Australian Broker Call

Produced and copyrighted by at www.fnarena.com

December 02, 2022

Access Broker Call Report Archives here

COMPANIES DISCUSSED IN THIS ISSUE

Click on symbol for fast access.

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

Last Updated: 05:00 PM

Your daily news report on the latest recommendation, valuation, forecast and opinion changes.

This report includes concise but limited reviews of research recently published by Stockbrokers, 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.

For more info about the different terms used by stockbrokers, as well as the different methodologies behind similar sounding ratings, download our guide HERE

Today's Upgrades and Downgrades
BUB - Bubs Australia Downgrade to Neutral from Buy Citi
IEL - IDP Education Downgrade to Hold from Add Morgans
RIO - Rio Tinto Downgrade to Neutral from Buy Citi
ABC  ADBRI LIMITED

Building Products & Services

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.79

Citi rates ABC as Neutral (3) -

Citi has updated its outlook on Adbri to account for the sale of the Moorebank land, driving a $10m increase to the broker's second half property earnings assumptions while net debt assumptions decline to $62m. 

The Neutral rating and target price of $1.55 are retained.

Target price is $1.55 Current Price is $1.79 Difference: minus $0.24 (current price is over target).
If ABC meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.60, suggesting downside of -7.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Citi forecasts a full year FY22 dividend of 9.00 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 5.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.9, implying annual growth of -16.7%.

Current consensus DPS estimate is 6.9, implying a prospective dividend yield of 4.0%.

Current consensus EPS estimate suggests the PER is 11.6.

Forecast for FY23:

Citi forecasts a full year FY23 dividend of 11.50 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 6.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 3.4%.

Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 4.3%.

Current consensus EPS estimate suggests the PER is 11.2.

Market Sentiment: 0.0

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

BUB  BUBS AUSTRALIA LIMITED

Dairy

More Research Tools In Stock Analysis - click HERE

Overnight Price: $0.29

Citi rates BUB as Downgrade to Neutral from Buy (3) -

While remaining supportive of Bubs Australia's journey to become a more diversified and sustainable business, and despite recent momentum improvement in key markets, Citi has downgraded on the stock following a weaker than anticipated first half.

The broker attributed first half performance to slower-than-expected US consumer offtake and a new  model in China. The broker lowers its full year net profit forecast to -$8.3m from $2.7m, factoring in first half performance as well as expected increased costs. 

The rating is downgraded to Neutral from buy and the target price decreases to $0.32 from $0.68.

Target price is $0.32 Current Price is $0.29 Difference: $0.03
If BUB meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Citi forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.36.

Forecast for FY24:

Citi forecasts a full year FY24 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 145.00.

Market Sentiment: 0.0

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

DMP  DOMINO'S PIZZA ENTERPRISES LIMITED

Food, Beverages & Tobacco

More Research Tools In Stock Analysis - click HERE

Overnight Price: $66.38

Credit Suisse rates DMP as Neutral (3) -

While Domino's Pizza Enterprises' recently announce capital raising came as a surprise, Credit Suisse expects it has been implemented largely with the desire to maintain a conservative level of leverage and headroom for acquisitions.

The broker has incorporated the $165m equity raising into its outlook, and has assumed a reduced number of store openings of 105 from 160 for the first half. Credit Suisse has cut its earnings per share forecasts -7.0%, -2.6% and -2.8% through to FY25.

The Neutral rating is retained and the target price decreases to $65.62 from $67.01

Target price is $65.62 Current Price is $66.38 Difference: minus $0.76 (current price is over target).
If DMP meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $74.75, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Credit Suisse forecasts a full year FY23 dividend of 141.00 cents and EPS of 176.00 cents.
At the last closing share price the estimated dividend yield is 2.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 182.9, implying annual growth of -0.3%.

Current consensus DPS estimate is 149.4, implying a prospective dividend yield of 2.3%.

Current consensus EPS estimate suggests the PER is 36.1.

Forecast for FY24:

Credit Suisse forecasts a full year FY24 dividend of 198.00 cents and EPS of 247.00 cents.
At the last closing share price the estimated dividend yield is 2.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 241.6, implying annual growth of 32.1%.

Current consensus DPS estimate is 197.7, implying a prospective dividend yield of 3.0%.

Current consensus EPS estimate suggests the PER is 27.3.

Market Sentiment: 0.4

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


UBS rates DMP as Buy (1) -

UBS marginally reduces its EPS forecasts following the announced capital raising to fund the option exercise price for the remainder (33.3%) of Domino's Pizza Enterprises' Germany business from Domino's in the UK. The balance of funds will be applied to debt.

