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

This story features APIAM ANIMAL HEALTH LIMITED, and other companies. For more info SHARE ANALYSIS: AHX

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)

AHX   ALL   AVH   BLX   BTH   CBR   CGC   CTD   CXL   DHG   EDV   FZO   GNC   GT1   IRI   JHG   JHX   JRV   NEC   NWS   OML   PPG   PPH   REA   SND   SWM   TOY   WZR   XRO (2)  

AHX    APIAM ANIMAL HEALTH LIMITED

Healthcare services – Overnight Price: $0.74

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

Shaw and Partners considers the trading update "solid" and the business is on track to exceed forecasts. The company has also won a number of grants for animal vaccines.

The broker suspects the company could achieve a doubling of revenues to $300m in FY24 on a combination of organic growth, the roll-out of new clinics and acquisitions.

In particular, a successful roll-out of greenfield clinics could be generating $5-6m in EBITDA by FY24 and acquisitions contribute $15m. The broker also envisages potential for a re-rating over time, retaining a Buy rating with a $1.26 target.

This report was published on May 17, 2022.

Target price is $1.26 Current Price is $0.74 Difference: $0.52
If AHX meets the Shaw and Partners target it will return approximately 70% (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 2.20 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 2.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.80.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 3.10 cents and EPS of 6.80 cents.
At the last closing share price the estimated dividend yield is 4.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.88.

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

ALL    ARISTOCRAT LEISURE LIMITED

Gaming – Overnight Price: $31.20

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

Jarden notes several delays to popular console/PC gaming titles, likely because of a combination of supply chain issues and console shortages. The extent to which competition for game developments and disruption in key developer markets in Russia and Ukraine are affecting the sector is unknown but considered likely.

The broker highlights the Aristocrat Leisure share price is factoring in consensus earnings downgrades stemming from either the Pixel United revenue risk or heightened expense from the entry into real money gaming, but not both.

Hence including both pending earnings downgrades may weigh negatively on the share price in the absence of fresh capital management, the broker suggests.

Overweight. Target is reduced to $37.66 from $39.23.

This report was published on May 13, 2022.

Target price is $37.66 Current Price is $31.20 Difference: $6.46
If ALL meets the Jarden target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $46.25, suggesting upside of 48.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 58.00 cents and EPS of 144.60 cents.
At the last closing share price the estimated dividend yield is 1.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 153.4, implying annual growth of 19.7%.
Current consensus DPS estimate is 58.8, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 20.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 62.00 cents and EPS of 156.00 cents.
At the last closing share price the estimated dividend yield is 1.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 177.5, implying annual growth of 15.7%.
Current consensus DPS estimate is 70.3, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 17.6.

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

AVH    AVITA MEDICAL INC

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.57

Wilsons rates ((AVH)) as Underweight (5) –

First quarter results showed progress in core accounts for Avita Medical. Wilsons acknowledges the potential clinical catalysts from trials in 2022 which may give the share price a boost and facilitate a "better exit" compared to current levels.

The broker expects RECELL to show positive results in vitiligo but then fail as a product. The main issue, Wilsons asserts, is the business has misjudged its product category and failed to create a profit base to support other indications. Underweight retained. Target is $1.27.

This report was published on May 16, 2022.

Target price is $1.27 Current Price is $1.57 Difference: minus $0.3 (current price is over target).
If AVH meets the Wilsons target it will return approximately minus 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 209.27 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.75.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 185.28 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.85.

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

BLX    BEACON LIGHTING GROUP LIMITED

Furniture & Renovation – Overnight Price: $2.10

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

Jarden's AIB Construction Activity Survey suggests 4% growth in new contracts in the six months, vs a -1% decline in the previous survey, and backlogs have extends to 1.5 years from one year, underpinning near-term earnings, says the broker.

The survey also reveals a skew to larger national contractors with turnover in excess of $100m.

Steel product pricing strength proved the standout, Jarden tipping a potential 10% rise in prices.

