Australian Broker Call *Extra* Edition – Oct 27, 2022

This story features 29METALS LIMITED, and other companies. For more info SHARE ANALYSIS: 29M

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)

29M   ANZ   BXB   CBA   COE   HMY   HUB (3)   IPD   MP1   NAB   NST   NXS   RIO (2)   SBM   SLX   SMP   SND   SSM   TWE   WBC  

29M    29METALS LIMITED

Copper – Overnight Price: $1.86

Canaccord Genuity rates ((29M)) as Downgrade to Sell from Hold (5) –

29Metals reported mixed results for Q3, notes Canaccord Genuity.

Copper production was better than expected by 10%, due to strength in Capricorn Copper, Zinc missed and Gold declined -36% on the previous quarter from lower grades.

Costs rose 10% over the quarter across the board for Copper, Gold and general items such as mining, processing, admin and transport.

Cash flow is not expected to improve in the December quarter, highlights the analyst, with -$26m in stamp duty and a -$10m dividend payment outstanding.

Canaccord Genuity adjusts earnings forecasts for the update and lowers the target to $1.90 from $2.10.

The stock is downgraded to a Sell rating from Neutral due to the recent price appreciation and the premium to the $1.17 NAV, notes the broker.

This report was published on October 20, 2022.

Target price is $1.90 Current Price is $1.86 Difference: $0.04
If 29M meets the Canaccord Genuity target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $2.23, suggesting upside of 19.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 2.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 1.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.4, implying annual growth of -99.2%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 465.0.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 2.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 1.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.4, implying annual growth of 1000.0%.
Current consensus DPS estimate is 2.5, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 42.3.

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

ANZ    AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Banks – Overnight Price: $25.84

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

The upcoming bank reporting season begins with ANZ Bank on Thursday (today) October 27.

Goldman Sachs forecasts 2H FY22 cash earnings will rise by 6.7% on the previous corresponding period to $3,422m, with a final dividend of 73cps.

The analyst forecasts the 2H net interest margin (NIM) will increase by 9bps half-on-half to 1.67%.

The broker is Neutral-rated with a $26.09 target price.

Goldman Sachs continues to prefer Westpac from among the Big Four due to strong leverage to rising rates given a relatively larger proportion of low cost deposits. Additionally, cost management targets have stayed constant in contrast to peers.

This report was published on October 19, 2022.

Target price is $26.09 Current Price is $25.84 Difference: $0.25
If ANZ meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $27.61, suggesting upside of 6.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 144.40 cents and EPS of 229.20 cents.
At the last closing share price the estimated dividend yield is 5.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 218.4, implying annual growth of 1.4%.
Current consensus DPS estimate is 143.8, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 11.8.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 157.00 cents and EPS of 233.80 cents.
At the last closing share price the estimated dividend yield is 6.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 231.8, implying annual growth of 6.1%.
Current consensus DPS estimate is 153.2, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 11.1.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $11.17

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

Brambles reconfirmed FY23 guidance in conjunction with delivering a "strong" Q1 trading update, according to Jarden.

Revenue grew 14% year-on-year on a currency adjusted basis, supported by solid price increases which offset cost rises and flat volumes.

Jarden considers there is upside potential to earnings if the company can maintain the pricing policy, although Brambles noted that volumes may weaken as retailers and manufacturers lower inventory levels.

The potential macroeconomic for the 2H23 is already reflected in the broker's forecasts. The Overweight rating and target price of $12.30 are retained.

This report was published on October 19, 2022.

Target price is $12.30 Current Price is $11.17 Difference: $1.13
If BXB meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $13.22, suggesting upside of 18.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 62.92 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.7, implying annual growth of N/A.
Current consensus DPS estimate is 35.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 15.6.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 63.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 79.3, implying annual growth of 10.6%.
Current consensus DPS estimate is 38.9, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 14.1.

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

CBA    COMMONWEALTH BANK OF AUSTRALIA

Banks – Overnight Price: $102.00

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

The upcoming bank reporting season begins with ANZ Bank on Thursday (today) October 27.