The raising comprises an underwritten $150m placement at $65.05/share and a $15m share purchase plan (SPP).

Management reaffirmed FY23 earnings guidance.

The broker's Buy rating is unchanged, while the target falls to $78 fom $80.

Target price is $78.00 Current Price is $66.38 Difference: $11.62
If DMP meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $74.75, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

UBS forecasts a full year FY23 EPS of 183.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 182.9, implying annual growth of -0.3%.

Current consensus DPS estimate is 149.4, implying a prospective dividend yield of 2.3%.

Current consensus EPS estimate suggests the PER is 36.1.

Forecast for FY24:

UBS forecasts a full year FY24 EPS of 239.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 241.6, implying annual growth of 32.1%.

Current consensus DPS estimate is 197.7, implying a prospective dividend yield of 3.0%.

Current consensus EPS estimate suggests the PER is 27.3.

Market Sentiment: 0.4

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

IEL  IDP EDUCATION LIMITED

Education & Tuition

More Research Tools In Stock Analysis - click HERE

Overnight Price: $29.35

Morgans rates IEL as Downgrade to Hold from Add (3) -

Following September quarter student visa approvals data, Morgans awaits a pullback in the IDP Education share price to provide another buying opportunity. For the moment the rating is downgraded to Hold from Add on valuation.

Approvals were strong, according to the analyst, across the company's markets of Australia, the UK and Canada.

The analyst notes International study demand from India remains strong for all destinations. A slight tempering of Canadian demand is expected with that country's immigration introducing a new English proficiency test provider to its panel.

The target price falls to $30.75 from $31.10.

Target price is $30.75 Current Price is $29.35 Difference: $1.4
If IEL meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $32.94, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Morgans forecasts a full year FY23 dividend of 39.00 cents and EPS of 55.00 cents.
At the last closing share price the estimated dividend yield is 1.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.8, implying annual growth of 59.5%.

Current consensus DPS estimate is 43.1, implying a prospective dividend yield of 1.5%.

Current consensus EPS estimate suggests the PER is 48.7.

Forecast for FY24:

Morgans forecasts a full year FY24 dividend of 51.00 cents and EPS of 72.00 cents.
At the last closing share price the estimated dividend yield is 1.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 79.2, implying annual growth of 34.7%.

Current consensus DPS estimate is 57.3, implying a prospective dividend yield of 2.0%.

Current consensus EPS estimate suggests the PER is 36.2.

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

More Research Tools In Stock Analysis - click HERE

Overnight Price: $4.00

Morgan Stanley rates IPL as Overweight (1) -

Morgan Stanley observes the Tampa ammonia price has decreased by around -10%. This is the reference price for the majority of the ammonia sold at Incitec Pivot's Waggaman plant in Louisiana.

The analyst explains the decline comes in the lead up to the seasonally stronger period ahead of the Northern Hemisphere planting period. It's noted an inventory build traditionally occurs at the beginning of January.

The Overweight rating and $5.05 target are unchanged. Industry view: In-Line.

Target price is $5.05 Current Price is $4.00 Difference: $1.05
If IPL meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $4.34, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Morgan Stanley forecasts a full year FY23 dividend of 25.00 cents and EPS of 50.00 cents.
At the last closing share price the estimated dividend yield is 6.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.4, implying annual growth of -11.1%.

Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 5.8%.

Current consensus EPS estimate suggests the PER is 8.5.

Forecast for FY24:

Morgan Stanley forecasts a full year FY24 dividend of 17.00 cents and EPS of 34.00 cents.
At the last closing share price the estimated dividend yield is 4.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.6, implying annual growth of -36.2%.

Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 13.4.

Market Sentiment: 0.5

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

JHX  JAMES HARDIE INDUSTRIES PLC

Building Products & Services

More Research Tools In Stock Analysis - click HERE

Overnight Price: $29.20

UBS rates JHX as Buy (1) -

UBS suggests James Hardie Industries' repair & remodel (R&R) focus (65% of US volumes) should provide resilience in the face of near-term macro concerns, which the broker has already factored into its forecasts.

After a review of the North-East/Mid-West regions of the US, the analyst sees significant penetration upside and suggests housing provides support for remodelling. Growth into the North East in particular is anticipated.

The Buy rating and $47.40 target are unchanged.

Target price is $47.40 Current Price is $29.20 Difference: $18.2
If JHX meets the UBS target it will return approximately 62% (excluding dividends, fees and charges).

Current consensus price target is $40.57, suggesting upside of 30.5% (ex-dividends)

The company's fiscal year ends in February.