Project costs jumped 10% but the respondents reported a greater willingness for customers to share the impost compared with the previous survey. The broker surmises improved profitability for construction companies could erode margins for developers such as Mirvac Group ((MGR)) and labour shortages are also expected to bite.

The survey suggests demand for fibre cement has risen at the expense of brick most likely due to a widening price differential, says the broker.

Jarden says rates remain a risk for the medium term and that rate rises traditionally lead building approvals by three months (the broker is tipping a -15% to -20% fall) and prefers building material companies with potential for market share gain such as James Hardie Industries ((JHX)) and Bluescope Steel ((BSL)).

On the distribution front, Jarden notes Total Tools, James Hardie Industries ((JHX)) and Beacon Lighting are all improving penetration but Bunnings ((WES)) remains the clear leader with Metcash ((MTS)) the main beneficiary from contract wins.

Overweight rating retained for Beacon Lighting Group. Target price is $2.60, which compares to the last entry in the FNArena database in January of $2.80.

This report was published on May 9, 2022.

Target price is $2.60 Current Price is $2.10 Difference: $0.5
If BLX meets the Jarden target it will return approximately 24% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 10.10 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 4.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.13.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 7.80 cents and EPS of 12.90 cents.
At the last closing share price the estimated dividend yield is 3.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.28.

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

BTH    BIGTINCAN HOLDINGS LIMITED

Cloud services – Overnight Price: $0.54

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

An unexpected market update from Bigtincan Holdings saw the company reiterate annualised recurring revenue guidance of more than $119m and revenue guidance of more than $109m, with Canaccord Genuity noting the update was likely to reassure investors that guidance would not be downgraded. 

The Bigtincan Holdings share price has declined -67% since August, suggesting market concern, but the company also announced a cash flow breakeven target in FY23, a large beat to consensus and suggesting sizeable operating leverage improvement in the next year.

The Buy rating and target price of $1.50 are retained.

This report was published on May 17, 2022.

Target price is $1.50 Current Price is $0.54 Difference: $0.96
If BTH meets the Canaccord Genuity target it will return approximately 178% (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 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 60.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 270.00.

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

CBR    CARBON REVOLUTION LIMITED

Automobiles & Components – Overnight Price: $0.49

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

A pull forward of sales in the previous quarter saw Carbon Revolution report a -11.2% year-on-year sales revenue decline in the third quarter, while wheel sales declined -6.6% year-on-year, although sales were slightly ahead of Bell Potter's forecast.

While the announced $12m government grant adds to cash, the broker notes sales growth and delays to new program timelines continue to challenge its investment thesis, with the mega-line program delayed and now not expected to commence production until the second half of FY24.

The rating is downgraded to Speculative Hold from Speculative Buy and the target price decreases to $0.70 from $1.55.

This report was published on May 13, 2022.

Target price is $0.70 Current Price is $0.49 Difference: $0.21
If CBR meets the Bell Potter target it will return approximately 43% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 19.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.54.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 15.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.25.

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

CGC    COSTA GROUP HOLDINGS LIMITED

Agriculture – Overnight Price: $3.01

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

While Jarden continues to see Costa Group as a likely beneficiary of the inflationary environment, the broker has reduced its expected earnings for the company in FY22 by -10% to account for supply chain costs and pricing headwinds in its international channels.

The broker highlights that the downgrade brings its earnings forecast more in line with consensus, having previously been around 10% ahead of other estimates. Jarden anticipates positive commentary on local produce at the upcoming annual general meeting.

The Overweight rating is retained and the target price decreases to $3.50 from $3.70.

This report was published on May 13, 2022.

Target price is $3.50 Current Price is $3.01 Difference: $0.49
If CGC meets the Jarden target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $3.64, suggesting upside of 20.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 17.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 62.6%.
Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 19.5.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 19.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.5, implying annual growth of 26.6%.
Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 15.4.

