Australian Broker Call *Extra* Edition – Nov 23, 2022

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

An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

360 (2)   ALL (2)   APM   AX1   BOE   CBA (2)   CSL   DGL   DXI   FLT   HCW   IPL   PGH   SDR   SEK   TLX   TPW   UMG   WSP  

360    LIFE360 INC

Software & Services – Overnight Price: $6.37

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

Bell Potter notes Life360 reported a "strong" 3Q22 result, exhibiting a 39% increase in global monthly active users and a 36% rise in paying circles on the previous year.

Management reconfirmed FY22 guidance for the core business with subscription revenue expected to lift 55%, but lowered total guidance as the stand-alone hardware business continues to experience "headwinds".

Earnings forecasts are adjusted for the update, with a loss now expected in FY23, compared to a profit previously.

The Buy rating is retained and the target price decreases to $9 from $9.25.

This report was published on November 16, 2022.

Target price is $9.00 Current Price is $6.37 Difference: $2.63
If 360 meets the Bell Potter target it will return approximately 41% (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 43.89 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.51.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 12.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 53.04.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Goldman Sachs rates ((360)) as Buy (1) –

Goldman Sachs retains a positive view of Life360 post the 3Q22 results update.

The company continues to grow the subscription business, benefiting from price increases, which offset the softness in the traditional hardware business from softer US consumer demand.

Goldman Sachs now expects Life360 to become cashflow positive by 3Q23 and possibly cashflow breakeven on a full year basis.

Buy rating and the target price increases to $8.40 from $8.35.

This report was published on November 17, 2022.

Target price is $8.40 Current Price is $6.37 Difference: $2.03
If 360 meets the Goldman Sachs target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 30.02 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.22.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 7.15 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 89.12.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ALL    ARISTOCRAT LEISURE LIMITED

Gaming – Overnight Price: $35.79

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

FY22 revenue and profit were largely in line with consensus forecasts though slight misses versus estimates by Goldman Sachs. Americas gaming remained strong, while A&NZ and International missed consensus and the broker's expectations.

Given investors were concerned about the stability of the Pixel United division, the analyst believes a forecast for growth by management is a key positive.

The broker now incorporates forecasts for the real money gaming (RMG) business named Anaxi, with a conservative high-single-digit market share assumption.

Overall, profit forecasts rise marginally and Goldman Sachs increases its target to $42.80 from $42.50. Buy.

This report was published on November 17, 2022.

Target price is $42.80 Current Price is $35.79 Difference: $7.01
If ALL meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $41.47, suggesting upside of 15.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 77.00 cents and EPS of 195.00 cents.
At the last closing share price the estimated dividend yield is 2.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 188.6, implying annual growth of 31.2%.
Current consensus DPS estimate is 63.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 19.0.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 80.00 cents and EPS of 201.00 cents.
At the last closing share price the estimated dividend yield is 2.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 202.0, implying annual growth of 7.1%.
Current consensus DPS estimate is 67.4, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 17.7.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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

Following FY22 results for Aristocrat Leisure, Jarden raises its target to $39.29 from $39.13. This comes after taking into account a strong outlook over the next few months plus a share buyback. Some value is also assigned to real money gaming (RMG).

The broker lowers its FY23 earnings (EBITDA) estimate by -3% on lower Digital revenues partly offset an by an increase in Gaming. Higher costs/lower margins in A&NZ and higher Corporate expenses and Design & Development costs are also factored-in.

The impact of cost growth on margins in the 2H was greater than the analyst anticipated. It's unknown whether costs in the 1H of FY23 will come out of the general supply chain and/or the company negotiates higher prices with customers. Overweight.

This report was published on November 17, 2022.

Target price is $39.29 Current Price is $35.79 Difference: $3.5
If ALL meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $41.47, suggesting upside of 15.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 54.00 cents and EPS of 180.50 cents.
At the last closing share price the estimated dividend yield is 1.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 188.6, implying annual growth of 31.2%.
Current consensus DPS estimate is 63.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 19.0.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 64.00 cents and EPS of 182.40 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 202.0, implying annual growth of 7.1%.
Current consensus DPS estimate is 67.4, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 17.7.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

APM    APM HUMAN SERVICES INTERNATIONAL LIMITED

Healthcare – Overnight Price: $2.93

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

Goldman Sachs assesses the impact of the Workforce Australia program which commenced on July 4 for APM Human Services International.

