Australian Broker Call *Extra* Edition – Mar 01, 2023

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

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

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

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

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

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

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

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

COMPANIES DISCUSSED IN THIS ISSUE

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

A2M   ABP   ADA   AMP   ASX   BLX   CQR   DHG (2)   DTL   GDI   HDN   IPH   IPL   IRE   OCL   ORA   S32   SLX   SRV   SUL   SYM   TLS   WHC  

A2M    A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $6.62

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

a2 Milk Co's December-half underlying result outpaced Bell Potter's forecasts, despite a small miss on revenue. Net cash disappointed sharply, due a -$105.5m working capital investment in anticipation of regulatory changes in china.

Management forecasts double digit growth in revenue in FY23. EPS forecasts rise 5% in FY23; 6% in FY24; and 2% in FY25.

Buy rating retained. Target price rises to $7.65 from $6.80

This report was published on February 20, 2023.

Target price is $7.65 Current Price is $6.62 Difference: $1.03
If A2M meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $5.33, suggesting downside of -19.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 17.86 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.5, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 33.9.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 20.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.0, implying annual growth of 33.3%.
Current consensus DPS estimate is 5.7, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 25.5.

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

ABP    ABACUS PROPERTY GROUP

REITs – Overnight Price: $2.84

Jarden rates ((ABP)) as Buy (1) –

Jarden applauds the proactivity of the Abacus Property board in seeking to close a discount in valuation by aiming to de-staple the Storage King business into an externally managed REIT.

The analyst needs to see more details on the proposal before including any upside and/or costs in forecasts.

After reviewing 1H results, the broker lowers forecasts for funds from operations (FFO) to reflect higher overhead expenses and rising interest rates. These lower forecasts are partially offset by stronger-than-expected momentum in Storage.

The target rises to $3.30 from $3.20. Buy.

This report was published on February 17, 2023.

Target price is $3.30 Current Price is $2.84 Difference: $0.46
If ABP meets the Jarden target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $3.19, suggesting upside of 12.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 18.40 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 6.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.7, implying annual growth of -69.4%.
Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 19.30 cents and EPS of 19.30 cents.
At the last closing share price the estimated dividend yield is 6.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of -3.2%.
Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 15.7.

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

ADA    ADACEL TECHNOLOGIES LIMITED

Software & Services – Overnight Price: $0.65

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

Adacel Technologies' December-half revenue missed Bell Potter's forecasts by -6% due to a weaker than expected performance from the higher margin Services division arising from a lower than forecast revenue contribution from its core ATOP contract. But Systems outpaced.

The company closed the half with a net cash position near zero and management downgraded guidance due to delays in Ukraine, and to reflect the ATOP reduction.

Management points to a strong pipeline and advises it expects to win several large contracts over the next 18 months. EPS forecasts fall -11% in FY23; -8% in FY24; and -7% in FY25 to reflect weakness in the Services division.

Buy rating retained. Target price falls -26% to 85c from $1.15.

This report was published on March 20, 2023.

Target price is $0.85 Current Price is $0.65 Difference: $0.205
If ADA meets the Bell Potter target it will return approximately 32% (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 5.06 cents and EPS of 3.33 cents.
At the last closing share price the estimated dividend yield is 7.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.39.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 4.00 cents and EPS of 3.30 cents.
At the last closing share price the estimated dividend yield is 6.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.55.

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

AMP    AMP LIMITED

Wealth Management & Investments – Overnight Price: $1.03

Jarden rates ((AMP)) as Neutral (3) –

While AMP managed costs well in FY22, the company pointed to less scope over FY23 for further cost reductions (due to inflation), which removes a key earnings driver, notes Jarden.

Australian Wealth Management (AWM) experienced higher outflows in assets under management (AUM), which were offset by stronger Bank lending growth, explains the analyst.

The broker points out lower pro forma surplus capital reduces the scope for additional capital management over the next year.

After making EPS downgrades, the analyst lowers the target to $1.22 from $1.35. The Neutral rating is unchanged.

This report was published on February 17, 2023.

