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

This story features BANK OF QUEENSLAND LIMITED, and other companies. For more info SHARE ANALYSIS: BOQ

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)

BOQ   EVN   HDN   HLO   KAR   LOV   NST   PFP   PLT   PPM   PTM   RMC   WZR   XRO  

BOQ    BANK OF QUEENSLAND LIMITED

Banks – Overnight Price: $7.67

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

Higher than expected expenses and bad and doubtful debts drove Bank of Queensland to deliver a -5% FY22 cash earnings miss on Goldman Sachs' expectations.

A strong net interest margin second half exit has supported earnings per share forecast increases of 7.4% and 1.5% in FY23 and FY24 respectively, and bodes well for the majors, the broker suggests.

Goldman Sachs still anticipates Bank of Queensland's net interest margin leverage will underperform peers. 

The Neutral rating is retained and the target price decreases to $8.51 from $9.01.

This report was published on October 13, 2022.

Target price is $8.51 Current Price is $7.67 Difference: $0.84
If BOQ meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $8.82, suggesting upside of 0.0%(ex-dividends)
The company's fiscal year ends in August.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 79.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 78.2, implying annual growth of 18.0%.
Current consensus DPS estimate is 52.3, 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 EPS of 80.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.2, implying annual growth of -3.8%.
Current consensus DPS estimate is 54.4, 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

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $1.90

JP Morgan rates ((EVN)) as Neutral (3) –

JP Morgan remains cautious on near-term gold price dynamics and sees only modest valuation support in the sector. The broker's gold price forecasts for 2022-24 were recently lowered by -4-10%.

While the analyst believes there is some modest valuation support for Evolution Mining, gearing and copper pricing downgrades remain overhangs for the stock price.

The Neutral rating and $2.20 target price are retained. Northern Star Resources ((NST)) is the broker's preferred exposure in the gold sector.

This report was published on October 12, 2022.

Target price is $2.20 Current Price is $1.90 Difference: $0.3
If EVN meets the JP Morgan target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $2.70, suggesting upside of 42.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 2.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 1.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.0, implying annual growth of -15.4%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 12.7.

Forecast for FY24:

JP Morgan forecasts a full year FY24 dividend of 8.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 4.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.7, implying annual growth of 11.3%.
Current consensus DPS estimate is 6.7, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 11.4.

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

HDN    HOMECO DAILY NEEDS REIT

REITs – Overnight Price: $1.17

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

Goldman Sachs finds HomeCo Daily Needs REIT well placed to benefit from increasing online grocery penetration given its asset locations offer tenants optionality to operate as omni-channel retailers. 

The broker also sees growth opportunity in relatively low site coverage. The REIT expects to spend -$75m in development capital expenditure over FY23, and Goldman Sachs expects development of existing space to enhance store fulfillment options could provide potential earnings growth.

The Buy rating is retained and the target price decreases to $1.57 from $1.63.

This report was published on October 13, 2022.

Target price is $1.57 Current Price is $1.17 Difference: $0.4
If HDN meets the Goldman Sachs target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $1.47, suggesting upside of 25.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 8.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 6.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.8, implying annual growth of -68.6%.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 13.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 8.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 6.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.8, implying annual growth of N/A.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 13.3.

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

HLO    HELLOWORLD TRAVEL LIMITED

Travel, Leisure & Tourism – Overnight Price: $2.03

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

A 1Q trading update by Helloworld Travel revealed a strong earnings (EBITDA) recovery driven by resilient travel spend, comments JP Morgan.

The company's wholesale and retail businesses showed a strong recovery, notes the analyst, and demand for inbound and cruise was also strong.

Following the corporate business sale, the broker sees potential capital management initiatives by way of a special dividend.

The Overweight rating is maintained, while the target price slips to $2.70 from $2.90.

This report was published on October 12, 2022.

Target price is $2.70 Current Price is $2.03 Difference: $0.67
If HLO meets the JP Morgan target it will return approximately 33% (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 3.00 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 1.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 101.50.

Forecast for FY24:

JP Morgan forecasts a full year FY24 dividend of 6.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 2.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.45.

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

KAR    KAROON ENERGY LIMITED

Crude Oil – Overnight Price: $2.10

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

Karoon Energy has been granted a reduction in royalty rates by Brazil's oil and gas regulator and Jarden has lifted EPS forecasts by 3%, 6% and 7% for FY23-FY25.

The impact on valuation adds 5c to the prior price target, now set at $2.

