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Australian Broker Call *Extra* Edition – Jul 21, 2022

Daily Market Reports | Jul 21 2022

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

An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

5EA   AIS   ALK   AZJ   BGA   BHP   BXB   CAJ   COF   CWY   CXO   CYC   DRR   GDG   HUB   IDX   ILU   IPG   IRI   LIC   MP1   NWC   PDN   PPM   PSQ   QAN   QUB   SHV   SLA   WAF   WHC (2)   WTC  

5EA    5E ADVANCED MATERIALS, INC

Mining – Overnight Price: $2.18

Shaw and Partners – Cessation of coverage

This report was published on July 15, 2022.

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

AIS    AERIS RESOURCES LIMITED

Industrial Metals – Overnight Price: $0.07

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

Aeris Resources's preliminary FY22 production and cost report disappointed Bell Potter

Copper production at Tritton met Bell Potter's forecast but costs outpaced by -3.6%. Gold production at Cracow proved a -5% miss, and costs outpaced by -5.3%.

The broker notes the -25% fall in the spot copper price is rattling nerves and margin pressure remains, but believes Aeris is holding up thanks in part to the lower AUD to USD, and that the sell-off in copper is overdone.

Aeris will add the lower cost Jaguar zinc-copper mine in WA and the Queensland Mt Colin copper mine, effective July 1, 2022, notes the broker, and says the company's strong cash flow and balance sheet support its strong growth plans.

Earnings forecasts fall -10% and -8% for FY23 and FY24.

Buy recommendation retained. Target price falls to $1.22 from $1.47.

This report was published on July 15, 2022.

Target price is $1.22 Current Price is $0.07 Difference: $1.15
If AIS meets the Bell Potter target it will return approximately 1643% (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 4.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.59.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 19.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.36.

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

ALK    ALKANE RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.74

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

Alkane Resources announced the 4Q22 production results which show gold production at Tomingley Gold Operations above guidance and Bell Potter's forecasts and AISC came in below guidance.

The analyst attributes share price weakness to the sell down in shares from the Chairman and major shareholder, Mr Gandel, who retains a 21.1% stake.

According to the lower production and guidance for AISC, Bell Potter understands costs rose 10% to 15% over 4Q22.

Earnings forecasts rise 22% for FY22 and reduce -7% for FY23 notes the broker.

The price target is maintained at $1.30 with a Buy rating.

This report was published on July 20, 2022.

Target price is $1.30 Current Price is $0.74 Difference: $0.56
If ALK meets the Bell Potter target it will return approximately 76% (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 6.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.94.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.96.

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

AZJ    AURIZON HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $3.96

Jarden rates ((AZJ)) as Neutral (3) –

A derating of  stocks in the Transport & Waste sector suggests to Jarden investors are expecting FY22 results to show the impact of cost inflation and potentially weaker demand into FY23.

Consensus forecasts suggest the earnings (EBITDA) margin for Aurizon Holdings is expected to build from FY22 levels over three years, which implies pricing power or the ability to offset costs.

The analysts remain cautious on the outlook for the company due to the increase in leverage should the OneRail deal proceed. The  target price falls to $4.15 from $4.35, while the Neutral rating is unchanged. Results are due on August 7.

This report was published on July 15, 2022.

Target price is $4.15 Current Price is $3.96 Difference: $0.19
If AZJ meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $3.70, suggesting downside of -6.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 20.60 cents and EPS of 27.20 cents.
At the last closing share price the estimated dividend yield is 5.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.9, implying annual growth of -28.6%.
Current consensus DPS estimate is 20.4, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 14.2.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 20.80 cents and EPS of 27.50 cents.
At the last closing share price the estimated dividend yield is 5.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.7, implying annual growth of 6.5%.
Current consensus DPS estimate is 21.7, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 13.3.

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

BGA    BEGA CHEESE LIMITED

Dairy – Overnight Price: $3.35

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

Bega Cheese's new FY23 guidance falls well shy of Bell Potter's previous estimate. 

While management says the challenges reported in the April trading update are unwinding, the broker notes the escalation in milk prices and other cost inputs, combined with delays in cost recovery continue to drag.

But the broker expects a rebalancing soon. Hold rating retained. Target price falls to $3.45 from $3.80.

This report was published on July 15, 2022.

