Australian Broker Call *Extra* Edition – May 31, 2022

This story features ABACUS PROPERTY GROUP, and other companies. For more info SHARE ANALYSIS: ABP

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)

ABP   AOF   ARF   ARX   BWP   CDA   CDP   CGC   CNI   CQE   CQR   DXC   DXI   ECF   ENN   ERF   FPH (2)   GDC   GDI   GTK (2)   LPD   NPR   NSR   SCP   TNE (2)   UWL   WEB   WPR  

ABP    ABACUS PROPERTY GROUP

REITs – Overnight Price: $2.94

Moelis rates ((ABP)) as Buy (1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Buy rating retained for Abacus Property. Target price eases -3.4% to $3.60 from $3.70.

This report was published on May 25, 2022.

Target price is $3.60 Current Price is $2.94 Difference: $0.66
If ABP meets the Moelis target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $3.60, suggesting upside of 22.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 18.00 cents and EPS of 19.70 cents.
At the last closing share price the estimated dividend yield is 6.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of -63.7%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 18.10 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 6.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.8, implying annual growth of 3.9%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 15.6.

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

AOF    AUSTRALIAN UNITY OFFICE FUND

REITs – Overnight Price: $2.43

Moelis rates ((AOF)) as Hold (3) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Hold rating retained for Australian Unity Office Fund. Target price eases -1.75% to $2.34 from $2.38.

This report was published on May 25, 2022.

Target price is $2.34 Current Price is $2.43 Difference: minus $0.09 (current price is over target).
If AOF meets the Moelis target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 15.20 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 6.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.21.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 10.10 cents and EPS of 12.30 cents.
At the last closing share price the estimated dividend yield is 4.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.76.

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

ARF    ARENA REIT

REITs – Overnight Price: $4.32

Moelis rates ((ARF)) as Sell (5) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Arena REIT is relatively low-geared and well-hedged, says Moelis, and may negotiate a soft landing in a higher rate environment.

Sell rating retained. Target price falls -3% to $3.86 from $3.98.

This report was published on May 25, 2022.

Target price is $3.86 Current Price is $4.32 Difference: minus $0.46 (current price is over target).
If ARF meets the Moelis target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.27, suggesting downside of -1.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 16.00 cents and EPS of 16.70 cents.
At the last closing share price the estimated dividend yield is 3.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.6, implying annual growth of -60.4%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 26.0.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 17.40 cents and EPS of 17.90 cents.
At the last closing share price the estimated dividend yield is 4.03%.
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 17.7, implying annual growth of 6.6%.
Current consensus DPS estimate is 17.2, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 24.4.

Market Sentiment: 0.0
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: $0.80

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

Aroa Biosurgery's full year revenue has come in 8% ahead of Wilsons' expectations, while a net loss of -NZ$1.5m was significantly less than the broker's anticipated -NZ$3.8m, with the result led by MYRIAD sales which benefited from market share gains.

The broker highlights there are two competitive situations emerging that could further accelerate MYRIAD's growth in the coming year, and notes Aroa Biosurgery continues to offer high-quality exposure to the reopening of the US wound care and reconstructive surgery segment.

The Overweight rating is retained and the target price decreases to $1.58 from $1.75.

This report was published on May 25, 2022.

Target price is $1.58 Current Price is $0.80 Difference: $0.78
If ARX meets the Wilsons target it will return approximately 98% (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 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.81.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 160.00.

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

BWP    BWP TRUST

REITs – Overnight Price: $4.12

Moelis rates ((BWP)) as Sell (5) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

BWP Trust is relatively low-geared and well-hedged, says Moelis, and may negotiate a soft landing in a higher rate environment.

Sell rating retained. Target price inches up 0.2% to $3.63 from $3.62.

This report was published on May 25, 2022.

Target price is $3.63 Current Price is $4.12 Difference: minus $0.49 (current price is over target).
If BWP meets the Moelis target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.76, suggesting downside of -8.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 18.30 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 4.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.0, implying annual growth of -56.1%.
Current consensus DPS estimate is 18.2, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 22.9.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 18.50 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 4.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 5.0%.
Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 21.8.

