Australian Broker Call *Extra* Edition – May 03, 2022

This story features ANSARADA GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: AND

An additional news report on the recommendation, valuation, forecast and opinion changes 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)

AND   ANZ   ARX   CMM   EDV   EML (2)   LME   NTO   PBH   RHC   RMD   SDR   UMG  

AND    ANSARADA GROUP LIMITED

Software & Services – Overnight Price: $1.90

Moelis rates ((AND)) as Buy (1) –

Ansarada Group's March-quarter trading update pleased Moelis, and the company finished the quarter with net cash of $21.1m and free cash flow of $0.1m.

Revenue slipped during the quarter but the broker expects the company will log record revenue in the June quarter.

Moelis appreciates the company's track record, its cash position and its subscription pricing model.

Hold rating retained. Target price is $2.27.

This report was published on April 27, 2022.

Target price is $2.27 Current Price is $1.90 Difference: $0.37
If AND meets the Moelis target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 79.17.

Forecast for FY23:

Moelis 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 86.36.

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

ANZ    AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Banks – Overnight Price: $27.30

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

ANZ Bank announced its first half after-tax profits will be impacted by a number of large items, amounting to -$32m.

Goldman Sachs has revised down the full-year EPS forecast by -2% in 2022 and -1.1% in 2023. The price target has moved to $32.51 from $32.74.

The broker says potential downside risks to forecasts come from lending competition and potential impact on net interest margins as well as from macro-economic headwinds from slowing growth in Australia/NZ/Asia.

The Buy-rating is maintained.

This report was published on April 29, 2022.

Target price is $32.51 Current Price is $27.30 Difference: $5.21
If ANZ meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $29.45, suggesting upside of 7.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 145.00 cents and EPS of 205.10 cents.
At the last closing share price the estimated dividend yield is 5.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 201.1, implying annual growth of -7.4%.
Current consensus DPS estimate is 144.0, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 155.00 cents and EPS of 225.20 cents.
At the last closing share price the estimated dividend yield is 5.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 222.8, implying annual growth of 10.8%.
Current consensus DPS estimate is 157.8, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 12.3.

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

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.85

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

Aroa Biosurgery's FY22 reported revenue was a 7.4% beat versus Wilsons forecast. As no disclosure was provided at the product level, it's estimated OviTex/PRS sales to US partner TELA Bio made strong 2H contributions.

The analyst awaits FY22 results on May 24 though anticipates the 2H22 performance may lead to modest upgrades to the FY23 forecast. Growth in MYRIAD and the launch of SYMPHONY is expected to boost the US business in FY23.

The Overweight rating and $1.75 price target is maintained.

This report was published on April 27, 2022.

Target price is $1.75 Current Price is $0.85 Difference: $0.9
If ARX meets the Wilsons target it will return approximately 106% (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 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.42.

Forecast for FY24:

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

CMM    CAPRICORN METALS LIMITED

Gold & Silver – Overnight Price: $4.08

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

In the March quarter Capricorn Metals produced 31.8koz at an all-in-sustaining cost (AISC) of $1,086/oz, a slight beat versus Canaccord Genuity's forecast. Management expects to achieve the top-end of the unchanged FY22 guidance range of 110-120koz.

After a roll forward of the broker's valuation model and updating for the 3Q result, the analyst lowers the target price to $4.20 from $4.25.

The broker highlights the company remains on track for a September quarter updated resource and maiden reserve for the recently acquired Mt Gibson gold project.

This report was published on April 27, 2022.

Target price is $4.20 Current Price is $4.08 Difference: $0.12
If CMM meets the Canaccord Genuity target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 27.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.11.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 32.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.75.

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

EDV    ENDEAVOUR GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $7.72

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

Goldman Sachs viewed the recent acquisition of the Josef Chromy winery in Tasmania in association with the property fund manager Warakirri for $55m as positive.

The winery is expected to be added to the Pinnacle Drinks division, adding to assets across the winemaking regions of the Hunter Valley and Margaret River. 

The broker views the growth in Pinnacle Brands and hotels as key opportunities, also noting the $1.9bn in capital for bolt-on acquisitions and an expected increase in capital expenditure to $500m annually from $350-$450m.

The acquisition is considered consistent with the strategy to grow margins. Risks from a delay in hotel recovery and poor management of cost inflation are not enough to change the broker's Buy recommendation.

The price target is $8.30.

This report was published on May 2, 2022.

Target price is $8.30 Current Price is $7.72 Difference: $0.58
If EDV meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $7.28, suggesting downside of -5.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 20.60 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 2.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.7, implying annual growth of 11.5%.
Current consensus DPS estimate is 20.7, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 27.9.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 20.00 cents and EPS of 32.00 cents.
At the last closing share price the estimated dividend yield is 2.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.7, implying annual growth of 10.8%.
Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 25.1.

