Australian Broker Call *Extra* Edition – Sep 21, 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   ABB   AKE   BKL   COE   CSL   LKE   MGH   NTO   PGC   RBL   RDT   RFF   TRS  

A2M    A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $5.55

Bell Potter rates ((A2M)) as Buy (1) –

After monitoring monthly export/import data from a range of sources, Bell Potter increases its target price for a2 Milk Co to $6.60 from $6.35 and maintains its Buy rating.

The broker highlights export activity ex-Australia into China has recovered from lows early in 2022 and the costs for ingredient inputs have eased from recent highs.

This report was published on September 13, 2022.

Target price is $6.60 Current Price is $5.55 Difference: $1.05
If A2M meets the Bell Potter target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $4.96, suggesting downside of -10.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 16.94 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.3, 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 32.1.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 19.63 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.3, implying annual growth of 28.9%.
Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 24.9.

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

ABB    AUSSIE BROADBAND LIMITED

Telecommunication – Overnight Price: $2.34

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

According to JP Morgan, the broadband reseller market has become more competitive (read less profitable) due to low barriers to entry, aggressive pricing and a commoditised product.

The broker believes incumbent telcos in the residential broadband market will continue to give-up market share to smaller rivals. NBN's pricing structure is weighing on margins that are now estimated to be less than 10% over the life of a customer.

Aussie Broadband is the best placed among incumbents, according to the analyst, and is the most willing to invest to attract subscribers. As a result of such spending, however, residential margins are not expected to exceed 10%. 

The price target falls to $5.25 from $5.65, while the Overweight rating is unchanged.

This report was published on September 16, 2022.

Target price is $5.25 Current Price is $2.34 Difference: $2.91
If ABB meets the JP Morgan target it will return approximately 124% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 0.00 cents and EPS of 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.40.

Forecast for FY24:

JP Morgan forecasts a full year FY24 dividend of 0.00 cents and EPS of 19.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.32.

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

AKE    ALLKEM LIMITED

New Battery Elements – Overnight Price: $15.96

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

After Bell Potter raises its lithium price forecasts, FY23-25 EPS forecasts for Allkem rise by 21%, 23% and 2%, respectively, and the target price rises to $20.04 from $18.76.

As the broker expects ongoing strength in lithium demand, commodity prices and production growth, the company's cash generation should lift substantially in FY23. Buy.

This report was published on September 13, 2022.

Target price is $20.04 Current Price is $15.96 Difference: $4.08
If AKE meets the Bell Potter target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $16.21, suggesting upside of 1.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 15.00 cents and EPS of 152.90 cents.
At the last closing share price the estimated dividend yield is 0.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 99.4, implying annual growth of 39.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 16.1.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 40.00 cents and EPS of 188.60 cents.
At the last closing share price the estimated dividend yield is 2.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 119.0, implying annual growth of 19.7%.
Current consensus DPS estimate is 16.2, implying a prospective dividend yield of 1.0%.
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

BKL    BLACKMORES LIMITED

Health & Nutrition – Overnight Price: $67.68

Goldman Sachs rates ((BKL)) as Initiation of coverage with Neutral (3) –

Goldman Sachs feels the current Blackmores' share price currently captures the significant longer term growth opportunity, and initiates coverage with a Neutral rating and $76.50 target price.

Blackmores is a vitamin and health supplements brand/manufacturer supplying A&NZ, China (online only) and Other International Markets.

The broker expects a 20bps gross margin expansion in FY23 as cost-out initiatives are largely offset by cost-of-goods-sold inflation. A further 20bps increase in FY24 margin is expected from an easing of freight costs.

This report was published on September 9, 2022.

Target price is $76.50 Current Price is $67.68 Difference: $8.82
If BKL meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $74.05, suggesting upside of 9.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 118.80 cents and EPS of 199.00 cents.
At the last closing share price the estimated dividend yield is 1.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 213.7, implying annual growth of 35.3%.
Current consensus DPS estimate is 129.1, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 31.7.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 155.00 cents and EPS of 259.70 cents.
At the last closing share price the estimated dividend yield is 2.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 264.7, implying annual growth of 23.9%.
Current consensus DPS estimate is 160.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 25.6.

Market Sentiment: 0.0
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: $0.26

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

Cooper Energy's Orbost plant has reported higher sustained gas production rates, which Jarden attributes to the start-up of the gas polishing unit. The plant has reached an average production rate of 63 terrajoules a day, and a peak of 66 terrajoules per day. 