Target price is $3.45 Current Price is $3.35 Difference: $0.1
If BGA meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $3.30, suggesting downside of -1.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.00 cents and EPS of 14.20 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.4, implying annual growth of -47.3%.
Current consensus DPS estimate is 11.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 23.3.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 7.00 cents and EPS of 9.80 cents.
At the last closing share price the estimated dividend yield is 2.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.3, implying annual growth of -21.5%.
Current consensus DPS estimate is 11.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 29.6.

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

BHP    BHP GROUP LIMITED

Bulks – Overnight Price: $37.11

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

Shaw and Partners considers BHP Group's 4Q22 and FY22 production and sales results as reasonable considering the numerous headwinds from covid, absenteeism, wet weather, commodity markets as well as the corporate challenges of unification and the petroleum de-merger. 

The broker notes BHP Group matched FY22 production guidance for iron, met, thermal coal and copper but missed with nickel due to a 4Q22 smelter outage.

The analyst highlights an estimated US$1.88 fully franked dividend for the 2H22 provides for a trailing 25%-plus yield for FY22 when added to the 1H22 dividend of US$1.50 and the circa $6 petroleum dividend – a special year for shareholders.

The Buy rating is maintained. Target is $46.43.

This report was published on July 20, 2022.

Target price is $46.43 Current Price is $37.11 Difference: $9.32
If BHP meets the Shaw and Partners target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $42.34, suggesting upside of 14.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 1438.82 cents and EPS of 616.56 cents.
At the last closing share price the estimated dividend yield is 38.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 604.1, implying annual growth of N/A.
Current consensus DPS estimate is 561.9, implying a prospective dividend yield of 15.1%.
Current consensus EPS estimate suggests the PER is 6.1.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 521.60 cents and EPS of 473.28 cents.
At the last closing share price the estimated dividend yield is 14.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 546.1, implying annual growth of -9.6%.
Current consensus DPS estimate is 404.3, implying a prospective dividend yield of 10.9%.
Current consensus EPS estimate suggests the PER is 6.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $11.39

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

A derating of  stocks in the Transport & Waste sector suggests to Jarden investors are expecting FY22 results to show the impact of cost inflation and potentially weaker demand into FY23.

Consensus forecasts suggest the earnings (EBITDA) margin for Brambles is expected to build from FY22 levels over three years, which implies pricing power or the ability to offset costs.

Over the past three months, only Brambles (from among the broker's coverage) has seen a positive multiple re-rating, and it's thought the share price could provide upside over the reporting season. Core EPS of US$41.8cps is forecast.

The Overweight rating is maintained and the target price rises to $11.60 from $11.50.

This report was published on July 13, 2022.

Target price is $11.60 Current Price is $11.39 Difference: $0.21
If BXB meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $12.14, suggesting upside of 6.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 38.48 cents and EPS of 55.51 cents.
At the last closing share price the estimated dividend yield is 3.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.3, implying annual growth of N/A.
Current consensus DPS estimate is 31.6, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 40.14 cents and EPS of 57.86 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 19.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.0, implying annual growth of 7.7%.
Current consensus DPS estimate is 34.6, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 17.3.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CAJ    CAPITOL HEALTH LIMITED

Healthcare services – Overnight Price: $0.28

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

Wilsons reviews the mid-cap services sector given continued adverse trading conditions in the wake of covid.

Despite the recent downgrade in the healthcare services sector heading into FY23, Wilsons recommends retaining an Overweight position in Capitol Health, considering it is undervalued and given consistent margin improvements.

The broker notes the company is generating strong free cash flow after capital expenditure at a comparable rate to major peers.

Wilsons cuts FY22 and FY23 revenue forecasts given weaker Medicare data following covid and says that while radiology could pressure margins, top-line margins should be retained.

Target price is steady at 40c.

This report was published on July 15, 2022.

Target price is $0.40 Current Price is $0.28 Difference: $0.12
If CAJ meets the Wilsons target it will return approximately 43% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 1.00 cents and EPS of 1.20 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 23.33.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 1.00 cents and EPS of 1.50 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 18.67.

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

COF    CENTURIA OFFICE REIT

REITs – Overnight Price: $1.82

Moelis rates ((COF)) as Buy (1) –

Centuria Office REIT has purchased 57 Watt Street Adelaide for $40.2m on a fund through basis – a relative small acquisition notes Moelis.

