Australian Broker Call *Extra* Edition – Jul 29, 2022

This story features LIFE360 INC, and other companies. For more info SHARE ANALYSIS: 360

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)

360   AWC   COE   CRN   CSL   CUV   DDH   GL1   IGL   IPG   JRV   LRK   M7T   MAD   MMI   SLH   SRG   STX   TLX (2)  

360    LIFE360, INC

Software & Services – Overnight Price: $4.42

Bell Potter rates ((360)) as Buy (1) –

Bell Potter anticipates Life360 will have a strong second quarter in 2022 which will be released with the first half results on August 16th.

The broker's forecasts are supported by the data that the company provided at the April AGM with active daily users rising to 2.1m in April  and the analyst's FY forecast implying growth of 1.6m in May and June.

There are no changes to the earnings forecasts from Bell Potter at this stage.

Buy rating and $7.50 target price retained.

This report was published on July 22, 2022.

Target price is $7.50 Current Price is $4.42 Difference: $3.08
If 360 meets the Bell Potter target it will return approximately 70% (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 0.00 cents and EPS of minus 36.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.08.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 15.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.97.

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

AWC    ALUMINA LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $1.50

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

The AWAC JV, of which Alumina Ltd owns 40%, reported strong June quarter trading results despite the major headwinds from rising costs across the board and notably in Europe, comments Shaw and Partners.

Shaw estimates the Alumina Ltd 1H22 dividend to come at US$0.04 compared to the previous forecast of US$0.041.

The 2H22 outlook for AWAC is unlikely to be as good, Shaw highlights with ongoing European energy problems, lower commodity prices, high capex and losses in Spain.

Buy rating retained. Alumina Ltd target is reduced to $2.00 from $2.40 but the analyst feels the headwinds are baked into the price at current levels.

This report was published on July 22, 2022.

Target price is $2.00 Current Price is $1.50 Difference: $0.5
If AWC meets the Shaw and Partners target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $1.76, suggesting upside of 14.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 16.22 cents and EPS of 15.25 cents.
At the last closing share price the estimated dividend yield is 10.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.5, implying annual growth of N/A.
Current consensus DPS estimate is 11.8, implying a prospective dividend yield of 7.7%.
Current consensus EPS estimate suggests the PER is 12.3.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 12.48 cents and EPS of 11.51 cents.
At the last closing share price the estimated dividend yield is 8.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.9, implying annual growth of -12.8%.
Current consensus DPS estimate is 11.1, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 14.1.

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

COE    COOPER ENERGY LIMITED

Crude Oil – Overnight Price: $0.22

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

Bell Potter points out Cooper Energy reported June-quarter results in line with expectations as the company had well flagged the production numbers.

High east coast prices continue to support Cooper Energy's operations and the company offers investors good leverage to the east coast spot markets, suggests the broker.

A Buy rating is maintained and the price target remains at 28c.

This report was published on July 20, 2022.

Target price is $0.28 Current Price is $0.22 Difference: $0.06
If COE meets the Bell Potter target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $0.28, suggesting upside of 28.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 73.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.20 cents and EPS of 2.10 cents.
At the last closing share price the estimated dividend yield is 0.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.3, 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 1.8.

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

CRN    CORONADO GLOBAL RESOURCES INC

Coal – Overnight Price: $1.45

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

Saleable coal production in the 2Q for Coronado Global Resources was a -35% miss compared to Goldman Sachs' estimate. Rainfall impacted the open cut Curragh mine during April/May, while production from the Buchanan mine in the US was below expectation.

Management lowered 2022 saleable production guidance to the lower end of 18-19Mt. Unit costs jumped to US$85/t in the 1H and 
guidance has been increased by US$10/t to US$79-81/t.

The broker raises its unit cost forecast to US$86/t from US$72/t on lower volumes and industry cost inflation. The target price falls to $2.15 from $2.50. The Buy rating is maintained on what the broker describes as a compelling valuation.

This report was published on July 25, 2022.

Target price is $2.15 Current Price is $1.45 Difference: $0.7
If CRN meets the Goldman Sachs target it will return approximately 48% (excluding dividends, fees and charges).
Current consensus price target is $2.53, suggesting upside of 74.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 88.72 cents and EPS of 128.92 cents.
At the last closing share price the estimated dividend yield is 61.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.0, implying annual growth of N/A.
Current consensus DPS estimate is 58.8, implying a prospective dividend yield of 40.6%.
Current consensus EPS estimate suggests the PER is 1.8.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 37.43 cents and EPS of 41.59 cents.
At the last closing share price the estimated dividend yield is 25.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.6, implying annual growth of -31.8%.
Current consensus DPS estimate is 42.8, implying a prospective dividend yield of 29.5%.
Current consensus EPS estimate suggests the PER is 2.7.