On considering the impacts of higher sustained production on results in the next year, Jarden has lifted its earnings forecast 13% to $153m. The broker notes the valuation impact of higher production is limited, as it results in higher contingent payments. 

The Overweight rating is retained and the target price increases to $0.30 from $0.29.

This report was published on September 15, 2022.

Target price is $0.30 Current Price is $0.26 Difference: $0.04
If COE meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $0.29, suggesting upside of 10.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 260.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.2, 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 2.1.

Forecast for FY24:

Jarden forecasts a full year FY24 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 52.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.2, implying annual growth of -82.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
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

CSL    CSL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $283.03

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

A draft evidence report by the Institute for Clinical and Economic Review has provided a placeholder price of US$2.5m for CSL's EtranaDez gene therapy, based on a one-time prophylactic injection. 

Wilsons points out pricing and market access outcome will play out on a payer-by-payer basis, but does expect CSL can gain at least 10% share of the young adult patient market. Approvals are expected from late 2022. 

The Overweight rating and target price of $342.55 are retained.

This report was published on September 16, 2022.

Target price is $342.55 Current Price is $283.03 Difference: $59.52
If CSL meets the Wilsons target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $324.80, suggesting upside of 14.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 17.62 cents and EPS of 804.50 cents.
At the last closing share price the estimated dividend yield is 0.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 830.8, implying annual growth of N/A.
Current consensus DPS estimate is 385.1, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 34.1.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 16.78 cents and EPS of 919.59 cents.
At the last closing share price the estimated dividend yield is 0.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1022.7, implying annual growth of 23.1%.
Current consensus DPS estimate is 468.0, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 27.7.

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

LKE    LAKE RESOURCES N.L.

New Battery Elements – Overnight Price: $1.05

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

In early September, Lake Resources announced the appointment of David Dickson as Chief Executive Officer and Managing Director to help transition the company into development.

Bell Potter suggests the company's near-term outlook revolves around delivery of the Kachi project definitive feasibility study, which is assessing a project with 50ktpa production.

The broker assesses the company has sufficient funding to take Kachi to development with a cash balance of $175m at June 30.

The Speculative Buy rating is unchanged, while the target rises to $2.83 from $2.54. 

This report was published on September 13, 2022.

Target price is $2.83 Current Price is $1.05 Difference: $1.78
If LKE meets the Bell Potter target it will return approximately 170% (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 0.00 cents.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 525.00.

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

MGH    MAAS GROUP HOLDINGS LIMITED

Building Products & Services – Overnight Price: $3.50

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

Initiating coverage on construction services and equipment provider Maas Group with a positive investment thesis, Wilsons highlights the company's attractive earnings growth track record, including the 27% organic earnings growth achieved in the last year. 

The company's vertically integrated model allows more supply chain control and offers margin benefits, cost synergies and risk mitigation. Wilsons finds Maas Group positively exposed to macro tailwinds of government infrastructure spend and regional policy.

Rising interest rates pose risk, but Wilsons expects regional market to remain more resilient. The broker initiates with an Overweight rating and a target price of $4.81.

This report was published on September 16, 2022.

Target price is $4.81 Current Price is $3.50 Difference: $1.31
If MGH meets the Wilsons target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 81.80 cents and EPS of 30.50 cents.
At the last closing share price the estimated dividend yield is 23.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.48.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 10.00 cents and EPS of 33.50 cents.
At the last closing share price the estimated dividend yield is 2.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.45.

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $1.63

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

Bell Potter feels there is little prospect of a bid for Nitro Software to compete with the Potentia-led consortium that has a 19.9% shareholding/blocking stake.

The analyst applies a higher valuation multiple, prompted by the consortium's bid at $1.58/share, and the target price rises by 13% to $1.80.

The rating falls to Hold from Buy as the total return needed to reach the broker's amended target price is less than 15%.

This report was published on September 13, 2022.

Target price is $1.80 Current Price is $1.63 Difference: $0.17
If NTO meets the Bell Potter target it will return approximately 10% (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 18.46 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.83.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 12.17 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.40.

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

PGC    PARAGON CARE LIMITED

Medical Equipment & Devices – Overnight Price: $0.37

Taylor Collison rates ((PGC)) as Outperform & Accumulate (2) –

Taylor Collison sees Paragon Care's merger with Quantum Health as providing diversity and scale in a fragmented market, and supporting expansion into Asia.

Paragon Care's new CEO looks to bring the company from a repair phase into a growth phase, and is targeting a 10% organic earnings growth rate. The broker likes that the approach treats each business pillar as its own entity with unique strategies.

The Outperform rating is retained and the target price decreases to $0.43-0.47.