The building is under construction by Centuria Development and is expected to be finished in the 2023 December half.

Moelis Australia notes the building is 55% pre-committed and has since been independently valued at $41.6m based on a cap rate of 5.25%. 

Meanwhile, the valuation across the portfolio has risen 0.4%, resulting in a 2cpu increase to $2.51 and the REIT has refinanced roughly one third of its debt.

Buy rating and $2.44 target price retained.

This report was published on July 13, 2022.

Target price is $2.44 Current Price is $1.82 Difference: $0.62
If COF meets the Moelis target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $2.13, suggesting upside of 17.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 16.60 cents and EPS of 18.30 cents.
At the last closing share price the estimated dividend yield is 9.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.2, implying annual growth of 22.3%.
Current consensus DPS estimate is 16.6, implying a prospective dividend yield of 9.1%.
Current consensus EPS estimate suggests the PER is 10.0.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 16.60 cents and EPS of 17.90 cents.
At the last closing share price the estimated dividend yield is 9.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.7, implying annual growth of -2.7%.
Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 9.0%.
Current consensus EPS estimate suggests the PER is 10.3.

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

CWY    CLEANAWAY WASTE MANAGEMENT LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $2.65

Jarden rates ((CWY)) as Buy (1) –

A derating of  stocks in the Transport & Waste sector suggests to Jarden investors are expecting FY22 results to show the impact of cost inflation and potentially weaker demand into FY23.

Consensus forecasts suggest the earnings (EBITDA) margin for Cleanaway Waste Management is expected to build from FY22 levels over three years, which implies pricing power or the ability to offset costs.

Jarden feels consensus estimates for the company are too high for FY23 underlying earnings (EBITDA) and remains cautious on the outlook. The target falls to $3.20 from $3.30. 

However, it's thought much of the downside is already reflected in the share price and the broker retains its Buy rating.

This report was published on July 15, 2022.

Target price is $3.20 Current Price is $2.65 Difference: $0.55
If CWY meets the Jarden target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $3.05, suggesting upside of 15.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 4.60 cents and EPS of 7.10 cents.
At the last closing share price the estimated dividend yield is 1.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.2, implying annual growth of 2.0%.
Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 36.8.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 5.10 cents and EPS of 9.70 cents.
At the last closing share price the estimated dividend yield is 1.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.2, implying annual growth of 27.8%.
Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 28.8.

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

CXO    CORE LITHIUM LIMITED

New Battery Elements – Overnight Price: $1.00

Canaccord Genuity rates ((CXO)) as Speculative Buy (1) –

Core Lithium has lifted its expected Finniss mine life to 12 years from 8, following a Resource/Reserve update that aligns with Canaccord Genuity's current valuation.

Production is expected in the December quarter, with construction tracking largely to plan, observes the analyst. The Speculative Buy rating and $1.00 target are unchanged.

This report was published on July 14, 2022.

Target price is $1.00 Current Price is $1.00 Difference: $0
If CXO meets the Canaccord Genuity target it will return approximately 0% (excluding dividends, fees and charges).

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

CYC    CYCLOPHARM LIMITED

Medical Equipment & Devices – Overnight Price: $1.53

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

Cyclopharm's 2022 June-half trading update pleased Bell Potter, the broker noting a strong recovery in consumable sales volumes and flow generator sale; and growing momentum into the December half.

Third-party product sales also contributed.

Hold rating retained. Target price rises to $1.70 from $1.48.

This report was published on July 15, 2022.

Target price is $1.70 Current Price is $1.53 Difference: $0.17
If CYC meets the Bell Potter target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 1.00 cents and EPS of minus 3.60 cents.
At the last closing share price the estimated dividend yield is 0.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 42.50.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 1.00 cents and EPS of minus 3.40 cents.
At the last closing share price the estimated dividend yield is 0.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.00.

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

DRR    DETERRA ROYALTIES LIMITED

Iron Ore – Overnight Price: $4.17

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

Shaw and Partners reports Deterra Royalties higher royalties from BHP's Mining Area C  and Flank South, following BHP's 4Q22 and FY22 production report.

The broker notes Mining Area C's production grew 75% yoy with the ramp up of South Flank production moving ahead more than anticipated.

Deterra Royalties offers investors the 2nd highest iron ore production growth amongst all the majors with a risk less profile (no capex, operating or inflation risks) compared to peers like Mineral Resources highlights the analyst.

