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Australian Broker Call *Extra* Edition – Mar 08, 2022

Daily Market Reports | Mar 08 2022

This story features EAGERS AUTOMOTIVE LIMITED, and other companies. For more info SHARE ANALYSIS: APE

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)

APE   ASX   BAP   BKL   CHN   ELD   EVN   FLT   LBL   MVP   NST   QBE   TGR   TRS  

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components – Overnight Price: $12.77

Goldman Sachs rates ((APE)) as Downgrade to Neutral from Buy (3) –

While Goldman Sachs makes no changes to earnings forecasts for Eagers Automotive, a reduced multiple arises after a mark-to-market exercise versus the Small Industrials index. As a result the target falls to $15.20 from $17.

As the analyst feels the current macro outlook for new vehicle supply (and upside opportunity for the company) is reflected in the current share price, the rating is decreased to Neutral from Buy.

Longer term, the broker notes the pandemic has accelerated the shift from traditional auto retail focusing on foot traffic to an omni-channel approach, which Eagers Automotive has prepared for and invested in.

This report was published on March 7, 2022.

Target price is $15.20 Current Price is $12.77 Difference: $2.43
If APE meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $17.86, suggesting upside of 39.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 85.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 106.0, implying annual growth of -15.4%.
Current consensus DPS estimate is 60.9, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 12.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 83.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 96.5, implying annual growth of -9.0%.
Current consensus DPS estimate is 60.5, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 13.2.

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

ASX    ASX LIMITED

Wealth Management & Investments – Overnight Price: $79.44

Jarden rates ((ASX)) as Underweight (2) –

ASX reported its strongest February in over a decade as, unsurprisingly, market volatility heightened in the month. Equity turnover averaged $9.3bn per day, up 28% on the previous comparable period. 

Following further decline in futures volumes, down -22% on the previous comparable period, Jarden pushes out expected recovery to flat growth in the second half and 16% growth in FY23. Outlook largely retained, with the broker noting the value appeal remains low.

The Underweight rating is retained and the target price decreased to $77.80 from $78.25.

This report was published on March 4, 2022.

Target price is $77.80 Current Price is $79.44 Difference: minus $1.64 (current price is over target).
If ASX meets the Jarden target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $81.86, suggesting upside of 3.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 233.40 cents and EPS of 259.30 cents.
At the last closing share price the estimated dividend yield is 2.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 257.4, implying annual growth of 3.6%.
Current consensus DPS estimate is 230.3, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 30.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 245.00 cents and EPS of 258.90 cents.
At the last closing share price the estimated dividend yield is 3.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 272.9, implying annual growth of 6.0%.
Current consensus DPS estimate is 243.4, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 29.1.

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

BAP    BAPCOR LIMITED

Automobiles & Components – Overnight Price: $6.25

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

Goldman Sachs believes there is valuation support for Bapcor after a recent share price slide. It's thought investor concerns around earnings visibility following recent management changes may have weighed.

Despite some recent media speculation, the company recently confirmed no takeover approaches had been received. The broker expresses no view on this other than to suggest the possibility of becoming a target has increased with the lower share price.

Due to in-house guidelines, Goldman Sachs applies a higher multiple to capture potential M&A activity, and thus raises its target by 4.5% to $6.90. Neutral.

This report was published on March 7, 2022.

Target price is $6.90 Current Price is $6.25 Difference: $0.65
If BAP meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $8.10, suggesting upside of 29.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 37.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.3, implying annual growth of 9.5%.
Current consensus DPS estimate is 21.4, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 40.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.6, implying annual growth of 8.6%.
Current consensus DPS estimate is 23.2, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 15.0.

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

BKL    BLACKMORES LIMITED

Health & Nutrition – Overnight Price: $75.47

Goldman Sachs rates ((BKL)) as Downgrade to Sell from Neutral (5) –

Despite a first half earnings beat by Blackmores, Goldman Sachs decides to downgrade its rating to Sell from Neutral due to a significant level of near-term reinvestment. This investment is required to launch into new markets and rebuild brand in existing ones.