Forecast for FY23:

UBS forecasts a full year FY23 EPS of 216.21 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 220.7, implying annual growth of N/A.

Current consensus DPS estimate is 11.5, implying a prospective dividend yield of 0.4%.

Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY24:

UBS forecasts a full year FY24 EPS of 183.28 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 210.8, implying annual growth of -4.5%.

Current consensus DPS estimate is 21.6, implying a prospective dividend yield of 0.7%.

Current consensus EPS estimate suggests the PER is 14.7.

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

PRN  PERENTI LIMITED

Mining Sector Contracting

More Research Tools In Stock Analysis - click HERE

Overnight Price: $1.11

Citi rates PRN as Initiation of coverage with Buy (1) -

In its initiation on Perenti, Citi has forecast earnings 6.5% above consensus largely on higher margin assumptions. The broker highlights Perenti has secured more than 90% of its revenue target for the coming year and retains a healthy pipeline. 

As part of its de-risking strategy, the company continues to shift towards Tier 1 jurisdictions and is making headway in capturing share in these markets according to the broker. Citi assumes Perenti can reach a 9.9% earnings margin in FY25. 

The broker initiates with a Buy rating and a target price of $1.29.

Target price is $1.29 Current Price is $1.11 Difference: $0.18
If PRN meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Citi forecasts a full year FY23 dividend of 0.00 cents and EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.93.

Forecast for FY24:

Citi forecasts a full year FY24 dividend of 5.80 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 5.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.57.

Market Sentiment: 1.0

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

RIO  RIO TINTO LIMITED

Bulks

More Research Tools In Stock Analysis - click HERE

Overnight Price: $109.62

Citi rates RIO as Downgrade to Neutral from Buy (3) -

While Rio Tinto's full year Pilbara iron ore production guidance of 320-335m tonnes per annum was marginally lower than Citi had expected, the broker notes the company has reinstated its mid-term production target of 345-360m tonnes per annum. 

Citi highlights ramp up at Rio Tinto's Gudai Darri asset, alongside completion of a number of mine developments in coming years, is crucial to the company meeting its target. 

The rating is downgraded to Neutral and the target price of $115.00 is retained. 

Target price is $115.00 Current Price is $109.62 Difference: $5.38
If RIO meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $104.43, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Citi forecasts a full year FY22 dividend of 681.56 cents and EPS of 1224.23 cents.
At the last closing share price the estimated dividend yield is 6.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1250.0, implying annual growth of N/A.

Current consensus DPS estimate is 706.8, implying a prospective dividend yield of 6.3%.

Current consensus EPS estimate suggests the PER is 9.0.

Forecast for FY23:

Citi forecasts a full year FY23 dividend of 621.42 cents and EPS of 879.73 cents.
At the last closing share price the estimated dividend yield is 5.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1010.9, implying annual growth of -19.1%.

Current consensus DPS estimate is 677.8, implying a prospective dividend yield of 6.1%.

Current consensus EPS estimate suggests the PER is 11.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.4

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


Credit Suisse rates RIO as Outperform (1) -

Rio Tinto's full year production guidance has missed Credit Suisse's expectations, but the broker believes the company may be taking a conservative approach to avoid repeats of historical disappointment. Credit Suisse finds guidance achievable, and feels projects have the potential to outperform. 

The broker was encouraged by Rio Tinto's relationships with traditional communities and the further detail provided on its decarbonisation capital expenditure, as disclosed at its recent investor seminar. 

The Outperform rating and target price of $110.00 are retained.

Target price is $110.00 Current Price is $109.62 Difference: $0.38
If RIO meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $104.43, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Credit Suisse forecasts a full year FY22 dividend of 703.04 cents and EPS of 1212.77 cents.
At the last closing share price the estimated dividend yield is 6.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1250.0, implying annual growth of N/A.

Current consensus DPS estimate is 706.8, implying a prospective dividend yield of 6.3%.

Current consensus EPS estimate suggests the PER is 9.0.

Forecast for FY23:

Credit Suisse forecasts a full year FY23 dividend of 658.65 cents and EPS of 1098.23 cents.
At the last closing share price the estimated dividend yield is 6.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1010.9, implying annual growth of -19.1%.

Current consensus DPS estimate is 677.8, implying a prospective dividend yield of 6.1%.

Current consensus EPS estimate suggests the PER is 11.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.4

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


Morgan Stanley rates RIO as Overweight (1) -

Morgan Stanley was surprised (positively) by Rio Tinto's focus on technology and innovation at its investor day. The main subjects dejour were technology, decarbonisation, iron ore and aluminium.