The analyst currently forecasts margins will trend higher by around 6bps in the 2H of FY22 (compared to the 1H) for the three major banks that are reporting FY22 results (excludes CommBank).

The broker continues to prefer Westpac from among the Big Four due to strong leverage to rising rates given a relatively larger proportion of low cost deposits. Additionally, cost management targets have stayed constant in contrast to peers.

Goldman Sachs remains Sell-rated on CommBank with an $88.33 target price.

This report was published on October 19, 2022.

Target price is $88.33 Current Price is $102.00 Difference: minus $13.67 (current price is over target).
If CBA meets the Goldman Sachs target it will return approximately minus 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $93.91, suggesting downside of -7.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 439.00 cents and EPS of 560.00 cents.
At the last closing share price the estimated dividend yield is 4.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 606.3, implying annual growth of -3.1%.
Current consensus DPS estimate is 430.4, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 16.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 466.00 cents and EPS of 584.00 cents.
At the last closing share price the estimated dividend yield is 4.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 601.1, implying annual growth of -0.9%.
Current consensus DPS estimate is 448.1, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 17.0.

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

COE    COOPER ENERGY LIMITED

Crude Oil – Overnight Price: $0.22

Canaccord Genuity rates ((COE)) as Buy (1) –

Canaccord Genuity assess the Q1 trading report from Cooper Energy as positive with a 15% rise in production, compared to the previous quarter.

Lower average gas prices and changes to the PEL92 oil lifting arrangements resulted in an -11% fall in revenue for the period.

The broker considers Cooper Energy can exceed guidance, however the newly installed polisher unit at the OGP plant is impacting on production, although management confirmed the unit can process 52-53TJ/d, which is above the broker's 50T/d forecast.

The 41c target is unchanged and the Buy rating retained.

This report was published on October 21, 2022.

Target price is $0.41 Current Price is $0.22 Difference: $0.19
If COE meets the Canaccord Genuity target it will return approximately 86% (excluding dividends, fees and charges).
Current consensus price target is $0.28, suggesting upside of 25.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.2, 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 10.0.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.4, implying annual growth of 9.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 9.2.

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

HMY    HARMONEY CORP LIMITED

Diversified Financials – Overnight Price: $0.68

Jarden rates ((HMY)) as Buy (1) –

Jarden liked the Q1 trading update from Harmoney Corp, noting this quarter is usually a seasonally weak period.

The broker comments the company produced strong results, with the Australian loan book up 15% and the NZ loan book rising 5% on the previous quarter.

With some $220m in undrawn warehouse funding lines, Jarden expects the loan book can grow by 20% for FY23.

The Buy rating and $1.21 target are unchanged with the broker positive about Harmoney's ability to grow the loan book and sustain the 10%-plus net interest margin.

This report was published on October 19, 2022.

Target price is $1.21 Current Price is $0.68 Difference: $0.53
If HMY meets the Jarden target it will return approximately 78% (excluding dividends, fees and charges).
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 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.33.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 12.53 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.43.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $24.30

Jarden rates ((HUB)) as Neutral (3) –

Hub24 reported a strong Q1 trading update with net inflows of $2.99bn and FUA of $52.4bn with both metrics coming in above Jarden's expectations.

Use of the platform by advisers rose substantially by 153 compared to a rise by 54 in the 4Q22.

Jarden upgrades EPS by 2.8% for FY23 and 6.5% for FY24 after accounting for the improved terms for the pooled cash account.

A Neutral rating is retained and the target is raised to $24.05 from $22.50.

This report was published on October 19, 2022.

Target price is $24.05 Current Price is $24.30 Difference: minus $0.25 (current price is over target).
If HUB meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $30.69, suggesting upside of 26.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 29.60 cents and EPS of 66.20 cents.
At the last closing share price the estimated dividend yield is 1.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.5, implying annual growth of 194.8%.
Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 40.8.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 36.20 cents and EPS of 80.60 cents.
At the last closing share price the estimated dividend yield is 1.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.1, implying annual growth of 24.5%.
Current consensus DPS estimate is 32.6, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 32.8.

