Australian Broker Call *Extra* Edition – Aug 30, 2022

This story features AIC MINES LIMITED, and other companies. For more info SHARE ANALYSIS: A1M

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)

A1M   AD8   ADH   ALQ   ALU   AMA (3)   ARB   BRG (2)   CHL   CNU   COE   EQT   ESK   EVS (2)   EVT   JAN   KGN   MAD   MAH   NAN (3)   NCK   NHF   NSR   PLS   PRN   SGR   SOM   SSG   SSM  

A1M    AIC MINES LIMITED

Gold & Silver – Overnight Price: $0.50

Shaw and Partners rates ((A1M)) as Buy (1) –

AIC Mines has released resource/reserve estimates for its Eloise copper mine with mineral resources showing an 11% increase in copper and a 7% increase in gold year-on-year.

Shaw and Partners notes potential to further extend the mine life and increase utilisation of the fixed infrastructure already in place. The Buy rating and $0.73 target are retained. It's noted Eloise is one of the highest-grade operational copper mines in Australia.

This report was published on August 23, 2022.

Target price is $0.73 Current Price is $0.50 Difference: $0.23
If A1M meets the Shaw and Partners target it will return approximately 46% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

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

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $8.63

Shaw and Partners rates ((AD8)) as Buy (1) –

Given FY22 results for Audinate Group were largely pre-announced, Shaw and Partners maintains its $11.75 target price. Assuming execution, significant growth in earnings is expected over the coming years and the Buy rating is maintained.

Video to is set to deliver US$3m in revenues in FY23, according to management guidance, versus the broker's forecast for US$0.6m.

The analyst leaves FY23 sales forecasts largely unchanged though makes significant upgrades from FY23 into FY25, and expects long-term earnings (EBITDA) margins of more than 30%.

The Buy rating is maintained and Shaw and Partners believes the stock is a very attractive investment for long-term rewards.

This report was published on August 23, 2022.

Target price is $11.75 Current Price is $8.63 Difference: $3.12
If AD8 meets the Shaw and Partners target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 479.44.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 297.59.

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

ADH    ADAIRS LIMITED

Furniture & Renovation – Overnight Price: $2.17

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

FY22 earnings were ahead of expectations while FY23 revenue guidance is in line with forecasts. While the trading update for the first seven weeks highlighted stronger-than-expected sales growth, Jarden focuses on the profit margin pressure that is stemming from higher freight costs.

There is also weakness in Mocka alongside a $1.2m inventory position. The broker expects the recovery will be difficult for Adairs over the short term, yet retains an Overweight rating, raising the target to $3.28 from $3.21.

This report was published on August 23, 2022.

Target price is $3.28 Current Price is $2.17 Difference: $1.11
If ADH meets the Jarden target it will return approximately 51% (excluding dividends, fees and charges).
Current consensus price target is $3.03, suggesting upside of 39.8%(ex-dividends)

Forecast for FY23:

Current consensus EPS estimate is 29.8, implying annual growth of 13.0%.
Current consensus DPS estimate is 19.3, implying a prospective dividend yield of 8.9%.
Current consensus EPS estimate suggests the PER is 7.3.

Forecast for FY24:

Current consensus EPS estimate is 33.0, implying annual growth of 10.7%.
Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 10.1%.
Current consensus EPS estimate suggests the PER is 6.6.

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

ALQ    ALS LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $11.88

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

ALS again upgraded guidance, this time at its AGM. The company has provided its first guidance for FY23 and Jarden expects September-half net profit after tax to outpace consensus.

Management reports double-digit organic revenue growth as cost programs offset cost inflation.

Jarden expects consensus upgrades of roughly 6% but questions whether strong growth can be maintained in the second half given many are of the opinion the geochemistry business cycle has peaked. 

The broker believes the 10% to 15% capacity growth will be skewed to the September half and estimates 30% growth for the Commodities division in FY23 over FY22.

Overweight rating and $13 target price retained.

This report was published on August 23, 2022.

