Australian Broker Call *Extra* Edition – Feb 23, 2022

This story features 3P LEARNING LIMITED, and other companies. For more info SHARE ANALYSIS: 3PL

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)

3PL   A2M   ADH   BRG   BSL   CDA   ESK   EVN   FBU   GTK   IRE   JAN   NWL   NWS   OML   OZL   PWR   SHL  

3PL    3P LEARNING LIMITED

Education & Tuition – Overnight Price: $1.60

CCZ Equities rates ((3PL)) as No Rating (-1) –

CCZ Equities initiates coverage on education technology software-as-a-service provider 3P Learning, whose incumbent status in the Australian school market has been recently enhanced by a merger with Blake e-Learning.

Exposure to the fast growing direct-to-parent market is accelerated by the merger, explains the analyst, who offers no rating or specified 12-month target price. However, a $2.08 share valuation is arrived at, based upon FY23 forecasts.

As these forecasts exclude any enterprise sales, the broker suggests there is significant upside risk to the valuation.

The company has 5.8m users across 18,000 schools in 100 countries for its hero products, named Mathletics, Mathseeds and Reader Eggs.

This report was published on February 18, 2022.

Current Price is $1.60. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 160.00.

Forecast for FY23:

CCZ Equities forecasts a full year FY23 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 72.73.

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

A2M    A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $5.70

Wilsons rates ((A2M)) as Market Weight (3) –

First half results were broadly in line with forecasts from Wilsons, and the key Australasian sales trajectory improved strongly for the reseller channel. Asian sales, including China, were 20% above the broker's forecasts.

There is uncertainty over market growth rates over the longer term, nevertheless. No specific guidance was provided but the second half revenue outlook is expected to be significantly ahead of the prior corresponding half.

Wilsons retains a Market Weight rating and reduces the target to $5.98 from $6.02.

This report was published on February 22, 2022.

Target price is $5.98 Current Price is $5.70 Difference: $0.28
If A2M meets the Wilsons target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $6.19, suggesting upside of 7.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 13.38 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.9, 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 38.6.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 15.16 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.9, implying annual growth of 33.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 28.9.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ADH    ADAIRS LIMITED

Furniture & Renovation – Overnight Price: $2.85

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

Adairs delivered first half earnings at the top end of guidance range, reporting $32.9m from the half, despite impacts of store closures and freight challenges. Wilsons revises forecasts for a longer than anticipated road to improvement. 

Like-for-like sales for Adairs and Focus stores declined -7.5% and -7.3% in the first seven weeks of the second half, while Adairs Online and Mocka growth of 9.7% and 14.8% likely disappointed, suggests the broker.

Inventory build has led to higher-than-anticipated net debt of $137.7m

Earnings forecasts decrease -8.9% and -12.6% in FY22 and FY23 respectively, but largely on delayed improvement. The broker finds Adairs to have attractive growth options.

The Overweight rating is retained and the target price decreases to $4.50 from $5.50.

This report was published on February 22, 2022.

Target price is $4.50 Current Price is $2.85 Difference: $1.65
If ADH meets the Wilsons target it will return approximately 58% (excluding dividends, fees and charges).
Current consensus price target is $4.20, suggesting upside of 47.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 19.00 cents and EPS of 29.60 cents.
At the last closing share price the estimated dividend yield is 6.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.5, implying annual growth of -19.1%.
Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 9.3.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 31.00 cents and EPS of 47.30 cents.
At the last closing share price the estimated dividend yield is 10.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.2, implying annual growth of 25.2%.
Current consensus DPS estimate is 24.5, implying a prospective dividend yield of 8.6%.
Current consensus EPS estimate suggests the PER is 7.4.

Market Sentiment: 0.7
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: $28.82

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

Breville Group delivered a solid 1H result, according to JP Morgan, driven by 26% sales growth that was well ahead of expectations. As was the case for FY21 results, reinvestment in the business is being made at the expense of earnings margins.

On valuation grounds, the broker retains a Hold rating though believes earnings growth will persist into FY23 and beyond. An interim dividend of 15cps was only slightly below the 16cps expected.

FY22 earnings guidance was in-line with market forecasts, according to JP Morgan.

This report was published on February 17, 2022.

Target price is $30.00 Current Price is $28.82 Difference: $1.18
If BRG meets the JP Morgan target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $33.03, suggesting upside of 14.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 30.00 cents and EPS of 76.00 cents.
At the last closing share price the estimated dividend yield is 1.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.92.

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 37.7.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 36.00 cents and EPS of 87.00 cents.
At the last closing share price the estimated dividend yield is 1.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.13.

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 32.5.