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

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

JP Morgan assesses the Hub24 1Q23 update as "strong" noting the FUA growth to $52.4bn post $3bn in inflows.

Notably, the company started a new deposit agreement (2 December 2022) with the Bank of Queensland ((BOQ)) which resulted in a  better than expected -20 to -30bps reduction in the cash management fee.

JP Morgan highlights the growth in active advisers to 3,639, 4% growth on the previous quarter. The analyst upgrades EPS forecasts by 4.4% and 12.5% for FY23 and FY24, respectively.

The target is raised to $25.70 from $22.50 and the Neutral rating is retained.

This report was published on October 20, 2022.

Target price is $25.70 Current Price is $24.30 Difference: $1.4
If HUB meets the JP Morgan target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $30.69, suggesting upside of 26.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 29.40 cents and EPS of 66.80 cents.
At the last closing share price the estimated dividend yield is 1.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.5, implying annual growth of 194.8%.
Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 40.8.

Forecast for FY24:

JP Morgan forecasts a full year FY24 dividend of 40.70 cents and EPS of 87.70 cents.
At the last closing share price the estimated dividend yield is 1.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.1, implying annual growth of 24.5%.
Current consensus DPS estimate is 32.6, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 32.8.

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

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

Net flows of $3.0bn in the first quarter from Hub24 were sector leading, and ahead of Shaw and Partners expected $2.7bn. The broker also highlighted total funds under administration lifted 8% year-on-year to $68.4bn. 

While Hub24 continues to win more business than peer Netwealth Group ((NWL)), Shaw and Partners remains conservative on its full year outlook amid ongoing market uncertainty, forecasting $12.0bn in flows for the full year. 

The Buy rating is retained and the target price increases to $36.85 from $35.50.

This report was published on October 19, 2022.

Target price is $36.85 Current Price is $24.30 Difference: $12.55
If HUB meets the Shaw and Partners target it will return approximately 52% (excluding dividends, fees and charges).
Current consensus price target is $30.69, suggesting upside of 26.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 30.30 cents and EPS of 60.70 cents.
At the last closing share price the estimated dividend yield is 1.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.5, implying annual growth of 194.8%.
Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 40.8.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 39.60 cents and EPS of 79.20 cents.
At the last closing share price the estimated dividend yield is 1.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.1, implying annual growth of 24.5%.
Current consensus DPS estimate is 32.6, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 32.8.

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

IPD    IMPEDIMED LIMITED

Medical Equipment & Devices – Overnight Price: $0.08

Canaccord Genuity rates ((IPD)) as Buy (1) –

Canaccord Genuity noted ImpediMed reported a record result for 1Q23 with 10% revenue growth over the year, underpinned by the positive currency impact, but only 2% on the previous quarter. 

The broker views the NCCN guideline inclusion as an essential positive driver for the company, with an announcement expected in the current quarter.

in the interim, management is looking to maximise growth in the CAP program, including price increases while looking to possible cost controls.

The Buy rating and 18c target are maintained.

This report was published on October 20, 2022.

Target price is $0.18 Current Price is $0.08 Difference: $0.1
If IPD meets the Canaccord Genuity target it will return approximately 125% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity 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 10.00.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 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 80.00.

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

MP1    MEGAPORT LIMITED

Cloud services – Overnight Price: $5.98

Canaccord Genuity rates ((MP1)) as Buy (1) –

Canaccord Genuity views the share market reaction (the price fell -22%) to the 1Q23 Megaport is a result of management guiding to potentially higher than expected capital expenditure for FY23.

Otherwise the financial metrics were in line with the broker's expectations and looked "sound" with both EBITDA and operating cashflow coming in positive for the quarter.

Canaccord Genuity noted new customer additions of 57, compared to 47 in the same quarter a year earlier; below the average across the year which is attributed in part to the Northern hemisphere summer.

A Buy rating and $11.30 target are retained.

This report was published on October 21, 2022.