Target price is $13.00 Current Price is $11.88 Difference: $1.12
If ALQ meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $13.67, suggesting upside of 15.0%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 37.30 cents and EPS of 61.00 cents.
At the last closing share price the estimated dividend yield is 3.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.4, implying annual growth of 60.5%.
Current consensus DPS estimate is 36.9, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 18.7.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 41.50 cents and EPS of 65.50 cents.
At the last closing share price the estimated dividend yield is 3.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.2, implying annual growth of 4.4%.
Current consensus DPS estimate is 38.1, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 17.9.

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

ALU    ALTIUM

Hardware & Equipment – Overnight Price: $34.68

Jarden rates ((ALU)) as Upgrade to Neutral from Underweight (3) –

FY22 results were stronger than Jarden expected and Octopart also helped margin expansion. FY23 guidance for 15-20% growth in revenue is expected to support mid-single-digit revenue upgrades.

Altium has also provided FY25-26 targets for revenue of $500m, 100,000 subscribers and margins between 38-40%.

While envisaging the scope for outperformance compared with peers, the broker struggles to generate a valuation that allows an upgrade beyond Neutral from Underweight. Target is lifted to $30.60 from $28.60.

This report was published on August 23, 2022.

Target price is $30.60 Current Price is $34.68 Difference: minus $4.08 (current price is over target).
If ALU meets the Jarden target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $33.48, suggesting downside of -3.5%(ex-dividends)

Forecast for FY23:

Current consensus EPS estimate is 73.7, implying annual growth of N/A.
Current consensus DPS estimate is 53.4, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 47.1.

Forecast for FY24:

Current consensus EPS estimate is 93.2, implying annual growth of 26.5%.
Current consensus DPS estimate is 59.8, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 37.2.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.16

Bell Potter rates ((AMA)) as Hold (3) –

Bell Potter assesses the FY22 EBITDA of $21.6m for AMA Group as coming in ahead of expectations and at the upper end of the guidance range.

Looking ahead, AMA Group reconfirmed the previous guidance for the next two financial years.

The broker adjusts EBITDA forecasts due to concerns around the transparency on new pricing levels and the negotiations with Suncorp Group ((SUN)), by -4% and -8% for FY23 and FY24.

Hold rating maintained and the target is lowered to $0.17 from $0.18.

This report was published on August 23, 2022.

Target price is $0.17 Current Price is $0.16 Difference: $0.01
If AMA meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.33.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.00.

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

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Canaccord Genuity rates ((AMA)) as Hold (3) –

Underlying FY22 earnings (EBITDA) for AMA Group were in line with recent guidance, and FY23 and FY24 earnings guidance remains unchanged. The broker maintains its Hold rating and $0.32 target price.

The broker feels the company has funding to deliver a recovery in earnings, now that quarterly debt covenants have been extended to September 2023.

The group achieved break-even operating cash flow in its 4Q and management is guiding to a positive operating cash flow for the FY23 result.

This report was published on August 24, 2022.

Target price is $0.32 Current Price is $0.16 Difference: $0.16
If AMA meets the Canaccord Genuity target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.00.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.00.

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

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

AMA Group reported a full year result impacted by covid related disruptions, with first half covid lockdowns, cost inflation and labour shortages driving an -80% year-on-year earnings decline to $22m, and further margin contraction. 

The broker anticipates traction on operating improvement initiatives will help the company in delivering improvement to Panel margins over the next two years. AMA Group guided to earnings of $70-90m and $120-140m in FY23 and FY24 respectively. 

The Market Weight rating is retained and the target price decreases to $0.16 from $0.30.

This report was published on August 24, 2022.

Target price is $0.16 Current Price is $0.16 Difference: $0
If AMA meets the Wilsons target it will return approximately 0% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.00.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.42.

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

ARB    ARB CORPORATION LIMITED

Automobiles & Components – Overnight Price: $29.98

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

FY22 pre-tax profit was -7% below forecasts yet Wilsons considers this a commendable result given the challenging operating environment. The miss was largely driven by a mismatch in gross margin normalisation.