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

CDA    CODAN LIMITED

Hardware & Equipment – Overnight Price: $8.00

Moelis rates ((CDA)) as Buy (1) –

Codan has suggested second half performance from its radio communications and metal detection segments will be consistent with the first half, implying full year net profit guidance of $100m. 

With radio communications increasing its earnings contribution to 29% following recent acquisitions, Moelis notes pipelines tracking ahead of schedule should see the segment continue to support earnings growth and diversification moving into FY23, predicting radio will grow at a 15% compound annual growth rate through to FY25.

The Buy rating is retained and the target price decreases to $10.60 from $12.23.

This report was published on May 24, 2022.

Target price is $10.60 Current Price is $8.00 Difference: $2.6
If CDA meets the Moelis target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 30.30 cents and EPS of 55.30 cents.
At the last closing share price the estimated dividend yield is 3.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.47.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 31.80 cents and EPS of 57.90 cents.
At the last closing share price the estimated dividend yield is 3.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.82.

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

CDP    CARINDALE PROPERTY TRUST

REITs – Overnight Price: $4.58

Moelis rates ((CDP)) as Buy (1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Buy rating retained for Carindale Property Trust. Target price rises 1.1% to $6.28 from $6.21.

This report was published on May 25, 2022.

Target price is $6.28 Current Price is $4.58 Difference: $1.7
If CDP meets the Moelis target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 25.00 cents and EPS of 37.20 cents.
At the last closing share price the estimated dividend yield is 5.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.31.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 26.00 cents and EPS of 37.00 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 12.38.

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

CGC    COSTA GROUP HOLDINGS LIMITED

Agriculture – Overnight Price: $3.11

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

Wilsons notes Costa Group has updated the market, highlighting international berry operations have continued to perform well, and while supply chain issues have driven pricing below forecast, Arana jumbo berries continue to demand a premium. 

Closer to home, the Monarto mushroom farm continues to outperform its previous year's volumes, while WA avocado crop volumes have contributed to depressed pricing but the transition to Hass from Shepard has triggered recent positive price movement.

The broker notes the update is broadly positive and indicates strong earnings growth in the first half of 2022. The Overweight rating and target price of $3.66 are retained.

This report was published on May 25, 2022.

Target price is $3.66 Current Price is $3.11 Difference: $0.55
If CGC meets the Wilsons target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $3.63, suggesting upside of 16.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 12.10 cents and EPS of 17.20 cents.
At the last closing share price the estimated dividend yield is 3.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 62.6%.
Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 20.2.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 12.90 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 4.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.8, implying annual growth of 28.6%.
Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 15.7.

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

CNI    CENTURIA CAPITAL GROUP

Diversified Financials – Overnight Price: $2.24

Moelis rates ((CNI)) as Buy (1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Hold rating retained for Centuria Capital. Target price falls -12.8% to $3.12 from $3.58.

This report was published on May 25, 2022.

Target price is $3.12 Current Price is $2.24 Difference: $0.88
If CNI meets the Moelis target it will return approximately 39% (excluding dividends, fees and charges).
Current consensus price target is $3.13, suggesting upside of 39.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 11.00 cents and EPS of 14.50 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 15.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.0, implying annual growth of -38.9%.
Current consensus DPS estimate is 11.0, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 11.60 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 5.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.5, implying annual growth of 3.3%.
Current consensus DPS estimate is 11.5, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 14.5.

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

CQE    CHARTER HALL SOCIAL INFRASTRUCTURE REIT

Childcare – Overnight Price: $3.61

Moelis rates ((CQE)) as Hold (3) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Hold rating retained for Charter Hall Social Infrastructure REIT. Target price falls -2.9% to $3.74 from $3.85.

This report was published on May 25, 2022.

Target price is $3.74 Current Price is $3.61 Difference: $0.13
If CQE meets the Moelis target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.20 cents and EPS of 17.70 cents.
At the last closing share price the estimated dividend yield is 4.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.40.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 18.00 cents and EPS of 18.50 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 19.51.

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

CQR    CHARTER HALL RETAIL REIT

REITs – Overnight Price: $4.27

Moelis rates ((CQR)) as Hold rating (3) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Hold rating retained for Charter Hall Retail REIT. Target price falls -1.4% to $4.38 from $4.44.

