Australian Broker Call *Extra* Edition – Apr 11, 2023

This story features ADAIRS LIMITED, and other companies. For more info SHARE ANALYSIS: ADH

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)

ADH   AOF   BRG   BSL   CAT   DRE   GDI   IPD   KAR   MCP   NST   NWL   QUB   SEK   SHL   TPW   ZIP  

ADH    ADAIRS LIMITED

Furniture & Renovation – Overnight Price: $2.02

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

Jarden maintains its Overweight rating for Adairs on an undemanding valuation despite a tough trading environment and outlook. It's felt the market has priced in tough times and that a stable and loyal customer base should cushion any downside.

February ABS data show a -0.7% slowdown in Australian household goods retail sales and the company is experiencing an ongoing slowdown in online traffic.

Additionally, CommBank ((CBA)) credit card data point to reduced spending on household goods and furnishings.

The target price falls to $3.00 from $3.31.

This report was published on April 5, 2023.

Target price is $3.00 Current Price is $2.02 Difference: $0.98
If ADH meets the Jarden target it will return approximately 49% (excluding dividends, fees and charges).
Current consensus price target is $2.65, suggesting upside of 31.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 18.00 cents and EPS of 27.70 cents.
At the last closing share price the estimated dividend yield is 8.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.6, implying annual growth of 0.9%.
Current consensus DPS estimate is 16.5, implying a prospective dividend yield of 8.2%.
Current consensus EPS estimate suggests the PER is 7.6.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 19.00 cents and EPS of 29.20 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 6.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.8, implying annual growth of 12.0%.
Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 9.3%.
Current consensus EPS estimate suggests the PER is 6.8.

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

AOF    AUSTRALIAN UNITY OFFICE FUND

REITs – Overnight Price: $1.57

Moelis rates ((AOF)) as Upgrade to Buy from Hold (1) –

Following the disposal of 30 Pirie St for $73m, 2 Eden Park for $69m and 5 Eden Park for $81m, Australian Unity Office Fund has announced a special distribution for the June quarter of 20cpu.

After Moelis allows for this distribution, as well as lower future earnings from a smaller capital base, its target price falls to $1.62 from $1.80.

The rating is upgraded to Buy from Hold on valuation after the share price retraced by around -4% following 1H results, explains the analyst.

Despite the new rating, the broker cautions 54% of the property book constitutes refurbishment assets with little guidance as yet on capex plans or feasibility.

This report was published on April 5, 2023.

Target price is $1.62 Current Price is $1.57 Difference: $0.05
If AOF meets the Moelis target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 30.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 19.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.27.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 7.80 cents and EPS of 9.60 cents.
At the last closing share price the estimated dividend yield is 4.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.35.

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $19.75

Jarden rates ((BRG)) as Upgrade to Neutral from Underweight (3) –

Jarden is convinced there is long-term value in Breville Group. Over the medium-term there are several areas of upside risk, including the unwinding of de-stocking in EMEA by the end of FY23 and a South Korean launch which will be a key test for Asia.

That said, further de-stocking and consumer risk to premium discretionary categories is envisaged in the second half of FY23. A potential re-rating catalyst is the August result.

Rating is upgraded to Neutral from Underweight and the target is reduced to $18.80 from $20.30.

This report was published on March 31, 2023.

Target price is $18.80 Current Price is $19.75 Difference: minus $0.95 (current price is over target).
If BRG meets the Jarden target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $23.36, suggesting upside of 18.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 29.00 cents and EPS of 75.50 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 26.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.9, implying annual growth of N/A.
Current consensus DPS estimate is 29.3, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 26.0.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 35.00 cents and EPS of 84.60 cents.
At the last closing share price the estimated dividend yield is 1.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.7, implying annual growth of 14.2%.
Current consensus DPS estimate is 33.6, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 22.8.

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

BSL    BLUESCOPE STEEL LIMITED

Steel & Scrap – Overnight Price: $19.49

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

BlueScope Steel has indicated that revisions to the Commonwealth's safeguard mechanism legislation have materially alleviated its concerns with respect to adverse impacts. Under the revisions, steel would be categorised as a hard-to-abate and value-added manufacturing industry.

Jarden also observes the company could benefit from additional funding support for those industries providing critical inputs to clean energy industries. The broker retains an Overweight rating and $23.10 target.

This report was published on April 3, 2023.