ARB Corp has announced a new commercial partnership with Toyota North America, providing another opportunity to grow brand awareness and sales in the US.

Wilsons is confident of sustainable sales growth amid an ongoing structural shift to SUVs along with new model releases as this expanded distribution. Overweight maintained. Target is reduced to $38.96 from $43.00.

This report was published on August 24, 2022.

Target price is $38.96 Current Price is $29.98 Difference: $8.98
If ARB meets the Wilsons target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $37.31, suggesting upside of 24.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 73.00 cents and EPS of 139.10 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 141.7, implying annual growth of -5.2%.
Current consensus DPS estimate is 73.5, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 21.2.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 77.00 cents and EPS of 153.10 cents.
At the last closing share price the estimated dividend yield is 2.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 157.2, implying annual growth of 10.9%.
Current consensus DPS estimate is 83.2, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 19.1.

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $22.01

Jarden rates ((BRG)) as Neutral (3) –

Breville Group's FY22 result met Jarden's expectations, the broker appreciating the strong result, which was struck despite a slowing in Northern Hemisphere trade.

European sales fell roughly -16% as the Ukraine and supply chain issues hit home, but America came to the rescue, sales rising 19% (32% in the second half). APAC sales rose 15%.

Gross margins fell as cost inflation bit.

Jarden expects FY23 growth to flat-line, and expects fairly stable margins, despite forecasting a 9% sales compound annual growth rate between FY22 and FY30, given costs remain elevated.

Still, the company's outperformance provides confidence and the broker expects a 13% EBIT compound annual growth rate to FY25.

Neutral rating retained for now given global uncertainty. Target price rises to $22.40 from $22.00

This report was published on August 23, 2022.

Target price is $22.40 Current Price is $22.01 Difference: $0.39
If BRG meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $24.27, suggesting upside of 10.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 35.00 cents and EPS of 88.50 cents.
At the last closing share price the estimated dividend yield is 1.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.4, implying annual growth of 5.9%.
Current consensus DPS estimate is 33.0, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 27.4.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 40.00 cents and EPS of 100.50 cents.
At the last closing share price the estimated dividend yield is 1.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.8, implying annual growth of 14.2%.
Current consensus DPS estimate is 37.0, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 24.0.

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

While Breville Group delivered full year earnings and group revenue in line with Wilsons' expectations, the broker noted some weakness in Europe, the Middle East and Africa in the result which has seen it lower earnings forecasts -1.9% and -0.1% in FY23 and FY24 respectively.

The broker highlighted cash flow turned negative during the year as the company undertook significant inventory build, up 105.8% year-on-year.

It was an intentional effort to ensure maximum benefit from peak sell-in season, although Wilsons highlights some risk to this strategy given low consumer confidence in Europe.

The Market Weight rating is retained and the target price increases to $22.10 from $18.50.

This report was published on August 24, 2022.

Target price is $22.10 Current Price is $22.01 Difference: $0.09
If BRG meets the Wilsons target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $24.27, suggesting upside of 10.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 32.60 cents and EPS of 81.60 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 26.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.4, implying annual growth of 5.9%.
Current consensus DPS estimate is 33.0, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 27.4.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 36.10 cents and EPS of 90.20 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 24.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.8, implying annual growth of 14.2%.
Current consensus DPS estimate is 37.0, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 24.0.

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

CHL    CAMPLIFY HOLDINGS LIMITED

Travel, Leisure & Tourism – Overnight Price: $2.11

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

Camplify delivered an in-line full year result according to Canaccord Genuity, with the broker noting an impressive 87% ear-on-year revenue increase.

The company delivered a -$6m underlying earnings loss, a result of increased sales and marketing activity and operational expenditure.

The broker reiterated the company's ambitions of being the largest RV marketplace outside of the US, noting its addressable market remains relatively under-penetrated at this point. 

Canaccord Genuity also highlights Camplify's high take-rate, around 31%, is the highest of any of its global marketplace peers, and demonstrates monetisation capability. 

The Buy rating and target price of $3.25 are retained.