A Hold rating is maintained and price target of $4.10 with a 6-8% dividend yield.

This report was published on July 20, 2022.

Target price is $4.10 Current Price is $4.17 Difference: minus $0.07 (current price is over target).
If DRR meets the Shaw and Partners target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.93, suggesting upside of 18.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 36.00 cents and EPS of 36.30 cents.
At the last closing share price the estimated dividend yield is 8.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.6, implying annual growth of 82.7%.
Current consensus DPS estimate is 32.7, implying a prospective dividend yield of 7.8%.
Current consensus EPS estimate suggests the PER is 12.8.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 29.00 cents and EPS of 29.40 cents.
At the last closing share price the estimated dividend yield is 6.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.3, implying annual growth of 8.3%.
Current consensus DPS estimate is 35.3, implying a prospective dividend yield of 8.5%.
Current consensus EPS estimate suggests the PER is 11.8.

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

GDG    GENERATION DEVELOPMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $1.25

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

Shaw and Partners notes Generation Development announced 4Q22 trading results with net inflows of $113m and the recently launched annuity product sales ahead of broker expectations.

The analysts highlight they envisage Generation Development's 41% stake in Lonsec could be worth two times the value held on the balance sheet due to the growth in the Lonsec business (4Q22 FUM of $3.6bn, up 84% yoy).

Generation Development has 22.7% share of the Investment Bond market as of March 22 and Shaw and Partners sees the company becoming the market leader in 2022 with potential to grow to 50% of total Investment Bond flows.

The broker raises earnings forecasts by 2.1% and 6.6% for FY22 and FY23, respectively.

A Buy rating is maintained and the price target is raised to $1.83 from $1.80.

This report was published on July 20, 2022.

Target price is $1.83 Current Price is $1.25 Difference: $0.58
If GDG meets the Shaw and Partners target it will return approximately 46% (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 2.00 cents and EPS of 1.10 cents.
At the last closing share price the estimated dividend yield is 1.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 113.64.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 2.00 cents and EPS of 1.80 cents.
At the last closing share price the estimated dividend yield is 1.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 69.44.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $22.66

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

Hub24's 4Q22 net inflows of $2.5bn are in line with Shaw and Partners expectations.

The broker highlights Hub24 outperformed its peers Netwealth and Praemium in 4Q22 and FUA rose 12% yoy to $65.6bn.

The recently acquired Class business showed the strongest June Qtr results since 2019.

Shaw and Partners updates earnings forecasts by -0.4% in FY22 and 1.9% for FY23, adjusting for changes in net flow and revenue estimates and considers Hub24's valuation as attractive relative to Netwealth.

The broker retains a Buy rating and the target price is retained at $34.50

This report was published on July 20, 2022.

Target price is $34.50 Current Price is $22.66 Difference: $11.84
If HUB meets the Shaw and Partners target it will return approximately 52% (excluding dividends, fees and charges).
Current consensus price target is $29.67, suggesting upside of 30.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 14.30 cents and EPS of 39.50 cents.
At the last closing share price the estimated dividend yield is 0.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.0, implying annual growth of 222.3%.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 55.3.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 19.00 cents and EPS of 47.60 cents.
At the last closing share price the estimated dividend yield is 0.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.2, implying annual growth of 44.4%.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 38.3.

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

IDX    INTEGRAL DIAGNOSTICS LIMITED

Medical Equipment & Devices – Overnight Price: $2.89

Wilsons rates ((IDX)) as Downgrade to Market Weight from Overweight (3) –

Wilsons reviews the mid-cap services sector and downgrades Integral Diagnostics to Market Weight from Overweight and cuts the target price to $3 from $5, spying difficult trading conditions ahead.

Weaker medicare data in the wake of covid should continue to take its toll, says Wilsons, given it weighs against the company's strengths of higher operating margins, M&A execution and brown-and-greenfields orientation, which shine in optimal industry conditions.

The broker expects Integral Diagnostics may struggle to recapture their historic premiums.

This report was published on July 15, 2022.

Target price is $3.00 Current Price is $2.89 Difference: $0.11
If IDX meets the Wilsons target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $3.84, suggesting upside of 33.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 8.00 cents and EPS of 12.50 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.6, implying annual growth of -19.1%.
Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 22.9.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 11.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 3.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 50.0%.
Current consensus DPS estimate is 12.9, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 15.3.