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

CSL    CSL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $291.40

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

Following a general review of the global plasma market, Wilsons has retained its Overweight rating for CSL with a twelve month price target of $345, down from $350 previously, on minor reductions to forecasts.

The broker expects all major players to aim for increased market share, now the major impact from the pandemic is in the past, and that Grifols in particular looks vulnerable, also because the Spanish competitor is operating under financial stress.

Costs are expected to remain elevated for the industry at large. CSL, as per usual, is considered best-placed given high-margin products and R&D pipeline approvals.

Regarding the latter, Wilsons highlights CSL's valuation sensitivity to CSL112 inclusion is quite dramatic with the broker's valuation dropping to $275 if CSL112 is omitted but jumping to beyond $400 per share if the opportunity is fully captured with gross margin upside.

This report was published on July 27, 2022.

Target price is $345.00 Current Price is $291.40 Difference: $53.6
If CSL meets the Wilsons target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $318.72, suggesting upside of 9.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 307.74 cents and EPS of 654.98 cents.
At the last closing share price the estimated dividend yield is 1.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 704.1, implying annual growth of N/A.
Current consensus DPS estimate is 304.1, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 41.3.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 366.65 cents and EPS of 759.22 cents.
At the last closing share price the estimated dividend yield is 1.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 832.7, implying annual growth of 18.3%.
Current consensus DPS estimate is 356.9, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 34.9.

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

CUV    CLINUVEL PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $17.68

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

Wilsons assesses Clinuvel Pharmaceuticals is in a strong position to manage the "risk-off " environment for bio-tech stocks with a strong balance sheet ($121m cash) to support growth initiatives.

The 4Q22 trading results were announced in the Appendix 4C and revealed good demand for the approved drug SCENESSE but cash receipts were lower than expected, noted the analyst.

Wilsons considers the delay in the timing product pipeline for vitiligo and OTC as the main reason for a lower share price target of $24.40 and adjusts the earnings lower by 4-7% for FY22 and FY23 for higher share-based remuneration. Overweight.

This report was published on July 26, 2022.

Target price is $24.40 Current Price is $17.68 Difference: $6.72
If CUV meets the Wilsons target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 2.50 cents and EPS of 42.30 cents.
At the last closing share price the estimated dividend yield is 0.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.80.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 3.80 cents and EPS of 51.90 cents.
At the last closing share price the estimated dividend yield is 0.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.07.

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

DDH    DDH1 LIMITED

Mining Sector Contracting – Overnight Price: $0.79

Moelis rates ((DDH)) as Buy (1) –

DDH1 released preliminary unaudited FY22 financials and Moelis notes the underlying EBITDA was some -3% below its own forecast, but all-in-all key financial metrics were in-line says the broker.

Covid has impacted, but improvement should now be on the agenda. Also, the company indicated it has been increasing rates, but for various reasons the benefits are yet to fully flow through (while cost increases are immediate).

Management did not quantify the outlook, but the share buyback is about to start, the broker notes. Minor downgrades to forecasts have been implemented.

Target price falls to $1.47 from $1.89. Buy rating retained.

This report was published on July 27, 2022.

Target price is $1.47 Current Price is $0.79 Difference: $0.68
If DDH meets the Moelis target it will return approximately 86% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 4.80 cents and EPS of 10.60 cents.
At the last closing share price the estimated dividend yield is 6.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.45.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 5.60 cents and EPS of 13.80 cents.
At the last closing share price the estimated dividend yield is 7.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.72.

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

GL1    GLOBAL LITHIUM RESOURCES LIMITED

Overnight Price: $1.45

Shaw and Partners rates ((GL1)) as Initiation of coverage with Buy (1) –

Global Lithium Resources is initiated at Shaw and Partners with a Buy rating and a $2.10 price target.

The broker points out the company has two hard rock lithium assets, the Marble Bar Lithium Project, 100% owned and the Manna Lithium Project (80% owned) which are well positioned near existing quality lithium deposits.

Shaw and Partners rates the management team and highlights that these types of lithium deposits are best suited to commercial production.

The price target is based on the company doubling its lithium resource base to 390kt with a $1,000/t price over a year.

Buy rating and $2.10 target.

This report was published on July 25, 2022.

Target price is $2.10 Current Price is $1.45 Difference: $0.65
If GL1 meets the Shaw and Partners target it will return approximately 45% (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 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 60.42.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.00.

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

IGL    IVE GROUP LIMITED

Media – Overnight Price: $2.12

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

IVE Group is seen as benefiting from Australia's leader in LFWO (catalogues), OVT entering administration according to Shaw and Partners.

Post the acquisition of AIW/Franklin, IVE Group became the number two company in the LFWO market and has continued to invest in modernising the businesses, notes the analyst.