This report was published on May 25, 2022.

Target price is $4.38 Current Price is $4.27 Difference: $0.11
If CQR meets the Moelis target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $4.32, suggesting upside of 1.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 24.50 cents and EPS of 28.40 cents.
At the last closing share price the estimated dividend yield is 5.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.6, implying annual growth of -43.8%.
Current consensus DPS estimate is 24.7, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 25.50 cents and EPS of 28.40 cents.
At the last closing share price the estimated dividend yield is 5.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.6, implying annual growth of N/A.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 14.9.

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

DXC    DEXUS CONVENIENCE RETAIL REIT

REITs – Overnight Price: $3.16

Moelis rates ((DXC)) as Buy (1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Dexus Convenience Retail REIT is relatively low-geared and well-hedged, says Moelis, and may negotiate a soft landing in a higher rate environment.

Buy rating retained. Target price eases -2.5% to $3.90 from $4.

This report was published on May 25, 2022.

Target price is $3.90 Current Price is $3.16 Difference: $0.74
If DXC meets the Moelis target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 23.00 cents and EPS of 23.10 cents.
At the last closing share price the estimated dividend yield is 7.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.68.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 24.00 cents and EPS of 24.20 cents.
At the last closing share price the estimated dividend yield is 7.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.06.

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

DXI    DEXUS INDUSTRIA REIT

REITs – Overnight Price: $3.18

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

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Dexus Industria REIT is relatively low-geared and well-hedged, says Moelis, and may negotiate a soft landing in a higher rate environment.

Rating upgraded to Buy from Hold. Target price inches up 2% to $3.54 from $3.47.

This report was published on May 25, 2022.

Target price is $3.54 Current Price is $3.18 Difference: $0.36
If DXI meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.30 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 5.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.28.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 17.60 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 5.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.19.

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

ECF    ELANOR COMMERCIAL PROPERTY FUND

REITs – Overnight Price: $1.05

Moelis rates ((ECF)) as No Rating (-1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Moelis is on rating restriction for Elanor Commercial Property Fund.

This report was published on May 25, 2022.

Current Price is $1.05. Target price not assessed.

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

ENN    ELANOR INVESTORS GROUP

Wealth Management & Investments – Overnight Price: $1.94

Moelis rates ((ENN)) as Buy (1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Hold rating retained for Elanor Investors. Target price is steady at $2.66.

This report was published on May 25, 2022.

Target price is $2.66 Current Price is $1.94 Difference: $0.72
If ENN meets the Moelis target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.10 cents and EPS of 18.70 cents.
At the last closing share price the estimated dividend yield is 8.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.37.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 18.00 cents and EPS of 22.20 cents.
At the last closing share price the estimated dividend yield is 9.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.74.

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

ERF    ELANOR RETAIL PROPERTY FUND

REITs – Overnight Price: $1.08

Moelis rates ((ERF)) as Buy (1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Buy rating retained for Elanor Retail Property Fund. Target price falls -2.4% to $1.20 from $1.23. 

This report was published on May 25, 2022.

Target price is $1.20 Current Price is $1.08 Difference: $0.12
If ERF meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 5.50 cents and EPS of 6.20 cents.
At the last closing share price the estimated dividend yield is 5.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.42.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 7.00 cents and EPS of 8.10 cents.
At the last closing share price the estimated dividend yield is 6.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.33.

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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $18.51

JP Morgan rates ((FPH)) as Neutral (3) –

Citing near-term uncertainty over a post-covid slump, including the risk of a weak first half, JP Morgan lowers its price target for Fisher & Paykel Healthcare to NZ$22 from NZ$23 and retains its Neutral rating.

This comes following last week's FY22 results, which were largely in-line with the analyst's forecasts. EPS forecasts are reduced on an expected drop in FY24 hardware sales, higher guidance for opex growth and higher freight costs.

This report was published on May 30, 2022.

Current Price is $18.51. Target price not assessed.
Current consensus price target is $21.10, suggesting upside of 14.0%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 37.59 cents and EPS of 61.09 cents.
At the last closing share price the estimated dividend yield is 2.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.5, implying annual growth of N/A.
Current consensus DPS estimate is 34.4, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 38.2.