Target price is $1.22 Current Price is $1.03 Difference: $0.185
If AMP meets the Jarden target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $1.22, suggesting upside of 17.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 5.00 cents and EPS of 7.40 cents.
At the last closing share price the estimated dividend yield is 4.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.7, implying annual growth of N/A.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 15.4.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 6.00 cents and EPS of 8.90 cents.
At the last closing share price the estimated dividend yield is 5.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of 26.9%.
Current consensus DPS estimate is 3.5, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 12.2.

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

ASX    ASX LIMITED

Wealth Management & Investments – Overnight Price: $68.04

Jarden rates ((ASX)) as Neutral (3) –

After a review of in-line 1H results, Jarden believes the near-term outlook for the ASX has been moderated due to cost growth and stagnant interest income spreads on collateral balances.

Underlying profit in the 1H were in line with expectations. The impacts from slightly weaker revenues and higher operating costs were offset by a significantly lower D&A expense, explains the broker.

The analyst feels greater near-term earnings growth is increasingly dependent upon a recovery in volumes for futures, which account for 20% of group revenue. Until evidence of this recovery arrives, a Neutral rating is maintained.

The target edges up to $70 from $69.35.

This report was published on February 17, 2023.

Target price is $70.00 Current Price is $68.04 Difference: $1.96
If ASX meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $69.69, suggesting upside of 2.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 234.60 cents and EPS of 260.70 cents.
At the last closing share price the estimated dividend yield is 3.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 252.0, implying annual growth of -4.1%.
Current consensus DPS estimate is 242.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 27.0.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 248.30 cents and EPS of 275.80 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 279.4, implying annual growth of 10.9%.
Current consensus DPS estimate is 253.2, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 24.4.

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

BLX    BEACON LIGHTING GROUP LIMITED

Furniture & Renovation – Overnight Price: $2.00

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

Rising costs in the 1H caused an earnings (EBIT) miss of around -10% compared to the consensus forecast for Beacon Lighting, explains Jarden. A broad range of input costs were impacted by inflation, and it's thought these costs are unlikely to moderate in the 2H.

Total sales for the half reached a record with strength across all segments ex-USA international, observes the analyst.

Outlook commentary by management implied solid 2H volumes to the analyst, with 2H sales expected to come in just below the 1H.

The Overweight rating is unchanged and the target falls to $2.30 from $2.50.

This report was published on February 17, 2023.

Target price is $2.30 Current Price is $2.00 Difference: $0.3
If BLX meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 8.50 cents and EPS of 16.40 cents.
At the last closing share price the estimated dividend yield is 4.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.20.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 7.30 cents and EPS of 13.30 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.04.

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

CQR    CHARTER HALL RETAIL REIT

REITs – Overnight Price: $3.99

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

Following 1H results for Charter Hall Retail REIT, Jarden maintains its Overweight rating. The broker is drawn to the REIT's strong protection against inflation and a consumer slowdown via its non-discretionary exposure and petrol station assets.

The analyst highlights an attractive dividend yield and an -18% discount to net tangible assets. Revenue from accelerating net operating income (NOI) growth and Long WALE convenience Retail acquisitions are expected to offset the rising cost of debt.

Jarden also suggests asset recycling is a potential opportunity to keep growing portfolio returns. The $4.55 target is unchanged.

This report was published on February 17, 2023.

Target price is $4.55 Current Price is $3.99 Difference: $0.56
If CQR meets the Jarden target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $4.26, suggesting upside of 6.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 25.80 cents and EPS of 28.70 cents.
At the last closing share price the estimated dividend yield is 6.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.5, implying annual growth of -75.1%.
Current consensus DPS estimate is 25.7, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 14.0.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 25.70 cents and EPS of 28.70 cents.
At the last closing share price the estimated dividend yield is 6.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.4, implying annual growth of -0.4%.
Current consensus DPS estimate is 25.5, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 14.0.

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

DHG    DOMAIN HOLDINGS AUSTRALIA LIMITED

Real Estate – Overnight Price: $3.10

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

According to Goldman Sachs, Domain Holdings Australia's 1H23 earnings were not a resilient as competitor, REA Group's ((REA)).

Nevertheless, the company's results broadly met the broker's forecasts, with a -9.5% decline in listings, offset by growth from Social.