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

BSL    BLUESCOPE STEEL LIMITED

Steel & Scrap – Overnight Price: $19.24

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

Bluescope Steel's first half results delivered a 1% beat to Goldman Sachs earnings expectations, totaling $2,461m for the period. The broker noted a focus on inventory build saw net cash diminish around -$100m, to $696m. 

Looking ahead, the company is confident that demand remains strong across most regions and price rises are expected in the coming year but has guided to a slower second half. Goldman Sachs lowers its second half earnings forecast to $1,350m from $1,510m. 

Earnings per share forecasts decrease -1%, -12% and -18% through to FY24. 

The Neutral rating is retained and the target price decreases to $21.40 from $22.80.

This report was published on February 22, 2022.

Target price is $21.40 Current Price is $19.24 Difference: $2.16
If BSL meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $25.06, suggesting upside of 29.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 65.00 cents and EPS of 526.00 cents.
At the last closing share price the estimated dividend yield is 3.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 514.0, implying annual growth of 116.9%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 3.8.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 65.00 cents and EPS of 203.00 cents.
At the last closing share price the estimated dividend yield is 3.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 269.9, implying annual growth of -47.5%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 7.2.

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

CDA    CODAN LIMITED

Hardware & Equipment – Overnight Price: $7.77

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

Following 1H results for Codan, Canaccord Genuity lowers FY22 and FY23 EPS estimates by -11% and -6.6%, and reduces its target to $13.70 from $16.50. The normal 2H skew is considered unlikely to unfold. Despite this near term misgiving, the Buy rating remains. 

This comes as a better-than-expected performance from the Communications division in the 1H more than offset some weakness in the Metal Detection division, explains the analyst.

The Metal Detection division is expected to return to growth in FY23 when conditions in Sudan (geopolitical tension) normalise and the current weakness in share price is seen as a buying opportunity by Canaccord Genuity.

This report was published on February 18, 2022.

Target price is $13.70 Current Price is $7.77 Difference: $5.93
If CDA meets the Canaccord Genuity target it will return approximately 76% (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 27.00 cents and EPS of 58.00 cents.
At the last closing share price the estimated dividend yield is 3.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.40.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 29.00 cents and EPS of 68.00 cents.
At the last closing share price the estimated dividend yield is 3.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.43.

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

ESK    ETHERSTACK PLC

Telecommunication – Overnight Price: $0.38

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

In the wake of FY21 results for Etherstack, Wilsons concludes it was a landmark period and sees deeper Land Mobile Radio technology penetration in FY22. Multiple Samsung wins are also expected following good execution on the inaugural contract.

No guidance was provided though management outlined expectations that included a second telco carrier win via Samsung and further Australian Defence projects.

The broker raises its earnings forecasts and lifts its target price to $0.75 from $0.73. Overweight.

This report was published on February 22, 2022.

Target price is $0.75 Current Price is $0.38 Difference: $0.37
If ESK meets the Wilsons target it will return approximately 97% (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 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.22.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.35.

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

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $4.34

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

Evolution Mining's 1H results held no surprises for JP Morgan, apart from a 3cps dividend, when 5cps was expected. The Overweight rating and $4.60 target price are unchanged. Despite rising labour costs, there was no change to three-year guidance.

Resources and reserves have grown by 12% and 5% year-on-year, largely due to increases at the Mungari operations.

Newcrest Mining ((NCM)) and Northern Star Resources ((NST)) are preferred by the broker on valuation grounds.

This report was published on February 17, 2022.

Target price is $4.60 Current Price is $4.34 Difference: $0.26
If EVN meets the JP Morgan target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $4.14, suggesting downside of -2.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 8.00 cents and EPS of 24.00 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 18.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.0, implying annual growth of -1.0%.
Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 21.3.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 12.00 cents and EPS of 42.00 cents.
At the last closing share price the estimated dividend yield is 2.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.1, implying annual growth of 20.5%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 17.7.

Market Sentiment: 0.1
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: $6.35

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

JP Morgan retains a Neutral rating for Fletcher Building after balancing up prospects for further earnings upgrades against the rising interest rate environment and a potential peak for housing.

Results in the 1H showed the analyst solid progress towards the 10% earnings margin target by FY23. While strong prices for residential development are promising, better earnings in Australia will be required to reach the 10%.

The target price rises to NZ$7.10 from NZ$6.85.

This report was published on February 17, 2022.

Current Price is $6.35. Target price not assessed.
Current consensus price target is $9.30, suggesting upside of 46.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 36.73 cents and EPS of 51.80 cents.
At the last closing share price the estimated dividend yield is 5.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.6, implying annual growth of N/A.
Current consensus DPS estimate is 34.7, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 12.3.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 38.62 cents and EPS of 56.51 cents.
At the last closing share price the estimated dividend yield is 6.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.3, 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 11.2.