This report was published on August 23, 2022.

Target price is $3.25 Current Price is $2.11 Difference: $1.14
If CHL meets the Canaccord Genuity target it will return approximately 54% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.18.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 52.75.

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

CNU    CHORUS LIMITED

Telecommunication – Overnight Price: $7.07

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

Chorus has provided FY23 EBITDA guidance of NZ$655-675m, in line with Jarden's estimates. The broker observes the business is executing well on its fibre uptake providing the ability to deliver on dividend guidance.

Non-regulated earnings have been declining rapidly and the broker expects the pressure will continue. Neutral maintained. Target is raised to NZ$7.15 from NZ$6.53.

This report was published on August 23, 2022.

Current Price is $7.07. Target price not assessed.

This company reports in NZD. 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

COE    COOPER ENERGY LIMITED

Crude Oil – Overnight Price: $0.25

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

Cooper Energy delivered underlying net profit in FY22 better than Jarden expected. FY23 guidance is ascertained as conservative and the broker maintains production forecasts, although recognises the upside risk from any performance improvements at Orbost.

The focus is on the strategy to unlock gas potential in the Otway Basin and a gas customer is expected to be announced within the next few months. Overweight rating and $0.29 target maintained.

This report was published on August 23, 2022.

Target price is $0.29 Current Price is $0.25 Difference: $0.04
If COE meets the Jarden target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $0.28, suggesting upside of 11.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.2, 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 2.0.

Forecast for FY24:

Current consensus EPS estimate is 2.2, implying annual growth of -82.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 11.4.

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

EQT    EQT HOLDINGS LIMITED

Diversified Financials – Overnight Price: $26.25

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

EQT Holdings' FY22 revenue was broadly in line with both Shaw and Partners and the consensus forecasts, though underlying profit was a miss due to higher than forecast administration expenses.

Management also announced the intention to acquire Australian Executor Trustees from Insignia Financial ((IFL)) for -$135m cash, which the broker assesses as a full price.

After taking into account FY22 results, the acquisition and a $125m equity raise at $24/share, the analyst arrives at a $32 target price, down from $37. The Buy rating is unchanged.

This report was published on August 23, 2022.

Target price is $32.00 Current Price is $26.25 Difference: $5.75
If EQT meets the Shaw and Partners target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 91.00 cents and EPS of 113.20 cents.
At the last closing share price the estimated dividend yield is 3.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.19.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 112.00 cents and EPS of 140.60 cents.
At the last closing share price the estimated dividend yield is 4.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.67.

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

ESK    ETHERSTACK PLC

Telecommunication – Overnight Price: $0.44

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

First half results were well ahead of forecasts at the EBITDA and net profit line. Project revenue was primarily driven by Samsung's AT&T Firstnet deployment and the Australian Department of Defence project.

Wilsons is confident Etherstack has the ability to grow strongly even in the current uncertain macro environment because of the long-term nature of its support revenue.

While the company previously flagged a goal of winning 2-4 contracts from Samsung in FY22, given it is now the end of August and none have been announced to date, the broker emphasises the difficulty in forecasting the timing of contracts from large multinationals.

Overweight rating and $0.75 target maintained.

This report was published on August 24, 2022.

Target price is $0.75 Current Price is $0.44 Difference: $0.31
If ESK meets the Wilsons target it will return approximately 70% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.89.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.88.

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

EVS    ENVIROSUITE LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.18

Bell Potter rates ((EVS)) as Buy (1) –

EnviroSuite reported FY22 EBITDA which was better than expected due to a higher capitalisation charge for R&D, according to Bell Potter.

No guidance was provided by management, although management stated EnviroSuite would be EBITDA positive at some stage in FY23, including a strategic focus on "growth, product, customer and scale".

Bell Potter forecasts lower losses in FY23 to -$1.4m from -$4m post the CEO update.

A Buy rating is retained and the price target is adjusted to $0.24 from $0.23.

This report was published on August 23, 2022.