There was a surge in demand for immunity related products during the 1H, and the analyst doesn't expect this to continue into the current period, unless there is another wave of covid in Indonesia, Thailand and Singapore. 

The target price falls by -19% to $75.20.

This report was published on March 7, 2022.

Target price is $75.20 Current Price is $75.47 Difference: minus $0.27 (current price is over target).
If BKL meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $85.03, suggesting upside of 12.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 179.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 172.2, implying annual growth of 34.0%.
Current consensus DPS estimate is 107.4, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 43.8.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 219.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 250.7, implying annual growth of 45.6%.
Current consensus DPS estimate is 156.1, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 30.1.

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

CHN    CHALICE MINING LIMITED

Industrial Metals – Overnight Price: $7.61

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

Chalice Mining's drilling at the Gonneville deposit has discovered high grade sulphide mineralisation intersection from up to 400m below the limit of the existing pit sell, and the company has extended high grade zones to the south-west and north-west. 

Bell Potter says early drilling at "globally significant" platinum-group elements, nickel and copper resource Julimar has also proved positive, and that Chalice Mining expects access to higher priority targets will be granted in coming weeks.

What the ESG ramifications are for drilling in a state forest is not made clear.

The next resource update is due in May 22. Bell Potter retains a Speculative Buy rating. Target price eases to $12.02 from $12.08.

This report was published on March 4, 2022.

Target price is $12.02 Current Price is $7.61 Difference: $4.41
If CHN meets the Bell Potter target it will return approximately 58% (excluding dividends, fees and charges).

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

ELD    ELDERS LIMITED

Agriculture – Overnight Price: $12.22

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

Elders continues to benefit from better than expected cattle turnoff through the second quarter, with Bell Potter suggesting cattle volumes year-to-date are up 20%. Wool volume growth slowed to 5% year-on-year from 11% in the first quarter but remains ahead of expectations. 

In crops, the Bureau of Agriculture forecasts summer crop acreage growth of 46% year-on-year to a ten-year high. Agriculture chemical imports are up 6% year-on-year, and urea and diammonium phosphate are up 80%, ahead of the winter sales window.  

The Hold rating and target price of $12.90 are retained. 

This report was published on March 8, 2022.

Target price is $12.90 Current Price is $12.22 Difference: $0.68
If ELD meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $13.63, suggesting upside of 11.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 42.00 cents and EPS of 77.00 cents.
At the last closing share price the estimated dividend yield is 3.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.6, implying annual growth of -21.1%.
Current consensus DPS estimate is 40.6, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 43.00 cents and EPS of 73.90 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 16.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.8, implying annual growth of 0.3%.
Current consensus DPS estimate is 40.2, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 16.1.

Market Sentiment: 0.8
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: $4.39

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

JP Morgan believes it is a compelling time to own gold shares with the conflict in Ukraine, upside risks for inflation and lingering covid.

The broker remains Overweight on its entire (3 stocks) gold coverage and considers Newcrest Mining ((NCM)) has the most upside. Beyond that, Northern Star Mining ((NST)) is preferred over Evolution Mining given the higher free cashflow and dividend yield.

The $4.60 target price is maintained.

This report was published on March 4, 2022.

Target price is $4.60 Current Price is $4.39 Difference: $0.21
If EVN meets the JP Morgan target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $4.14, suggesting downside of -5.6%(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 1.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.29.

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 1.3%.
Current consensus EPS estimate suggests the PER is 21.9.

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 2.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.45.

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 1.4%.
Current consensus EPS estimate suggests the PER is 18.2.

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

FLT    FLIGHT CENTRE TRAVEL GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $17.05

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

Bell Potter reiterates its positive outlook on Flight Centre Travel Group, noting the company retains a competitive position as global travel recovers in the coming year and particularly given its exposure to the return of international outbound travel. 