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

ILU    ILUKA RESOURCES LIMITED

Mineral Sands – Overnight Price: $9.24

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

Iluka Resources 2Q22 results show strong performances across mineral Sands, zircon and a draw down in rutile stockpiles to offset weaker rutile sales notes Goldman Sachs.

The analyst expects mineral sand prices to rise in the 2H22 with tight global supplies and strong demand from US and Europe.

In an agreement with the Australian Government, Iluka Resources announced the approval of the Eneabba Phase 3 rare Earth Refinery in WA.

Analyst earnings forecast upgrades for FY22 and FY23 by 17% and 27%, respectively with higher prices offsetting cost rises. 

A Buy rating is maintained and the price target rises to $14.40 from $13.90.

This report was published on July 21, 2022.

Target price is $14.40 Current Price is $9.24 Difference: $5.16
If ILU meets the Goldman Sachs target it will return approximately 56% (excluding dividends, fees and charges).
Current consensus price target is $11.42, suggesting upside of 23.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 40.60 cents and EPS of 120.00 cents.
At the last closing share price the estimated dividend yield is 4.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 112.0, implying annual growth of 29.6%.
Current consensus DPS estimate is 29.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 8.3.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 20.00 cents and EPS of 122.00 cents.
At the last closing share price the estimated dividend yield is 2.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 101.3, implying annual growth of -9.6%.
Current consensus DPS estimate is 28.8, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 9.1.

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

IPG    IPD GROUP LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $1.83

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

Shaw and Partners initiates coverage of electrical infrastructure product distributor IPD Group with a Buy rating and $2.32 target price.

The broker notes the company has issued several guidance upgrades since listing six months ago, and spies further upside.

The company has been operating for 70 years and Shaw and Partners says its future is underpinned by a sticky customer base, speed-to-market and high-touch service; and that its products are critical components in all construction, infrastructure and resources builds.

Shaw expects this should allow the company to ride out the macro environment.

Add to that the low capital expenditure requirement, debt-free balance sheet, growing dividend payout and a compound annual revenue growth rate of 12% since FY05, and the broker says there's not much not to like.

This report was published on July 15, 2022.

Target price is $2.32 Current Price is $1.83 Difference: $0.49
If IPG meets the Shaw and Partners target it will return approximately 27% (excluding dividends, fees and charges).

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 2.80 cents and EPS of 14.80 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 12.36.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 7.80 cents and EPS of 15.60 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.73.

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: $0.47

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

Bell Potter views Integrated Research's trading update as offering a mix of good and bad results.

The company's revenue update is below the analyst's forecasts, as are earnings, coming in around the $0.5-$1.5m range versus the broker estimate of $2.0m.

Net cash of $12.3m against the analyst forecast of $8.3m is better than expected and the broker highlights the company is optimistic about the long-term prospects for "its business critical products and solutions" helping Integrated Research return to growth.

The broker reduces the FY22 and FY23 earnings forecasts by -54.4% and -100.6%, respectively due to the revenue forecast downgrades.

Bell Potter reduces the price target to 50c from 65c and maintains a Hold rating.

This report was published on July 19, 2022.

Target price is $0.50 Current Price is $0.47 Difference: $0.03
If IRI meets the Bell Potter target it will return approximately 6% (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 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 94.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.00 cents.

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

LIC    LIFESTYLE COMMUNITIES LIMITED

Aged Care & Seniors – Overnight Price: $15.53

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

Lifestyle Communities pre-released FY22 earnings, coming in above Goldman Sachs forecasts by 4.5%.

The company's cumulative settlement guidance targets for new home settlements and resales is stronger than the analyst's expectations.

Goldman Sachs upgrades earnings forecast by 4.5% and 1.3% for FY22 and FY23, respectively with margins anticipated to remain the same with former forecasting.

The target price lowers slightly to $24.30 from $24.65 and the Buy rating is maintained.

This report was published on July 21, 2022.

Target price is $24.30 Current Price is $15.53 Difference: $8.77
If LIC meets the Goldman Sachs target it will return approximately 56% (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 11.00 cents and EPS of 58.00 cents.
At the last closing share price the estimated dividend yield is 0.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.78.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 18.50 cents and EPS of 61.00 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.46.