Earnings forecasts are lowered by -11% and -9% for FY23 and FY24, respectively.

Buy rating unchanged due to the cyclical leverage to a rise in listings when the real estate market turns and the target is raised to $3.50 from $3.45.

This report was published on February 20, 2023.

Target price is $3.50 Current Price is $3.10 Difference: $0.4
If DHG meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $3.27, suggesting upside of 5.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 4.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 1.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.3, implying annual growth of 23.7%.
Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 42.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 6.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 1.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.3, implying annual growth of 41.1%.
Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 30.1.

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

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Jarden rates ((DHG)) as Neutral (3) –

Jarden points out in-line 1H results for Domain Holdings Australia were largely pre-guided on December 20. To add to the lack of surprises, management reiterated cost-out guidance.

The current share price indicates the end to housing cycle softness, an outcome the analyst is not yet convinced about. A Neutral rating and $3.40 target are retained.

Either the cycle has to be less bad than the broker fears or management needs to extract a lift via costs or controllable yields, suggests the broker. It's thought new products, such as Social Boost, may help drive the yield higher.

This report was published on February 17, 2023.

Target price is $3.40 Current Price is $3.10 Difference: $0.3
If DHG meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $3.27, suggesting upside of 5.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 5.30 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 1.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.3, implying annual growth of 23.7%.
Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 42.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 7.20 cents and EPS of 12.10 cents.
At the last closing share price the estimated dividend yield is 2.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.3, implying annual growth of 41.1%.
Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 30.1.

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

DTL    DATA#3 LIMITED.

IT & Support – Overnight Price: $7.41

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

Goldman Sachs remains upbeat about the outlook for Data#3 post the robust 1H23 earnings report (pre-announced in January).

The broker considers management will be able to tackle any macro headwinds from slower IT spend with improved operating leverage and margins.

Earnings are typically skewed to the second half and Goldman Sachs assesses there is a strong outlook for the 2H23 and FY24, particularly as supply chains ease.

Buy rating and $9.20 target unchanged.

This report was published on February 17, 2023.

Target price is $9.20 Current Price is $7.41 Difference: $1.79
If DTL meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $7.17, suggesting downside of -3.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 24.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 3.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.3, implying annual growth of 23.9%.
Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 30.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 28.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 3.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.7, implying annual growth of 14.0%.
Current consensus DPS estimate is 26.0, implying a prospective dividend yield of 3.5%.
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

GDI    GDI PROPERTY GROUP

REITs – Overnight Price: $0.78

Moelis rates ((GDI)) as Buy (1) –

First half results were in line with expectations and Moelis makes minor changes to estimates. Guidance for a distribution of five cents has been reconfirmed.

Gearing is expected to increase to around 29% as GDI Property deploys -$35m into the acquisitions of South Hedland Motel and the joint venture with Tulla Group. Buy rating maintained. Target edges down to $1.23 from $1.26.

This report was published on February 20, 2023.

Target price is $1.23 Current Price is $0.78 Difference: $0.45
If GDI meets the Moelis target it will return approximately 58% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 5.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 6.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.60.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 5.50 cents and EPS of 7.30 cents.
At the last closing share price the estimated dividend yield is 7.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.68.

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

HDN    HOMECO DAILY NEEDS REIT

REITs – Overnight Price: $1.31

Moelis rates ((HDN)) as Buy (1) –

HomeCo Daily Needs REIT produced a first half result that was in line with estimates. Moelis assesses the stock screens attractive, trading at a -16% discount to NTA and offering investors a 6.45% distribution yield.

Growth will be soft into FY24, given the recent divestment of Epping, yet the recycling of this capital into higher yielding assets and developments makes sense to the broker. Buy rating retained. Target edges down to $1.46 from $1.48.

This report was published on February 20, 2023.

Target price is $1.46 Current Price is $1.31 Difference: $0.145
If HDN meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $1.39, suggesting upside of 5.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 8.30 cents and EPS of 8.60 cents.
At the last closing share price the estimated dividend yield is 6.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.8, implying annual growth of -68.6%.
Current consensus DPS estimate is 8.2, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 8.30 cents and EPS of 8.30 cents.
At the last closing share price the estimated dividend yield is 6.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.6, implying annual growth of -2.3%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 15.3.

