Australian Broker Call *Extra* Edition – May 15, 2023

This story features ADBRI LIMITED, and other companies. For more info SHARE ANALYSIS: ABC

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)

ABC   ALL   ANZ   BLD   CAR   CBA   COL   DDR (2)   DEG   IPL   JHX   LYC (2)   NXD (2)   OFX   PEN   QAL   RWC   SUL (2)   WBC (2)   WDS   WOR  

ABC    ADBRI LIMITED

Building Products & Services – Overnight Price: $1.61

Jarden rates ((ABC)) as Neutral (3) –

In its outlook, Jarden assesses, with a much greater skew for Adbri to non-residential construction and mining, activity in this segment should mitigate any downside in residential.

The broker retains a Neutral rating a $1.65 target and transfers coverage to Rohan Gallagher.

This report was published on May 8, 2023.

Target price is $1.65 Current Price is $1.61 Difference: $0.04
If ABC meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $1.69, suggesting upside of 4.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 15.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.3, implying annual growth of -9.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 11.3.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 7.70 cents and EPS of 18.10 cents.
At the last closing share price the estimated dividend yield is 4.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.2, implying annual growth of 6.3%.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 10.6.

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

ALL    ARISTOCRAT LEISURE LIMITED

Gaming – Overnight Price: $38.69

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

In observing the revenue performance of Aristocrat Leisure's main competitors in the US, Jarden expects a similar decline in user acquisition, amid "flattish" revenue and margin expansion when the company reports its first half results on May 18.

Coverage is transferred to Rohan Gallagher. The Overweight rating and target price of $39.04 are retained.

This report was published on May 7, 2023.

Target price is $39.04 Current Price is $38.69 Difference: $0.35
If ALL meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $43.17, suggesting upside of 11.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 56.00 cents and EPS of 187.10 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 188.7, implying annual growth of 32.1%.
Current consensus DPS estimate is 63.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 20.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 67.00 cents and EPS of 190.20 cents.
At the last closing share price the estimated dividend yield is 1.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 199.6, implying annual growth of 5.8%.
Current consensus DPS estimate is 69.7, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 19.4.

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

ANZ    ANZ GROUP HOLDINGS LIMITED

Banks – Overnight Price: $24.50

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

Jarden assesses the first half result raises questions on sustainability and remains cautious about the outlook. ANZ Bank's larger exposure to institutional deposits allows it to capture more benefits from rising rates and less adverse mix shifts versus peers, the broker observes.

Cash earnings forecasts are cut by -3% for FY23 and -6% for FY24. Given the valuation support and less exposure to competitive retail banking the broker retains the Overweight rating and lowers the target to $24.40 from $24.80.

This report was published on May 5, 2023.

Target price is $24.40 Current Price is $24.50 Difference: minus $0.1 (current price is over target).
If ANZ meets the Jarden target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $26.49, suggesting upside of 8.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 158.00 cents and EPS of 229.00 cents.
At the last closing share price the estimated dividend yield is 6.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 239.1, implying annual growth of -4.4%.
Current consensus DPS estimate is 162.5, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 10.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 162.00 cents and EPS of 225.00 cents.
At the last closing share price the estimated dividend yield is 6.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 227.0, implying annual growth of -5.1%.
Current consensus DPS estimate is 163.0, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 10.8.

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

BLD    BORAL LIMITED

Building Products & Services – Overnight Price: $4.02

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

As Boral has a greater exposure to non-residential/engineering construction, activity in this sector should mitigate any downside risk from residential.

The broker retains an Overweight rating and $4.10 target and transfers coverage to Rohan Gallagher.

This report was published on May 8, 2023.

Target price is $4.10 Current Price is $4.02 Difference: $0.08
If BLD meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $3.49, suggesting downside of -13.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 11.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.3, implying annual growth of N/A.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 43.2.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.2, implying annual growth of 52.7%.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 28.3.

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

CAR    CARSALES.COM LIMITED

Automobiles & Components – Overnight Price: $23.84

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

Goldman Sachs envisages a robust outlook for Carsales revenues, supported by significant digital market opportunities.

Carsales is considered the most diversified global growth exposure in its classifieds coverage with a monetisation model that is "somewhat countercyclical".