The broker expects operating expenditure of -$6m in 1H23 for the program, while revenues/profits are skewed to the 2H23 as revenue can only be acknowledged once the applicant is placed in a position.

Earnings forecasts are adjusted by -5.6% for FY23 and -3.7% for FY24. A Buy rating is retained and the price target moves to $4.20 from $4.30.

This report was published on November 16, 2022.

Target price is $4.20 Current Price is $2.93 Difference: $1.27
If APM meets the Goldman Sachs target it will return approximately 43% (excluding dividends, fees and charges).
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 20.00 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 14.65.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 13.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 4.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.27.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $1.63

Bell Potter rates ((AX1)) as Buy (1) –

Bell Potter reviews the trading update for Accent Group over the first 18 weeks of FY23, noting sales growth of 52%, which is better than guidance and gross margins rose 570bps versus a -700bps decline in the previous period.

Other highlights include 50 new store openings versus the broker's 35 store forecast for 1H23 while inventory levels reflect robust deliveries.

Earnings forecasts are adjusted by 4.4% and -1.9% for FY23 and FY24. Buy rating is unchanged and the price target is raised to $2.10 from $2.00.

This report was published on November 16, 2022.

Target price is $2.10 Current Price is $1.63 Difference: $0.47
If AX1 meets the Bell Potter target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $1.86, suggesting upside of 13.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 10.00 cents and EPS of 12.70 cents.
At the last closing share price the estimated dividend yield is 6.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.2, implying annual growth of 110.0%.
Current consensus DPS estimate is 10.5, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 13.4.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 12.50 cents and EPS of 15.80 cents.
At the last closing share price the estimated dividend yield is 7.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.3, implying annual growth of 9.0%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 12.3.

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

BOE    BOSS ENERGY LIMITED

Uranium – Overnight Price: $2.41

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

Canaccord Genuity makes only minor timing changes to its development capex profile for Boss Energy's Honeymoon resource, after returning from a site visit.

The Buy rating is maintained and the target price rises to $3.22 from $3.20.

The analyst highlights construction is ramping-up and management's aim is to achieve 3.3Mtpa as per its export licence, up from the nameplate capacity of 2.45Mtpa.

This report was published on November 17, 2022.

Target price is $3.22 Current Price is $2.41 Difference: $0.81
If BOE meets the Canaccord Genuity target it will return approximately 34% (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 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1205.00.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 9.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.10.

Market Sentiment: 1.0
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: $107.50

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

CommBank reported a "strong" 1Q23 result with cash earnings of $2.5bn, some 5% ahead of the 1H23 Goldman Sachs forecast.

The stronger NIM was offset by increased expenses and softer non-interest income. EPS forecasts are adjusted by 6.7% for FY23 and 6.1% for FY24.

Goldman Sachs remains Sell-rated on CommBank with ongoing competitive pressures in the mortgage market as well as macro headwinds for the household sector.

The target price is revised to $90.98.

This report was published on November 16, 2022.

Target price is $90.98 Current Price is $107.50 Difference: minus $16.52 (current price is over target).
If CBA meets the Goldman Sachs target it will return approximately minus 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $93.28, suggesting downside of -13.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 468.00 cents and EPS of 597.00 cents.
At the last closing share price the estimated dividend yield is 4.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 605.7, implying annual growth of -3.2%.
Current consensus DPS estimate is 433.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 17.7.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 496.00 cents and EPS of 635.00 cents.
At the last closing share price the estimated dividend yield is 4.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 597.1, implying annual growth of -1.4%.
Current consensus DPS estimate is 445.9, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 18.0.

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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Jarden rates ((CBA)) as Neutral (3) –

Jarden highlights a strong 1Q for CommBank with net interest margin (NIM) expansion beating forecasts by Jarden and consensus. Operating trends were considered solid with strong positive jaws, despite moderating mortgage volume momentum.

Positive jaws occurs when revenue is rising faster than costs.

The broker's higher NIM forecasts are partially offset by higher costs. The bank is expected to benefit further from rising cash rates given a bias toward lower cost retail deposits.

The target price rises to $103 from $101. The Hold rating is maintained on valuation.

This report was published on November 16, 2022.