Target price is $23.10 Current Price is $19.49 Difference: $3.61
If BSL meets the Jarden target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $19.94, suggesting upside of 2.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 50.00 cents and EPS of 227.90 cents.
At the last closing share price the estimated dividend yield is 2.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 213.4, implying annual growth of -62.7%.
Current consensus DPS estimate is 83.9, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 9.1.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 50.00 cents and EPS of 188.10 cents.
At the last closing share price the estimated dividend yield is 2.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 168.5, implying annual growth of -21.0%.
Current consensus DPS estimate is 79.9, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 11.6.

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

CAT    CATAPULT GROUP INTERNATIONAL LIMITED

Medical Equipment & Devices – Overnight Price: $0.73

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

After the briefing from Catapult International, Canaccord Genuity looks forward to the resulting operating leverage once breakeven is achieved on cash flow. The incremental margin is guided to be more than 35% as breakeven is achieved.

Moreover, product innovation over the previous two years has meant the company should commercialise its largest number of new products in 2023.

Catapult International has also indicated it is unlikely to commit further capital to its B2C product and will focus almost exclusively on the B2B offering. Buy rating and $1.50 target maintained.

This report was published on April 4, 2023.

Target price is $1.50 Current Price is $0.73 Difference: $0.77
If CAT meets the Canaccord Genuity target it will return approximately 105% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 14.05 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.19.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 10.69 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.83.

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

DRE    DREADNOUGHT RESOURCES LIMITED

Mining – Overnight Price: $0.07

Canaccord Genuity rates ((DRE)) as Speculative Buy (1) –

Dreadnought Resources has remaining assays from its drill holes completed over the carbonatite targets within the Mangaroon project, Western Australia. Significant niobium mineralisation has occurred.

Niobium is traditionally used as a hardener in steel and more recently in EV batteries but it is rare, with 90% of global production sourced from a few mines in Brazil. Further upside remains if the targets can convert to mineable resources.

Canaccord Genuity's Speculative Buy is retained. Target is $0.24.

This report was published on April 6, 2023.

Target price is $0.24 Current Price is $0.07 Difference: $0.172
If DRE meets the Canaccord Genuity target it will return approximately 253% (excluding dividends, fees and charges).

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

GDI    GDI PROPERTY GROUP

REITs – Overnight Price: $0.71

Moelis rates ((GDI)) as Buy (1) –

GDI Property has advised the previously announced joint venture with Tull Group regarding co-living mining accommodation has been executed.

Moelis points out the transaction will be immediately earnings accretive and forecasts an approximate 20% return on invested capital (ROIC) until 2024, when its assumed Trust no 1 – CAT1 – is sold down to investors.

The group will retain its -$33m investment in the joint venture, which will be used to seed CAT2 acquisitions, explains the analyst.

Buy rating is maintained. Target price rises to $1.25 from $1.23.

This report was published on April 5, 2023.

Target price is $1.25 Current Price is $0.71 Difference: $0.535
If GDI meets the Moelis target it will return approximately 75% (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 5.10 cents.
At the last closing share price the estimated dividend yield is 6.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.02.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 5.50 cents and EPS of 7.90 cents.
At the last closing share price the estimated dividend yield is 7.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.05.

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

IPD    IMPEDIMED LIMITED

Medical Equipment & Devices – Overnight Price: $0.10

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

Canaccord Genuity explores the pricing scenarios and the substantial upside potential for ImpediMed associated with lymphoedema screening. The opportunity suggests the company and technology are very undervalued by the market, says the broker.

While execution and timing are risks, even conservative assumptions command a significant premium to current trading levels, says  Canaccord Genuity. Buy rating retained. Target price rises to $0.18 from $0.14.

This report was published on April 3, 2023.

Target price is $0.18 Current Price is $0.10 Difference: $0.084
If IPD meets the Canaccord Genuity target it will return approximately 87% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.38.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.00.

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

KAR    KAROON ENERGY LIMITED

Crude Oil – Overnight Price: $2.27

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

Karoon Gas has reported that a loss of containment occurred at its high-pressure flare on board the FPSO, offshore Brazil. While repairs were completed by March 30, the operator of the vessel and the company have extended the shutdown to undertake a full inspection of the system.

Production is expected to resume by mid April. FY23 production guidance remains unaffected as long as the shutdown is not extended. Jarden retains an Overweight rating and $2.45 target.

This report was published on April 3, 2023.