Organic growth in its Corporate business, and a restructure of Leisure, likely mean the company will not need to match pre-covid volumes in order to exceed pre-covid profitability. The company should emerge structurally stronger following covid. 

The Buy rating is retained and the target price increases to $20.50 from $20.00.

This report was published on March 8, 2022.

Target price is $20.50 Current Price is $17.05 Difference: $3.45
If FLT meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $17.54, suggesting upside of 2.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 126.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -117.5, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 32.90 cents and EPS of 80.40 cents.
At the last closing share price the estimated dividend yield is 1.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.8, implying annual growth of N/A.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 34.2.

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

LBL    LASERBOND LIMITED

Mining Sector Contracting – Overnight Price: $0.85

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

LaserBond's December first-half result appears to have met Cannacord Genuity's forecasts, as covid continues to stifle growth, particularly in the Services segment.

The broker sees the company as a covid recovery play and considers it to be a "coiled spring".

Recent acquisition QSP sharply outpaced December's acquisition forecasts and the broker expects this will provide a strong kick to FY22 earnings, and says the compan's significant R&D investment may finally be able to yield returns as the company takes new products to market.

The broker tinkers with earnings forecasts and raises dividend forecasts. Buy rating and $1.35 target price retained.

This report was published on March 3, 2022.

Target price is $1.35 Current Price is $0.85 Difference: $0.5
If LBL meets the Canaccord Genuity target it will return approximately 59% (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 1.30 cents and EPS of 4.70 cents.
At the last closing share price the estimated dividend yield is 1.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.09.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 1.50 cents and EPS of 5.90 cents.
At the last closing share price the estimated dividend yield is 1.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.41.

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

MVP    MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $3.70

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

The Federal Drug Administration has approved Medical Developments' bid to take its green whistle to Phase III clinical trials.

Cannacord Genuity says the study should be completed in late 2024, which means the registration and launch are expected in 2026, later than the company had flagged, partly due the company completing the new "selfie" design and given data collation.

The broker says it would not be surprised to see timelines brought forward, particularly if the FDA applies a breakthrough designation. 

Hold rating and $4.01 target price retained.

This report was published on March 7, 2022.

Target price is $4.01 Current Price is $3.70 Difference: $0.31
If MVP meets the Canaccord Genuity target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 52.86.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 154.17.

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

NST    NORTHERN STAR RESOURCES LIMITED

Gold & Silver – Overnight Price: $10.74

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

JP Morgan believes it is a compelling time to own gold shares with the conflict in Ukraine, upside risks for inflation and lingering covid.

The broker remains Overweight on its entire (3 stocks) gold coverage and considers Newcrest Mining ((NCM)) has the most upside. Beyond that, Northern Star Mining is preferred over Evolution Mining ((EVN)) given the higher free cashflow and dividend yield.

The $11 target price is maintained.

This report was published on March 4, 2022.

Target price is $11.00 Current Price is $10.74 Difference: $0.26
If NST meets the JP Morgan target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $11.48, suggesting upside of 6.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 24.00 cents and EPS of 32.00 cents.
At the last closing share price the estimated dividend yield is 2.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.0, implying annual growth of -73.8%.
Current consensus DPS estimate is 23.3, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 35.8.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 33.00 cents and EPS of 60.00 cents.
At the last closing share price the estimated dividend yield is 3.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.2, implying annual growth of 10.7%.
Current consensus DPS estimate is 26.5, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 32.3.

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

QBE    QBE INSURANCE GROUP LIMITED

Insurance – Overnight Price: $10.08

Jarden rates ((QBE)) as Buy (1) –

QBE Insurance will sell its US Westwood Insurance subsidiary for US$375m, which Jarden notes allows for a focus on building operations. The sale price implies a 15.6x price earnings ratio given the agency contributed US$30m in profit in FY21.

The company updated on flood exposures, noting 3,000 claims received to date relating to Queensland and New South Wales flood events make up 5% of total claims made across the industry.