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

GTK    GENTRACK GROUP LIMITED

Software & Services – Overnight Price: $1.59

CCZ Equities rates ((GTK)) as No Rating (-1) –

CCZ Equities believes the software and services provider Gentrack Group is a compelling growth stock hidden behind short-term macro headwinds for the Utilities sector, and airport closures as a result of covid.

No rating is offered, and rather than setting a 12-month target price, a valuation range of $1.90-$2.10 per share is indicated by CCZ Equities.

The airports business (Veovo) is global, while the utilities business is centred on New Zealand, Australia and UK customers. The analyst believes both businesses are poised for significant growth with an improving UK energy outlook and the return to air travel.

The company's software solutions are considered 'mission critical' by the broker for airports and utilites. For the latter, the end user benefits from the gathering and interpretation of data to create a more accurate, transparent and efficient method of measuring usage.

For airports, revenue management, guest engagement, passenger flow management and airport operations may be enhanced, explains CCZ Equities.

This report was published on February 15, 2022.

Current Price is $1.59. Target price not assessed.
The company's fiscal year ends in September.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 48.23.

Forecast for FY23:

CCZ Equities forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.75.

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

IRE    IRESS LIMITED

Wealth Management & Investments – Overnight Price: $10.68

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

After Iress delivered on JP Morgan's expectations for F21 results, the Overweight rating is maintained. Now, all eyes are on FY25 targets. Incentives have been tailored to these targets though execution is considered a key risk.

Management is positive on its pipeline of opportunities, particularly across superannuation and investment infrastructure. While the broker makes minimal changes to forecast earnings, the target price slips to $12.90 from $13.50.

This report was published on February 18, 2022.

Target price is $12.90 Current Price is $10.68 Difference: $2.22
If IRE meets the JP Morgan target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $11.70, suggesting upside of 11.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 46.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 4.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.4, implying annual growth of 4.2%.
Current consensus DPS estimate is 47.3, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 26.1.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 48.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 4.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 47.6, implying annual growth of 17.8%.
Current consensus DPS estimate is 47.3, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 22.1.

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

JAN    JANISON EDUCATION GROUP LIMITED

Education & Tuition – Overnight Price: $0.96

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

Janison Education Group delivered a lower than expected first half result by Wilsons' estimates, but reaffirmed medium-term targets suggest strong growth in 2022. Notably, goss profit margins in the half improved 49% on the previous comparable period. 

Annual recurring revenue was up 36% on the previous comparable period, with weaker revenue contribution from ICAS assessments, while a -30% earnings decline was attributed to benefits from Jobkeeper in the first half of FY21. 

The Overweight rating is retained and the target price decreases to $1.44 from $1.56.

This report was published on February 22, 2022.

Target price is $1.44 Current Price is $0.96 Difference: $0.48
If JAN meets the Wilsons target it will return approximately 50% (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 minus 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.43.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.29.

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: $14.15

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

Following record 1H results for Netwealth Group that showed higher-than-expected cost growth, JP Morgan cuts its long-term earnings (EBITDA) margin to 50% from 53%. As a result, the FY22 earnings estimate falls by -6% and the target reduces to $13.80 from $15.75.

The amount of reinvestment in the business concerns the analyst to the extent that it challenges a previously held view on the scalability of the group's business model. The cost growth is thought to point to mature/peak margins.

The broker notes management didn't explain when meaningful operating leverage may reappear.

This report was published on February 17, 2022.

Target price is $13.80 Current Price is $14.15 Difference: minus $0.35 (current price is over target).
If NWL meets the JP Morgan target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $16.14, suggesting upside of 14.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 20.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 1.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 56.60.

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 1.4%.
Current consensus EPS estimate suggests the PER is 59.2.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 23.30 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 1.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.79.

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 1.8%.
Current consensus EPS estimate suggests the PER is 45.9.

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

NWS    NEWS CORPORATION

Print, Radio & TV – Overnight Price: $30.44

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

The recent 1H results for News Corp were ahead of JP Morgan's expectation. Both digital circulation and digital advertising saw healthy gains at Dow Jones, rising 20% and 18% year-on-year.

The broker continues to believe shares trade at a discount to its sum-of-the parts valuation, and estimates Dow Jones is worth nearly $4bn alone. Currently, about $5.5bn of News Corp’s market cap is attributed to assets excluding REA Group ((REA)).

The analyst maintains an overweight rating and $40 target price.

