis target it will return approximately 81% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 4.30 cents and EPS of 12.80 cents.
At the last closing share price the estimated dividend yield is 4.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.95.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 5.00 cents and EPS of 16.20 cents.
At the last closing share price the estimated dividend yield is 5.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.49.

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

FBU    FLETCHER BUILDING LIMITED

Building Products & Services – Overnight Price: $6.36

Jarden rates ((FBU)) as Upgrade to Overweight from Neutral (2) –

Following Fletcher Building's 1H results, Jarden concludes there's still upside potential to the new target price of NZ$7.46, up from NZ$7.36, and lifts its rating to Overweight from Neutral.

Not only were results a beat versus the analyst's expectations but also normalisation assumptions received a boost after management cited a greater-than-expected covid impact in the half.

Management is still aiming for a 10%-plus earnings margin for FY23. The interim dividend of NZ$0.18, rose from NZ$0.12 in the previous corresponding period.

This report was published on February 16, 2022.

Current Price is $6.36. Target price not assessed.
Current consensus price target is $9.30, suggesting upside of 46.2%(ex-dividends)

Forecast for FY22:

Current consensus EPS estimate is 51.5, implying annual growth of N/A.
Current consensus DPS estimate is 34.6, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 12.3.

Forecast for FY23:

Current consensus EPS estimate is 56.2, implying annual growth of 9.1%.
Current consensus DPS estimate is 36.9, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 11.3.

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

HPI    HOTEL PROPERTY INVESTMENTS LIMITED

Infra & Property Developers – Overnight Price: $3.56

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

Hotel Property Investments' 1H operating profit was in-line with the expectation held by Goldman Sachs. Management reaffirmed FY22 distribution guidance of 20.5cps, also in line with expectation.

Hotel occupancy remained at 100% and rental income grew as a result of both acquisitions and annual rent hikes, explains the analyst. A shorter/longer covid impact would provide upside/downside to Goldman Sachs estimates.

The Neutral rating is maintained while the target price rises to $3.33 from $3.27.

This report was published on February 17, 2022.

Target price is $3.33 Current Price is $3.56 Difference: minus $0.23 (current price is over target).
If HPI meets the Goldman Sachs target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.95.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 22.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.18.

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

IPH    IPH LIMITED

Legal – Overnight Price: $9.03

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

Goldman Sachs found a lot to like in IPH's first half result release, driving the broker to upgrade its earnings per share forecasts by 1.8% and 0.6% for FY22 and FY23 respectively.

IPH beat the broker's first half earnings forecast by 8.6%, up 10.7% on the previous comparable period, and also reported margin expansion and cash conversion of over 100%. On the downside, the company did lose some Australian patent filing market share 

The Neutral rating is retained and the target price increases to $9.25 from $9.00. 

This report was published on February 17, 2022.

Target price is $9.25 Current Price is $9.03 Difference: $0.22
If IPH meets the Goldman Sachs target it will return approximately 2% (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 29.00 cents and EPS of 39.00 cents.
At the last closing share price the estimated dividend yield is 3.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.15.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 30.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 3.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.57.

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

LRK    LARK DISTILLING CO. LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.75

Moelis rates ((LRK)) as Buy (1) –

Lark Distilling Co has lost its CEO Geoff Bainbridge due to a video of him smoking an ice pipe during a blue Monday encounter in Asia a number of years ago. Google it!

While Non-Executive Director Laura McBain will assume the role of interim Managing Director immediately, Moelis has placed all forecasts under review with the intention of conducting a full review post the upcoming release of interim financials.

Some investors might remember McBain as the former CEO & MD of Bellamy's Australia from 2014-2017.

For now, the stock remains rated Buy with a $4.18 price target, but… see above. Under review.

This report was published on February 17, 2022.

Target price is $4.18 Current Price is $3.75 Difference: $0.43
If LRK meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 62.50.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 0.00 cents and EPS of 14.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.51.

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

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $13.30

Jarden rates ((NWL)) as Upgrade to Neutral from Underweight (3) –

Netwealth Group reported its first profit contraction since listing in the first half, down -0.5% on the previous comparable period, despite funds under assets growing 50%. Jarden notes driving the result was a 34% increase in costs and platform fee pressure. 

While the broker was surprised by the degree of cost reinvestment, Jarden believes employee cost growth and investment will better prepare the company to handle strong account growth and net flow momentum. 

The rating is upgraded to Neutral from Underweight and the target price decreases to $13.80 from $15.45.

This report was published on February 16, 2022.

Target price is $13.80 Current Price is $13.30 Difference: $0.5
If NWL meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $16.14, suggesting upside of 21.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 20.20 cents and EPS of 23.10 cents.
At the last closing share price the estimated dividend yield is 1.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.8, implying annual growth of 5.5%.
Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 55.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 23.50 cents and EPS of 27.10 cents.
At the last closing share price the estimated dividend yield is 1.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.7, implying annual growth of 29.0%.
Current consensus DPS estimate is 25.3, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 43.3.

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

PME    PRO MEDICUS LIMITED

Medical Equipment & Devices – Overnight Price: $45.11

Moelis rates ((PME)) as Upgrade to Buy from Hold (1) –

Pro Medicus' December-half result outpaced consensus and Moelis forecasts thanks largely to a contract extension with a German government hospital, revenue proving a 40.3% beat.

No guidance was provided but management points to a strong pipeline and spread of opportunity, as customers move to the cloud and adopt multiple products.

Strong top-line growth drove stronger margins in the face of higher costs (the company investing in the next growth phase), a trend the broker expects will continue.