Target price is $11.30 Current Price is $5.98 Difference: $5.32
If MP1 meets the Canaccord Genuity target it will return approximately 89% (excluding dividends, fees and charges).
Current consensus price target is $10.27, suggesting upside of 71.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 13.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 44.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -15.9, 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:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 6.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 96.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.3, 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 N/A.

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

NAB    NATIONAL AUSTRALIA BANK LIMITED

Banks – Overnight Price: $32.07

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

Goldman Sachs notes National Australia Bank reports full year results on Wednesday, November 9. Second half FY22 cash earnings are expected to climb by 16% on the previous corresponding period to $3,735m and a 77cps final dividend is forecast.

The broker continues to prefer Westpac among the Big Four due to strong leverage to rising rates given a relatively larger proportion of low cost deposits. Additionally, cost management targets have stayed constant in contrast to peers.

The Buy rating for National Australia Bank is maintained and a $24.81 target is set.

This report was published on October 19, 2022.

Target price is $34.81 Current Price is $32.07 Difference: $2.74
If NAB meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $32.00, suggesting downside of -0.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 150.00 cents and EPS of 223.90 cents.
At the last closing share price the estimated dividend yield is 4.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 214.4, implying annual growth of 11.1%.
Current consensus DPS estimate is 151.1, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 15.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 166.00 cents and EPS of 245.50 cents.
At the last closing share price the estimated dividend yield is 5.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 247.4, implying annual growth of 15.4%.
Current consensus DPS estimate is 173.6, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 13.0.

Market Sentiment: 0.4
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: $8.56

Canaccord Genuity rates ((NST)) as Buy (1) –

Canaccord Genuity considers Northern Star Resources' September quarter report broadly met expectations, although sales (369koz) were -5% below forecasts and costs were 5% higher than expected.

The broker had expected a soft quarter, but management highlighted the weakness was below guidance and due to production delays which are anticipated to improve.

Northern Star Resources reaffirmed guidance and Canaccord Genuity's forecast for FY23 remain essentially unchanged at 1.62Moz and AISCs of $1,682/oz.

The Buy rating and target price of $12.15 are retained. 

This report was published on October 20, 2022.

Target price is $12.15 Current Price is $8.56 Difference: $3.59
If NST meets the Canaccord Genuity target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $9.90, suggesting upside of 15.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 24.00 cents and EPS of 42.00 cents.
At the last closing share price the estimated dividend yield is 2.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.8, implying annual growth of -30.2%.
Current consensus DPS estimate is 22.3, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 33.2.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 27.00 cents and EPS of 75.00 cents.
At the last closing share price the estimated dividend yield is 3.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.6, implying annual growth of 49.6%.
Current consensus DPS estimate is 25.6, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 22.2.

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

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.72

Canaccord Genuity rates ((NXS)) as Buy (1) –

Canaccord Genuity views Next Science's launch of a topical collagen product, alongside launching the company as a Direct Medical Equipment provider, as positive.

The aim of the new product is to improve healing rates and patient outcomes and is to be used in combination with BlastX.

Canaccord Genuity highlights the product is approved and reimbursed for around $600-$800 per patient per month.

A Buy rating is maintained with a $2.01 price target.

This report was published on October 20, 2022.

Target price is $2.01 Current Price is $0.72 Difference: $1.285
If NXS meets the Canaccord Genuity target it will return approximately 177% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.38 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.37.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 7.37 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.84.

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

RIO    RIO TINTO LIMITED

Bulks – Overnight Price: $91.86

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

Rio Tinto reported 3Q22 results broadly in line with consensus and Goldman Sachs estimates with Pilbara iron ore production (84.3Mt) and shipments (82.9Mt), rising 7% and 4%, respectively on the previous quarter.

Aluminium, mined copper and Ti02 feedstock met the broker's forecast.

Management guidance for Pilbara shipments (320-335Mt) came in at the lower end of expectations with the analyst forecasting 322Mt for the FY22 and viewing the 4Q22 target of some 86Mt as achievable.

Goldman Sachs adjusts EPS forecasts by -3% for FY24 and -3% for FY23 and continues to rate the stock as a Buy.