Shaw and Partners estimates margins could expand by 15% from any additional revenue capture resulting from the changing complexion of the market place.

The target price increases to $2.51 from $2.34 with a lower cost of capital estimate, while the Buy rating is retained.

This report was published on July 25, 2022.

Target price is $2.51 Current Price is $2.12 Difference: $0.39
If IGL meets the Shaw and Partners target it will return approximately 18% (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 15.20 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 7.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.22.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 16.40 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 7.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.15.

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: $1.98

Bell Potter rates ((IPG)) as Initiation of coverage with Buy (1) –

Recently listed (December 21) IPD Group offered up its second earnings guidance upgrade in June according to Bell Potter.

The broker highlights IPD Group can reach 40% growth in FY22 on a year ago with ongoing tailwinds from strong demand and the contribution from recent acquisitions.

The broker upgrades earnings forecasts by 12% in FY22 and 10% in FY23 and the company is considered as a top pick for FY23 given its exposure to the electrification markets.

A Buy rating and a $1.87 price target.

This report was published on July 21, 2022.

Target price is $1.87 Current Price is $1.98 Difference: minus $0.11 (current price is over target).
If IPG meets the Bell Potter target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 2.80 cents and EPS of 14.40 cents.
At the last closing share price the estimated dividend yield is 1.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.75.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 6.50 cents and EPS of 15.20 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 13.03.

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: $0.40

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

Shaw and Partners notes the volatile nature of the cobalt price resulted in a lower June quarter update from Jervois Global with the Kokkola cobalt refinery reporting less earnings than the previous quarter.

The refinery is very sensitive to any movement in the cobalt price with a US$1/lb impacting US$2mpa in revenue, points out the analyst.

Jervois Global downgraded FY22 guidance due a lower cobalt spot price and Shaw believes guidance could be upgraded as China moves on from covid lockdowns and the cobalt price rises.

Buy rating retained and the target price reduced to $0.84 from $0.92.

This report was published on July 25, 2022.

Target price is $0.84 Current Price is $0.40 Difference: $0.44
If JRV meets the Shaw and Partners target it will return approximately 110% (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 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.33.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.63.

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

LRK    LARK DISTILLING CO. LIMITED

Food, Beverages & Tobacco – Overnight Price: $2.71

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

Lark Distilling Co reported a record quarter taking full year net sales to $20.3m, but the broker points out this almost literally scrapes the bottom of Lark's own guidance for $20-24m sales.

Moelis had penciled in $21m, so the release effectively represents a "miss". No quantified guidance has been given by the company.

Moelis also sees how the macro environment is deteriorating. This, combined with the "miss", is weighing upon forecasts.

The rating has been downgraded to Hold from Buy. Price target tumbles to $3.16 from $4.18.

This report was published on July 27, 2022.

Target price is $3.16 Current Price is $2.71 Difference: $0.45
If LRK meets the Moelis target it will return approximately 17% (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 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 225.83.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.91.

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

M7T    MACH7 TECHNOLOGIES LIMITED

Healthcare services – Overnight Price: $0.69

Shaw and Partners rates ((M7T)) as Buy (1) –

Shaw and Partners were impressed with the 4Q22 trading update from Mach7 Technologies.

The company reported strong results and the best quarter in three years noted the analyst, commencing FY23 with improving trends in sales orders, revenues and ARR.

The FY22 will be announced August 29th. The broker reiterates a Buy rating and a $1.20 target.

This report was published on July 22, 2022.

Target price is $1.20 Current Price is $0.69 Difference: $0.51
If M7T meets the Shaw and Partners target it will return approximately 74% (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 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 36.32.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.36.

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

MAD    MADER GROUP LIMITED

Mining Sector Contracting – Overnight Price: $2.88

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

Shaw and Partners initiates coverage of Mader Group with a Buy rating and a $3.28 price target.

The company specialises in maintenance services and contract hire for large mining companies like Fortescue Metals ((FMG)), Rio Tinto ((RIO)) and BHP Group ((BHP)) and is the number one heavy equipment service provider outside of original equipment manufacturers in Australia.

Mader Group has also recently expanded in the USA and Canada with upside potential additional revenue of $200m by FY26, according to the analysts.

Shaw and Partners is very impressed with the management, who alongside the board holds 70% of the business.

Growth in international markets and expanding margins support the Buy rating on the stock.

This report was published on July 25, 2022.

Target price is $3.28 Current Price is $2.88 Difference: $0.4
If MAD meets the Shaw and Partners target it will return approximately 14% (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 4.10 cents and EPS of 12.10 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 23.80.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 4.90 cents and EPS of 14.40 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 20.00.

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

MMI    METRO MINING LIMITED

Coal – Overnight Price: $0.02

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

The expansion of Metro Mining's capacity to 7Mtpa has taken another step forward with the company signing a binding letter of agreement with Liebherr for the construction of a crane, notes Shaw and Partners.