Moelis slightly downgrades FY22 to FY24 EPS forecasts to reflect a higher tax rate and the postponement of Novant go-live.

Target price edges up to $55.10 from $53. Rating upgraded to Buy from Hold.

This report was published on February 16, 2022.

Target price is $55.10 Current Price is $45.11 Difference: $9.99
If PME meets the Moelis target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 22.00 cents and EPS of 40.70 cents.
At the last closing share price the estimated dividend yield is 0.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 110.84.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 27.00 cents and EPS of 54.10 cents.
At the last closing share price the estimated dividend yield is 0.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 83.38.

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

RDY    READYTECH HOLDINGS LIMITED

Software & Services – Overnight Price: $3.27

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

Readytech's December-half result edged out Shaw & Partners' forecast thanks to a strong performance from acquisitions and strong organic growth. 

Cash flow disappointed as capital expenditure took the shine off the result. 

Management points to a strong pipeline and a sharp jump in its FY26 revenue expectations.

Shaw & Partners reiterates its Buy rating, admiring the company's growth, quality and risk profile.

Target price edges up to $4.15 from $4.05.

This report was published on February 17, 2022.

Target price is $4.15 Current Price is $3.27 Difference: $0.88
If RDY meets the Shaw and Partners target it will return approximately 27% (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 12.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.35.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 16.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.82.

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

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

ReadyTech Holdings' 1H result was broadly in-line with Wilsons forecasts. The broker notes 2H revenue guidance only requires a little growth to be achieved, and the Overweight rating is unchanged, while the target rises to $4.20 from $4.19.

The analyst points out that while cashflow appeared to be weak in the 1H, Open Office receives 65% of annual collections in the 2H.

Management lowered earnings margin guidance due to lower margin acquisitions (Avaxa and Open Windows), and higher longer term incentive prices, which the analyst has fully allowed for in the 2H.

This report was published on February 17, 2022.

Target price is $4.20 Current Price is $3.27 Difference: $0.93
If RDY meets the Wilsons target it will return approximately 28% (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 14.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.03.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.44.

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

SIG    SIGMA HEALTHCARE LIMITED

Health & Nutrition – Overnight Price: $0.47

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

Shaw & Partners initiates coverage of Sigma Healthcare with a Buy rating and 60c target price – equating to a total shareholder return of 32% on the day the report was released.

The pharmacy wholesale and distribution company has suffered on the acquisition front in recent years but the broker believes new board and management could turn the company's fortunes.

Shaw & Partners expects the company will return to 12% earnings growth from FY23 after suffering a FY22 earnings decline and considers the company to be attractively priced relatively to Ebos Group, trading at half its multiple.

This report was published on February 17, 2022.

Target price is $0.60 Current Price is $0.47 Difference: $0.13
If SIG meets the Shaw and Partners target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $0.54, suggesting upside of 14.9%(ex-dividends)
The company's fiscal year ends in January.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 1.00 cents and EPS of 1.10 cents.
At the last closing share price the estimated dividend yield is 2.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.4, implying annual growth of -60.4%.
Current consensus DPS estimate is 1.6, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 19.6.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 1.30 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.7, implying annual growth of 12.5%.
Current consensus DPS estimate is 1.9, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 17.4.

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

TAH    TABCORP HOLDINGS LIMITED

Gaming – Overnight Price: $5.36

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

Following 1H results by Tabcorp, Goldman Sachs upgrades FY22-24 earnings (EBITDA) forecasts by 2 to 4%, reflecting stronger operating trends. Sales and earnings exceeded the broker's expectation by 7%,.

Lotteries & Keno produced a 13% beat versus forecast and the analyst sees further upside risk to lotteries earnings, believing the digital penetration has reached an inflection point.

The target price rises to $6.20 from $6 and the Buy rating is maintained.

This report was published on February 18, 2022.

Target price is $6.00 Current Price is $5.36 Difference: $0.64
If TAH meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $5.50, suggesting upside of 2.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 15.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 2.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.8, implying annual growth of 36.4%.
Current consensus DPS estimate is 14.2, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 31.9.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 18.70 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 3.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.6, implying annual growth of 22.6%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 26.0.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $3.02

Goldman Sachs rates ((WHC)) as Upgrade to Buy from Neutral (1) –

Lower than expected revenue and higher than expected costs saw Whitehaven Coal's first half earnings of $633m miss Goldman Sachs' forecast of $655m. The company announced a $400m share buyback, equating to 10% of shares on issue. 

Goldman Sachs has upgraded its coal pricing given expected market tightness. It now forecasts thermal coal prices of US$150 per tonne and US$120 per tonne in FY22 and FY23, and met coal prices of US$243 and US$180 for the same years. 

The expected price rises drive the broker to upgrade earnings per share forecasts by 27%, 122% and 106% through to FY24.

The rating is upgraded to Buy from Neutral and the target price increases to $3.90 from $3.50.

This report was published on February 17, 2022.

Target price is $3.90 Current Price is $3.02 Difference: $0.88
If WHC meets the Goldman Sachs target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $3.68, suggesting upside of 21.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 29.00 cents and EPS of 104.00 cents.
At the last closing share price the estimated dividend yield is 9.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 89.6, implying annual growth of N/A.
Current consensus DPS estimate is 21.1, implying a prospective dividend yield of 7.0%.
Current consensus EPS estimate suggests the PER is 3.4.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 39.00 cents and EPS of 81.00 cents.
At the last closing share price the estimated dividend yield is 12.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.4, implying annual growth of -40.4%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 5.7.

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

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