Target price is $103.00 Current Price is $107.50 Difference: minus $4.5 (current price is over target).
If CBA meets the Jarden target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $93.28, suggesting downside of -13.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 447.00 cents and EPS of 583.00 cents.
At the last closing share price the estimated dividend yield is 4.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 605.7, implying annual growth of -3.2%.
Current consensus DPS estimate is 433.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 17.7.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 455.00 cents and EPS of 590.00 cents.
At the last closing share price the estimated dividend yield is 4.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 597.1, implying annual growth of -1.4%.
Current consensus DPS estimate is 445.9, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 18.0.

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: $297.32

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

Jarden raises its FY23 EPS estimate for CSL based on higher potential earnings from Seqirus on favourable trends and the potential for a bumper flu season in the US.

The broker's channel checks suggest Seqirus was first to the market with its seasonal flu vaccine, after raising the price for Flucelvax in the US by 11% in March.

The analyst highlights CSL is the most robust reopening play within the broker's Healthcare sector coverage. The Overweight rating is retained, while the target rises to $315.38 from $312.83.

This report was published on November 16, 2022.

Target price is $315.38 Current Price is $297.32 Difference: $18.06
If CSL meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $324.78, suggesting upside of 9.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 326.95 cents and EPS of 708.79 cents.
At the last closing share price the estimated dividend yield is 1.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 820.4, implying annual growth of N/A.
Current consensus DPS estimate is 364.3, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 36.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 437.88 cents and EPS of 949.25 cents.
At the last closing share price the estimated dividend yield is 1.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1026.8, implying annual growth of 25.2%.
Current consensus DPS estimate is 441.0, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 29.0.

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

DGL    DGL GROUP LIMITED

Commercial Services & Supplies – Overnight Price: $1.54

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

DGL Group management reaffirmed EBITDA guidance of $70m-$72m at the AGM, compared to Bell Potter's forecast of $70m, including an "over-earn" of $15m.

Excluding the over-earn, the company is expected to generate growth of 30% in FY23, which is 2H23 weighted according to the broker.

Inventory levels have also "stabilised" and should remain so throughout the balance of the 1H23. The Buy rating is retained and the target price adjusts to $2.25 from $2.15.

This report was published on November 16, 2022.

Target price is $2.25 Current Price is $1.54 Difference: $0.71
If DGL meets the Bell Potter target it will return approximately 46% (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 0.00 cents and EPS of 10.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.67.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 10.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.39.

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

DXI    DEXUS INDUSTRIA REIT

REITs – Overnight Price: $2.87

Moelis rates ((DXI)) as Buy (1) –

Dexus Industria REIT has announced the sale of the Rhodes buildings for $160.5m, with settlement anticipated at the end of November.

The sale looks to reduce gearing by -7 percentage points, and Moelis anticipates balance sheet gearing of 23% by December and look-through gearing of 30%. 

The sale sees Moelis lower its estimates, but the broker does see the disposal as positive and notes that it brings Dexus Industria REIT closer to being a pure play industrial portfolio. 

The Buy rating is retained and the target price decreases to $3.31 from $3.45.

This report was published on November 17, 2022.

Target price is $3.31 Current Price is $2.87 Difference: $0.44
If DXI meets the Moelis target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 16.40 cents and EPS of 17.20 cents.
At the last closing share price the estimated dividend yield is 5.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.69.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 16.50 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 5.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.12.

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

FLT    FLIGHT CENTRE TRAVEL GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $15.78

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

Goldman Sachs views the 4-month trading update from Flight Centre Travel at the AGM as better than expected.

Activity levels in both the corporate and leisure markets are trading ahead of the broker's forecasts, but costs remain elevated and 1H23 profit could come in lower than expected.

Adjusting for the update, earnings forecasts are modified by -4.8% and 4.3% for FY23 and FY24, respectively.

Neutral rating and a $16.10 target price.

This report was published on November 16, 2022.

Target price is $16.10 Current Price is $15.78 Difference: $0.32
If FLT meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $16.19, suggesting upside of 2.6%(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 36.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.3, 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 48.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 17.00 cents and EPS of 87.00 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 18.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 89.1, implying annual growth of 175.9%.
Current consensus DPS estimate is 31.2, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 17.7.

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

HCW    HEALTHCO HEALTHCARE & WELLNESS REIT

REITs – Overnight Price: $1.62

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

HealthCo Healthcare & Wellness REIT updated FY23 guidance of 6.8c per share and a 7.5c distribution as well as the acquisition of the Sunshine Coast Vitality Village Health Hub at a cost of -$28.5m, notes Goldman Sachs.