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

CTD    CORPORATE TRAVEL MANAGEMENT LIMITED

Travel, Leisure & Tourism – Overnight Price: $21.31

Jarden rates ((CTD)) as Upgrade to Buy from Overweight (1) –

Jarden believes the recent weakness in the share price provides a more attractive entry point and upgrades to Buy from Overweight.

The majority of the stock's underperformance has occurred since the update to the market earlier this month when the company said second half EBITDA would be weighted to 67%.

This may be a downgrade on prior expectations but the broker believes the market is looking through near-term earnings and concentrating on the shape of the recovery post the pandemic.

Therefore, this weakness is a more attractive entry point. Target is reduced to $25.37 from $26.18.

This report was published on May 14, 2022.

Target price is $25.37 Current Price is $21.31 Difference: $4.06
If CTD meets the Jarden target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $27.43, suggesting upside of 28.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 7.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 287.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.0, implying annual growth of N/A.
Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 193.7.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 68.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 85.2, implying annual growth of 674.5%.
Current consensus DPS estimate is 31.8, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 25.0.

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

CXL    CALIX LIMITED

Mining Sector Contracting – Overnight Price: $6.93

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

Shaw and Partners believes the macro tailwinds behind the business are "immense", with proven technology and market applications across a large number  of multi-billion-dollar opportunities.

Despite the recent volatility in the share price market capitalisation is expected to rise over time, significantly above current levels.

The broker now includes a direct sales route to market for crop protection and a valuation for advanced batteries based on listed market peers.

Further updates are expected in the next 12 months. As a result the target rises to $8.25 from $6.95. Buy rating retained.

This report was published on May 16, 2022.

Target price is $8.25 Current Price is $6.93 Difference: $1.32
If CXL meets the Shaw and Partners target it will return approximately 19% (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 minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 99.00.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 6.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 113.61.

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

DHG    DOMAIN HOLDINGS AUSTRALIA LIMITED

Real Estate – Overnight Price: $3.31

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

Third quarter trading for Domain Holdings Australia was in-line with Goldman Sachs' expectations. Following a recent listings analysis, the broker upgrades 2H forecasts.

The analyst highlights several positives including high-single digit price rises from July 1. Also, management left cost guidance unchanged, despite strong revenue momentum.

The target price rises by 2% to $5.20 and the Neutral rating is maintained.

This report was published on May 9, 2022.

Target price is $5.20 Current Price is $3.31 Difference: $1.89
If DHG meets the Goldman Sachs target it will return approximately 57% (excluding dividends, fees and charges).
Current consensus price target is $5.14, suggesting upside of 55.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 5.00 cents and EPS of 10.10 cents.
At the last closing share price the estimated dividend yield is 1.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.7, implying annual growth of 66.1%.
Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 34.1.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 6.00 cents and EPS of 11.90 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 27.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.5, implying annual growth of 28.9%.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 26.5.

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

EDV    ENDEAVOUR GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $7.89

JP Morgan rates ((EDV)) as Initiation of coverage with Overweight (1) –

JPMorgan initiates coverage of Endeavour Group with an Overweight rating and $8.60 target. The broker believes the market leading position of the retail and hotels business justifies a premium to the market.

Endeavour Group is expected to grow consistently above market levels and there are several available levers to drive accretive returns on investment.

This will be led by reinvesting in the poker machine fleet, revamping pubs and the increased penetration of Pinnacle. Online is also a profitable growth channel and Endeavour Group is expected to generate a 2.9% EBIT margin on $1bn of online sales in FY23.

This report was published on May 13, 2022.

Target price is $8.60 Current Price is $7.89 Difference: $0.71
If EDV meets the JP Morgan target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $7.28, suggesting downside of -7.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 EPS of 28.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.7, implying annual growth of 11.5%.
Current consensus DPS estimate is 20.7, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 28.5.

Forecast for FY23:

JP Morgan forecasts a full year FY23 EPS of 32.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.7, implying annual growth of 10.8%.
Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 25.7.