Yet, given the valuation metrics a Neutral rating is maintained and the broker awaits confirmation of execution on recent acquisitions. Target is $23.30.

This report was published on May 9, 2023.

Target price is $23.30 Current Price is $23.84 Difference: minus $0.54 (current price is over target).
If CAR meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $25.17, suggesting upside of 5.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 62.00 cents and EPS of 77.00 cents.
At the last closing share price the estimated dividend yield is 2.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.4, implying annual growth of 33.5%.
Current consensus DPS estimate is 59.6, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 31.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 70.00 cents and EPS of 87.00 cents.
At the last closing share price the estimated dividend yield is 2.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 85.8, implying annual growth of 13.8%.
Current consensus DPS estimate is 65.8, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 27.8.

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

CBA    COMMONWEALTH BANK OF AUSTRALIA

Banks – Overnight Price: $98.96

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

CommBank's cash profit was up 10% in the March quarter, behind what was implied by Goldman Sachs' prior forecasts.

The broker believes the bank is not immune to the macro pressures facing the sector and, while operating trends remain solid, reiterates a Sell rating.

This view is based on the skew to consumer banking which leaves it more exposed to elevated mortgage competition. Target is reduced to $84.97 from $87.78.

This report was published on May 9, 2023.

Target price is $84.97 Current Price is $98.96 Difference: minus $13.99 (current price is over target).
If CBA meets the Goldman Sachs target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $89.68, suggesting downside of -9.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 453.00 cents and EPS of 589.00 cents.
At the last closing share price the estimated dividend yield is 4.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 595.5, implying annual growth of -4.8%.
Current consensus DPS estimate is 433.5, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 16.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 453.00 cents and EPS of 577.00 cents.
At the last closing share price the estimated dividend yield is 4.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 572.9, implying annual growth of -3.8%.
Current consensus DPS estimate is 440.5, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 17.3.

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

COL    COLES GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $18.21

Jarden rates ((COL)) as Neutral (3) –

Should Amazon Australia attain metrics in the long term similar to those already achieved in the UK and the US, it would become the fourth largest retailer behind Woolworths Group ((WOW)), Wesfarmers ((WES)) and Coles Group.

Jarden believes Amazon will achieve this status and materially impact incumbents.

Online penetration offshore has been higher than in Australia. However, a steadying of supply chain pressures, investment by the likes of Coles Group and growth in Amazon Australia will likely see online penetration re-accelerate, suggests the analyst.

The Neutral rating and $17.50 target are retained for Coles Group.

This report was published on May 8, 2023.

Target price is $17.50 Current Price is $18.21 Difference: minus $0.71 (current price is over target).
If COL 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 $17.63, suggesting downside of -3.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Current consensus EPS estimate is 80.7, implying annual growth of 2.4%.
Current consensus DPS estimate is 64.3, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 22.6.

Forecast for FY24:

Current consensus EPS estimate is 80.8, implying annual growth of 0.1%.
Current consensus DPS estimate is 65.4, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 22.5.

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

DDR    DICKER DATA LIMITED

Hardware & Equipment – Overnight Price: $8.96

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

Dicker Data has indicated an increase of 15% in revenue and 23% in gross profit in the March quarter. Revenue was in line with Goldman Sachs' estimates, while stronger gross profit margins were offset by higher interest costs.

The broker suspects hardware demand is likely to deteriorate in coming months as economic growth slows, partially offsetting the margin improvements from acquisition synergies and interest costs. As a result, a Neutral rating is maintained and the target is $9.50.

This report was published on May 9, 2023.

Target price is $9.50 Current Price is $8.96 Difference: $0.54
If DDR meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 44.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 4.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.36.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 49.00 cents and EPS of 50.00 cents.
At the last closing share price the estimated dividend yield is 5.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.92.

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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Petra Capital rates ((DDR)) as Buy (1) –

Petra Capital observes Dicker Data's first quarter update was underpinned by positive outcomes on revenue and gross profit margin. Pre-tax profit increased 6.7% and revenue grew 14.7%.

The business remains unprofitable, although profit is expected to be forthcoming in the second quarter following a period of cost rationalisation.

