Australian Broker Call *Extra* Edition – Sep 20, 2022

This story features A2 MILK COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: A2M

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)

A2M   ADH   ALU   AMC   BXB   DMP   FDV   MTS   NEU   NWS   PWR   SHV   WES   WOW  

A2M    A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $5.46

Goldman Sachs rates ((A2M)) as Initiation of coverage with Sell (5) –

Goldman Sachs initiates coverage of a2 Milk Co. The company makes the majority of its sales in the Chinese Infant Formula (IMF) market. While management is executing strategy well to grow market share, it's felt execution is already factored in by the market.

The broker begins with a Sell rating and NZ$6.45 target price.

The analyst highlights several factors limiting valuation upside, including a declining Chinese birth rate and declines in forecast average selling prices. In addition, there is considered to be upside risk to the marketing spend required to increase market share.

This report was published on September 9, 2022.

Current Price is $5.46. Target price not assessed.
Current consensus price target is $4.96, suggesting downside of -9.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 16.58 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.5, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 31.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 22.32 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.6, implying annual growth of 29.1%.
Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 24.3.

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

ADH    ADAIRS LIMITED

Furniture & Renovation – Overnight Price: $1.83

Goldman Sachs rates ((ADH)) as Initiation of coverage with Buy (1) –

Overall, Goldman Sachs prefers structural growth opportunities and companies with strong market positioning in a weaker economic environment.

The broker initiates coverage on Adairs with a Buy rating and $3.65 target price. An omni-channel homewares and home furnishings retailer, the company has three vertically integrated brands in Adairs, Mocka, and Focus on Furniture.

Goldman Sachs anticipates the company won't prioritise growth, and can take a controlled approach to marketing and brand costs in particular.

The analyst expects a re-rate of the share price should Adairs meet guidance and consensus forecasts. A greater than 20% return on capital is anticipated over the forecast period.

This report was published on September 9, 2022.

Target price is $3.65 Current Price is $1.83 Difference: $1.82
If ADH meets the Goldman Sachs target it will return approximately 99% (excluding dividends, fees and charges).
Current consensus price target is $2.73, suggesting upside of 48.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 18.00 cents and EPS of 30.80 cents.
At the last closing share price the estimated dividend yield is 9.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.3, implying annual growth of 11.1%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 10.3%.
Current consensus EPS estimate suggests the PER is 6.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 20.00 cents and EPS of 30.50 cents.
At the last closing share price the estimated dividend yield is 10.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.5, implying annual growth of 14.3%.
Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 12.0%.
Current consensus EPS estimate suggests the PER is 5.5.

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

ALU    ALTIUM

Hardware & Equipment – Overnight Price: $35.41

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

Having reviewed Altium's full year result, Bell Potter has issued revenue and earnings forecast upgrades of 1%, 2% and 3% through to FY25. The broker's upgrades were largely driven by increases to its subscription and maintenance revenue forecasts. 

Bell Potter now forecasts revenue of US$448.1m in FY26, which remains short of Altium's US$500m aspirational target. 

The rating is downgraded to Hold from Buy and the target price increases to $40.00 from $37.50.

This report was published on September 14, 2022.

Target price is $40.00 Current Price is $35.41 Difference: $4.59
If ALU meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $33.95, suggesting downside of -6.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 71.30 cents and EPS of 66.41 cents.
At the last closing share price the estimated dividend yield is 2.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.0, implying annual growth of N/A.
Current consensus DPS estimate is 54.9, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 47.5.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 82.48 cents and EPS of 87.38 cents.
At the last closing share price the estimated dividend yield is 2.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 96.5, implying annual growth of 27.0%.
Current consensus DPS estimate is 61.4, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 37.4.

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

AMC    AMCOR PLC

Paper & Packaging – Overnight Price: $17.26

Jarden rates ((AMC)) as Neutral (3) –

Jarden has considered the potential risk to Amcor of higher energy costs and rationing in Europe, expecting while costs may be passed through they will still have detrimental impact on earnings. 

Given its higher fixed cost base, Jarden finds Amcor at higher risk than peers, expecting every -1% revenue downside in its European operations will equate to a -US$66m impact on earnings forecasts. 

The Neutral rating and target price of $17.80 are retained.

This report was published on September 8, 2022.

Target price is $17.80 Current Price is $17.26 Difference: $0.54
If AMC meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $18.58, suggesting upside of 6.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 67.94 cents and EPS of 114.64 cents.
At the last closing share price the estimated dividend yield is 3.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 121.9, implying annual growth of N/A.
Current consensus DPS estimate is 72.8, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 14.4.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 73.12 cents and EPS of 122.89 cents.
At the last closing share price the estimated dividend yield is 4.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 128.0, implying annual growth of 5.0%.
Current consensus DPS estimate is 75.4, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 13.7.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $11.93

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

Jarden has considered the potential risk to Brambles of higher energy costs and rationing in Europe, expecting while costs may be passed through they will still have detrimental impact on earnings. 