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

EML    EML PAYMENTS LIMITED

Business & Consumer Credit – Overnight Price: $1.54

Canaccord Genuity rates ((EML)) as Downgrade to Hold from Buy (3) –

As part of EML Payments' 3Q trading update, Canaccord Genuity estimates there was a -13% downgrade to the February guidance statement and a -14% miss versus the consensus 2H22 earnings (EBITDA) forecast.

On a like-for-like basis, the analyst estimates 3Q earnings were around $1.3m versus $15.8m in the previous corresponding period.

Regulatory issues, a shareholder class action, poor cash conversion and ongoing earnings downgrades prompt the broker to downgrade its rating to Hold from Buy.

Canaccord Genuity also lowers the target price to $2.00 from $4.50 on lower earnings forecasts and a lower terminal multiple on a higher discount rate.

This report was published on April 27, 2022.

Target price is $2.00 Current Price is $1.54 Difference: $0.46
If EML meets the Canaccord Genuity target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $3.26, suggesting upside of 111.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 7.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.8, implying annual growth of N/A.
Current consensus DPS estimate is 0.2, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 26.6.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 9.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.0, implying annual growth of 72.4%.
Current consensus DPS estimate is 1.9, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 15.4.

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

After EML Payments downgraded several guidance metrics including an -8% revision for underlying earnings (EBITDA), Wilsons feels the -39% fall in share price on the same day was overdone.

The broker cites several tailwinds heading into FY23 which include some 'significant' contract wins and ongoing progress on the Central Bank of Ireland (CBI) remediation. Operational improvements in Europe and rising interest rates are also expected to assist.

The analyst concedes ambiguity remains re the CBI regulatory overhang and the cost base has expanded, primarily in Europe.

Wilsons lowers its target price by -42% to $2.24 though retains its Overweight rating.

This report was published on April 27, 2022.

Target price is $2.24 Current Price is $1.54 Difference: $0.7
If EML meets the Wilsons target it will return approximately 45% (excluding dividends, fees and charges).
Current consensus price target is $3.26, suggesting upside of 111.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 7.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.8, implying annual growth of N/A.
Current consensus DPS estimate is 0.2, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 26.6.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 10.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.0, implying annual growth of 72.4%.
Current consensus DPS estimate is 1.9, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 15.4.

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

LME    LIMEADE, INC

Cloud services – Overnight Price: $0.37

Moelis rates ((LME)) as Buy (1) –

Limeade's March-quarter trading update appears to have passed Moelis's muster, but the company finished the quarter with a net cash position of US$8.7m, down -37% from the December quarter.

Management retains guidance and expects the core well-being business to return to growth in 2022.

Moelis notes the March quarter is a seasonally low period for the company, and that the company has derated sharply during covid.

Buy rating retained. Target price falls to 46c from 55c.

This report was published on April 26, 2022.

Target price is $0.46 Current Price is $0.37 Difference: $0.09
If LME meets the Moelis target it will return approximately 24% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.57 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.65.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.29 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.99.

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $1.31

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

It is Goldman Sachs's view that Nitro Software reported a solid first quarter result. The software company improved its cash burn and lowered the loss guidance. The top-line guidance was maintained.

The broker feels the update should help ease concerns over the balance sheet and the potential cashflow breakeven in the second half of 2023.

Goldman Sachs continues to focus on the second half of 2022 and the cross-selling of Connective into the Nitro customer base.

A Buy rating is maintained but competition, execution, foreign-exchange risks and higher-than-expected investment levels could challenge growth.

This report was published on May 1, 2022.

Target price is $2.35 Current Price is $1.31 Difference: $1.04
If NTO meets the Goldman Sachs target it will return approximately 79% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 19.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.89.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 13.57 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.65.

This company reports in USD. 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

PBH    POINTSBET HOLDINGS LIMITED

Gaming – Overnight Price: $3.17

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

PointsBet Holdings' third quarter update was broadly in line with Goldman Sachs estimates. 

Margins in Australia were better than expected and gross wins in line. US growth proved ahead of estimates and US margins better than expected.

Marketing spend in the US came in lower than the broker estimates. PointsBet expects to launch in 4 more US states in 2022, to a total 14 states plus Ontario, versus 17 prior.

Goldman Sachs upgraded full year EBITDA on lower costs and marketing expenses, but the price target reduced to $5.78 from $6.74 due to lower valuations of US peers.

A Buy rating is maintained.