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

FZO    FAMILY ZONE CYBER SAFETY LIMITED

Software & Services – Overnight Price: $0.35

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

Family Zone Cyber Safety has acquired Qustodio and raised $42m. This company is a market leader in providing consumer-facing internet safety solutions for families. Total consideration was $74m. The business has a predominant focus on the US, with 45% of subscribers based in the region.

Shaw and Partners incorporates the acquisition and increases recurring revenue estimates by more than 20% across FY22-24.

Despite increasing forecasts, a full dilution of the share count has been factored in to account for the acquisition and alongside updated peer multiples this means the target is reduced to $0.66 from $0.82. Buy maintained.

This report was published on May 17, 2022.

Target price is $0.66 Current Price is $0.35 Difference: $0.31
If FZO meets the Shaw and Partners target it will return approximately 89% (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 minus 4.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.14.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.96.

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

GNC    GRAINCORP LIMITED

Agriculture – Overnight Price: $10.17

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

First half results were ahead of expectations and driven by stronger margins. FY22 guidance has been reiterated with management highlighting the favourable conditions for the 2022/23 winter crop.

Wilsons notes elevated earnings and cash flow will place the balance sheet in a net cash position and provide significant internal funding capacity for growth opportunities and/or capital management.

The broker upgrades estimates for earnings per share by up to 11%. Market Weight rating maintained. Target is $9.71.

This report was published on May 12, 2022.

Target price is $9.71 Current Price is $10.17 Difference: minus $0.46 (current price is over target).
If GNC meets the Wilsons target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.23, suggesting upside of 0.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 48.00 cents and EPS of 152.80 cents.
At the last closing share price the estimated dividend yield is 4.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 157.7, implying annual growth of 158.7%.
Current consensus DPS estimate is 86.0, implying a prospective dividend yield of 8.5%.
Current consensus EPS estimate suggests the PER is 6.4.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 34.00 cents and EPS of 69.00 cents.
At the last closing share price the estimated dividend yield is 3.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.8, implying annual growth of -39.3%.
Current consensus DPS estimate is 51.9, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 10.6.

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

GT1    GREEN TECHNOLOGY METALS LIMITED

New Battery Elements – Overnight Price: $0.82

Bell Potter rates ((GT1)) as Speculative Buy (1) –

Bell Potter explains US-based Lithium Americas Corp wants exposure to an additional upstream lithium project and the opportunity to leverage its downstream processing capabilities. As a result the company has taken a $14m placement in Green Technology Metals.

Another $41m was placed by Green Technology Metals in a separate tranche and the company will use the combined $55m to continue exploration across its Ontario-based lithium projects. A feasibility study will also be funded for the Seymour project in Ontario.

The Speculative Buy rating is retained and the target price slips to $1.37 from $1.39.

This report was published on May 11, 2022.

Target price is $1.37 Current Price is $0.82 Difference: $0.55
If GT1 meets the Bell Potter target it will return approximately 67% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 63.08.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 43.16.

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

IRI    INTEGRATED RESEARCH LIMITED

IT & Support – Overnight Price: $0.60

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

Bell Potter downgrades FY22-24 revenue estimates by -7-9% as the trading update came in short of expectations. More materially, estimates for earnings per share are downgraded by -76%, -40% and -21% for FY22, FY23 and FY24, respectively.

The latter stems from expense forecasts that are little changed for the current year and only modestly reduced in future periods.

The broker is also moving away from comparable companies when determining an appropriate multiple. The net result is a -35% decrease in the target to $0.65 from $1.00. Hold maintained.

This report was published on May 16, 2022.

Target price is $0.65 Current Price is $0.60 Difference: $0.05
If IRI meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.79.

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

JHG    JANUS HENDERSON GROUP PLC

Wealth Management & Investments – Overnight Price: $39.27

Jarden rates ((JHG)) as Underweight (4) –

A -$24m net profit shortfall saw earnings per share from Janus Henderson's first quarter missing Jarden's forecasts by -13%, with the miss attributed to weaker revenues and investment losses on seed assets.