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

IPH    IPH LIMITED

Legal – Overnight Price: $8.10

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

IPH Ltd's 1H23 results were slightly ahead of consensus and Goldman Sachs' forecasts, with a boost to EBITDA offered by slightly stronger margins from the recently acquired Smart & Biggar, alongside improved costs. 

Although the company's earnings are defensive in nature and IPH should experience a stablisation in market share, post acquisitions, the relatively moderate forecast 6.6% p.a. compound growth rate in EPS over the net 3-years leads Goldman Sachs to a Neutral rating.

Post results, the analyst downgrades EPS forecasts by -6% for FY23 and -1.2% for FY24. The target is lowered to $10.45 from $10.90.

This report was published on February 17, 2023.

Target price is $10.45 Current Price is $8.10 Difference: $2.35
If IPH meets the Goldman Sachs target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $10.42, suggesting upside of 28.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 31.00 cents and EPS of 42.00 cents.
At the last closing share price the estimated dividend yield is 3.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.8, implying annual growth of 73.5%.
Current consensus DPS estimate is 32.4, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 19.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 35.00 cents and EPS of 47.00 cents.
At the last closing share price the estimated dividend yield is 4.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.4, implying annual growth of 3.8%.
Current consensus DPS estimate is 34.3, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 18.7.

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

IPL    INCITEC PIVOT LIMITED

Agriculture – Overnight Price: $3.44

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

Incitec Pivot's AGM reaffirmed the strategic review of Waggaman and the demerger is expected after the completion of the review, notes Goldman Sachs.

Management did not offer an earnings update for the 1H23, although they did explain that the explosives market was upbeat and should impact positively on FY24 earnings, plus the Phosphate Hill plant should reach its 1mt target.

The Buy rating and target price of $4.70 are retained.

This report was published on February 17, 2023.

Target price is $4.70 Current Price is $3.44 Difference: $1.26
If IPL meets the Goldman Sachs target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $4.20, suggesting upside of 22.2%(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 7.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 47.0, implying annual growth of -9.9%.
Current consensus DPS estimate is 22.8, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 7.3.

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 4.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.3, implying annual growth of -35.5%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 11.4.

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

IRE    IRESS LIMITED

Wealth Management & Investments – Overnight Price: $9.31

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

2022 resullts were below forecasts. The main highlights for Shaw and Partners were segment profit at the lower end of revised guidance and indications that the UK is underperforming.

Iress will outline its plans at an investor briefing in April and include an update to 2023 guidance as well as longer-term targets.

The broker acknowledges additional efficiency measures may benefit the second half of 2023 and into 2024, but without a material restructuring, an inflection point for cash margins may be 6-12 months away. Hold retained. Target is reduced to $9.90 from $11.60.

This report was published on February 21, 2023.

Target price is $9.90 Current Price is $9.31 Difference: $0.59
If IRE meets the Shaw and Partners target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $9.77, suggesting upside of 4.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 46.00 cents and EPS of 35.60 cents.
At the last closing share price the estimated dividend yield is 4.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.3, implying annual growth of 19.9%.
Current consensus DPS estimate is 46.0, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 27.1.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 46.00 cents and EPS of 40.80 cents.
At the last closing share price the estimated dividend yield is 4.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.0, implying annual growth of 25.4%.
Current consensus DPS estimate is 46.0, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 21.7.

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

OCL    OBJECTIVE CORPORATION LIMITED

IT & Support – Overnight Price: $12.53

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

According to Goldman Sachs, Objective Corp reported disappointing 1H23 results, which missed forecasts due to margin pressure and lower annual recurring revenues.

The analyst adjust forecasts and notes that a lower tax rate offsets some of the earnings decline at the EBIT level to deliver a 1% rise in the FY23 EPS forecast with a -15% decline in the FY24 EPS forecast.

The target is lowered to $14.80 from $16 and the Buy rating unchanged.

This report was published on February 17, 2023.