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

MP1    MEGAPORT LIMITED

Cloud services – Overnight Price: $7.96

Goldman Sachs rates ((MP1)) as Buy (1) –

Megaport's trading 4Q22 update revealed some positive trends according to Goldman Sachs.

Improving sales of the company's core products offset slower results for MVE (Megaport Virtual Edge) which the analyst sees as a good outcome given the slowdown in US enterprise IT spending and changes in management.

Notably the broker envisages cashflow breakeven for Megaport by FY24 and raises gross profit estimates for FY22 to FY25.

The price target lifts to $9.60 from $9.00 with a Buy rating.

This report was published on July 21, 2022.

Target price is $9.60 Current Price is $7.96 Difference: $1.64
If MP1 meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $12.83, suggesting upside of 61.2%(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 minus 30.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -23.6, 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:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 79.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.1, 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.

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

NWC    NEW WORLD RESOURCES LIMITED

Copper – Overnight Price: $0.04

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

New World Resources has announced further high-grade mineralisation at the Antler Copper Project in Arizona, adding to a string of positive drill results, says Shaw and Partners.

Completion date for the pre-feasibility study is scheduled for 2023 March quarter.

Buy recommendation and 15c target price retained.

This report was published on July 15, 2022.

Target price is $0.15 Current Price is $0.04 Difference: $0.11
If NWC meets the Shaw and Partners target it will return approximately 275% (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 4.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.87.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.53.

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

PDN    PALADIN ENERGY LIMITED

Uranium – Overnight Price: $0.69

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

Paladin Energy announced the restarting of the Langer Heinrich uranium mine in Namibia with all the permits, licenses and and offtake agreement with CNNC notes Shaw and Partners.

The company's net cash stands at US$177m for the June quarter with the capital cost to restart  production expected to rise to -US$118m from -US$87m, highlights the analyst.

Paladin Energy is the preferred stock for Shaw and Partners in the uranium sector as the most liquid and premium operator.

The Buy rating is maintained. Price target $1.30.

This report was published on July 20, 2022.

Target price is $1.30 Current Price is $0.69 Difference: $0.61
If PDN meets the Shaw and Partners target it will return approximately 88% (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 0.42 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 166.27.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.28 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 249.10.

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

PPM    PEPPER MONEY LIMITED

Business & Consumer Credit – Overnight Price: $1.60

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

Goldman Sachs has released its half year earnings estimates for Pepper Money with 1H22 earnings of 16c and 2H22 earnings of 19.00.

The analyst highlights a number of risks to forecast earnings from deteriorating macro-economic conditions, higher risks to non-conforming loans, regulatory risks and increasing levels of competition.

The Buy rating is retained with a $2.87 price target.

This report was published on July 21, 2022.

Target price is $2.87 Current Price is $1.60 Difference: $1.27
If PPM meets the Goldman Sachs target it will return approximately 79% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 35.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.57.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 39.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.10.

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

PSQ    PACIFIC SMILES GROUP LIMITED

Healthcare services – Overnight Price: $1.80

Wilsons rates ((PSQ)) as Downgrade to Market Weight from Overweight (3) –

Wilsons reviews the mid-cap services sector and downgrades Pacific Smiles to Market Weight from Overweight and cuts the target price to $1.92 from $2.62, spying difficult trading conditions ahead as covid continues to take its toll.

Wilsons notes the cost base has been fixed for two years and recent trading updates reveal the recovery has been slower than the broker forecast, with the outlook linked to structural rather than organic themes.

The rollout is coinciding with a weaker outlook and the broker expects this will remain an earnings drag, plus the company has lower free-cash-flow generation than peers.

This report was published on July 15, 2022.

Target price is $1.92 Current Price is $1.80 Difference: $0.12
If PSQ meets the Wilsons target it will return approximately 7% (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 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 112.50.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 3.00 cents and EPS of 5.30 cents.
At the last closing share price the estimated dividend yield is 1.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.96.

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

QAN    QANTAS AIRWAYS LIMITED

Transportation & Logistics – Overnight Price: $4.61

Jarden rates ((QAN)) as Buy (1) –

A derating of  stocks in the Transport & Waste sector suggests to Jarden investors are expecting FY22 results to show the impact of cost inflation and potentially weaker demand into FY23.

Qantas Airways has the largest level of earnings dispersion (from among the broker's sector coverage) between consensus core EPS estimates into FY23, according to the broker. This is expected to cause share price volatility on the release of results.