Target price is $2.45 Current Price is $2.27 Difference: $0.18
If KAR meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $2.99, suggesting upside of 31.6%(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 32.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 3.7.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 21.90 cents and EPS of 49.20 cents.
At the last closing share price the estimated dividend yield is 9.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.6, implying annual growth of 12.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 3.3.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MCP    MCPHERSON'S LIMITED

Health & Nutrition – Overnight Price: $0.60

Moelis rates ((MCP)) as Hold (3) –

Moelis observes operating cash flow from within 1H results for McPherson's (released on March15) fell sharply due to weaker-than-expected sales. As a result, net debt increased to $13.9m from $8.8m in the 1H of FY22.

While essential beauty continued to outperform, competitive pressures led to skincare market-share losses, explains the analyst. Vitamins brands Oriential Botannicals and Fusion missed expectations.

Following the result, the company also announced the resignation of CEO Grant Peck for personal reasons.

The broker lowers FY23-25 EPS forecasts by -30 to -40% after incorporating weaker sales in higher margin skin and vitamin brands. Target price falls to 64c from 83c. Hold rating is unchanged.

This report was published on April 5, 2023.

Target price is $0.64 Current Price is $0.60 Difference: $0.04
If MCP meets the Moelis target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 3.00 cents and EPS of 3.40 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.65.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 3.70 cents and EPS of 4.30 cents.
At the last closing share price the estimated dividend yield is 6.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.95.

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

NST    NORTHERN STAR RESOURCES LIMITED

Gold & Silver – Overnight Price: $13.18

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

Northern Star Resources has priced US$600m in senior guaranteed notes. Proceeds will be used for general corporate purposes including capital expenditure which may include the KCGM expansion project if and when a final decision is made.

Canaccord Genuity considers the notes easily serviceable relative to its forecasts for free cash flow. Meanwhile, the $300m buyback  remains open until mid September. The broker incorporates the notes in its estimates and revises the target to $13.15 from $13.10. Buy rating retained.

This report was published on March 31, 2023.

Target price is $13.15 Current Price is $13.18 Difference: minus $0.03 (current price is over target).
If NST meets the Canaccord Genuity target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $12.68, suggesting downside of -3.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 23.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 1.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.9, implying annual growth of -5.6%.
Current consensus DPS estimate is 28.4, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 37.8.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 27.00 cents and EPS of 72.00 cents.
At the last closing share price the estimated dividend yield is 2.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.6, implying annual growth of 50.7%.
Current consensus DPS estimate is 34.6, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 25.1.

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

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $12.06

Jarden rates ((NWL)) as Neutral (3) –

Netwealth Group's net flows fell well short of Jarden's estimates in the third quarter, amid elevated market volatility. A modest -$1bn downward revision to net-fund-inflows guidance suggests confidence has improved regarding activity.

Against this backdrop, the broker suggests the uptake of the company's new Multi-Asset Portfolio service being launched this month will be key, as will be tighter cost control.

With greater flow uncertainty and only a 6% value headroom to the target price (reduced to $13.35 from $13.55), the broker retains a Neutral rating.

This report was published on April 3, 2023.

Target price is $13.35 Current Price is $12.06 Difference: $1.29
If NWL meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $14.72, suggesting upside of 22.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 23.90 cents and EPS of 27.60 cents.
At the last closing share price the estimated dividend yield is 1.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.9, implying annual growth of 22.5%.
Current consensus DPS estimate is 23.8, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 43.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 30.80 cents and EPS of 36.30 cents.
At the last closing share price the estimated dividend yield is 2.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.5, implying annual growth of 30.8%.
Current consensus DPS estimate is 30.7, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 33.0.

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

QUB    QUBE HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $2.95

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

Jarden wonders whether the weaker container movements at Australia's ports are cause for concern about Qube Holdings. While the outlook predicts a slowdown throughout the second half of FY23, consistent with management's commentary, the broker anticipates volumes will remain volatile on a month-to-month basis.

Slower volumes should eventually weigh on the company's strong net profit growth of the past two years but this is all ready reflected in forecasts and the current share price, in the broker's opinion.

Investors are cautioned against extrapolating from volatility in container movements. Overweight rating and $3.35 target price maintained.

This report was published on April 1, 2023.

Target price is $3.25 Current Price is $2.95 Difference: $0.3
If QUB meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $3.40, suggesting upside of 15.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 10.20 cents and EPS of 12.20 cents.
At the last closing share price the estimated dividend yield is 3.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.8, implying annual growth of 94.2%.
Current consensus DPS estimate is 7.5, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 23.0.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 11.80 cents and EPS of 13.30 cents.
At the last closing share price the estimated dividend yield is 4.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.4, implying annual growth of 4.7%.
Current consensus DPS estimate is 8.0, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 22.0.