Target price is $14.80 Current Price is $12.53 Difference: $2.27
If OCL meets the Goldman Sachs target it will return approximately 18% (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 11.80 cents and EPS of 21.50 cents.
At the last closing share price the estimated dividend yield is 0.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.28.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 13.50 cents and EPS of 24.50 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 51.14.

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

ORA    ORORA LIMITED

Paper & Packaging – Overnight Price: $3.53

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

Despite a miss on Australasian margins, Orora's 1H23 results came in ahead of Goldman Sachs and consensus forecasts with the North American operations beating market concerns with better pricing and operational improvements.

Management retained guidance with dividend payments at the upper end and capital expenditure unchanged.

The analyst tweaks EBIT forecasts by 1%-2% for FY23-FY25.

Goldman Sachs considers Orora is trading at 14x forecast earnings which represents a discount to the longer term valuation of 17x since listing in 2013.

Buy rating and the target is $4.00.

This report was published on February 17, 2023.

Target price is $4.00 Current Price is $3.53 Difference: $0.47
If ORA meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $3.59, suggesting upside of 1.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 18.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 5.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.4, implying annual growth of 3.4%.
Current consensus DPS estimate is 17.5, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 15.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 18.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 5.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.1, implying annual growth of 3.1%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 15.3.

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

S32    SOUTH32 LIMITED

Mining – Overnight Price: $4.34

Goldman Sachs rates ((S32)) as Neutral (3) –

Taking out the lower costs and depreciation and amortisation charges, Goldman Sachs considers South32 reported 1H23 results in line with expectations.

The company announced a smaller than anticipated dividend and a $50m increase in the share buyback.

Management maintained FY23 guidance and Goldman Sachs' tweaks EPS forecasts by 5% for FY23 and -1% post the lower cost guidance.

The target price is raised to $4.90 from $4.80 and a Neutral rating is retained.

This report was published on February 17, 2023.

Target price is $4.90 Current Price is $4.34 Difference: $0.56
If S32 meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $4.96, suggesting upside of 14.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 23.15 cents and EPS of 49.18 cents.
At the last closing share price the estimated dividend yield is 5.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.2, implying annual growth of N/A.
Current consensus DPS estimate is 20.4, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 9.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 58.30 cents and EPS of 96.92 cents.
At the last closing share price the estimated dividend yield is 13.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.8, implying annual growth of 14.9%.
Current consensus DPS estimate is 24.7, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 8.5.

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

SLX    SILEX SYSTEMS LIMITED

Uranium – Overnight Price: $3.97

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

Despite Silex Systems reaching a $1bn market capitalisation, Shaw and Partners continues to see potential upside with its price target incorporating only nominal valuations of the PLEF II and PLEF III opportunities at this point.

The broker highlights a "stunning" share price performance from Silex Systems in recent years, with the stock rising 55% already in 2023 after a 141% rise in 2022. 

Shaw and Partners believes massive revitalisation of the US nuclear industry will prove positive for Silex Systems. The Buy rating and target price of $5.00 are retained.

This report was published on February 17, 2023.

Target price is $5.00 Current Price is $3.97 Difference: $1.03
If SLX meets the Shaw and Partners target it will return approximately 26% (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 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 567.14.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 661.67.

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

SRV    SERVCORP LIMITED

Commercial Services & Supplies – Overnight Price: $3.35

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

Shaw and Partners found Servcorp's first half to track well in relation to the company's full year guidance, with net profits before tax of $20.3m up 49% year-on-year and 9.3% ahead of the broker's forecast.

North Asia, Europe and the Middle East delivered solid performances in the half, while recovery continues in Australia, New Zealand and South East Asia. 

The Buy rating is retained and the target price decreases to $5.60 from $5.70.

This report was published on February 17, 2023.

Target price is $5.60 Current Price is $3.35 Difference: $2.25
If SRV meets the Shaw and Partners target it will return approximately 67% (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 20.00 cents and EPS of 33.30 cents.
At the last closing share price the estimated dividend yield is 5.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.06.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 22.00 cents and EPS of 38.10 cents.
At the last closing share price the estimated dividend yield is 6.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.79.