The company has also flagged its intention to better manage debt levels and reduce aged stock. No guidance was provided for 2023. The broker reiterates a Buy rating with a $10.38 target.

This report was published on May 10, 2023.

Target price is $10.38 Current Price is $8.96 Difference: $1.42
If DDR meets the Petra Capital target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 49.00 cents and EPS of 48.80 cents.
At the last closing share price the estimated dividend yield is 5.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.36.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 54.00 cents and EPS of 54.10 cents.
At the last closing share price the estimated dividend yield is 6.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.56.

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

DEG    DE GREY MINING LIMITED

Gold & Silver – Overnight Price: $1.44

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

Canaccord Genuity updates its model after De Grey Mining reported further drill results from the Toweranna target.

The broker believes the business is spoiled for choice with its near-mine and regional opportunities. Many of the targets have potential to enhance project economics.

 Speculative Buy rating maintained. Target is $2.50, reduced from $2.60.

This report was published on May 9, 2023.

Target price is $2.50 Current Price is $1.44 Difference: $1.06
If DEG meets the Canaccord Genuity target it will return approximately 74% (excluding dividends, fees and charges).
Current consensus price target is $1.83, suggesting upside of 27.3%(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.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.0, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents.

How do these forecasts compare to market consensus projections?

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

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

IPL    INCITEC PIVOT LIMITED

Agriculture – Overnight Price: $3.23

Goldman Sachs rates ((IPL)) as No Rating (-1) –

Goldman Sachs revises the earnings profile to reflect changes to fertiliser price forecasts. As a result FY23 underlying EBIT is reduced by -19%. The revised profile assumes an ammonia price of US$475-515/t across FY24-25.

Incitec Pivot will report its first half results on May 17 an the broker expects underlying EBIT in the first half of $666m, up 17%. No rating or target is provided.

This report was published on May 9, 2023.

Current Price is $3.23. Target price not assessed.
Current consensus price target is $3.93, suggesting upside of 21.7%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 20.00 cents and EPS of 39.00 cents.
At the last closing share price the estimated dividend yield is 6.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.9, implying annual growth of -25.5%.
Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 8.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 18.00 cents and EPS of 32.00 cents.
At the last closing share price the estimated dividend yield is 5.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.1, implying annual growth of -27.8%.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 11.5.

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

JHX    JAMES HARDIE INDUSTRIES PLC

Building Products & Services – Overnight Price: $34.15

Jarden rates ((JHX)) as Neutral (3) –

Jarden observes the Asia-Pacific region represents 16% of FY22 sales and is skewed towards new construction, as opposed to the renovations sector in which James Hardie Industries has more exposure in North America.

The focus on new construction poses earnings risk in the fourth quarter and FY24 as a result.

The broker retains a Neutral rating and $31.60 target and transfers coverage to Rohan Gallagher.

This report was published on May 8, 2023.

Target price is $31.60 Current Price is $34.15 Difference: minus $2.55 (current price is over target).
If JHX meets the Jarden target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $39.50, suggesting upside of 15.7%(ex-dividends)
The company's fiscal year ends in February.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 200.56 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 214.1, implying annual growth of N/A.
Current consensus DPS estimate is 21.2, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 16.0.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 150.57 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 199.9, implying annual growth of -6.6%.
Current consensus DPS estimate is 37.6, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 17.1.

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

LYC    LYNAS RARE EARTHS LIMITED

Rare Earth Minerals – Overnight Price: $7.38

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

Lynas Rare Earths has confirmed the Malaysian government has approved an extension to its operating licence conditions, allowing for the import of lanthanide concentrate with cracking and leaching activities to continue until January 2024. This removes the uncertainty surrounding the near-term operating outlook.

Canaccord Genuity points out risks still remain around Kalgoorlie and Mount Weld yet considers the stock a top pick in its rare earths coverage because of a strategic and growing asset base. Buy rating retained. Target is raised to $10.50 from $10.00.

This report was published on May 8, 2023.

Target price is $10.50 Current Price is $7.38 Difference: $3.12
If LYC meets the Canaccord Genuity target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $8.14, suggesting upside of 10.3%(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 33.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.4, implying annual growth of -41.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 20.8.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 19.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.0, implying annual growth of 7.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 19.4.