Market Sentiment: 0.4
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: $24.80

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

At its investor day, Seek outlined its steps to achieve $2bn in revenue in FY28, which implies a 10% FY23-28 compound annual growth rate (CAGR), according to Goldman Sachs.

The broker's forecasts sit below these expectations. While the earnings margin outlook was incrementally positive, it's felt the challenging FY24 revenue environment will make it difficult for Seek to drive underlying margins greater than 50%.

Management lowered FY23 revenue guidance by about -1% on A&NZ volume headwinds, offset by $15m in cost savings.

The analyst makes minor forecast changes, and its $22.60 target and Sell rating are retained.

This report was published on April 4, 2023.

Target price is $22.60 Current Price is $24.80 Difference: minus $2.2 (current price is over target).
If SEK meets the Goldman Sachs target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $28.28, suggesting upside of 14.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 45.00 cents and EPS of 71.00 cents.
At the last closing share price the estimated dividend yield is 1.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.6, implying annual growth of 50.1%.
Current consensus DPS estimate is 45.7, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 34.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 53.00 cents and EPS of 77.00 cents.
At the last closing share price the estimated dividend yield is 2.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.1, implying annual growth of 6.3%.
Current consensus DPS estimate is 50.1, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 32.6.

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

SHL    SONIC HEALTHCARE LIMITED

Healthcare services – Overnight Price: $36.22

Jarden rates ((SHL)) as Neutral (3) –

Sonic Healthcare will acquire Diagnosticum in Germany for EUR190m. Jarden believes the acquisition highlights the advantage of the company's scale, especially when acquisitions occur in one of its three core geographies

The acquisition is expected to be immediately accretive. The broker also anticipates very little integration risk. The company has already prepped the market for much larger M&A activity which indicates more to come, says the broker.

Neutral rating retained. Target price is raised to $31.43 from $30.78.

This report was published on April 3, 2023.

Target price is $31.43 Current Price is $36.22 Difference: minus $4.79 (current price is over target).
If SHL meets the Jarden target it will return approximately minus 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $33.70, suggesting downside of -7.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 92.00 cents and EPS of 152.80 cents.
At the last closing share price the estimated dividend yield is 2.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 152.4, implying annual growth of -50.1%.
Current consensus DPS estimate is 95.5, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 23.8.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 100.00 cents and EPS of 156.80 cents.
At the last closing share price the estimated dividend yield is 2.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.9, implying annual growth of -2.3%.
Current consensus DPS estimate is 104.8, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 24.3.

Market Sentiment: 0.3
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: $4.03

Jarden rates ((TPW)) as Neutral (3) –

February ABS data show a -0.7% slowdown in Australian household goods retail sales and CommBank ((CBA)) credit card data points to reduced spending on household goods and furnishings, note Jarden.

The broker expects an ongoing recovery in online traffic growth at Temple & Webster over the remainder of the second half of FY23 as average order values remain resilient and online shoppers seek value during a downturn.

Target price falls to $3.88 from $4.12. Neutral rating retained.

This report was published on April 5, 2023.

Target price is $3.88 Current Price is $4.03 Difference: minus $0.15 (current price is over target).
If TPW 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 $4.53, suggesting upside of 12.3%(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 7.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.1, implying annual growth of -48.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 79.0.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 9.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.3, implying annual growth of 43.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 55.2.

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

ZIP    ZIP CO LIMITED

Business & Consumer Credit – Overnight Price: $0.53

Jarden rates ((ZIP)) as Neutral (3) –

Jarden assesses the news that Zip Co has divested its central and eastern European and South African businesses and will wind down in the Middle East.

As a result, Jarden observes the company will have delivered on its objective to neutralise cash burn by the end of FY23. The broker notes the value of BNPL has materially deteriorated over the past few years and it is increasingly difficult for investors to overlook this.

Still, with the closure of these businesses the company can continue towards profitability. Neutral rating reiterated. Target is reduced to $0.70 from $0.80.

This report was published on April 1, 2023.

Target price is $0.70 Current Price is $0.53 Difference: $0.17
If ZIP meets the Jarden target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $0.82, suggesting upside of 54.3%(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 43.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -28.3, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 9.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -13.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

---

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.

This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

Click to view our Glossary of Financial Terms