The broker considers this to be extremely positive for Metro Mining with the expansion lowering the bauxite cost of production for deliveries to China.

Shaw and Partners anticipates the June quarter trading update will reveal breakeven cashflow with better trading results in the September quarter expected.

The Buy rating and target price of $0.08 are retained.

This report was published on July 22, 2022.

Target price is $0.08 Current Price is $0.02 Difference: $0.06
If MMI meets the Shaw and Partners target it will return approximately 300% (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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.67.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.22.

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

SLH    SILK LOGISTICS HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $2.29

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

Shaw and Partners considers the acquisition of Freemantle Freight and Storage Group as a positive for Silk Logistics.

The purchase will be cash funded and add to the company's WA business offering and is strategically aligned with Silk Logistics' aim to grow Port Logistic Solutions nationally, notes the broker.

Shaw points out the FY22 results will be announced August 25.

The price target of $3.15 is considered as conservative by Shaw and Partners and the stock is Buy-rated.

This report was published on July 25, 2022.

Target price is $3.15 Current Price is $2.29 Difference: $0.86
If SLH meets the Shaw and Partners target it will return approximately 38% (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 8.20 cents and EPS of 20.30 cents.
At the last closing share price the estimated dividend yield is 3.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.28.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 14.00 cents and EPS of 28.40 cents.
At the last closing share price the estimated dividend yield is 6.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.06.

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

SRG    SRG GLOBAL LIMITED

Mining Sector Contracting – Overnight Price: $0.69

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

SRG Global provided a FY22 and FY23 guidance with earnings expected to be at the upper end of previous guidance for FY22, noted Shaw and Partners.

The company has work in hand of $1.3bn up from $1bn a year ago with sufficient funds available of $127m to fund further growth and WBHO has been successfully integrated, highlights the broker.

FY23 guidance provides for 25% growth and is above the analyst's previous forecast.

The target price rises to $1.00 from $0.95 and Shaw and Partners consider's the company as offering a lower risk investment compared to its peers in the construction and mining sectors, while trading on a low valuation.

A Buy rating is maintained.

This report was published on July 21, 2022.

Target price is $1.00 Current Price is $0.69 Difference: $0.31
If SRG meets the Shaw and Partners target it will return approximately 45% (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 2.90 cents and EPS of 4.40 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.68.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 3.50 cents and EPS of 6.30 cents.
At the last closing share price the estimated dividend yield is 5.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.95.

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

STX    STRIKE ENERGY LIMITED

NatGas – Overnight Price: $0.29

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

The latest report from Strike Energy confirms the Walyering field can move to construction and development at a cost of -$14.2m with a gas contract to be firmed up in the next few months, concludes Bell Potter.

The analyst points out Walyering will be Strike Energy's first cash flow producing asset in the Perth basin and is estimated to generate $50 in revenues.

The company aims to supply low-cost gas to the upstream Project Haber (urea manufacturing) which is a key anchor of Bell Potter's view to de-risk Strike Energy.

A Buy rating and a target price of $0.39 are retained.

This report was published on July 21, 2022.

Target price is $0.39 Current Price is $0.29 Difference: $0.1
If STX meets the Bell Potter target it will return approximately 34% (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 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 58.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 58.00.

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

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $7.29

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

Telix Pharmaceuticals reported encouraging revenues of $22.5m from the recently launched Illuccix which compares well to the launch sales of PYLARIFY, a competitor's product, explains Bell Potter.

Reimbursement for Illuccix commences on July 1 in the USA suggesting patients were able and happy to pay without reimbursement, leading the broker to highlight that this initial trend augurs well for the future periods.

Bell Potter increased the FY22 revenue forecasts by 29% and lowers the expected losses by 77% for FY22. 

The price target is raised to $9.00 from $8.10 with a Speculative Buy rating.

This report was published on July 21, 2022.

Target price is $9.00 Current Price is $7.29 Difference: $1.71
If TLX meets the Bell Potter target it will return approximately 23% (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 0.00 cents and EPS of minus 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 208.29.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 9.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 77.55.

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

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

The commercial debut of Telix Pharmaceuticals' Illucix product in the USA has been "pleasing" in the view of Wilsons, and it is clear expectations are building for more positive news.

Drawing a comparison with sole competitor OPYLARIFY making US$100m in quarterly sales in the prostate imaging market, Wilsons argues there is no reason why Telix and partner Cardinal Health cannot achieve a similar outcome.

The coming quarters are seen as crucial. Overweight rating retained. Target price is $8.50.

This report was published on July 27, 2022.

Target price is $8.50 Current Price is $7.29 Difference: $1.21
If TLX meets the Wilsons target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 15.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.73.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 10.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 68.77.

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

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