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

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

The Malaysian government will allow Lynas Rare Earths to import and process lanthanide concentrate from the Mount Weld mine through the LAMP refinery for a further six months, avoiding a potential shutdown during the first half of FY24.

This should allow the completion of the construction of the Kalgoorlie facility. Malaysia has dismissed all other appeals by the company for a continued operation of the LAMP beyond January1 2024.

Goldman Sachs lifts FY24 production forecasts to 5300t but still expects production will fall because of a requirement to redirect some concentrate to Kalgoorlie for commissioning and ramp-up.

Goldman Sachs retains a Neutral rating and raises the target to $6.90 from $6.40.

This report was published on May 8, 2023.

Target price is $6.90 Current Price is $7.38 Difference: minus $0.48 (current price is over target).
If LYC meets the Goldman Sachs target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $8.14, suggesting upside of 10.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 40.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.4, implying annual growth of -41.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 20.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 10.00 cents and EPS of 24.80 cents.
At the last closing share price the estimated dividend yield is 1.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.0, implying annual growth of 7.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 19.4.

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

NXD    NEXTED GROUP LIMITED

Overnight Price: $1.68

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

Canaccord Genuity observes expansions in the campus footprint announced earlier this year have provided NextEd Group with the ability to service additional incoming demand.

Management's expectations for 6500 active English students by June 2023 are considered a strong indicator of how FY24 should play.

Canaccord Genuity is confident the levers are in place to deliver a strong second half and FY24. Buy rating maintained. Target is lifted to $2.00 from $1.70.

This report was published on May 10, 2023.

Target price is $2.00 Current Price is $1.68 Difference: $0.32
If NXD meets the Canaccord Genuity target it will return approximately 19% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 84.00.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.60.

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

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Petra Capital rates ((NXD)) as Buy (1) –

The trading update from NextEd Group has revealed momentum continues in student numbers, forecast to reach 6500 by June 30.

Importantly, ELICOS student number guidance is ahead of expectations, and Petra Capital notes this is a particularly significant given the high transaction value.

Management has also guided to classroom numbers at the end of financial year across the network of 240, up from 193 in December  2022. The broker maintains a Buy rating and raises the target to $1.88 from $1.69.

This report was published on May 10, 2023.

Target price is $1.88 Current Price is $1.68 Difference: $0.2
If NXD meets the Petra Capital target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 76.36.

Forecast for FY24:

Petra Capital 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 32.94.

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

OFX    OFX GROUP LIMITED

Diversified Financials – Overnight Price: $1.54

Wilsons rates ((OFX)) as Market Weight (3) –

Wilsons believes FY24 will provide a challenging comparable for OFX Group in the absence of any acceleration in turnover growth, price increases or M&A, and expects FY24 turnover of $39m at a blended net interest margin of 56.5 basis points.

Wilsons suspects OFX Group may be at risk of being "the hunted, rather than the hunter" noting some of its peers are citing an increased appetite for cross-border payments M&A.

The rating is Market Weight. Target is $1.72.

This report was published on May 10, 2023.

Target price is $1.72 Current Price is $1.54 Difference: $0.175
If OFX meets the Wilsons target it will return approximately 11% (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 14.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.58.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 12.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.17.

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

PEN    PENINSULA ENERGY LIMITED

Uranium – Overnight Price: $0.15

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

Peninsula Energy is on track for first uranium production from Lance by mid year. Previous issues outlined have been resolved, with key equipment now on site and being installed. First sales are targeted for the December quarter.

Canaccord Genuity notes Peninsula Energy is one of the few ASX stocks exposed to the political desire to increase US domestic production.

The Speculative Buy rating and target price of $0.36 are retained. 

This report was published on May 8, 2023.

Target price is $0.36 Current Price is $0.15 Difference: $0.205
If PEN meets the Canaccord Genuity target it will return approximately 132% (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

QAL    QUALITAS LIMITED

Wealth Management & Investments – Overnight Price: $2.80

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

Goldman Sachs observes Qualitas has consistently enabled to win large new mandates with global institutions, growing funds under management by 43% since listing in December 2021.