Forecast for FY24:

JP Morgan forecasts a full year FY24 dividend of 37.59 cents and EPS of 46.05 cents.
At the last closing share price the estimated dividend yield is 2.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.8, implying annual growth of 10.9%.
Current consensus DPS estimate is 33.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 34.4.

This company reports in NZD. 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

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Wilsons rates ((FPH)) as Downgrade to Market Weight from Overweight (3) –

Wilsons now expects uptake of high-flow nasal cannula devices outside ICUs post-covid is unlikely to emerge in time to support growth for Fisher & Paykel Healthcare in FY23, noting its own previous positive call had been premature.

The broker highlighted the market had begun to downgrade Fisher & Paykel Healthcare even before its full year result release, and the stock is now trading at the bottom of its three-year range.

The rating is downgraded to Market Weight and the target price decreases to $19.34 from $35.30.

This report was published on May 26, 2022.

Target price is $19.34 Current Price is $18.51 Difference: $0.83
If FPH meets the Wilsons target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $21.10, suggesting upside of 14.0%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 29.79 cents and EPS of 48.87 cents.
At the last closing share price the estimated dividend yield is 1.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.5, implying annual growth of N/A.
Current consensus DPS estimate is 34.4, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 38.2.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 32.90 cents and EPS of 53.67 cents.
At the last closing share price the estimated dividend yield is 1.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.8, implying annual growth of 10.9%.
Current consensus DPS estimate is 33.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 34.4.

This company reports in NZD. 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

GDC    GLOBAL DATA CENTRE GROUP

Cloud services – Overnight Price: $1.46

Shaw and Partners rates ((GDC)) as Buy (1) –

With Global Data Centre's share price falling in line with global technology stocks, the company is now trading at a -28% discount to its net tangible assets, with Shaw and Partners noting this is one of the largest discounts the stock has traded at since listing.

Concurrently, the company is delivering long-term strategic recurring earnings that are attracting significant merger and acquisition interest. Shaw and Partners notes the company looks to achieve $18n in operating revenue in FY23, offering 15% annual organic growth and potential upside from expansion in Guam, Thailand and France.

The broker anticipates more visibility of the company's AirTrunk could drive a re-rating.

The Buy rating is retained and the target price decreases to $3.22 from $3.58.

This report was published on May 25, 2022.

Target price is $3.22 Current Price is $1.46 Difference: $1.76
If GDC meets the Shaw and Partners target it will return approximately 121% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 208.57.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 112.31.

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

GDI    GDI PROPERTY GROUP

REITs – Overnight Price: $1.03

Moelis rates ((GDI)) as Buy (1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

GDI Property boasts a conservative balance sheet, says Moelis, and may negotiate a soft landing in a higher rate environment.

Buy rating and $1.39 target price retained.

This report was published on May 25, 2022.

Target price is $1.39 Current Price is $1.03 Difference: $0.36
If GDI meets the Moelis target it will return approximately 35% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.80 cents and EPS of 5.70 cents.
At the last closing share price the estimated dividend yield is 7.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.07.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 7.80 cents and EPS of 7.80 cents.
At the last closing share price the estimated dividend yield is 7.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.21.

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

GTK    GENTRACK GROUP LIMITED

Software & Services – Overnight Price: $1.53

CCZ Equities rates ((GTK)) as No Rating (-1) –

Gentrack Group delivered a beat to CCZ Equities' first half forecasts with revenue of $57.1m up 12% on the previous comparable period, while expenses increased 27% given additional investment in sales, research and development as guided by the company. 

 The faster than expected expenditure ramp up saw earnings for the half fall -$5.8m from the previous half, and drove the broker to downgrade its earnings and net profit forecasts to $2.6m and -$7.4m from a previous $5.6m and -$3.1m. 

No rating or target price have been indicated by CCZ Equities.

This report was published on May 25, 2022.

Current Price is $1.53. Target price not assessed.
The company's fiscal year ends in September.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.96 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.00.

Forecast for FY23:

CCZ Equities forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.94 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 162.77.

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

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Shaw and Partners rates ((GTK)) as Buy (1) –

Gentrack Group has delivered a strong first half, notable given the current market backdrop according to Shaw and Partners, including 15% year-on-year utilities revenue growth, seeing the company reiterate FY22 guidance and FY24 targets. 