The company now faces a challenging flow and revenue outlook, noting known redemptions of -$9m will impact in the year, while performance fees look to be negative for the full year. Jarden also notes the start of a new CEO could signal changes in strategy.

The broker downgrades earnings per share estimates -14.3%, -7.6% and -7.6% through to FY24.

The Underweight rating is retained and the target price decreases to $38.05 from $41.15.

This report was published on May 5, 2022.

Target price is $38.05 Current Price is $39.27 Difference: minus $1.22 (current price is over target).
If JHG meets the Jarden target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $47.75, suggesting upside of 21.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 212.68 cents and EPS of 383.10 cents.
At the last closing share price the estimated dividend yield is 5.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 497.6, implying annual growth of N/A.
Current consensus DPS estimate is 224.7, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 7.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 212.68 cents and EPS of 410.36 cents.
At the last closing share price the estimated dividend yield is 5.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 515.8, implying annual growth of 3.7%.
Current consensus DPS estimate is 275.6, implying a prospective dividend yield of 7.0%.
Current consensus EPS estimate suggests the PER is 7.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

JHX    JAMES HARDIE INDUSTRIES PLC

Building Products & Services – Overnight Price: $37.50

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

Jarden's AIB Construction Activity Survey suggests 4% growth in new contracts in the six months, vs a forecast -1% decline in the previous survey, and backlogs have extends to 1.5 years from one year, underpinning near-term earnings, says the broker.

The survey also reveals a skew to larger national contractors with turnover in excess of $100m.

Steel product pricing strength proved the standout, Jarden tipping a potential 10% rise in prices.

Project costs jumped -10% but the respondents reported a greater willingness for customers to share the impost compared with the previous survey. The broker surmises improved profitability for construction companies could erode margins for developers such as Mirvac and labour shortages are also expected to bite.

The survey suggests demand for fibre cement has risen at the expense of brick most likely due to a widening price differential, says the broker.

Jarden says rates remain a risk for the medium term and that rate rises traditionally lead building approvals by three month (the broker is tipping a -15% to -20% fall) and prefers building material companies with potential for market share gain such as James Hardie Industries and Bluescope Steel.

On the distribution front, Jarden notes Total Tools, James Hardie Industries and Beacon Lighting ((BLX)) are all improving penetration but Bunning remains the clear leader with Metcash ((MTS)) the main beneficiary from contract wins.

Overweight rating retained for James Hardie Industries, saying the survey has positive implications for the company. Target price is $54.70, which compares to the last entry in the FNArena database in January of $54.80.

This report was published on May 9, 2022.

Target price is $54.70 Current Price is $37.50 Difference: $17.2
If JHX meets the Jarden target it will return approximately 46% (excluding dividends, fees and charges).
Current consensus price target is $50.70, suggesting upside of 35.2%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 153.24 cents and EPS of 189.37 cents.
At the last closing share price the estimated dividend yield is 4.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 246.9, implying annual growth of N/A.
Current consensus DPS estimate is 135.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY24:

Current consensus EPS estimate is 271.3, implying annual growth of 9.9%.
Current consensus DPS estimate is 141.2, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 13.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

JRV    JERVOIS GLOBAL LIMITED

New Battery Elements – Overnight Price: $0.85

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

Jervois Global has commenced a bankable feasibility study to expand its cobalt refinery capacity at Kokkola in Finland. While few details have been released, Shaw and Partners estimates the construction cost is likely to be in the order of US$50-80m.

No timeline has been provided but the BFS is expected to be completed early in 2023 and a decision to proceed made by the end of that year. Buy rating and $0.92 target maintained.

This report was published on May 17, 2022.