Expecting every -1% revenue downside in its European operations will equate to a -US$27m impact on earnings forecasts, Jarden draws attention to a recent -4.9% share price fall as reflective of the market's cautious outlook.

The Overweight rating and target price of $12.60 are retained.

This report was published on September 8, 2022.

Target price is $12.60 Current Price is $11.93 Difference: $0.67
If BXB meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $13.24, suggesting upside of 10.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 43.76 cents and EPS of 63.19 cents.
At the last closing share price the estimated dividend yield is 3.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.1, implying annual growth of N/A.
Current consensus DPS estimate is 36.5, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 16.9.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 46.41 cents and EPS of 67.11 cents.
At the last closing share price the estimated dividend yield is 3.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 77.1, implying annual growth of 8.4%.
Current consensus DPS estimate is 40.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 15.6.

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

DMP    DOMINO'S PIZZA ENTERPRISES LIMITED

Food, Beverages & Tobacco – Overnight Price: $58.63

Goldman Sachs rates ((DMP)) as Upgrade to Neutral from Sell (3) –

Goldman Sachs has highlighted retailers look to be refocusing on defensive strategies, including elevated inventories and a return of promotional activity, and offensive strategies as the industry is challenged by high inflation.

The broker expects food and beverage grocery and home improvement retailers to be the most resilient to an economic downturn. For Domino's Pizza Enterprises, Goldman Sachs sees moderating cost inflation as improving store economics, and expects easing delivery competition will enable better cost pass through.

The rating is upgraded to Neutral from Sell and the target price increases to $62.90 from $59.20.

This report was published on September 14, 2022.

Target price is $62.90 Current Price is $58.63 Difference: $4.27
If DMP meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $84.32, suggesting upside of 41.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 157.00 cents and EPS of 196.00 cents.
At the last closing share price the estimated dividend yield is 2.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 212.1, implying annual growth of 15.7%.
Current consensus DPS estimate is 172.5, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 28.1.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 183.00 cents and EPS of 229.00 cents.
At the last closing share price the estimated dividend yield is 3.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 251.4, implying annual growth of 18.5%.
Current consensus DPS estimate is 205.2, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 23.7.

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

FDV    FRONTIER DIGITAL VENTURES LIMITED

Online media & mobile platforms – Overnight Price: $0.79

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

Following Frontier Digital Ventures's interim result, Bell Potter has adjusted its earnings per share forecasts by -2.4, -2.0 and -1.8 cents per share through to FY24.

Given Frontier Digital Ventures trades at a -69% discount to listed classifieds and marketplace platforms, and at a significant discount to similarly established peers, Bell Potter points to positive risk-reward in the stock. Diversified exposure and cost management through sustainable growth underpin the outlook.

The Buy rating is retained and the target price decreases to $1.23 from $1.95.

This report was published on September 14, 2022.

Target price is $1.23 Current Price is $0.79 Difference: $0.44
If FDV meets the Bell Potter target it will return approximately 56% (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 3.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.35.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 56.43.

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

MTS    METCASH LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.98

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

Goldman Sachs has highlighted retailers look to be refocusing on defensive strategies, including elevated inventories and a return of promotional activity, and offensive strategies as the industry is challenged by high inflation.

The broker expects food and beverage grocery and home improvement retailers to be the most resilient to an economic downturn. For Metcash, the broker moderately lifts net profit forecasts to account for lower inflation and price increases, and the company's recent trading update.

The Neutral rating and target price of $4.50 are retained.

This report was published on September 14, 2022.

Target price is $4.50 Current Price is $3.98 Difference: $0.52
If MTS meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $4.73, suggesting upside of 18.6%(ex-dividends)
The company's fiscal year ends in April.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 29.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.3, implying annual growth of 21.3%.
Current consensus DPS estimate is 21.7, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 13.2.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 29.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.9, implying annual growth of 2.0%.
Current consensus DPS estimate is 22.1, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 12.9.

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

NEU    NEUREN PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $7.03

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

With the FDA accepting the trofinetide for Rhett syndrome new drug application without amendments, Bell Potter has highlighted the likelihood of approval for Neuren Pharmaceuticals' treatment has increased. The company will receive a US$10m milestone payment. 

The submission has been given priority review, with an action date of March 12 by which the FDA must respond. Bell Potter estimates probability of approval for use in the US has increased to 90% from 70%, driving a boost to the broker's valuation.

The rating is downgraded to Hold from Buy and the target price increases to $8.60 from $6.85.

This report was published on September 14, 2022.