The broker expects further growth, noting a number of catalysts in the short to medium term. This includes the activation of further tranches in the recently-announced private credit fund, representing up to $780m.

Deployment appears to be robust too, with the $700m ADIA mandate achieving deployment in excess of $560m during FY23 to date. Goldman Sachs maintains a Buy rating with a $3.80 target.

This report was published on May 8, 2023.

Target price is $3.80 Current Price is $2.80 Difference: $1
If QAL meets the Goldman Sachs target it will return approximately 36% (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 4.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.00.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 6.00 cents and EPS of 12.00 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 23.33.

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

RWC    RELIANCE WORLDWIDE CORP. LIMITED

Building Products & Services – Overnight Price: $4.19

Jarden rates ((RWC)) as Neutral (3) –

Asia-Pacific makes up 18% of FY22 sales and new construction 8% of group revenue. As a result, Jarden believes the downside risk for new construction in turn poses earnings risk for the fourth quarter of FY23 and FY24.

The broker retains a Neutral rating and $4.40 target and transfers coverage to Rohan Gallagher.

This report was published on May 8, 2023.

Target price is $4.40 Current Price is $4.19 Difference: $0.21
If RWC meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $4.17, suggesting downside of -0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Current consensus EPS estimate is 27.3, implying annual growth of N/A.
Current consensus DPS estimate is 41.2, implying a prospective dividend yield of 9.8%.
Current consensus EPS estimate suggests the PER is 15.3.

Forecast for FY24:

Current consensus EPS estimate is 28.7, implying annual growth of 5.1%.
Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 14.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
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: $12.80

Jarden rates ((SUL)) as Underweight (4) –

Should Amazon Australia attain metrics in the long term similar to those already achieved in the UK and the US, it would become the fourth largest retailer behind Woolworths Group ((WOW)), Wesfarmers ((WES)) and Coles Group ((COL)).

The analysts are cautious on companies with exposure to household goods and those lacking clear competitive differentiation.

The broker includes Super Retail in a list of companies most likely to be negatively impacted by the growing popularity of Amazon.

The Underweight rating and $12.10 target price are maintained.

This report was published on May 8, 2023.

Target price is $12.10 Current Price is $12.80 Difference: minus $0.7 (current price is over target).
If SUL 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 $13.05, suggesting upside of 2.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Current consensus EPS estimate is 114.1, implying annual growth of 6.8%.
Current consensus DPS estimate is 71.8, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 11.2.

Forecast for FY24:

Current consensus EPS estimate is 93.6, implying annual growth of -18.0%.
Current consensus DPS estimate is 64.5, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 13.7.

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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Wilsons rates ((SUL)) as Market Weight (3) –

The quality of Super Retail's trading update for the first 43 weeks of FY23 appears strong to Wilsons, with gross margins falling by -10bps half-on-half, despite concerns for heightened competition and a trend to less discretionary items.

The analyst notes all verticals are performing well, particularly Macpac, which benefited from an expanded summer range, a return to
travel by the consumer and a record Easter.

The broker's $12 target is derived from EPS forecasts impacted by normalisation of revenue and gross margins back to pre-covid levels. As the share price is trading around fair value, the Market Weight rating is unchanged.

This report was published on May 5, 2023.

Target price is $12.00 Current Price is $12.80 Difference: minus $0.8 (current price is over target).
If SUL meets the Wilsons target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $13.05, suggesting upside of 2.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 73.80 cents and EPS of 120.40 cents.
At the last closing share price the estimated dividend yield is 5.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 114.1, implying annual growth of 6.8%.
Current consensus DPS estimate is 71.8, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 11.2.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 62.10 cents and EPS of 98.30 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 13.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.6, implying annual growth of -18.0%.
Current consensus DPS estimate is 64.5, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 13.7.

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

WBC    WESTPAC BANKING CORPORATION

Banks – Overnight Price: $21.09

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

First half cash earnings were up significantly and ahead of Goldman Sachs' estimates. This was because of higher trading income and lower bad debts.

Westpac has reiterated guidance for operating within the CET1 range of 11-11.5% and has amended its pay-out ratio to 65-70% of reported net profit.