Target price is $0.92 Current Price is $0.85 Difference: $0.07
If JRV meets the Shaw and Partners target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 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 50.00.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 6.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

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

NEC    NINE ENTERTAINMENT CO. HOLDINGS LIMITED

Print, Radio & TV – Overnight Price: $2.47

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

Goldman Sachs highlights ongoing strength in the Australian TV market as indicated by Nine Entertainment and Seven West Media ((SWM)) upgrading FY22 earnings (EBITDA) guidance by low single digits.

The analyst expects broadcast video on demand (BVOD) to sustainably offset TV declines. The target price declines by -3% to $3.30 given lower Stan earnings, partly offset by a higher value for Domain Holdings ((DHG)). The Buy rating is unchanged.

This report was published on May 9, 2022.

Target price is $3.30 Current Price is $2.47 Difference: $0.83
If NEC meets the Goldman Sachs target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $3.55, suggesting upside of 43.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 14.00 cents and EPS of 19.80 cents.
At the last closing share price the estimated dividend yield is 5.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.6, implying annual growth of 97.2%.
Current consensus DPS estimate is 13.4, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 12.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 16.00 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 6.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.5, implying annual growth of 4.6%.
Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.0.

Market Sentiment: 0.8
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: $25.85

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

Third quarter earnings for News Corp were largely in-line with Goldman Sachs' estimate, as a stronger performance by Dow Jones and News Media was offset by weakness in Books and Real Estate.

The analyst points out Dow Jones is a key driver of value and is surprised by the extent of recent share price weakness for News Corp shares. It's felt the step change in earnings (EBITDA) is sustainable and the Buy rating is maintained.

The analyst lowers FY22-24 EPS forecasts by -3% to -5%, and the target price falls by -3% to $40.20.

This report was published on May 9, 2022.

Target price is $40.20 Current Price is $25.85 Difference: $14.35
If NWS meets the Goldman Sachs target it will return approximately 56% (excluding dividends, fees and charges).
Current consensus price target is $39.63, suggesting upside of 53.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 125.56 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 126.0, implying annual growth of N/A.
Current consensus DPS estimate is 30.3, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 20.5.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 118.75 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 152.7, implying annual growth of 21.2%.
Current consensus DPS estimate is 32.2, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 16.9.

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: $1.51

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

Goldman Sachs notes 3Q trading for oOh!media was in-line with management commentary in February, while April revenue run-rates surprised to the upside due to greater than expected momentum.

The broker likes the potential for revenue recovery and structural growth and points out 2021 revenues are at 78% of 2019 levels. FY22-24 forecast EPS are raised by 2-3%. The Buy rating and $2.02 target price are maintained.

This report was published on May 9, 2022.

Target price is $2.02 Current Price is $1.51 Difference: $0.51
If OML meets the Goldman Sachs target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $1.92, suggesting upside of 26.9%(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 11.60 cents.
At the last closing share price the estimated dividend yield is 3.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.0, implying annual growth of N/A.
Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 16.8.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 6.00 cents and EPS of 13.10 cents.
At the last closing share price the estimated dividend yield is 3.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.4, implying annual growth of 15.6%.
Current consensus DPS estimate is 5.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 14.5.

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

PPG    PRO-PAC PACKAGING LIMITED

Paper & Packaging – Overnight Price: $1.08

Moelis rates ((PPG)) as Downgrade to Hold from Buy (3) –

Management has signalled a weaker performance in April amid supply chain disruptions and increased raw material costs. Guidance is downgraded to pre-tax profit of around $5m for FY22 compared with the prior range of $12-16m.

Moelis trims estimates to align with the updated guidance, also lowering FY23 pre-tax profit estimates to $11.3m to reflect ongoing uncertain macro economic headwinds.

The dividend estimate for FY22 is also removed. Rating is downgraded to Hold from Buy and the target lowered to $1.16 from $1.63.

This report was published on May 16, 2022.

Target price is $1.16 Current Price is $1.08 Difference: $0.08
If PPG meets the Moelis target it will return approximately 7% (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 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.00.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 3.90 cents and EPS of 9.70 cents.
At the last closing share price the estimated dividend yield is 3.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.13.

