Australian Broker Call *Extra* Edition – Apr 24, 2023

This story features COOPER ENERGY LIMITED, and other companies. For more info SHARE ANALYSIS: COE

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)

COE (2)   CXO (2)   DHG   EVS   HUB   NEU   PLT   PPS   REA   SDV   TLX  

COE    COOPER ENERGY LIMITED

Crude Oil – Overnight Price: $0.17

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

Cooper Energy's production and sales volumes in the March quarter were broadly in line with Canaccord Genuity's expectations.

The broker suspects Orbost and Athena will become increasingly valuable as Victoria consumes around 200PJ/year of gas and is serviced by only five operating plants. Furthermore, it is unlikely additional gas plants will be constructed beyond Golden Beach, which will primarily be storage.

The company now needs to focus on generating free cash flow, the broker adds. Buy rating maintained. Target is steady at 33c.

This report was published on April 19, 2023.

Target price is $0.33 Current Price is $0.17 Difference: $0.16
If COE meets the Canaccord Genuity target it will return approximately 94% (excluding dividends, fees and charges).
Current consensus price target is $0.22, suggesting upside of 27.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.5, 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 34.0.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 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 85.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.1, implying annual growth of 120.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 15.5.

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

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

Jarden welcomes Cooper Energy's increase in output at the Orbost gas processing plant – to average rates of 46.9TJ/d – yet notes March average rates have just returned to levels of July/August 2022.

The broker awaits more evidence of higher sustained rates before factoring it into forecasts, with the company continuing to target output reaching the high 50TJ/d levels by the end of 2023.

Jarden believes higher Orbost rates will help fund the next wave of growth for the company and maintains an Overweight rating. Target rises to $0.25 from $0.24.

This report was published on April 18, 2023.

Target price is $0.25 Current Price is $0.17 Difference: $0.08
If COE meets the Jarden target it will return approximately 47% (excluding dividends, fees and charges).
Current consensus price target is $0.22, suggesting upside of 27.5%(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 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 42.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.5, 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 34.0.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.1, implying annual growth of 120.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 15.5.

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

CXO    CORE LITHIUM LIMITED

New Battery Elements – Overnight Price: $0.96

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

Canaccord Genuity notes the increase in the mineral resource at Finniss, NT, of 62% as a result of the RC and diamond drilling completed by Core Lithium in 2022.

The update includes two maiden resources for Bilatos and Penfolds. The broker believes additional drilling will continue to unlock potential at the Bynoe pegmatite field.

Speculative Buy rating retained. Target is $1.45.

This report was published on April 18, 2023.

Target price is $1.45 Current Price is $0.96 Difference: $0.49
If CXO meets the Canaccord Genuity target it will return approximately 51% (excluding dividends, fees and charges).
Current consensus price target is $0.98, suggesting upside of 2.4%(ex-dividends)

Forecast for FY23:

Current consensus EPS estimate is 0.5, 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 192.0.

Forecast for FY24:

Current consensus EPS estimate is 10.7, implying annual growth of 2040.0%.
Current consensus DPS estimate is 1.4, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 9.0.

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

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Jarden rates ((CXO)) as Sell (5) –

Core Lithium has posted a 62% increase to the total resource at Finniss. An updated reserve will be delivered later in the current quarter. Jarden notes the bulk of growth, particularly the 46% increase to measured and indicated resources, was driven by the BP33 underground deposit and already released in March.

Exploration efforts are accelerating with the company budgeting $25m for 2023, almost twice the prior year's budget. Jarden resists adding more mine life attributable to BP33 as extension potential appears limited.

Yet, another year of mine life is added on the basis of the additional resources at Carlton and Hang Gong. Target is raised to $0.53 from $0.50. Sell rating maintained.

This report was published on April 18, 2023.

Target price is $0.53 Current Price is $0.96 Difference: minus $0.43 (current price is over target).
If CXO meets the Jarden target it will return approximately minus 45% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.98, 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 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 480.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.5, 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 192.0.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.7, implying annual growth of 2040.0%.
Current consensus DPS estimate is 1.4, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 9.0.

Market Sentiment: 0.0
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: $3.26

Goldman Sachs rates ((DHG)) as Downgrade to Neutral from Buy (3) –

While real estate listings so far in 2023 have been soft this is broadly consistent with Goldman Sachs' expectations. Mid single-digit listings growth is expected in FY24.

The broker is encouraged by the recent positive updates on housing, namely an inflection in house prices, a pause in rate hikes and strong clearance rates. Still, caution prevails around the timing of a recovery and further rate hikes in July and August are anticipated, which could have a negative impact on house prices.

Goldman Sachs downgrades Domain to Neutral from Buy, envisaging the risk/reward is now more balanced since it was upgraded to Buy in July 2022. Target is $3.65, up 4%.

This report was published on April 18, 2023.

Target price is $3.65 Current Price is $3.26 Difference: $0.39
If DHG meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $3.38, suggesting upside of 3.7%(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 7.60 cents.
At the last closing share price the estimated dividend yield is 1.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.9, implying annual growth of 16.9%.
Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 47.2.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 6.00 cents and EPS of 10.30 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.1, implying annual growth of 46.4%.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 32.3.

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

EVS    ENVIROSUITE LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.09

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

Wilsons notes a solid March quarter with management of EnviroSuite positive about the short-term outlook. A strong finish to the June quarter is expected as the business indicated it had a "line of sight" over new customer wins.

The broker points out this view is supported by project sales rebounding to $2.2m and the fourth quarter being the company's strongest for the year.

Overweight rating maintained. Target edges down to $0.17 from $0.18.