This report was published on May 2, 2022.

Target price is $5.78 Current Price is $3.17 Difference: $2.61
If PBH meets the Goldman Sachs target it will return approximately 82% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 90.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.52.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 81.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.91.

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

RHC    RAMSAY HEALTH CARE LIMITED

Healthcare services – Overnight Price: $80.10

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

Ramsay Health Care's trading update revealed a -39% fall in net profit after tax for the first quarters of 2022 to $202m. 

The broker notes the Covid disruption is improving but ongoing impacts across different geographies are not currently reflected in consensus expectations.

The company has received a conditional, non-binding indicative takeover proposal from KKR at $88 per share.

Goldman Sachs has downgraded the rating on the stock to Neutral from Buy on valuation grounds as the stock is currently trading above the price target.

This report was published on May 2, 2022.

Target price is $74.00 Current Price is $80.10 Difference: minus $6.1 (current price is over target).
If RHC meets the Goldman Sachs target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $78.60, suggesting downside of -1.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 111.00 cents and EPS of 194.00 cents.
At the last closing share price the estimated dividend yield is 1.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 124.6, implying annual growth of -35.5%.
Current consensus DPS estimate is 107.7, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 64.3.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 143.00 cents and EPS of 250.00 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 201.3, implying annual growth of 61.6%.
Current consensus DPS estimate is 137.6, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 39.8.

Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RMD    RESMED INC

Medical Equipment & Devices – Overnight Price: $28.73

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

ResMed's third-quarter FY22 results continued to highlight the negative impact of supply chain pressures.

Goldman Sachs highlighted ResMed is the most impacted of all device companies in its coverage from supply chain pressures. But, growth in devices and masks of 21% and 9% is in-line with long-term guidance.

The demand tailwind from the competition recall reduced over the last three quarters to $35-$45m from $80-$90m in the first quarter.

The broker lowered the full-year EBIT forecast by -7%, reflecting the ongoing component shortages in the second half. 

Goldman Sachs maintains a Buy rating but has reduced the 12-month price target to $33.70 from $35.80.

This report was published on April 29, 2022.

Target price is $33.70 Current Price is $28.73 Difference: $4.97
If RMD meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $35.44, suggesting upside of 23.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 20.36 cents and EPS of 74.66 cents.
At the last closing share price the estimated dividend yield is 0.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.8, implying annual growth of N/A.
Current consensus DPS estimate is 23.8, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 35.1.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 23.08 cents and EPS of 92.30 cents.
At the last closing share price the estimated dividend yield is 0.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 99.0, implying annual growth of 21.0%.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 29.0.

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

SDR    SITEMINDER LIMITED

Overnight Price: $4.61

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

Goldman Sachs viewed the third quarter trading update as positive. Reported revenue is in-line with the broker's forecasts with a faster normalisation in operations post the Omicron impacts.

Average revenue per user grew 18% compared to 13.5% in the second quarter of FY22. Free cash flow remains negative (-$8.5m or 29% of revenue) and the broker sees this as a valuation drag for the company.

The faster return to normal in operating conditions and bookings recovery for hotels is expected to be positive for both subscription revenues and transaction volumes.

Goldman Sachs has revised up earnings revenues by 5%/4% given the slightly higher subscription average revenue per user and faster recovery in bookings. 

The price target was lowered -12% to $5.80 based on a lower valuation multiples on the back of weakness in loss-making technology peers.

This report was published on April 29, 2022.

Target price is $5.80 Current Price is $4.61 Difference: $1.19
If SDR meets the Goldman Sachs target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $5.94, suggesting upside of 28.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.14 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3292.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -23.8, 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 FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.12 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3841.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -13.8, 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

UMG    UNITED MALT GROUP LIMITED

Agriculture – Overnight Price: $4.10

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

According to Wilsons, the Canadian drought and delayed sales from supply chain pressures (both seen as temporary) resulted in United Malt's FY22 earnings guidance falling below the consensus expectation.

Nonetheless, the broker points out processing sales volumes rose on the previous corresponding period and considers there's potential for material cyclical and structural earnings improvement.

The Overweight rating is maintained, while the target price falls to $4.54 from $4.81.

This report was published on April 27, 2022.

Target price is $4.54 Current Price is $4.10 Difference: $0.44
If UMG meets the Wilsons target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $4.61, suggesting upside of 12.3%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 7.50 cents and EPS of 12.40 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.9, implying annual growth of 201.5%.
Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 29.5.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 13.00 cents and EPS of 22.40 cents.
At the last closing share price the estimated dividend yield is 3.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.8, implying annual growth of 85.6%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 15.9.

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

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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.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

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

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