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

PPH    PUSHPAY HOLDINGS LIMITED

Software & Services – Overnight Price: $1.08

Shaw and Partners rates ((PPH)) as Hold (3) –

While FY22 earnings were in line with guidance the core business has slowed markedly, Shaw and Partners notes. Supporting the stock is the transfer of IP which will result in reduced taxes.

The broker acknowledges there is promise in the growth story beyond FY24 but prefers to await evidence this is occurring.

On the positive side ResiMedia is expected to deliver 20% growth in FY23 and progress has been made on the Catholic opportunity. Also underpinning the stock, is an unsolicited non-binding expression of interest from a third party.

Hold rating retained. Target rises to $1.30 from $1.20.

This report was published on May 12, 2022.

Target price is $1.30 Current Price is $1.08 Difference: $0.22
If PPH meets the Shaw and Partners target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.95 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.31.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of 5.73 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.86.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

REA    REA GROUP LIMITED

Real Estate – Overnight Price: $108.72

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

REA Group revenues were -7% lower than Goldman Sachs' estimates for Q3 FY22.

The broker noted forecast growth in REA Group's residential 'for-sale' business' was offset by weaker results in the Commercial and Developer business.

Goldman Sachs believes the negative macro trends impacting on the Commercial and Developer businesses are timing related due to macro headwinds in the current year and the trend should reverse and normalise in the future.

The broker has reduced earnings by -3% for FY22 and FY23 reflecting lower near term commercial/rental listings and greater investment in India.

The price target is reduced by -4% to $164 and a Buy rating is maintained.

This report was published on May 17, 2022.

Target price is $164.00 Current Price is $108.72 Difference: $55.28
If REA meets the Goldman Sachs target it will return approximately 51% (excluding dividends, fees and charges).
Current consensus price target is $140.67, suggesting upside of 29.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 154.00 cents and EPS of 309.00 cents.
At the last closing share price the estimated dividend yield is 1.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 311.2, implying annual growth of 27.2%.
Current consensus DPS estimate is 166.7, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 34.9.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 185.00 cents and EPS of 336.00 cents.
At the last closing share price the estimated dividend yield is 1.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 350.4, implying annual growth of 12.6%.
Current consensus DPS estimate is 191.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 31.0.

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

SND    SAUNDERS INTERNATIONAL LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $1.10

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

Shaw and Partners initiates coverage of Saunders International with a Buy rating and $1.50 target.

Given its expertise in engineering and construction, the broker believes the company will benefit from increased expenditure on infrastructure related to bulk liquid storage and bridges.

This type of expenditure is expected to grow significantly over the next few years. A strong order book has underpinned FY22 guidance for revenue growth of 14-28% with an EBIT margin of 6.5-7.5%.

This report was published on May 12, 2022.

Target price is $1.50 Current Price is $1.10 Difference: $0.4
If SND meets the Shaw and Partners target it will return approximately 36% (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 2.20 cents and EPS of 5.60 cents.
At the last closing share price the estimated dividend yield is 2.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.64.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 3.20 cents and EPS of 8.10 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.58.

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

SWM    SEVEN WEST MEDIA LIMITED

Print, Radio & TV – Overnight Price: $0.63

Goldman Sachs rates ((SWM)) as Sell (5) –

Goldman Sachs highlights ongoing strength in the Australian TV market as indicated by Seven West Media and Nine Entertainment ((NEC)) upgrading FY22 earnings (EBITDA) guidance by low single digits.

The analyst expects broadcast video on demand (BVOD) to sustainably offset TV declines. Given concerns around the latter, the Sell rating is retained.

Nonetheless, the target price rises by 3% to $0.62 as the broker's FY22-24 EPS estimates rise by between 5% and 8%.

This report was published on May 9, 2022.