Maximum event retention is -US$125m, 13% of full year catastrophe budget. The Buy rating and target price of $14.35 are retained.

This report was published on March 4, 2022.

Target price is $14.35 Current Price is $10.08 Difference: $4.27
If QBE meets the Jarden target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $14.22, suggesting upside of 41.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 66.07 cents and EPS of 92.91 cents.
At the last closing share price the estimated dividend yield is 6.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.1, implying annual growth of N/A.
Current consensus DPS estimate is 59.5, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.0.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 80.91 cents and EPS of 116.24 cents.
At the last closing share price the estimated dividend yield is 8.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 111.2, implying annual growth of 32.2%.
Current consensus DPS estimate is 78.0, implying a prospective dividend yield of 7.7%.
Current consensus EPS estimate suggests the PER is 9.1.

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

TGR    TASSAL GROUP LIMITED

Aquaculture – Overnight Price: $3.48

Goldman Sachs rates ((TGR)) as Downgrade to Neutral from Buy (3) –

While Goldman Sachs is positive on the outlook and strategy for Tassal Group, there is more relative upside to target price for other stocks in the broker's Small/Mid-Cap coverage. Hence, the rating falls to Neutral from Buy.

The analyst makes no changes to forecasts and retains its $4.20 target. Improving market conditions are expected to drive a recovery in earnings (EBITDA)/kg for Atlantic Salmon and Prawns.

This report was published on March 7, 2022.

Target price is $4.20 Current Price is $3.48 Difference: $0.72
If TGR meets the Goldman Sachs target it will return approximately 21% (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 17.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 4.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.43.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 18.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 5.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.60.

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

TRS    REJECT SHOP LIMITED

Household & Personal Products – Overnight Price: $6.17

Goldman Sachs rates ((TRS)) as Downgrade to Sell from Buy (5) –

Goldman Sachs makes material downgrades to FY22/FY23 EPS estimates for the Reject Shop. This largely reflects raw material inflation and higher logistic costs, as well as costs associated with a more aggressive store roll-out plan.

The target falls to $6.27 from $8.47. As there is only marginal upside to the new target, the broker lowers its rating to Sell from Buy.

Nonetheless, the analyst points out increased in-store shopping may positively impact market share and expand margins.

This report was published on March 7, 2022.

Target price is $6.27 Current Price is $6.17 Difference: $0.1
If TRS meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $7.53, suggesting upside of 22.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 14.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.3, implying annual growth of -48.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 54.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 22.00 cents and EPS of 32.00 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 19.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.3, implying annual growth of 141.6%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 22.6.

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

APE ASX BAP BKL CHN ELD EVN FLT LBL MVP NCM NST QBE TGR TRS

For more info SHARE ANALYSIS: APE - EAGERS AUTOMOTIVE LIMITED

For more info SHARE ANALYSIS: ASX - ASX LIMITED

For more info SHARE ANALYSIS: BAP - BAPCOR LIMITED

For more info SHARE ANALYSIS: BKL - BLACKMORES LIMITED

For more info SHARE ANALYSIS: CHN - CHALICE MINING LIMITED

For more info SHARE ANALYSIS: ELD - ELDERS LIMITED

For more info SHARE ANALYSIS: EVN - EVOLUTION MINING LIMITED

For more info SHARE ANALYSIS: FLT - FLIGHT CENTRE TRAVEL GROUP LIMITED

For more info SHARE ANALYSIS: LBL - LASERBOND LIMITED

For more info SHARE ANALYSIS: MVP - MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED

For more info SHARE ANALYSIS: NCM - NEWCREST MINING LIMITED

For more info SHARE ANALYSIS: NST - NORTHERN STAR RESOURCES LIMITED

For more info SHARE ANALYSIS: QBE - QBE INSURANCE GROUP LIMITED

For more info SHARE ANALYSIS: TGR - TASSAL GROUP LIMITED

For more info SHARE ANALYSIS: TRS - REJECT SHOP LIMITED