Goldman Sachs retains a Buy rating, assessing the bank's management of net interest margins was positive relative to peers. Despite the bank walking away from its FY24 cost target of $8.6bn the broker expects a broadly flat cost trajectory over the next two years. Target is reduced to $24.67 from $25.86.

This report was published on May 8, 2023.

Target price is $24.67 Current Price is $21.09 Difference: $3.58
If WBC meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $23.75, suggesting upside of 12.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 140.00 cents and EPS of 202.00 cents.
At the last closing share price the estimated dividend yield is 6.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 206.5, implying annual growth of 29.1%.
Current consensus DPS estimate is 142.4, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 10.2.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 140.00 cents and EPS of 189.00 cents.
At the last closing share price the estimated dividend yield is 6.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 193.3, implying annual growth of -6.4%.
Current consensus DPS estimate is 144.4, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 10.9.

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

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Jarden rates ((WBC)) as Underweight (4) –

Westpac's first half was better than Jarden expected although lower margins and higher costs mean estimates for earnings per share are downgraded -7% for FY24. FY23 estimates are upgraded 0.5%.

While acknowledging the valuation support, particularly the strong dividend yield and capital management, the broker prefers ANZ Bank ((ANZ)) and the Underweight rating is maintained. Target is reduced to $22.40 from $22.80.

This report was published on May 8, 2023.

Target price is $22.40 Current Price is $21.09 Difference: $1.31
If WBC meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $23.75, suggesting upside of 12.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 142.00 cents and EPS of 204.00 cents.
At the last closing share price the estimated dividend yield is 6.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 206.5, implying annual growth of 29.1%.
Current consensus DPS estimate is 142.4, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 10.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 143.00 cents and EPS of 189.00 cents.
At the last closing share price the estimated dividend yield is 6.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 193.3, implying annual growth of -6.4%.
Current consensus DPS estimate is 144.4, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 10.9.

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

WDS    WOODSIDE ENERGY GROUP LIMITED

NatGas – Overnight Price: $33.66

Jarden rates ((WDS)) as Neutral (3) –

Based on Jarden's assessment of the information regarding the changes to the petroleum resource rent tax (PRRT), Pluto and Wheatstone are expected to start pay from July1 2023.

On a positive note for Woodside Energy, uncertainty surrounding the potential changes may have affected its proposed sell-down process for Scarborough. Buyers may potentially re-engage once the changes to the tax are approved.

The broker suspects the gas industry will breathe "a sigh of relief" over the federal government's preferred option following the Treasury review. The broker retains a Neutral rating for Woodside Energy and reduces the target to $34.15 from $34.40.

This report was published on May 8, 2023.

Target price is $34.15 Current Price is $33.66 Difference: $0.49
If WDS meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $36.35, suggesting upside of 8.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 168.12 cents and EPS of 212.51 cents.
At the last closing share price the estimated dividend yield is 4.99%.
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 269.3, implying annual growth of N/A.
Current consensus DPS estimate is 181.0, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 12.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 185.81 cents and EPS of 234.77 cents.
At the last closing share price the estimated dividend yield is 5.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 273.2, implying annual growth of 1.4%.
Current consensus DPS estimate is 185.5, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 12.3.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WOR    WORLEY LIMITED

Energy Sector Contracting – Overnight Price: $16.44

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

Worley has reiterated guidance for FY23 EBITA margins that are similar to FY22's 6.4%. Goldman Sachs envisages risks are to the upside because of improved margins in the factored sales pipeline and backlog as well as operating leverage.

Worley has restated its margin expectation for FY24, raising it to more than 7.5%, which the broker believes reflects a pro forma adjustment for the sale of the US turnaround business.

Neutral maintained. Target is $17.30, increased from $15.70.

This report was published on May 9, 2023.

Target price is $17.30 Current Price is $16.44 Difference: $0.86
If WOR meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $16.48, suggesting upside of 0.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 48.00 cents and EPS of 57.00 cents.
At the last closing share price the estimated dividend yield is 2.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.1, implying annual growth of 86.2%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 26.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 57.00 cents and EPS of 76.00 cents.
At the last closing share price the estimated dividend yield is 3.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 72.5, implying annual growth of 18.7%.
Current consensus DPS estimate is 50.5, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 22.7.

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

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