Target price is $0.24 Current Price is $0.18 Difference: $0.06
If EVS meets the Bell Potter target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.00.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.00.

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

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

EnviroSuite's largely in-line FY22 result pleased Wilson, the business proving fairly non-discretionary and resilient to macro conditions.

Aviation, Omnis and Water all posted strong growth and management expects to reach earnings (EBITDA) profitability in FY23, most likely on an exit run-rate basis, says the broker, which expects the company could reach fourth-quarter EBITDA of $0.5m (total FY23 EBITDA estimated at -$2.5m).

Wilsons says the company is starting to demonstrate operating leverage, with gross margins rising 12% on the previous year, but is unsure of whether that can be maintained given macro uncertainty.

Rating is upgraded to Overweight. Target price rises 24% to 21c from 17c.

This report was published on August 24, 2022.

Target price is $0.21 Current Price is $0.18 Difference: $0.03
If EVS meets the Wilsons target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.36.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.85.

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

EVT    EVENT HOSPITALITY & ENTERTAINMENT LIMITED

Travel, Leisure & Tourism – Overnight Price: $14.74

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

FY22 earnings beat Jarden's expectations, substantially. Event Hospitality & Entertainment's outlook commentary was positive, the broker asserts, with a strong line up of movies to drive cinema revenue and improving hotel revenue amid record room rates and recovering occupancy levels.

The main issue is cost inflation as well as rising energy prices and higher wages. Despite the bullish outlook, the broker tempers its forecasts. Target rises to $17.42 from $16.33. Overweight rating reiterated.

This report was published on August 23, 2022.

Target price is $17.42 Current Price is $14.74 Difference: $2.68
If EVT meets the Jarden target it will return approximately 18% (excluding dividends, fees and charges).

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

JAN    JANISON EDUCATION GROUP LIMITED

Education & Tuition – Overnight Price: $0.36

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

Pre-announced FY22 results and the outlook by management of Janison Education delivered few surprises for Shaw and Partners and forecasts are left relatively unchanged.

Highlights for the broker included a strong Assessment platform pipeline and direct to parent sales.

The analyst forecasts positive net cash flow for FY23 with estimates for revenue and cash costs fairly similar at around $43m. A strong 1H result has the potential to provide a turning point for the stock, according to Shaw and Partners.

The Buy rating and $0.80 target are maintained.

This report was published on August 23, 2022.

Target price is $0.80 Current Price is $0.36 Difference: $0.44
If JAN meets the Shaw and Partners target it will return approximately 122% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.00.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 180.00.

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

KGN    KOGAN.COM LIMITED

Retailing – Overnight Price: $3.26

Canaccord Genuity rates ((KGN)) as Hold (3) –

The FY22 result was largely pre-released and delivered no material surprises. No FY23 earnings guidance was provided, as expected although Kogan.com expects a return to positive operating leverage as it reduces its expenditure.

Canaccord Genuity remains cautious on Kogan, preferring to wait for the positive revisions to revenue estimates that are expected as operating leverage comes to the fore on the other side of the economic cycle.

The company will also launch a new advertising platform on its marketplace. Hold rating and $4.50 target maintained.

This report was published on August 24, 2022.

Target price is $4.50 Current Price is $3.26 Difference: $1.24
If KGN meets the Canaccord Genuity target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 203.75.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 10.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.96.

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

MAD    MADER GROUP LIMITED

Mining Sector Contracting – Overnight Price: $2.90

Bell Potter rates ((MAD)) as Buy (1) –

Mader Group reported FY22 results which proved largely in line with Bell Potter's expectations.

Management provided a guidance update and expects EPS growth of 27% compared to FY22 with an ongoing increase in the North American minerals services and US energy business.

Bell Potter's earnings forecast for FY23 sits 9% above the lower guidance level. The target is raised to $3.65 from $3.35 after earnings forecast changes.

The Buy rating remains unchanged.

This report was published on August 23, 2022.