As the share price rallied on the news, Jarden sticks with its Underweight rating, calling the share price response "overdone".

This report was published on October 7, 2022.

Target price is $2.00 Current Price is $2.10 Difference: minus $0.1 (current price is over target).
If KAR meets the Jarden target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.98, suggesting upside of 0.0%(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 41.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.2, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 10.00 cents and EPS of 48.50 cents.
At the last closing share price the estimated dividend yield is 4.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.2, implying annual growth of 10.3%.
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.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

LOV    LOVISA HOLDINGS LIMITED

Retailing – Overnight Price: $22.19

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

Jarden continues to see potential for an upside surprise from new store openings through the ongoing international expansion. The broker believes there is a clear incentive for management through long-term incentive EBIT targets.

Jarden has penciled in 118-119 new stores in FY23 and FY24. This compares with 85 in FY22. Apparently, market consensus sits at 113 and 100 respectively.

Operationally, Jarden thinks Australia & New Zealand seems resilient, while tough trading conditions dominate in the US, Europe and the UK.

Overweight rating retained while the target price moves to $25.95 from $22.29.

This report was published on October 7, 2022.

Target price is $25.95 Current Price is $22.19 Difference: $3.76
If LOV meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $24.69, suggesting upside of 11.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 68.00 cents and EPS of 66.80 cents.
At the last closing share price the estimated dividend yield is 3.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 68.2, implying annual growth of 25.5%.
Current consensus DPS estimate is 58.9, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 32.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 71.00 cents and EPS of 87.10 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.8, implying annual growth of 19.9%.
Current consensus DPS estimate is 68.6, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 27.1.

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

NST    NORTHERN STAR RESOURCES LIMITED

Gold & Silver – Overnight Price: $7.66

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

JP Morgan remains cautious on near-term gold price dynamics and sees only modest valuation support in the sector. The broker's gold price forecasts for 2022-24 were recently lowered by -4-10%.

The analyst maintains a preference for Northern Star Resources over Newcrest mining ((NCM)) and Evolution Mining ((EVN)) due to a steadier operational delivery and a greater chance for positive near-term catalysts.

The Overweight rating is maintained. The target rises to $9.25 from $9.00 following the broker's recent site visit to the Pogo operations in Alaska. Information gleaned on the visit led to a longer forecast mine life (by 2 years) and lowered forecast costs.

This report was published on October 12, 2022.

Target price is $9.25 Current Price is $7.66 Difference: $1.59
If NST meets the JP Morgan target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $9.98, suggesting upside of 30.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 22.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 2.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.8, implying annual growth of -22.1%.
Current consensus DPS estimate is 22.6, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 26.6.

Forecast for FY24:

JP Morgan forecasts a full year FY24 dividend of 26.00 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 3.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.7, implying annual growth of 27.4%.
Current consensus DPS estimate is 25.1, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 20.9.

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

PFP    PROPEL FUNERAL PARTNERS LIMITED

Consumer Products & Services – Overnight Price: $4.68

Moelis rates ((PFP)) as Hold (3) –

Moelis finds Propel Funeral Partners' first quarter results reflected the company's defensive nature, with earnings of $13m up 40% year-on-year and revenue per funeral up 6% with a mix shift favouring more full service funerals. 

The strong result has seen the broker lift its full year earnings estimate 4% to $47.4m. Moelis assumes death volumes will be flat in FY24 before reverting to a longer-term trend of 2% growth per annum. 

The Hold rating is retained and the target price decreases to $5.27 from $5.41.

This report was published on October 13, 2022.

Target price is $5.27 Current Price is $4.68 Difference: $0.59
If PFP meets the Moelis target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 12.90 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 2.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.30.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 13.60 cents and EPS of 19.50 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.00.

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

PLT    PLENTI GROUP LIMITED

Business & Consumer Credit – Overnight Price: $0.47

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

Wilsons updates its forecasts for non-banks to reflect National Australia Bank's ((NAB)) new house price growth forecasts, updated ABS Housing lending data and cash rate forecasts.

Increases for cash rate forecasts have the largest impact, points out the analyst.

Wilsons lowers FY23 cash profit forecasts for Plenti Group by -42.8%, and the price target falls to $1.20 from $1.40. The Overweight rating is maintained.

This report was published on October 10, 2022.

Target price is $1.20 Current Price is $0.47 Difference: $0.73
If PLT meets the Wilsons target it will return approximately 155% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.25.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.82.