The analyst anticipates upside for the Qantas Airways' share price this reporting season as demand stays strong. The Buy rating and $6.40 target price are unchanged. 

This report was published on July 15, 2022.

Target price is $6.40 Current Price is $4.61 Difference: $1.79
If QAN meets the Jarden target it will return approximately 39% (excluding dividends, fees and charges).
Current consensus price target is $6.08, suggesting upside of 31.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 72.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -66.2, 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:

Jarden forecasts a full year FY23 dividend of 8.30 cents and EPS of 21.20 cents.
At the last closing share price the estimated dividend yield is 1.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.3, implying annual growth of N/A.
Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 13.4.

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

QUB    QUBE HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $2.72

Jarden rates ((QUB)) as Buy (1) –

A derating of  stocks in the Transport & Waste sector suggests to Jarden investors are expecting FY22 results to show the impact of cost inflation and potentially weaker demand into FY23.

Consensus forecasts suggest the earnings (EBITDA) margin for Qube Holdings is expected to build from FY22 levels over three years, which implies pricing power or the ability to offset costs.

Over the past three months, the company has seen a multiple de-rating though it's thought the share price could provide upside over the reporting season.

The Buy rating is unchanged as the analyst is confident there is sufficient volume and rationality across the supply chain to drive strong earnings growth. The target falls to $3.25 from $3.65, which partly reflects Moorebank proceeds distributed via an off-market buyback.

This report was published on July 15, 2022.

Target price is $3.25 Current Price is $2.72 Difference: $0.53
If QUB meets the Jarden target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $3.30, suggesting upside of 21.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 7.10 cents and EPS of 8.70 cents.
At the last closing share price the estimated dividend yield is 2.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.8, implying annual growth of 102.9%.
Current consensus DPS estimate is 6.4, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 27.8.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 10.00 cents and EPS of 10.80 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.4, implying annual growth of 16.3%.
Current consensus DPS estimate is 7.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 23.9.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $4.90

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

Bell Potter reviews the outlook for almond prices and the potential impact of the varroa mite on Select Harvests.

The analyst highlights Australian FOB kernel values rose 20% in May yoy and 5% yoy inshell for April 22.

Export prices for key markets, China and India show double digit growth from both Australia and the US, with the US 2022 crop -16% below the record 2020 crop, notes the broker.

Bell Potter adopts a cautious approach to the varroa mite and assumes -11% of Select Harvests's orchards, those located in Victoria and South which rely on NSW bee hives may experience pollination impacts.

The Buy rating and target price is reduced to $6.90 from $6.95.

This report was published on July 20, 2022.

Target price is $6.90 Current Price is $4.90 Difference: $2
If SHV meets the Bell Potter target it will return approximately 41% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 2.00 cents and EPS of 6.70 cents.
At the last closing share price the estimated dividend yield is 0.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 73.13.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 2.00 cents and EPS of 5.70 cents.
At the last closing share price the estimated dividend yield is 0.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 85.96.

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

SLA    SILK LASER AUSTRALIA LIMITED

Healthcare services – Overnight Price: $2.48

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

Wilsons reviews the mid-cap services sector and retains an Overweight rating for Silk Laser Australia while cutting the target price to $3.74 from the last entry in the FNArena database in May of $5.25.

The broker notes the Inject, Skin and Body categories have held up during the industry's most challenging six months in years.

Earnings forecasts are pre-emptively cut -10% to -12% in FY23 and FY24 as a precaution against further demand weakness.

The broker considers the de-rating since February to be overdone.

This report was published on July 15, 2022.

Target price is $3.74 Current Price is $2.48 Difference: $1.26
If SLA meets the Wilsons target it will return approximately 51% (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 15.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.80.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 19.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.53.

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

WAF    WEST AFRICAN RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.25

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

West African Resources' FY22 June-quarter report met Shaw and Partners's forecasts, the broker noting the balance sheet looks good and both production and costs are on track.

But management has guided to a grade reduction in 2022 over 2021. While the broker suspects this may weigh on the company's share price, it appreciates that the company's execution is in line with guidance and notes the company is buried in growth options.

Buy recommendation and $1.47 target price retained.

This report was published on July 15, 2022.