Target price is $3.65 Current Price is $2.90 Difference: $0.75
If MAD meets the Bell Potter target it will return approximately 26% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 7.52 cents and EPS of 25.05 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 11.58.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 7.30 cents and EPS of 20.90 cents.
At the last closing share price the estimated dividend yield is 2.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.88.

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

MAH    MACMAHON HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $0.17

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

Macmahon's FY22 result outpaced Canaccord Genuity's forecasts by 5% and the broker expects a $100m positive reversal in the company's free cash flow in FY23.

The broker appreciates the company's growth profile and balance sheet and observes the company is trading -27% below the broker's forecast net tangible assets for FY23. The company holds a $5bn order book and $8.4bn tender pipeline.

Management guides to strong earnings growth in FY23, albeit in a wide band of 4% to 24%, and lower capital expenditure. As a result, the broker lowers depreciation estimates.

Buy rating retained. Target price rises 1c to 26c.

This report was published on August 24, 2022.

Target price is $0.26 Current Price is $0.17 Difference: $0.09
If MAH meets the Canaccord Genuity target it will return approximately 53% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.80 cents and EPS of 3.20 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.31.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.80 cents and EPS of 3.20 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.31.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $4.13

Bell Potter rates ((NAN)) as Downgrade to Sell from Hold (5) –

Nanosonics reported FY22 results in line with guidance of 17% growth on FY21, notes Bell Potter.

Bell Potter adjusts FY23 earnings forecast for higher than expected costs by -26%. FY24 earnings forecasts are largely unchanged.

The rating is downgraded to Sell from Hold with the broker seeing limited upside value from the share price lows, earlier in the year.

The price target remains unchanged at $4.05.

This report was published on August 23, 2022.

Target price is $4.05 Current Price is $4.13 Difference: minus $0.08 (current price is over target).
If NAN meets the Bell Potter target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.11, suggesting downside of -0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 111.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.3, implying annual growth of 4.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 317.7.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 5.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 73.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.8, implying annual growth of 192.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 108.7.

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

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

Nanosonics' FY22 result outpaced consensus and Canaccord Genuity's forecasts, thanks to a beat on gross profit margins and operating expenditure, all struck on a pre-announced beat on capital revenue.

North America was the main source of the beat from a revenue perspective, and cash conversion came in at a solid 109%.

The broker expects the result will be received well by the market given investors' concerns that the transition from GE to a direct sales model would hurt sales – but all's well that ends well.

EPS  forecasts rise. Buy rating retained. Target price inches up to $4.96 from $4.89.

This report was published on August 24, 2022.

Target price is $4.96 Current Price is $4.13 Difference: $0.83
If NAN meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $4.11, suggesting downside of -0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 142.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.3, implying annual growth of 4.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 317.7.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 133.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.8, implying annual growth of 192.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 108.7.

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

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

Nanosonics's FY22 result was largely in line and management guided to a respectable FY23.

Wilson says the bid to take control of the US Capital has paid off, delivering more pricing levers to drive adoption and providing direct access to execute on the 9,000 unit upgrade pipeline and hasten adoption.

Earnings forecasts ease to reflect pressure on gross margins and likely operating expenditure.

Overweight rating retained. Target price falls to $5.50 from $5.

This report was published on August 29, 2022.

Target price is $5.50 Current Price is $4.13 Difference: $1.37
If NAN meets the Wilsons target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $4.11, suggesting downside of -0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 344.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.3, implying annual growth of 4.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 317.7.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 179.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.8, implying annual growth of 192.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 108.7.

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

NCK    NICK SCALI LIMITED

Furniture & Renovation – Overnight Price: $11.19

Jarden rates ((NCK)) as Downgrade to Underweight from Neutral (4) –

FY22 net profit beat Jarden's estimates while sales were -2% lower. Trading was positive in July and Nick Scali indicates this continued into August. The impact of freight costs on gross margins is expected to unwind in the second half.

Deliveries are normalising after lockdowns in China and Vietnam in the fourth quarter, which will underpin first half sales as the order book is converted.

The broker does not consider the stock expensive on a PE basis but with a fixed cost base and a deteriorating macro environment reduces its rating to Underweight from Neutral. Target is lowered to $9.20 from $9.40.