The broker notes looking ahead current project-based work looks to add $7.3m in annual recurring revenue through FY22 and FY23, but it retains its more conservative forecasts, anticipating the company will achieve FY24 targets a year later than guided to.

The Buy rating and target price of $2.90 are retained.

This report was published on May 25, 2022.

Target price is $2.90 Current Price is $1.53 Difference: $1.37
If GTK meets the Shaw and Partners target it will return approximately 90% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.92 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.83.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 36.43.

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

LPD    LEPIDICO LIMITED

New Battery Elements – Overnight Price: $0.03

Shaw and Partners rates ((LPD)) as Buy (1) –

Shaw and Partners notes significant progress has been made by Lepidico in its lithium hydroxide from lepidolite project, with the company successfully operating a demonstration plant, signing an off-take agreement, completing plant front-end engineering and design, and establishing an executive team since the broker initiated coverage in July. 

An updated feasibility study is expected in the third quarter, and Shaw and Partners anticipates inflationary pressure will see operating and capital expenditure increase 15% and 20% respectively, but notes the lithium market looks likely to be in a supply deficit for the foreseeable future, with lithium hydroxide prices surging. 

The Buy rating is retained and the target price increases to 6 cents from 5.7 cents.

This report was published on May 25, 2022.

Target price is $0.06 Current Price is $0.03 Difference: $0.03
If LPD meets the Shaw and Partners target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.00.

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

NPR    NEWMARK PROPERTY REIT

REITs – Overnight Price: $1.63

Moelis rates ((NPR)) as Buy rating (1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Hold rating retained for Newmark Property REIT. Target price falls -3.6% to $1.90 from $1.97.

This report was published on May 25, 2022.

Target price is $1.90 Current Price is $1.63 Difference: $0.27
If NPR meets the Moelis target it will return approximately 17% (excluding dividends, fees and charges).

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

NSR    NATIONAL STORAGE REIT

REITs – Overnight Price: $2.39

Moelis rates ((NSR)) as Upgrade to Hold from Sell (3) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

National Storage REIT boasts a conservative balance sheet, says Moelis, and may negotiate a soft landing in a higher rate environment.

Rating upgraded to Hold from Sell. Target price rises 2.5% to $2.37 from $2.31.

This report was published on May 25, 2022.

Target price is $2.37 Current Price is $2.39 Difference: minus $0.02 (current price is over target).
If NSR meets the Moelis target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.47, suggesting upside of 3.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 9.60 cents and EPS of 10.20 cents.
At the last closing share price the estimated dividend yield is 4.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.1, implying annual growth of -66.7%.
Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 23.7.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 10.10 cents and EPS of 10.60 cents.
At the last closing share price the estimated dividend yield is 4.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.7, implying annual growth of 5.9%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 22.3.

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

SCP    SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP RE LIMITED

REITs – Overnight Price: $2.99

Moelis rates ((SCP)) as Hold (3) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across most of Moelis's portfolio coverage.

Hold rating retained for Shopping Centres Australasia Property. Target price falls -0.7% to $3.02 from $3.04.

This report was published on May 25, 2022.

Target price is $3.02 Current Price is $2.99 Difference: $0.03
If SCP meets the Moelis target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $3.02, suggesting upside of 1.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 15.20 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 5.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.9, implying annual growth of -60.7%.
Current consensus DPS estimate is 15.1, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 17.7.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 10.10 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 3.38%.
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 17.9, implying annual growth of 5.9%.
Current consensus DPS estimate is 16.2, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 16.7.

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

TNE    TECHNOLOGY ONE LIMITED

IT & Support – Overnight Price: $10.72

Shaw and Partners rates ((TNE)) as Buy (1) –

A solid first half result from TechnologyOne according to Shaw and Partners, including 44% software as a service annual recurring revenue growth, as well as guidance for more than 40% growth in the full year. The broker also highlighted momentum in the UK, with a strong pipeline for FY22 and a growing headcount.

Higher than anticipated costs in the half of $137.9m compared to an expected $129.9m were largely driven by Scientia, but Shaw and Partners notes integration is moving quickly. 