Target price is $1.47 Current Price is $1.25 Difference: $0.22
If WAF meets the Shaw and Partners target it will return approximately 18% (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 19.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.28.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 15.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.22.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $6.43

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

Bell Potter considers Whitehaven Coal's 4Q22 and FY22 unaudited results as record breaking and better than expected thanks to the high 4Q22 average thermal coal price of US$370/t versus the broker's forecast of US$291/t.

The analyst also notes the company's costs rising in the inflationary environment, at the top end of the forecast estimate and net cash of $1.0bn compared to $161m at 19 April 22.

Due to the strong 4Q22 results, Bell Potter upgrades earnings forecasts by 20% for FY22 and leaves FY23 unchanged.

Bell Potter sees the yield to generate a growing proportion of shareholder returns as thermal coal is increasingly excluded from investment mandates for fund managers.

The Buy rating is retained and the target price increases to $5.75 from $5.30.

This report was published on July 20, 2022.

Target price is $5.75 Current Price is $6.43 Difference: minus $0.68 (current price is over target).
If WHC meets the Bell Potter target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.45, suggesting upside of 15.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 85.00 cents and EPS of 193.80 cents.
At the last closing share price the estimated dividend yield is 13.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 189.6, implying annual growth of N/A.
Current consensus DPS estimate is 69.8, implying a prospective dividend yield of 10.9%.
Current consensus EPS estimate suggests the PER is 3.4.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 149.00 cents and EPS of 211.70 cents.
At the last closing share price the estimated dividend yield is 23.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 310.0, implying annual growth of 63.5%.
Current consensus DPS estimate is 120.2, implying a prospective dividend yield of 18.7%.
Current consensus EPS estimate suggests the PER is 2.1.

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


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

Shaw and Partners describes Whitehaven Coal's FY22 production in line with guidance and earnings beat as "it's a knockout".

The broker highlights a 15x improvement in EBITDA guidance to $3bn and after tax earnings will come in between $1.8bn and $1.9bn, ahead of consensus of $1.579bn.

The company experienced cost inflation from higher diesel prices and labour costs as well as weather impacts and supply disruptions, notes the analyst.

Broker earnings forecast has been upgrades for FY23 by 63.3% and an updated NPV has raised the price target to $7.50 from $6.25.

A Buy rating is maintained but the broker suggests share price rises may be limited by ESG headwinds.

This report was published on July 20, 2022.

Target price is $7.50 Current Price is $6.43 Difference: $1.07
If WHC meets the Shaw and Partners target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $7.45, suggesting upside of 15.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 43.00 cents and EPS of 196.80 cents.
At the last closing share price the estimated dividend yield is 6.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 189.6, implying annual growth of N/A.
Current consensus DPS estimate is 69.8, implying a prospective dividend yield of 10.9%.
Current consensus EPS estimate suggests the PER is 3.4.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 112.00 cents and EPS of 321.40 cents.
At the last closing share price the estimated dividend yield is 17.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 310.0, implying annual growth of 63.5%.
Current consensus DPS estimate is 120.2, implying a prospective dividend yield of 18.7%.
Current consensus EPS estimate suggests the PER is 2.1.

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

WTC    WISETECH GLOBAL LIMITED

Cloud services – Overnight Price: $47.49

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

WiseTech Global's FY22 guidance update is higher than earnings forecasts and previous guidance according to Bell Potter.

The analyst highlights a quote from the company "the resilience of the WiseTech business model and strategy through the cycle" as supportive of the strong performance for both revenue and earnings.

The broker upgrades earnings forecasts by 6% and 8% for FY22 and FY23, respectively, with most of the uplift generated from stronger growth in revenue of 4% to 8%. Forecast margins remain unchanged.

Bell Potter acknowledges the operating leverage and the momentum of WiseTech Global's business, but sees the FY23 valuation of around 67x as high.

Accordingly, a Hold rating is maintained with a price target of $50.00.

This report was published on July 20, 2022.

Target price is $50.00 Current Price is $47.49 Difference: $2.51
If WTC meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $47.21, suggesting downside of -0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.00 cents and EPS of 55.90 cents.
At the last closing share price the estimated dividend yield is 0.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 84.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.8, implying annual growth of 64.7%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 86.7.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 13.90 cents and EPS of 70.40 cents.
At the last closing share price the estimated dividend yield is 0.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 67.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 72.9, implying annual growth of 33.0%.
Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 65.1.

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


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