This report was published on August 23, 2022.

Target price is $9.20 Current Price is $11.19 Difference: minus $1.99 (current price is over target).
If NCK meets the Jarden target it will return approximately minus 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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

NHF    NIB HOLDINGS LIMITED

Insurance – Overnight Price: $7.81

Jarden rates ((NHF)) as Neutral (3) –

The 11-12% beat in underlying operating profit compared with Jarden's estimates was partially because of an earlier return to profitability in international inbound health insurance and travel, while stronger underlying net margins in Australian resident health insurance (ARHI) contributed 70% of the upside.

The broker expects underlying net margins in ARHI will remain in the upper end of nib Holdings' 6-7% medium-term target range in FY23. Jarden envisages limited valuation appeal and retains a Neutral rating. Target is raised to $7.50 from $7.00.

This report was published on August 23, 2022.

Target price is $7.50 Current Price is $7.81 Difference: minus $0.31 (current price is over target).
If NHF meets the Jarden target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.73, suggesting downside of -1.0%(ex-dividends)

Forecast for FY23:

Current consensus EPS estimate is 41.5, implying annual growth of 40.2%.
Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 18.8.

Forecast for FY24:

Current consensus EPS estimate is 42.5, implying annual growth of 2.4%.
Current consensus DPS estimate is 27.4, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 18.4.

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

NSR    NATIONAL STORAGE REIT

REITs – Overnight Price: $2.44

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

Jarden believes National Storage REIT can deliver good growth over the medium term. FY23 estimates for earnings per share are 3-4% above guidance and the broker suspects its projections could still prove conservative.

A significant re-set in the cost of debt should be offset by the full year impact of revenue growth in FY22 and the ramp up in non-stabilised assets, as well as acquisitions and developments.

Acknowledging this is "somewhat reflected" in the current valuation, Jarden retains an Overweight rating and reduces the target to $2.70 from $2.75.

This report was published on August 23, 2022.

Target price is $2.70 Current Price is $2.44 Difference: $0.26
If NSR meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $2.39, suggesting downside of -1.9%(ex-dividends)

Forecast for FY23:

Current consensus EPS estimate is 10.9, implying annual growth of -79.1%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 22.4.

Forecast for FY24:

Current consensus EPS estimate is 10.4, implying annual growth of -4.6%.
Current consensus DPS estimate is 10.2, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 23.5.

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

PLS    PILBARA MINERALS LIMITED

New Battery Elements – Overnight Price: $3.49

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

Pilbara Minerals' full year earnings of $815m marked an -8% miss to Canaccord Genuity's forecast $947m, with the broker attributing the miss to lower revenue and higher costs.

Positively, better than expected ramp up at the Ngungaju plant has the company guiding to production of 540-580,000 tonnes in the coming year, compared to Canaccord Genuity's previous forecast of 463,000 tonnes.

Capital expenditure guidance of -$426m was higher than the broker's -$293m.

The broker lifts its FY23 earnings forecast 9% to $2.5bn. The Buy rating is retained and the target price decreases to $4.30 from $4.50.

This report was published on August 23, 2022.

Target price is $4.30 Current Price is $3.49 Difference: $0.81
If PLS meets the Canaccord Genuity target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $3.75, suggesting upside of 7.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 57.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.3, implying annual growth of 217.7%.
Current consensus DPS estimate is 10.4, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 5.8.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 43.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.7, implying annual growth of -17.6%.
Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 7.0.

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

PRN    PERENTI GLOBAL LIMITED

Mining Sector Contracting – Overnight Price: $0.74

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

Perenti Global exceeded guidance, delivering full year earnings of $176m; a 2% beat to Canaccord Genuity's expectations.

The broker notes earnings margins were a highlight, with the Surface and Investment divisions leading a 0.9% recovery in the second half to 7.7%. Earnings margins remain a focus for Perenti Global, which is targeting margins of 10% by FY25.