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

PPM    PEPPER MONEY LIMITED

Business & Consumer Credit – Overnight Price: $1.48

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

Wilsons updates its forecasts for non-banks to reflect National Australia Bank's ((NAB)) new house price growth forecasts, updated ABS Housing lending data and cash rate forecasts.

Increases for cash rate forecasts have the largest impact, points out the analyst.

Wilsons lowers FY23 cash profit forecasts for Pepper Money by -8.3%, and the price target falls to $2.20 from $2.50. The Overweight rating is maintained.

This report was published on October 10, 2022.

Target price is $2.20 Current Price is $1.48 Difference: $0.72
If PPM meets the Wilsons target it will return approximately 49% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 11.20 cents and EPS of 31.90 cents.
At the last closing share price the estimated dividend yield is 7.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.64.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 10.90 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 7.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.77.

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

PTM    PLATINUM ASSET MANAGEMENT LIMITED

Wealth Management & Investments – Overnight Price: $1.75

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

Platinum Asset Management's latest trading update showed flows improving, that much analysts at Jarden are willing to concede, but they remain of the view it is still too early to allow for any excitement regarding the outlook for this asset manager.

Outflows still totalled -$196m for the Sep-22 quarter, equal to -4.0% of funds under management (FUM), the broker highlights. Still, the quarter marked better numbers than the broker's and market consensus.

Underweight rating retained with a further downgrade to FY23 forecast EPS pulling Jarden below market consensus by some -6%. Price target $1.45 (up from $1.40 prior).

Also: it appears DPS forecasts have been upgraded.

This report was published on October 7, 2022.

Target price is $1.45 Current Price is $1.75 Difference: minus $0.3 (current price is over target).
If PTM meets the Jarden target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.73, suggesting downside of -1.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 14.20 cents and EPS of 12.50 cents.
At the last closing share price the estimated dividend yield is 8.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.8, implying annual growth of -15.6%.
Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 8.2%.
Current consensus EPS estimate suggests the PER is 11.8.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 11.90 cents and EPS of 11.30 cents.
At the last closing share price the estimated dividend yield is 6.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.0, implying annual growth of -5.4%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 6.9%.
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

RMC    RESIMAC GROUP LIMITED

Banks – Overnight Price: $0.96

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

Wilsons updates its forecasts for non-banks to reflect National Australia Bank's ((NAB)) new house price growth forecasts, updated ABS Housing lending data and cash rate forecasts.

Increases for cash rate forecasts have the largest impact, points out the analyst.

Wilsons lowers FY23 cash profit forecasts for Resimac Group by -8.0%, and the price target falls to $1.00 from $1.18. The Market Weight rating is maintained.

This report was published on October 10, 2022.

Target price is $1.00 Current Price is $0.96 Difference: $0.04
If RMC meets the Wilsons target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 5.90 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 6.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.11.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 5.70 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 5.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.27.

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

WZR    WISR LIMITED

Business & Consumer Credit – Overnight Price: $0.05

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

Wilsons updates its forecasts for non-banks to reflect National Australia Bank's ((NAB)) new house price growth forecasts, updated ABS Housing lending data and cash rate forecasts.

Increases for cash rate forecasts have the largest impact, points out the analyst.

Wilsons lowers FY23 cash profit forecasts for Wisr by -22%, and the price target falls to $0.29 from $0.33. The Overweight rating is maintained.

This report was published on October 10, 2022.

Target price is $0.29 Current Price is $0.05 Difference: $0.24
If WZR meets the Wilsons target it will return approximately 480% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.25.

Forecast for FY24:

Wilsons forecasts a full year FY24 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 10.00.

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

XRO    XERO LIMITED

Accountancy – Overnight Price: $72.50

Jarden rates ((XRO)) as Buy (1) –

Jarden has explored several scenarios, trying to address investor concerns, ahead of Xero's H1 release, scheduled for November 10.

Bottom line: the broker agrees there might be reason for short-term concern because of the softer macro-economic context, in particular with troubles brewing in the UK.

The broker still likes the business model, the market positioning and management's execution on the company's road towards profitability, hence why Xero remains one of Jarden's top picks among technology companies.

Buy. Target $93 (down from $107.90).

This report was published on October 7, 2022.

Target price is $93.00 Current Price is $72.50 Difference: $20.5
If XRO meets the Jarden target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $97.68, suggesting upside of 34.7%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 29.09 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 249.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.7, 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 244.1.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 59.65 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 121.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.5, implying annual growth of 123.9%.
Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 109.0.

This company reports in NZD. 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

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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.

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