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

SUL    SUPER RETAIL GROUP LIMITED

Automobiles & Components – Overnight Price: $12.98

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

Super Retail followed up the 1H23 pre-announced results with an earnings call.

Post that chat, Goldman Sachs analysts report management remains caution on the 2H23 outlook but noted an improved competitive backdrop.

Other items worth mentioning, according to the analysts, include ongoing investment in digital capacity and loyalty schemes, as well as improved capital management.

The analysts lift earnings forecasts by 7% for FY23 and 3% for FY24. A Buy rating is maintained, the target is lifted to $14.60 from $14.20.

This report was published on February 17, 2023.

Target price is $14.60 Current Price is $12.98 Difference: $1.62
If SUL meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $13.15, suggesting upside of 1.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 67.00 cents and EPS of 103.00 cents.
At the last closing share price the estimated dividend yield is 5.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 112.4, implying annual growth of 5.2%.
Current consensus DPS estimate is 70.6, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 11.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 63.00 cents and EPS of 96.00 cents.
At the last closing share price the estimated dividend yield is 4.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 92.7, implying annual growth of -17.5%.
Current consensus DPS estimate is 64.6, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 14.0.

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

SYM    SYMBIO HOLDINGS LIMITED

Telecommunication – Overnight Price: $1.82

Moelis rates ((SYM)) as Hold (3) –

First half results were mixed as Moelis notes phone number losses across some large customers were offset by strong organic number porting growth.

Symbio Holdings has also noted a large customer has been signed up for 400,000 numbers and the financial benefit should flow from the first half of FY24.

Assuming relatively stable operating expenditure, Moelis assesses FY23 guidance implies gross profit growth of more than $3m in the second half. Hold rating maintained. Target is $2.14.

This report was published on February 20, 2023.

Target price is $2.14 Current Price is $1.82 Difference: $0.32
If SYM meets the Moelis target it will return approximately 18% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 4.60 cents and EPS of 11.40 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.96.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 6.00 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 3.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.58.

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

TLS    TELSTRA GROUP LIMITED

Telecommunication – Overnight Price: $4.16

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

Goldman Sachs considers Telstra Group reported in-line earnings for the 1H23.

Although the valuation may at first glance appear full, the broker views the longer term story for Telstra Group as positive.

The potential value enhancement from monetising the InfraCo Fixed assets (estimated value of $22bn – $33bn) as well as the future NBN payment streams could offer additional upside potential to the existing defensive earnings profile.

Goldman Sachs adjusts EPS forecasts by 2% for FY23 and FY24 remains unchanged.

Buy rating and $4.60 target maintained.

This report was published on February 20, 2023.

Target price is $4.60 Current Price is $4.16 Difference: $0.44
If TLS meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $4.55, suggesting upside of 9.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 17.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 4.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.1, implying annual growth of 12.1%.
Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 25.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 18.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 4.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.8, implying annual growth of 10.6%.
Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 23.4.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $7.23

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

Whitehaven Coal's 1H23 met Goldman Sachs' expectations although the announced dividend was below the forecast, 32c versus an expected 48c, due to a target payout policy for both the dividend and stage 2 share buyback.

Management focussed on the NSW's coal reservation policy with prices capped at $125/t for 5,500kcal of coal from April1 2023 to June 30 2024.

Goldman Sachs lowers EPS estimates by -3% and -7% for FY23 and FY24 and the target is adjusted to $8.50 from $9.90. Neutral rating unchanged.

This report was published on February 17, 2023.

Target price is $8.50 Current Price is $7.23 Difference: $1.27
If WHC meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $10.35, suggesting upside of 43.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 68.00 cents and EPS of 373.00 cents.
At the last closing share price the estimated dividend yield is 9.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 382.5, implying annual growth of 93.6%.
Current consensus DPS estimate is 81.6, implying a prospective dividend yield of 11.3%.
Current consensus EPS estimate suggests the PER is 1.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 56.00 cents and EPS of 215.00 cents.
At the last closing share price the estimated dividend yield is 7.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 291.0, implying annual growth of -23.9%.
Current consensus DPS estimate is 92.3, implying a prospective dividend yield of 12.8%.
Current consensus EPS estimate suggests the PER is 2.5.

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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