Looking ahead, the broker notes guidance for the coming year implies growth on the second half of between -3% and 7%. The Buy rating and target price of $0.91 are retained.

This report was published on August 24, 2022.

Target price is $0.91 Current Price is $0.74 Difference: $0.17
If PRN meets the Canaccord Genuity target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 8.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.14.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 11.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.61.

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

SGR    STAR ENTERTAINMENT GROUP LIMITED

Gaming – Overnight Price: $2.78

Jarden rates ((SGR)) as Buy (1) –

Star Entertainment's FY22 operating earnings were slightly below Jarden's expectations.

Key to the result was the June quarter, with growth in domestic revenue above FY19 levels, slot revenue up 28% and non-gaming revenue up 26%. Domestic tables revenue was down -4%.

Yet, there were also a number of compliance-related costs in the quarter which meant operating costs were -$268m, setting a new base going forward. Jarden retains a Buy rating and reduces the target to $3.77 from $3.98.

This report was published on August 23, 2022.

Target price is $3.77 Current Price is $2.78 Difference: $0.99
If SGR meets the Jarden target it will return approximately 36% (excluding dividends, fees and charges).
Current consensus price target is $3.41, suggesting upside of 22.7%(ex-dividends)

Forecast for FY23:

Current consensus EPS estimate is 9.9, implying annual growth of N/A.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 28.1.

Forecast for FY24:

Current consensus EPS estimate is 16.8, implying annual growth of 69.7%.
Current consensus DPS estimate is 12.8, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 16.5.

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

SOM    SOMNOMED LIMITED

Medical Equipment & Devices – Overnight Price: $1.32

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

Wilsons leaves its $2.40 target price and Overweight rating unchanged for SomnoMed following largely pre-announced FY22 results.

Guidance is for ongoing growth across the US, EU and the APAC region, though the fruits of ongoing investment should be realised in FY24 and beyond, following the Rest Assure launch in 2023.

The analyst describes Rest Assure as a game-changing product for the oral appliance therapy (OAT) market. It's estimated the obstructive sleep apnea (OSA) market accounts for over 500m mild severity patients.

SomnoMed just requires a 1-2% share of the OSA market to establish a compelling investment thesis, according to the broker. 

This report was published on August 24, 2022.

Target price is $2.40 Current Price is $1.32 Difference: $1.08
If SOM meets the Wilsons target it will return approximately 82% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.33.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 5.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.76.

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

SSG    SHAVER SHOP GROUP LIMITED

Household & Personal Products – Overnight Price: $1.16

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

FY22 results for Shaver Shop were at the top end of guidance and, according to Shaw and Partners, the company has now delivered eight consecutive strong results since the 1H of FY19. 

No FY23 guidance was issued due to covid uncertainties and seasonal skews.

The broker makes no material changes to forecasts and retains its $1.50 target price and Buy rating. It's felt the share price is extremely cheap and remains significantly undervalued by the market.

This report was published on August 23, 2022.

Target price is $1.50 Current Price is $1.16 Difference: $0.34
If SSG meets the Shaw and Partners target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 10.00 cents and EPS of 12.60 cents.
At the last closing share price the estimated dividend yield is 8.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.21.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 11.00 cents and EPS of 15.90 cents.
At the last closing share price the estimated dividend yield is 9.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.30.

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

SSM    SERVICE STREAM LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.75

Canaccord Genuity rates ((SSM)) as Hold (3) –

Service Stream's FY22 result fell shy of consensus and Canaccord Genuity's forecasts as a -$5m provision against a Utilities contract and lower-than-expected net profit after tax and amortisation figure.

No quantitative guidance was provided.

Earnings (EBITDA) forecasts for FY23 and FY24 fall about -11% and -7%. The broker considers the business to be solid with good cash flow.

Buy rating retained. Target prices falls to $1.10 from $1.25.

This report was published on August 24, 2022.

Target price is $1.10 Current Price is $0.75 Difference: $0.35
If SSM meets the Canaccord Genuity target it will return approximately 47% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 4.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 5.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.71.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 4.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 5.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.33.

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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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.

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