Key technology/innovation takeaways were the reinstatement of the Chief Scientist role, reflecting a greater emphasis on innovation into the future. Management also noted hydrogen is likely to play a key role in decarbonisation.

Guidance for 2023 iron ore production was set at 320-335mt compared to the forecasts by the broker and consensus of 335mt and 336mt, respectively.

The Overweight rating and target price of $121.00 are retained. Industry View: Attractive.

Target price is $121.00 Current Price is $109.62 Difference: $11.38
If RIO meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $104.43, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 dividend of 836.20 cents and EPS of 1242.84 cents.
At the last closing share price the estimated dividend yield is 7.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1250.0, implying annual growth of N/A.

Current consensus DPS estimate is 706.8, implying a prospective dividend yield of 6.3%.

Current consensus EPS estimate suggests the PER is 9.0.

Forecast for FY23:

Morgan Stanley forecasts a full year FY23 dividend of 980.81 cents and EPS of 1227.09 cents.
At the last closing share price the estimated dividend yield is 8.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1010.9, implying annual growth of -19.1%.

Current consensus DPS estimate is 677.8, implying a prospective dividend yield of 6.1%.

Current consensus EPS estimate suggests the PER is 11.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.4

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


UBS rates RIO as Neutral (3) -

UBS believes the Rio Tinto investor day lent credibility to the company's carbon reduction targets, ongoing cultural change and growth targets.

While 2023 guidance was below the broker's expectations, it's felt management is being conservative. Iron ore shipments for 2023 are expected in the range of 320-335Mt compared to the 320Mt in 2022, with unit costs rising by 7% year-on-year. 

The Neutral rating and $90 target price are unchanged.

Target price is $90.00 Current Price is $109.62 Difference: minus $19.62 (current price is over target).
If RIO meets the UBS target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $104.43, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

UBS forecasts a full year FY22 EPS of 1194.16 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1250.0, implying annual growth of N/A.

Current consensus DPS estimate is 706.8, implying a prospective dividend yield of 6.3%.

Current consensus EPS estimate suggests the PER is 9.0.

Forecast for FY23:

UBS forecasts a full year FY23 EPS of 892.04 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1010.9, implying annual growth of -19.1%.

Current consensus DPS estimate is 677.8, implying a prospective dividend yield of 6.1%.

Current consensus EPS estimate suggests the PER is 11.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.4

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

THL  TOURISM HOLDINGS RENTALS LIMITED

More Research Tools In Stock Analysis - click HERE

UPDATED

Morgans rates THL as Initiation of coverage with Add (1) -

Morgans initiates coverage on Tourism Holdings Rentals with an Add rating and $4.00 target. The recent merger of the company with Apollo Tourism and Leisure ((ATL)) results in one of the largest multi-national recreational vehicle (RV) travel companies.

Combined, the companies operate a rental fleet of over 6,000 vehicles throughout A&NZ, North America and Europe. The broker likes the exposure to a recovery in global travel and notes significant revenue is also generated from the sale of new and used vehicles.

The balance sheet is solid, according to the analysts, with a significant proportion of net debt comprising vehicle financing, which is matched against assets.

Target price is $4.00

The company's fiscal year ends in June.

Forecast for FY23:

Morgans forecasts a full year FY23 dividend of 0.00 cents and EPS of 19.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.00.

Forecast for FY24:

Morgans forecasts a full year FY24 dividend of 14.00 cents and EPS of 13.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.00.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 1.0

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

TPW  TEMPLE & WEBSTER GROUP LIMITED

Furniture & Renovation

More Research Tools In Stock Analysis - click HERE

Overnight Price: $5.27

Macquarie rates TPW as Underperform (5) -

Temple & Webster's trading update to November 27 from July 1 showed a -14% fall compared to the previous corresponding period. While not apparent from this number, Macquarie suggests trading appears to be improving on a sequential basis.

The analyst retains an Underperform rating due to the shift back to in-store trading and macroeconomic headwinds. The target rises to $4.05 from $4.00.

Target price is $4.05 Current Price is $5.27 Difference: minus $1.22 (current price is over target).
If TPW meets the Macquarie target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.37, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 101.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.3, implying annual growth of -36.6%.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 79.2.

Forecast for FY24:

Macquarie forecasts a full year FY24 dividend of 0.00 cents and EPS of 8.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 61.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.9, implying annual growth of 41.3%.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 56.1.