The broker retains the REIT as a top pick in the sector with the ability to grow via acquisitions from some $360m in liquidity.

This in combination with the diversified tenant mix, backed with government support should provide for a more resilient earnings stream in light of the macro headwinds.

Earnings forecasts are adjusted for the update and stand at 3% above guidance. The Buy rating is maintained with a $2.05 target.

This report was published on November 16, 2022.

Target price is $2.05 Current Price is $1.62 Difference: $0.425
If HCW meets the Goldman Sachs target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $1.84, suggesting upside of 13.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 7.50 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 4.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.8, implying annual growth of -55.4%.
Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 23.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.0, implying annual growth of 17.6%.
Current consensus DPS estimate is 8.1, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 20.3.

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

IPL    INCITEC PIVOT LIMITED

Agriculture – Overnight Price: $3.98

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

Incitec Pivot reported FY22 earnings ahead of Goldman Sachs' expectation by 8% with a 7% beat at the EBIT level.

Inflation and cost pressures impacted negatively on the North American explosives business, with a recovery in FY23 expected  through price increases and contract renegotiation, management noted.

Insurance recoveries were higher than expected, and excluding this, the results were in line.

Adjusting for the $400m buyback, EPS forecasts are adjusted 3% and 6% for FY23 and FY24, respectively.

A Buy rating is retained and the target increases 7% to $4.70.

This report was published on November 16, 2022.

Target price is $4.70 Current Price is $3.98 Difference: $0.72
If IPL meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $4.34, suggesting upside of 9.0%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 25.00 cents and EPS of 49.00 cents.
At the last closing share price the estimated dividend yield is 6.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.4, implying annual growth of -11.1%.
Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 8.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 17.00 cents and EPS of 34.00 cents.
At the last closing share price the estimated dividend yield is 4.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.6, implying annual growth of -36.2%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 13.4.

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

PGH    PACT GROUP HOLDINGS LIMITED

Paper & Packaging – Overnight Price: $1.08

Jarden rates ((PGH)) as Downgrade to Underweight from Overweight (4) –

Pact Group has now reported three negative surprises over the past year, after the midpoint of guidance for earnings (EBIT) and profit were a -12.7% and -27.4% miss, respectively, compared to consensus expectations.

The misses were driven by a weakening outlook in the Materials Handling & Pooling segment due to US retail slowdowns, explains the analyst, and the relatively larger profit miss was a result of increasing net finance costs.

Guidance implies earnings will likely decline by -15.8% year-on-year in the 1H FY23, and the broker's forecast is set an additional -12% lower than guidance.

Jarden's target price is slashed to $1.35 from $3.75 and the rating is downgraded two notches to Underweight from Overweight.

This report was published on November 17, 2022.

Target price is $1.35 Current Price is $1.08 Difference: $0.265
If PGH meets the Jarden target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $2.23, suggesting upside of 105.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 5.80 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 5.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.6, implying annual growth of 397.2%.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 6.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 7.90 cents and EPS of 18.70 cents.
At the last closing share price the estimated dividend yield is 7.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.8, implying annual growth of 18.2%.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 7.8%.
Current consensus EPS estimate suggests the PER is 5.2.

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

SDR    SITEMINDER LIMITED

Travel, Leisure & Tourism – Overnight Price: $2.93

Jarden rates ((SDR)) as Initiation of coverage with Buy (1) –

Jarden initiates coverage on hotel and accommodation software provider SiteMinder with a Buy rating and $3.70 target price. The software is provided in more than 20 countries and helps to sell, market, manage and grow businesses in the sector.

Potential catalysts include upcoming 1H FY23 results, peer reporting and delivery of cashflow breakeven in the 4Q of FY24, explain the analysts.

The stock is the broker's key pick in its Technology sector coverage. It's felt the market underappreciates the opportunity from transactional products which are forecast to exceed more than 50% of revenue by FY32, up from 25% today.

Jarden believes there is enough room in the market for a "healthy oligopoly" though additional upside would arise in the event the company becomes a clear leader.

This report was published on November 17, 2022.

Target price is $3.70 Current Price is $2.93 Difference: $0.77
If SDR meets the Jarden target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $5.43, suggesting upside of 85.4%(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 minus 16.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -13.8, 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 0.00 cents and EPS of minus 19.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.6, 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: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SEK    SEEK LIMITED

Jobs & Skilled Labour Services – Overnight Price: $20.94

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

Jarden adjusts its risk-free rate assumptions which has the impact of lowering its target price for Seek to $29 from $32.