Target price is $8.60 Current Price is $7.03 Difference: $1.57
If NEU meets the Bell Potter target it will return approximately 22% (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 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 242.41.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 38.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.21.

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

NWS    NEWS CORPORATION

Print, Radio & TV – Overnight Price: $24.95

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

Given its great portion of subscription linked revenue, News Corp remains confident in its ability to navigate inflationary impacts through pricing power. Goldman Sachs expects headwinds will be felt by the book publishing and news media segments. 

The company also remains positive about future acquisition given strong funding and a softening market.

The Buy rating is retained and the target price decreases to $31.00 from $32.00.

This report was published on September 15, 2022.

Target price is $31.00 Current Price is $24.95 Difference: $6.05
If NWS meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $33.87, suggesting upside of 33.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 109.05 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 124.3, implying annual growth of N/A.
Current consensus DPS estimate is 35.9, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 20.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 127.22 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 159.1, implying annual growth of 28.0%.
Current consensus DPS estimate is 38.9, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 15.9.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PWR    PETER WARREN AUTOMOTIVE HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $2.85

Moelis rates ((PWR)) as Buy (1) –

Having previously reduced its stake in Peter Warren Automotive to 9.4%, Quadrant has now divested the remainder of its interest to Sutton Motor Group. 

Moelis expects the company will look to internalise the Sydney and Bathurst Toyota dealerships following Quadrant's exit, which it estimates could provide 8% accretion in FY23.

Further, Moelis now sees potential for Peter Warren Automotive to pursue acquisitions whose portfolios include Toyota.

The Buy rating and target price of $3.98 are retained.

This report was published on September 14, 2022.

Target price is $3.98 Current Price is $2.85 Difference: $1.13
If PWR meets the Moelis target it will return approximately 40% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 24.50 cents and EPS of 36.20 cents.
At the last closing share price the estimated dividend yield is 8.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.87.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 20.60 cents and EPS of 29.40 cents.
At the last closing share price the estimated dividend yield is 7.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.69.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $5.32

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

With 80% if its 2022 crop processed, Select Harvests has delivered a positive update. While volumes appear likely to come in slightly under guidance at 28,800-29,200 tonnes, compared to 29,630 tonnes, 72% of the crop is committed and fair value sales price is slightly higher than expectations at $6.75 per kilo.

Having met its minimum hive requirements on all orchards, Select Harvests has been able to optimise pollination. The company is indicating a 30,000 tonne crop volume in 2023.

The Overweight rating and target price of $6.77 are retained.

This report was published on September 15, 2022.

Target price is $6.77 Current Price is $5.32 Difference: $1.45
If SHV meets the Wilsons target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 1.50 cents and EPS of 5.80 cents.
At the last closing share price the estimated dividend yield is 0.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 91.72.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 9.10 cents and EPS of 16.60 cents.
At the last closing share price the estimated dividend yield is 1.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.05.

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

WES    WESFARMERS LIMITED

Consumer Products & Services – Overnight Price: $45.44

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

Goldman Sachs has highlighted retailers look to be refocusing on defensive strategies, including elevated inventories and a return of promotional activity, and offensive strategies as the industry is challenged by high inflation.

The broker expects food and beverage grocery and home improvement retailers to be the most resilient to an economic downturn. For Woolworths Group, the broker moderately lifts net profit forecasts to account for lower inflation and price increases. 

The Sell rating and target price of $35.90 are retained.

This report was published on September 14, 2022.

Target price is $35.90 Current Price is $45.44 Difference: minus $9.54 (current price is over target).
If WES meets the Goldman Sachs target it will return approximately minus 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $47.95, suggesting upside of 4.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 199.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 209.0, implying annual growth of 0.6%.
Current consensus DPS estimate is 177.4, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 22.0.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 192.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 217.2, implying annual growth of 3.9%.
Current consensus DPS estimate is 184.8, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 21.1.

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

WOW    WOOLWORTHS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $34.67

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

Goldman Sachs has highlighted retailers look to be refocusing on defensive strategies, including elevated inventories and a return of promotional activity, and offensive strategies as the industry is challenged by high inflation.

The broker expects food and beverage grocery and home improvement retailers to be the most resilient to an economic downturn. For Woolworths Group, the broker moderately lifts net profit forecasts to account for lower inflation and price increases. 

The Buy rating and target price of $44.10 are retained.

This report was published on September 14, 2022.

Target price is $44.10 Current Price is $34.67 Difference: $9.43
If WOW meets the Goldman Sachs target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $36.24, suggesting upside of 3.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 145.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 136.6, implying annual growth of -79.0%.
Current consensus DPS estimate is 103.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 25.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 161.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.7, implying annual growth of 8.9%.
Current consensus DPS estimate is 110.8, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 23.5.

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

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Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

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