Market Sentiment: 0.0

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

WDS  WOODSIDE ENERGY GROUP LIMITED

NatGas

More Research Tools In Stock Analysis - click HERE

Overnight Price: $36.65

Macquarie rates WDS as Neutral (3) -

Macquarie raises its target price for Woodside Energy by 5% to $39.00 following the company's investor day, on increased earnings forecasts from a changed production mix and increased LNG trading. Neutral.

Management's production outlook was a little better than the analyst had expected though the capex outlook was a tad higher than forecast.

The broker feels the New Energies pivot is making real progress, with the company set to invest -US$500m in Scope 1 & 2 decarbonisation plans for Australian operations. The aim is for a -30% carbon reduction by 2030.

Target price is $39.00 Current Price is $36.65 Difference: $2.35
If WDS meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $37.34, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 376.58 cents and EPS of 508.31 cents.
At the last closing share price the estimated dividend yield is 10.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 566.8, implying annual growth of N/A.

Current consensus DPS estimate is 385.7, implying a prospective dividend yield of 10.8%.

Current consensus EPS estimate suggests the PER is 6.3.

Forecast for FY23:

Macquarie forecasts a full year FY23 dividend of 240.55 cents and EPS of 403.21 cents.
At the last closing share price the estimated dividend yield is 6.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 481.4, implying annual growth of -15.1%.

Current consensus DPS estimate is 339.8, implying a prospective dividend yield of 9.5%.

Current consensus EPS estimate suggests the PER is 7.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.4

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


Morgans rates WDS as Hold (3) -

Morgans key takeaway from Woodside Energy's investor day was a reduced 2023 free cash flow (FCF) expectation by management. However, the analyst feels the 2023 level of around $1bn will likely be the low point for FCF, and the company is approaching peak capex.

The broker struggles to reconcile new guidance with that provided prior to the BHP Group ((BHP)) Petroleum merger, though lowers its target to $34.50 from $36.90 after cutting 2023 production assumptions. Hold.

Target price is $34.50 Current Price is $36.65 Difference: minus $2.15 (current price is over target).
If WDS meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.34, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Morgans forecasts a full year FY22 dividend of 327.89 cents and EPS of 617.13 cents.
At the last closing share price the estimated dividend yield is 8.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 566.8, implying annual growth of N/A.

Current consensus DPS estimate is 385.7, implying a prospective dividend yield of 10.8%.

Current consensus EPS estimate suggests the PER is 6.3.

Forecast for FY23:

Morgans forecasts a full year FY23 dividend of 196.16 cents and EPS of 393.76 cents.
At the last closing share price the estimated dividend yield is 5.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 481.4, implying annual growth of -15.1%.

Current consensus DPS estimate is 339.8, implying a prospective dividend yield of 9.5%.

Current consensus EPS estimate suggests the PER is 7.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.4

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

Today's Price Target Changes
Company Last Price Broker New Target Prev Target Change
BUB Bubs Australia $0.32 Citi 0.32 0.68 -52.94%
DMP Domino's Pizza Enterprises $65.97 Credit Suisse 65.62 67.01 -2.07%
UBS 78.00 80.00 -2.50%
IEL IDP Education $28.66 Morgans 30.75 31.10 -1.13%
PRN Perenti $1.12 Citi 1.29 1.05 22.86%
WDS Woodside Energy $35.73 Macquarie 39.00 37.00 5.41%
Morgans 34.50 36.90 -6.50%
Summaries
ABC Adbri Neutral - Citi Overnight Price $1.79
BUB Bubs Australia Downgrade to Neutral from Buy - Citi Overnight Price $0.29
DMP Domino's Pizza Enterprises Neutral - Credit Suisse Overnight Price $66.38
Buy - UBS Overnight Price $66.38
IEL IDP Education Downgrade to Hold from Add - Morgans Overnight Price $29.35
IPL Incitec Pivot Overweight - Morgan Stanley Overnight Price $4.00
JHX James Hardie Industries Buy - UBS Overnight Price $29.20
PRN Perenti Initiation of coverage with Buy - Citi Overnight Price $1.11
RIO Rio Tinto Downgrade to Neutral from Buy - Citi Overnight Price $109.62
Outperform - Credit Suisse Overnight Price $109.62
Overweight - Morgan Stanley Overnight Price $109.62
Neutral - UBS Overnight Price $109.62
THL Tourism Holdings Rentals Initiation of coverage with Add - Morgans Overnight Price $0.00
TPW Temple & Webster Underperform - Macquarie Overnight Price $5.27
WDS Woodside Energy Neutral - Macquarie Overnight Price $36.65
Hold - Morgans Overnight Price $36.65
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

7

3. Hold

8

5. Sell

1

Friday 02 December 2022

Access Broker Call Report Archives here

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 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.