The target is changed to $112.90 from $113.00.

This report was published on October 19, 2022.

Target price is $112.90 Current Price is $91.86 Difference: $21.04
If RIO meets the Goldman Sachs target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $104.93, suggesting upside of 14.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 1127.96 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1346.4, implying annual growth of N/A.
Current consensus DPS estimate is 762.8, implying a prospective dividend yield of 8.3%.
Current consensus EPS estimate suggests the PER is 6.8.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 919.65 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1123.8, implying annual growth of -16.5%.
Current consensus DPS estimate is 695.1, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 8.2.

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

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

Rio Tinto's September quarter reflected improving trends across iron ore, refined copper and aluminium, comments Shaw and Partners, after the assets had a slow start to the March quarter. 

Full year iron ore shipment guidance was narrowed to the lower end of the previous guidance range, and copper production guidance decreased to 190-200,000 tonnes from 230-290,000 tonnes.

The broker notes major assets need to perform better over the remainder of the year. The Hold rating and target price of $105.00 are retained.

This report was published on October 19, 2022.

Target price is $105.00 Current Price is $91.86 Difference: $13.14
If RIO meets the Shaw and Partners target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $104.93, suggesting upside of 14.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 1546.27 cents and EPS of 1553.49 cents.
At the last closing share price the estimated dividend yield is 16.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1346.4, implying annual growth of N/A.
Current consensus DPS estimate is 762.8, implying a prospective dividend yield of 8.3%.
Current consensus EPS estimate suggests the PER is 6.8.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 1332.58 cents and EPS of 1188.18 cents.
At the last closing share price the estimated dividend yield is 14.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1123.8, implying annual growth of -16.5%.
Current consensus DPS estimate is 695.1, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 8.2.

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

SBM    ST. BARBARA LIMITED

Gold & Silver – Overnight Price: $0.49

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

Shaw and Partners found St. Barbara's September quarter disappointing, but as flagged. Production of 64,000 ounces at $2,490 an ounce hurt, and was underpinned by lower production from Gwalia and Leonora. 

The broker sees sector consolidation as the biggest near-term potential development for the West Australian gold industry. It finds Leonora in particular a low cost entry into consolidation. 

The Buy rating and target price of $1.80 are retained.

This report was published on October 19, 2022.

Target price is $1.80 Current Price is $0.49 Difference: $1.31
If SBM meets the Shaw and Partners target it will return approximately 267% (excluding dividends, fees and charges).
Current consensus price target is $0.69, suggesting upside of 41.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.0, implying annual growth of N/A.
Current consensus DPS estimate is 0.3, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 4.00 cents and EPS of 19.50 cents.
At the last closing share price the estimated dividend yield is 8.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.1, implying annual growth of N/A.
Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is N/A.

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

SLX    SILEX SYSTEMS LIMITED

Uranium – Overnight Price: $2.83

Canaccord Genuity rates ((SLX)) as Initiation of coverage with Speculative Buy (1) –

Canaccord Genuity iniates coverage of Silex Systems with a Speculative Buy rating and $4.23 target.

The company is involved in the development and commercialisation of laser uranium enrichment technology with pilot scale testing at Wilmington, South Carolina expected in 1H23.

At the end of June, Silex Systems had $42.5m in cash and no debt which is considered sufficient to fund the next 12-months of operations.

This report was published on October 21, 2022.

Target price is $4.23 Current Price is $2.83 Difference: $1.4
If SLX meets the Canaccord Genuity target it will return approximately 49% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2830.00.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 EPS of minus 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 235.83.

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

SMP    SMARTPAY HOLDINGS LIMITED

Business & Consumer Credit – Overnight Price: $0.73

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

SmartPay's second quarter exceeded Shaw and Partners' expectations, with revenues, transacting terminals and gross margins all ahead of forecasts. According to the broker, SmartPay continues to dominate its domestic small-medium enterprise terminal niche.

The broker finds the stock materially undervalued, particularly relative to large peers. Shaw and Partners expects a reopening of New Zealand will benefit the company thanks to its 20% market share. 