The Buy rating and target price of $12.10 are retained

This report was published on May 25, 2022.

Target price is $12.10 Current Price is $10.72 Difference: $1.38
If TNE meets the Shaw and Partners target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 14.90 cents and EPS of 26.70 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 40.15.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 15.90 cents and EPS of 29.30 cents.
At the last closing share price the estimated dividend yield is 1.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.59.

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

TechnologyOne has declared its software as a service (SaaS) transformation complete, with SaaS fees increasing 40% in the first half in what Wilson described as a solid result, and a similar level of growth expected in the coming half.

With 97% of its revenue now coming from SaaS, the company noted segmentally Education annual recurring revenue grew 31% equating to $17m, Government grew 21% equating to $8m, and Local Government grew 19% equating to $16m.

The Market Weight rating is retained and the target price decreases to $11.08 from $12.08 , reflecting higher costs.

This report was published on May 25, 2022.

Target price is $11.08 Current Price is $10.72 Difference: $0.36
If TNE meets the Wilsons target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 15.20 cents and EPS of 26.40 cents.
At the last closing share price the estimated dividend yield is 1.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.61.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 16.50 cents and EPS of 32.70 cents.
At the last closing share price the estimated dividend yield is 1.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.78.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $4.92

JP Morgan rates ((UWL)) as Overweight (1) –

JP Morgan expects wholesale costs will rise, following proposed changes to the NBN Special Access Undertaking. As Uniti Group's rate card mirrors NBN pricing moves, it's estimated long run earnings (EBITDA) could be 20% higher than previously expected. 

Additionally, concerns around the material adverse change clause for the Morrison/Brookfield bid are now largely alleviated after the proposed changes, suggests the broker.

The target price remains set in-line with the highest indicative offer for the company at $5/share, and the Neutral rating is unchanged.

This report was published on May 24, 2022.

Target price is $5.00 Current Price is $4.92 Difference: $0.08
If UWL meets the JP Morgan target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 0.00 cents and EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.00.

Forecast for FY23:

JP Morgan 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 35.14.

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

WEB    WEBJET LIMITED

Travel, Leisure & Tourism – Overnight Price: $6.10

JP Morgan rates ((WEB)) as Neutral (3) –

Webjet's FY22 result was broadly in-line with JP Morgan's estimates and showed a return to profitability in the 2H for the B2B segment with positive momentum continuing for B2C.

While management's medium-term targets look achievable to the analyst, the share price currently incorporates those targets and the Neutral rating is unchanged. Near-term earnings forecasts lift (due to a changed valuation model) and the target rises to $5.80 from $5.20.

The Neutral rating is unchanged.

This report was published on May 20, 2022.

Target price is $5.80 Current Price is $6.10 Difference: minus $0.3 (current price is over target).
If WEB meets the JP Morgan target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.38, suggesting upside of 4.6%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 4.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 0.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 67.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of N/A.
Current consensus DPS estimate is 1.1, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 39.6.

Forecast for FY24:

JP Morgan forecasts a full year FY24 dividend of 10.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 1.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.9, implying annual growth of 107.1%.
Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 19.1.

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

WPR    WAYPOINT REIT LIMITED

REITs – Overnight Price: $2.50

Moelis rates ((WPR)) as Buy (1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across Moelis's portfolio coverage.

Waypoint REIT is one such REIT and Moelis expects its portfolio will continue to improve as the company disposes of 13% of assets and returns the proceeds to shareholders.

Moelis notes the company is trading at a -17% discount to net tangible assets and expects this will magnify the payout benefit and makes Waypoint one of the cheapest long-WALE (weighted average lease expiry) REITs on the ASX.

Buy rating retained. Target price slips to $3.02 from $3.06.

This report was published on May 25, 2022.

Target price is $3.02 Current Price is $2.50 Difference: $0.52
If WPR meets the Moelis target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $2.92, suggesting upside of 16.9%(ex-dividends)

Forecast for FY22:

Current consensus EPS estimate is 16.1, implying annual growth of -71.8%.
Current consensus DPS estimate is 16.7, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY23:

Current consensus EPS estimate is 16.7, implying annual growth of 3.7%.
Current consensus DPS estimate is 16.9, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 15.0.

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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