This report was published on February 22, 2022.

Target price is $40.00 Current Price is $30.44 Difference: $9.56
If NWS meets the JP Morgan target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $41.88, suggesting upside of 37.6%(ex-dividends)

Forecast for FY22:

Current consensus EPS estimate is 114.3, implying annual growth of N/A.
Current consensus DPS estimate is 29.6, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 26.6.

Forecast for FY23:

Current consensus EPS estimate is 132.2, implying annual growth of 15.7%.
Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 23.0.

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

OML    OOH!MEDIA LIMITED

Out of Home Advertising – Overnight Price: $1.68

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

2021 results were in line with the Goldman Sachs estimates. Revenue was strong and core segments better than expected. Gearing has improved and the company has now recommenced paying dividends.

The broker expects revenue will return to pre-pandemic levels through 2022 despite a slower recovery from segments such as Fly/Locate.

Goldman Sachs reiterates a Buy rating, amid increased confidence in a revenue recovery, operating leverage and margin upside. The target is $2.02.

This report was published on February 21, 2022.

Target price is $2.02 Current Price is $1.68 Difference: $0.34
If OML meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $1.82, suggesting upside of 8.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 5.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 2.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.0, implying annual growth of N/A.
Current consensus DPS estimate is 3.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 24.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 6.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 3.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.6, implying annual growth of 37.1%.
Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 17.5.

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

OZL    OZ MINERALS LIMITED

Copper – Overnight Price: $24.85

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

JP Morgan retains its $24 target price for OZ Minerals following broadly in-line FY21 results. There was no change to FY22 guidance and a full year dividend of 34cps was declared (18cps final).

As the stock price is currently above the broker's target price, a Neutral rating is retained. 

JP Morgan continues to like OZ Minerals for an attractive pure-play copper exposure and the growth outlook.

This report was published on February 22, 2022.

Target price is $24.00 Current Price is $24.85 Difference: minus $0.85 (current price is over target).
If OZL meets the JP Morgan target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $25.21, suggesting upside of 0.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 45.00 cents and EPS of 150.00 cents.
At the last closing share price the estimated dividend yield is 1.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.8, implying annual growth of -6.8%.
Current consensus DPS estimate is 23.5, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 16.9.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 47.00 cents and EPS of 157.00 cents.
At the last closing share price the estimated dividend yield is 1.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 119.2, implying annual growth of -19.9%.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 21.1.

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

PWR    PETER WARREN AUTOMOTIVE HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $2.70

Moelis rates ((PWR)) as Buy (1) –

Peter Warren Automotive Holdings' first half results exceeded company guidance, with profit of $36.3m not only up 35% on the previous comparable period but a 3-9% beat on the $32-34m guidance range as noted by Moelis.

While the company expects limited pressure on new vehicle margins in the coming half the broker expects a more subdued seasonal lift on supply shortages. Demand remains strong and order book growth amid supply lags should support margins to the end of FY22.

Earnings per share forecasts updated 9% in FY22, 0% in FY23 and -5% in FY24. 

The Buy rating is retained and the target price decreases to $4.69 from $4.79.

This report was published on February 22, 2022.

Target price is $4.69 Current Price is $2.70 Difference: $1.99
If PWR meets the Moelis target it will return approximately 74% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 20.20 cents and EPS of 34.50 cents.
At the last closing share price the estimated dividend yield is 7.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.83.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 19.00 cents and EPS of 28.20 cents.
At the last closing share price the estimated dividend yield is 7.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.57.

Market Sentiment: 1.0
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: $35.49

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

Sonic Healthcare's first half sales and earnings were a -3% miss on forecasts and Goldman Sachs warns the company's revenue benefit from covid PCR tests, the primary earnings driver for the last two years, cannot be sustained long-term. 

The broker expects the decline will be most significant in FY23, and notes base business recovery and the deployment of capital following a period of strong cash generation will be key to share price performance. 

The company is yet to provide full year guidance given unpredictability in the outlook. 

The Neutral rating is retained and the target price decreases to $38.70 from $40.70.

This report was published on February 22, 2022.

Target price is $38.70 Current Price is $35.49 Difference: $3.21
If SHL meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $39.35, suggesting upside of 10.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 81.00 cents and EPS of 322.00 cents.
At the last closing share price the estimated dividend yield is 2.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 302.8, implying annual growth of 9.9%.
Current consensus DPS estimate is 100.3, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 11.7.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 125.00 cents and EPS of 167.00 cents.
At the last closing share price the estimated dividend yield is 3.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 182.9, implying annual growth of -39.6%.
Current consensus DPS estimate is 107.6, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 19.4.

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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