The Buy rating is retained and the target price increases to $1.57 from $1.49.

This report was published on October 19, 2022.

Target price is $1.57 Current Price is $0.73 Difference: $0.835
If SMP meets the Shaw and Partners target it will return approximately 114% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.98.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of 4.78 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.38.

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

SND    SAUNDERS INTERNATIONAL LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $1.05

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

Saunders International has secured a $44m contract to build the aviation fuel terminal at the Western Sydney International Airport, which Shaw and Partners expects will contribute $3.2m in earnings over the contract term. 

The contract adds to Saunders International's order book, already at a healthy $193m as of the end of June. Shaw and Partners finds the company well placed to continue to win contracts and increase return on invested capital. 

The Buy rating and target price of $1.40 are retained.

This report was published on October 18, 2022.

Target price is $1.40 Current Price is $1.05 Difference: $0.345
If SND meets the Shaw and Partners target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 3.30 cents and EPS of 8.30 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.71.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 3.60 cents and EPS of 9.20 cents.
At the last closing share price the estimated dividend yield is 3.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.47.

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

SSM    SERVICE STREAM LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.72

Canaccord Genuity rates ((SSM)) as Hold (3) –

Service Stream reported a 1Q23 trading update at the AGM which Canaccord Genuity viewed as meeting management's expectations, given the headwinds from labour, inflation and the weather.

The company announced the order book had risen by $6bn and around 85% of FY23 revenues are in place.

Longer term, management pointed to maintenance related expenditure of over $51bn by FY26 in Australia and an addressable market of $25bn-plus.

Canaccord Genuity adjusts EPS forecasts by -12% and -9% for FY23 and FY24, respectively, taking into account higher depreciation and interest expense estimates.

A Buy rating and $1.10 target are maintained.

This report was published on October 20, 2022.

Target price is $1.10 Current Price is $0.72 Difference: $0.38
If SSM meets the Canaccord Genuity target it will return approximately 53% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 3.00 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 4.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.00.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 4.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 5.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.00.

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

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco – Overnight Price: $12.73

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

Treasury Wine Estates offered an update on trading at the October 19 AGM which reflected ongoing demand for premium and luxury wines and management commentary was in line with Goldman Sachs expectations.

The broker's FY23 EBITS forecast is -3% below consensus estimates with currency tailwinds expected to benefit Treasury Wine Estates.

A Neutral rating and $12 target are retained.

This report was published on October 19, 2022.

Target price is $12.00 Current Price is $12.73 Difference: minus $0.73 (current price is over target).
If TWE meets the Goldman Sachs target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $14.22, suggesting upside of 12.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 52.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.6, implying annual growth of 49.8%.
Current consensus DPS estimate is 37.4, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 23.2.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 54.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.5, implying annual growth of 14.5%.
Current consensus DPS estimate is 43.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 20.2.

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

WBC    WESTPAC BANKING CORPORATION

Banks – Overnight Price: $23.90

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

Goldman Sachs notes Westpac reports full year results on Monday, November 7. Second half FY22 cash earnings are expected to climb by 24% on the previous corresponding period to $2,254m and a 62cps final dividend is forecast.

The broker continues to prefer Westpac among the Big Four due to strong leverage to rising rates given a relatively larger proportion of low cost deposits. Additionally, cost management targets have stayed constant in contrast to peers.

Goldman Sachs maintains a Neutral rating and sets a $27.07 target.

This report was published on October 19, 2022.

Target price is $27.07 Current Price is $23.90 Difference: $3.17
If WBC meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $26.00, suggesting upside of 8.3%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 123.00 cents and EPS of 149.30 cents.
At the last closing share price the estimated dividend yield is 5.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 145.0, implying annual growth of -2.9%.
Current consensus DPS estimate is 121.8, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 16.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 139.00 cents and EPS of 204.20 cents.
At the last closing share price the estimated dividend yield is 5.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 217.5, implying annual growth of 50.0%.
Current consensus DPS estimate is 147.2, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 11.0.

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

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