This report was published on September 14, 2022.

Target price is $0.45 Current Price is $0.37 Difference: $0.08
If PGC meets the Taylor Collison target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Taylor Collison forecasts a full year FY23 dividend of 1.50 cents and EPS of 2.50 cents.
At the last closing share price the estimated dividend yield is 4.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.80.

Forecast for FY24:

Taylor Collison forecasts a full year FY24 dividend of 1.70 cents and EPS of 2.90 cents.
At the last closing share price the estimated dividend yield is 4.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.76.

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

RBL    REDBUBBLE LIMITED

Retailing – Overnight Price: $0.75

Goldman Sachs rates ((RBL)) as Initiation of coverage with Neutral (3) –

Goldman Sachs initiates coverage of artist marketplace Redbubble with a Neutral rating and $0.90 target price. Artists upload content onto products, which are then produced by a third-party fulfillment partner who ships directly to the customer. No inventory is held.

Risks from elevated cash burn estimates in pursuit of increased brand awareness are heightened by exposure to discretionary retail spending in an uncertain demand environment, explains the broker.

The analyst anticipates becoming more positive in the event of a stronger discretionary spend in the US and/or a meaningful step up in
repeat customer behaviour and loyalty metrics. A step change in brand awareness would also assist.

This report was published on September 9, 2022.

Target price is $0.90 Current Price is $0.75 Difference: $0.15
If RBL meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $1.40, suggesting upside of 86.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.77.

How do these forecasts compare to market consensus projections?

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

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.4, 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.

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

RDT    RED DIRT METALS LIMITED

New Battery Elements – Overnight Price: $0.64

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

Following the acquisition of the Yinnetharra Lithium Project for -$25m (including a -$10m deferred component), Red Dirt Metals is now advancing two pre-resource lithium projects in Western Australia.

The acquisition will be funded by the issue of Red Dirt Metals shares. Subject to approvals, management plans to fast-track exploration drilling at Yinnetharra, aiming for commencement prior to the end of 2022.

The Speculative Buy rating is unchanged and the target rises to $0.95 from $0.85.

This report was published on September 13, 2022.

Target price is $0.95 Current Price is $0.64 Difference: $0.31
If RDT meets the Bell Potter target it will return approximately 48% (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 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.71.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.65.

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

RFF    RURAL FUNDS GROUP

REITs – Overnight Price: $2.57

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

Rural Funds Group has entered an agreement to lease up to 3,000 hectares of macadamia orchards for 40 years to a company managed by The Rohatyn Group on behalf of a joint venture between The Rohatyn Group and a global institutional investor.

The lease will incorporate orchards in Maryborough, Bundaberg and Rockhampton. 

As a result of the lease, management raises adjusted funds from operations (AAFO) guidance to 11.3cpu from 10.1cpu. Bell Potter leaves its $2.75 target price unchanged, despite upgrades to its AAFO estimates. Hold.

This report was published on September 13, 2022.

Target price is $2.75 Current Price is $2.57 Difference: $0.18
If RFF meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 11.70 cents and EPS of 11.40 cents.
At the last closing share price the estimated dividend yield is 4.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.54.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 12.70 cents and EPS of 12.30 cents.
At the last closing share price the estimated dividend yield is 4.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.89.

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

TRS    REJECT SHOP LIMITED

Household & Personal Products – Overnight Price: $3.88

Goldman Sachs rates ((TRS)) as Initiation of coverage with Neutral (3) –

Goldman Sachs initiates coverage of discount retailer the Reject Shop with a $5.10 target price. As estimates of like-for-like sales growth are largely driven by new store roll outs, a Neutral rating and some caution are adopted.

Discount supermarkets, Amazon's growing Australian presence and omni-channel retailers continue to challenge sales growth, explains the broker. 

As the sales growth is limited, a modest margin expansion is assumed, despite the ongoing delivery of a solid cost-out strategy.

While no dividend was paid in FY22, Goldman Sachs expects some clarity on capital management after the completion of a $10m share buyback. In the meantime, a 70% payout ratio is assumed over the forecast period.

This report was published on September 9, 2022.

Target price is $5.10 Current Price is $3.88 Difference: $1.22
If TRS meets the Goldman Sachs target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $4.58, suggesting upside of 18.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 10.00 cents and EPS of 13.80 cents.
At the last closing share price the estimated dividend yield is 2.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.9, implying annual growth of 1.4%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 21.00 cents and EPS of 28.90 cents.
At the last closing share price the estimated dividend yield is 5.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.0, implying annual growth of 48.3%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 12.5.

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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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.

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