The Overweight rating is unchanged. The main risk to the company's business would derive from a jobs recession, which is not currently anticipated by the broker.

This report was published on November 16, 2022.

Target price is $29.00 Current Price is $20.94 Difference: $8.06
If SEK meets the Jarden target it will return approximately 38% (excluding dividends, fees and charges).
Current consensus price target is $29.88, suggesting upside of 42.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 47.70 cents and EPS of 73.40 cents.
At the last closing share price the estimated dividend yield is 2.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.1, implying annual growth of 47.0%.
Current consensus DPS estimate is 38.6, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 29.9.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 48.10 cents and EPS of 73.90 cents.
At the last closing share price the estimated dividend yield is 2.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 78.0, implying annual growth of 11.3%.
Current consensus DPS estimate is 46.0, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 26.8.

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

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $7.45

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

The September quarter trading update from Telix Pharmaceuticals showed positive revenue growth with the launch of Illuccix, and the strong demand for prostrate cancer imaging products, according to Bell Potter.

The analyst expects Illuccix will achieve around 30% share of the US market and the European launch is anticipated to be delayed until 4Q23.

EPS forecast for FY22 is lowered by -5%, and raised 194% for FY23 with a 33% increase in sales as a result of Illuccix momentum, with more updates on Zircon trial and revenue growth expected in late January 2023.

Buy rating retained. Target price rises to $9.00 from $8.90.

This report was published on November 16, 2022.

Target price is $9.00 Current Price is $7.45 Difference: $1.55
If TLX meets the Bell Potter target it will return approximately 21% (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 24.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.79.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 13.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 56.44.

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

TPW    TEMPLE & WEBSTER GROUP LIMITED

Furniture & Renovation – Overnight Price: $5.19

Jarden rates ((TPW)) as Neutral (3) –

Jarden points out volumes for home furnishings have historically remained resilient during housing downturns.

The broker sees potential medium-term growth opportunities for Temple & Webster from M&A activity. Management has highlighted trade and commercial (B2B) and technology businesses as potential targets.

After raising its weighted average cost of capital (WACC) assumptions, Jarden reduces its target to $5.06 from $5.42. Neutral.

This report was published on November 16, 2022.

Target price is $5.06 Current Price is $5.19 Difference: minus $0.13 (current price is over target).
If TPW meets the Jarden target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.64, suggesting upside of 8.6%(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 8.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 61.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.5, implying annual growth of -24.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 69.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 10.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.9, implying annual growth of 32.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 52.4.

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

UMG    UNITED MALT GROUP LIMITED

Agriculture – Overnight Price: $3.21

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

According to Bell Potter, United Malt reported better than expected FY22 results with the softer results from distribution offset by a more robust contribution from the processing business.

Post the results, earnings forecasts are adjusted by -7% for FY23 and -6% for FY24 and the broker views the FY22 problems as seasonal not structural.

Buy rating remains in place. Target raises to $4.05 from $3.90.

This report was published on November 16, 2022.

Target price is $4.05 Current Price is $3.21 Difference: $0.84
If UMG meets the Bell Potter target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $3.79, suggesting upside of 18.0%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 6.50 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 2.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.1, implying annual growth of N/A.
Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 31.8.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 10.50 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.6, implying annual growth of 104.0%.
Current consensus DPS estimate is 12.6, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 15.6.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $0.56

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

Whispir has announced a plan to terminate around 80 roles in its product team in an attempt to deliver around -$14.3m in annualised cost savings and target cash flow positivity by the 4Q of FY23. The direct sales team is unaffected.

While pleased about the pathway to break even, Shaw and Partners lowers its long-term revenue growth forecasts due to the reduction in headcount. Management, on the other hand, believes the plan doesn't impede long-term growth aspirations.

On valuation grounds, Shaw maintains its Buy rating, while the target falls to $1.70 from $2.00 on lower longer-term cashflow forecasts.

This report was published on November 16, 2022.

Target price is $1.70 Current Price is $0.56 Difference: $1.135
If WSP meets the Shaw and Partners target it will return approximately 201% (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 0.00 cents and EPS of minus 16.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.51.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 11.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.79.

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

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