Target price is $0.62 Current Price is $0.63 Difference: minus $0.01 (current price is over target).
If SWM meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.89, suggesting upside of 40.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 4.00 cents and EPS of 12.30 cents.
At the last closing share price the estimated dividend yield is 6.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.1, implying annual growth of -41.5%.
Current consensus DPS estimate is 0.3, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 5.2.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 7.00 cents and EPS of 10.90 cents.
At the last closing share price the estimated dividend yield is 11.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.1, implying annual growth of N/A.
Current consensus DPS estimate is 1.1, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 5.2.

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

TOY    TOYS 'R' US ANZ LIMITED

Retailing – Overnight Price: $0.10

Moelis rates ((TOY)) as Initiation of coverage with Buy (1) –

Moelis considers the return of Toys "R" Us in Australasia will be a strong disruptive element to the category. The business represented 10-15% of the Australian toy market before it went into liquidation in 2018.

Toys "R" Us  Australasia also recently won the exclusive licensee rights to the brands in the UK which is a market twice the size of Australia.

Moelis believes that capital-light e-commerce model and expansive product range will be a key point of difference along with the unique experience stores. The broker initiates coverage with a Buy rating and $0.13 target.

This report was published on May 16, 2022.

Target price is $0.13 Current Price is $0.10 Difference: $0.03
If TOY meets the Moelis target it will return approximately 30% (excluding dividends, fees and charges).
The company's fiscal year ends in July.

Forecast for FY22:

Moelis forecasts a full year FY22 EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.00.

Forecast for FY23:

Moelis forecasts a full year FY23 EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.29.

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

WZR    WISR LIMITED

Business & Consumer Credit – Overnight Price: $0.12

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

Wilsons initiates coverage with an Overweight rating and $0.30 target. Wisr is now the fourth largest listed non-bank lender on the ASX with a key point of difference being the internally developed "financial wellness platform".

Wilsons believes this will hold value, particularly when the company expands into added verticals. A $1.0bn loan book is forecast by the first half of FY23.

This report was published on May 16, 2022.

Target price is $0.30 Current Price is $0.12 Difference: $0.18
If WZR meets the Wilsons target it will return approximately 150% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.00.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.00.

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

XRO    XERO LIMITED

Accountancy – Overnight Price: $86.45

Jarden rates ((XRO)) as Buy (1) –

Despite subscriber numbers being slightly softer than anticipated for Xero in FY22, Jarden notes the company has proven its ability to drive adoption in both Australia, New Zealand and the UK and retains subscriber growth forecasts 10-20% above consensus.

Jarden notes the company is a market leader continuing to invest in long-term growth at the expense of near-term earnings, and sees room for growth options to add more than $40 per share to the company's valuation. The broker updates underlying revenue and earnings 6% and 4% respectively for FY23 and 10% and 6% for FY24.

The Buy rating is retained and the target price decreases to $118.60 from $150.00.

This report was published on May 13, 2022.

Target price is $118.60 Current Price is $86.45 Difference: $32.15
If XRO meets the Jarden target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $110.50, suggesting upside of 27.8%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 33.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 259.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 263.6.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 63.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 136.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.4, implying annual growth of 123.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 117.8.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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

Wilsons notes Xero's full year results reflect a normalisation in the company's cost base, with operating costs reportedly 84% of sales and within the company's guidance range driven by covid-induced cost reduction measures.

The broker also notes while staffing costs and design and development investment increased meaningfully, this should be a positive for customer growth and price rises ahead.

The Overweight rating is retained and the target price decreases to $100.68 from $156.82, noting that Xero's 90% recurring revenue and more than 20% revenue growth are not currently reflected in the share price.

This report was published on May 13, 2022.

Target price is $100.68 Current Price is $86.45 Difference: $14.23
If XRO meets the Wilsons target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $110.50, suggesting upside of 27.8%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 71.87 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 120.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 263.6.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 115.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 74.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.4, implying annual growth of 123.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 117.8.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
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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