This report was published on April 19, 2023.

Target price is $0.17 Current Price is $0.09 Difference: $0.077
If EVS meets the Wilsons target it will return approximately 83% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.63.

Forecast for FY24:

Wilsons 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 15.50.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $28.27

Jarden rates ((HUB)) as Neutral (3) –

Jarden notes elevated volatility over the March quarter resulted in weaken net flows for Hub24, down -29% and -16% below expectations. Still, the new relationship with Equity Trustees ((EQT)) should help and the FY24 target of $80-$89m in funds appears achievable.

With only moderate upside for the stock, and lingering uncertainty about retail flows, Jarden retains a Neutral rating. Target is raised to $28.50 from $27.40.

This report was published on April 18, 2023.

Target price is $28.50 Current Price is $28.27 Difference: $0.23
If HUB meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $32.98, suggesting upside of 16.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 30.90 cents and EPS of 66.20 cents.
At the last closing share price the estimated dividend yield is 1.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.9, implying annual growth of 231.5%.
Current consensus DPS estimate is 30.3, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 42.3.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 36.50 cents and EPS of 80.40 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 35.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 82.4, implying annual growth of 23.2%.
Current consensus DPS estimate is 37.1, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 34.3.

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

NEU    NEUREN PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $14.22

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

Wilsons observes interest has increased in Neuren Pharmaceuticals amid the recent approval of DAYBUE in Rett syndrome. In analysing orphan drug launches, the broker attempts to disabuse investors of the "too good to be true" assumption.

While a net annual sales price of around US$375,000 may have "stunned"  some investors the broker points out this is well within the range of other rare paediatric orphan drug pricing.

Back solving for patient distribution gives the broker confidence the price is achievable. Overweight rating maintained. Target is $18.29.

This report was published on April 19, 2023.

Target price is $18.29 Current Price is $14.22 Difference: $4.07
If NEU meets the Wilsons target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 49.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.67.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 19.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 72.18.

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

PLT    PLENTI GROUP LIMITED

Business & Consumer Credit – Overnight Price: $0.41

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

Loan originations at Plenti Group beat Wilsons forecasts by 28.5% in the March quarter, reflecting a strong end to FY23 after a challenging start. Revenue was up 13.1% in the quarter, to $42.3m.

The broker was disappointed that quantitative guidance was not provided. Overweight rating and $1.30 target maintained.

This report was published on April 18, 2023.

Target price is $1.30 Current Price is $0.41 Difference: $0.89
If PLT meets the Wilsons target it will return approximately 217% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.19.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.06.

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

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.70

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

Praemium reported funds under administration of $21.7bn in the March quarter. Canaccord Genuity is pleased the outcome was ahead of expectations and retains an EBITDA forecst in FY23 of $23.5m.

The main challenge for the company over the medium term is to reduce the disparity between gross and net inflows, the broker adds, as this appeared "unusually large" for the quarter.

Buy rating and $1.25 target maintained.

This report was published on April 18, 2023.

Target price is $1.25 Current Price is $0.70 Difference: $0.545
If PPS meets the Canaccord Genuity target it will return approximately 77% (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

REA    REA GROUP LIMITED

Real Estate – Overnight Price: $139.53

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

While real estate listings so far in 2023 have been soft this is broadly consistent with Goldman Sachs' expectations. Mid single-digit listings growth is expected in FY24.

The broker is encouraged by the recent positive updates on housing, namely an inflection in house prices, a pause in rate hikes and strong clearance rates. Still, caution prevails around the timing of a recovery and further rate hikes in July and August are anticipated, which could have a negative impact on house prices.

The broker prefers REA Group, which appears to have enjoyed greater pricing power in Sydney, to Domain Holdings ((DHG)) and retains a Buy rating with a target of $164, up 4%.

This report was published on April 18, 2023.

Target price is $164.00 Current Price is $139.53 Difference: $24.47
If REA meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $122.96, suggesting downside of -11.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 162.00 cents and EPS of 291.00 cents.
At the last closing share price the estimated dividend yield is 1.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 282.4, implying annual growth of -3.0%.
Current consensus DPS estimate is 157.2, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 49.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 205.00 cents and EPS of 372.00 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 37.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 343.0, implying annual growth of 21.5%.
Current consensus DPS estimate is 188.8, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 40.7.

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

SDV    SCIDEV LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.35

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

SciDev's March quarter results were mixed in Canaccord Genuity's view. Revenue was low whereas margins impressed.

The company has secured a number of longer-term and higher-margin contracts and the broker finds it is a higher quality and more stable business as a result. Revenue growth of 70% is expected in FY23 and EBITDA growth of around 200%.

Speculative Buy rating and 54c target maintained.

This report was published on April 19, 2023.

Target price is $0.54 Current Price is $0.35 Difference: $0.185
If SDV meets the Canaccord Genuity target it will return approximately 52% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.50.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.90.

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: $10.00

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

Telix Pharmaceuticals reported its second consecutive quarter of positive cash flow with $100.1m in ILLUCCIX sales. Wilsons has raised terminal market share assumptions for ILLUCCIX to 34% for 28%.

Sales forecasts have increased by around 40% which leads to "massive" upgrades to the broker's EBITDA assumptions, given fixed operating expenses. Over $100m EBITDA is forecast for FY24 and over $250m in FY25.

Wilsons maintains an Overweight rating, raising the target by 10% to $10.71.

This report was published on April 19, 2023.

Target price is $10.71 Current Price is $10.00 Difference: $0.71
If TLX meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 11.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 86.21.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 28.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.09.

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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